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<br />89- 101458
<br />UNIFORM COVEN ►?M. Borrower and Lender covenant and agree as follows:
<br />f. _Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note:
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />[— one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />i leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or .
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items,.;
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless,
<br />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable low
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender.
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prionto
<br />the due datts of the escrow items, shall exceed the amount required to pay the escrow items whm due, the excess shat@ be,.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly peg =eats of Funds. If the
<br />amount ai5 the Funds held by Lender is not sufficient to pmy rite escrow items when due, Borrower shall pay w L=der;any
<br />amouttr, mec ssary to make up the deficiency in one or morc,T Ayments as required by Lender.
<br />_ paym=t in full of all sums secured by this Security Instrument, Lender shall promptly refund .o Boroxer
<br />any Fun`s Vender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, na latex
<br />than ima.ta:e: prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />applicatE� as a credit against the sums secured by this Sec ity Instrument.
<br />S ;:application of Payments. Unless applicablr.4w provides otherwise, aD payments received by Lender,under
<br />paragta#3 .bs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal du P
<br />4- Chargm 1t13ens. Borrower shaB pay all taxes, assessments, charges, fines and imp —nons attsihx= able to the
<br />Propel �c�1 attain priority over this Security Instrument, and leasehold payments or grow- cera�s,.if any.
<br />Borrower X91 pay t1hase obligations in the manner prow. d6d in paragraph 2, or if not paid in that manner. Borrower shall
<br />pay them on'. me dim z ly to the person owed payment. Sm=_wer strait promptly furnish to Lender all noti: m of amounts
<br />to be paid under this paragraph. If Borrower makes these pa zmerts diectly. Borrower shall promptly furnish;,to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly, d scharge any lien which bms priority over this S evirity Instrument unless Borrower: (a)
<br />agrees bi writing to the payment c-C ne obligation secured, it -y- the lien in a manner acceptable to Lender; (b) contests in good
<br />faith the lien by, or defends agai;-_s enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeta= of any part of the Property, or (c) secures from the holder :of -the lien an
<br />agreement satisfactory to Lender subordinating the lien to.this Security Instrument. If Lender determines that any part of
<br />tit: ft,, erty is subject to a lies which may attain prior' over this Security Instrument, Lender may O6 a Borrower a
<br />notice Zintifying the lien. Bor.mwter shall satisfy the lien ce rake one or more of the actions set forth above within 10 days
<br />of the g.4z.,g of notice.
<br />F. Hiizard l'a vranm Borrower shall keep the improvements now existing or hereafter erected on tL: la: open
<br />insured ryainst losslry 6ne, ha: girds included within the tern "extended coverage" and any other hazards for I.tn6w
<br />requim- insurance. This insrji== shall be maintained in the amounts and for the periods that Lender ru es: The
<br />inert n:e carrier providing rim insurance shall be chosen by Borrower subject tc E,er,.dees approval which s> rall not be
<br />unremonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Bomwer otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration nr repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether ar not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurz= carrier has
<br />offered to settle a claim, then Lender may collect the insurance proeoads. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will be&
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone ahe due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Linder. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to tine Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the property (such as a proceeding in bankruptcy. probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Property. Lender's actions may. include paying any sums secured by a lien which has priority over this Security
<br />L Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to. make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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