|
AM
<br />rORM;COV9N,A,1V'M',"�r'v.)'
<br />UM
<br />rroweraid tendefr:ci at agree as
<br />vo
<br />I. Payment of Prindpal.and Tat "elmyrneat and Late: Chitrgei� when due
<br />theprinc;palofandintercuonthed66t er� Promptly Pay
<br />enced by'the No'lleand any and laite'charges due under the Note.
<br />2. Funds forTaxes and Ilua, *ice. -Subject io applicable 1it i W*ortou written Waiver by Lender, Borrower shall puy
<br />to Lender on the day monthly payments are due under the Note, N
<br />until thi ote is paid III full. It sum•(-Funds") equal to
<br />one-MvIAh of: (a) yearly taxes and assessments which' may attain priority over this Security Instrument; (b) yearly
<br />leasehold payintrits 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 shalt apply the Funds to pay the escrow items.
<br />Lender may not charge holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pay,, Borrower interest on the Funds and applicable law Perm-' is 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 law
<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 orthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Fund-, 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'.!ieW by Lender, together with the future monthly payments or Funds"peable prior to
<br />the due dates of the escro• items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments or Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all slims secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragrap 5 1 and 2 shall be applied: first, to late charges due under the Note; second, *0 prepayment charges due under the
<br />Note; third, to zzmounts payable under paragraph 2: fourth, to interest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or irnrt paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly famish to Lender
<br />receipts evidencing the payments.
<br />Borrower -hall promptly discharge any lien which has Priority over this Security Instrument unies4orrower: (a)
<br />agrees in writing to the payment of the obligation secured by ' lien ill a manner acceptable to Lender; (b) con "�ts in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture 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 determii,,es that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth ahr,ve within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, ha7,irds included within the term "extended coverage" and any other hazards for which Lender
<br />requires, insurance. "Phis insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renew;ds shall he acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the r Aicie—s 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 PI-00f of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or 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 'his Security Instrument, whether or 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 insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. 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 begin
<br />when the notice is given.
<br />Unless Leveler and Borrower other wise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the rrontlily payments referred to in paragraphs I and 2 or change the amount of the payments. U
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent or 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 Securitv 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), ther, Lender mail 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 />Instrument, appearing in court, paving reasonable attorneys' fees and entering on the Property to make repairs. Although
<br />Lender may take action under this 'paragraph 7, Lender doe's 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. -
<br />
|