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<br />88- 102289
<br />UNUMM COVENANTS- Borrower and Lender covenant and agree ; follows:
<br />L Payaeat of Priaelpal axuil Ltereft PrepayM"t sad Late Csarlm 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. Facia for Taxes cant Iasiirasee. 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 />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mWP a insurance premiums, if any. Thee 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 />Leader may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />tender 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 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 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 tender, together with the future monthly payments of Funds payable prior to
<br />the due dates of the escrow 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 en. monthly payments of Funds. If the
<br />amount of the Fonds held by Lender is not sufficient to pay the escrow items, when dIIe. Burrower shall pay to tender any
<br />&mount necessary to make up the deficiericy in one or mcre payments as required by Les der.
<br />Upon payment in full of all sum secured by this Security Instrument. Lender `siii g promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Propercy is sold or acquired by F.,ecs der, Leader 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, ners scoured try this Security Instrument.
<br />I Appliatlon of Payments,. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied -rust, to late charges due under the Note; second, toprWayment charges due under the
<br />Note; third, to amounts payable cm Dw paragraph 2; fourth, to interest due, and last, to principal due.
<br />4. Charge; Ueas. Borr-.%rr shall pay all taxe% assessments, charges, fumes and impositions attributable to the
<br />Property which may atcrise priorty.over this Security Instrument. and Ieasehold payments or ground rents, if any.
<br />Borrower shall pay thewabligatnens-an the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them ors time directly to the pem m owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Verrower makes these payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
<br />faith the lien by, or defends against, enfirn-.ement of the lien iQ• legal proceedings which fAt the Lender's opinion operate to
<br />prevent the enforcement of the liens ear forfeiture of any part air the Property; or (c) se=es from the holder of the lien an
<br />aV Ment satisfactory to Under subordinating the lieu to iris Security Inarument. If Lender determines that any pare of
<br />the Property is subject to a Gen 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 er inr cs of the actions set forth above within 10 days
<br />of the giving mf notice.
<br />S. Flared tawrtiwe. Bermwer shall keep the impraidemerts now existing e-r hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hw— anis for which tender
<br />maquires insurance. This insurance _hall b;, swintaimed in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insur.inceshall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to tender and shaD tnIemde a standard mortgage clause.
<br />Lender shall have the right to hcbj• the policies and renewals. If Lender requires, Boirower shall promptly give to tender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Boni ewer shall give prompt notice to the insurance
<br />carrier and Lender. Lender may manta: proofcf toss if not made promptly by C- orrower.
<br />Unless tender and Borrcwnr tilherwiise agree in writing. insurance f;: oceeds be applied to restoration or repair
<br />of the Property damaged, if the reslnrntion or repair is economically feasib . and LaWa's security is not lessened. If the
<br />restoration or repair is not a conamir dly feasible or Lender's security wcxfd be lessened, the insurance proceeds shall be
<br />applied to the sums secured by thiq Security Iaamment, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, cr does not answer within 30 days a notice from Lerner that the insutence carrier has
<br />oFered to settle a claim, then Lender may collect the insurance praceeds. 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 Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthlyr 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 Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property pair 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. PreaMatiM cad BWotaaaace of PropeW Leaseholds. Borrower shall not destroy. damage or substantially
<br />change the Property, allow Ilia 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. Pt»tectiott of Leader's Kiillnts in the Property; Mortps Inuraace. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there isa legal proceeding that may significantly affect
<br />Lender's rights in the Ptoperty (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or
<br />reaulsitious), 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 />instrument. appearing in court, paying reasonable attomeye 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 intere�s{t from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Mower
<br />requesting payment.
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