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<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows. 1 . ""`' 102803
<br />1. Payment of Principal and interest; Prepayment and Late Charges. Borrower shall promptly pity when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charge% 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 />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 "e€e:rgw 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 u 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 />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Len(tff 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 Ove 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 />thiisSmurity Instrument.
<br />If the amount of the Funds held by Lender, 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 es+ rvw items when due. the excess shall W,
<br />at Borrower's option. either promptly repaid to Borrower or credited to Borrower Qtr. monthly payments of Funds. if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when dktc, Borrower shall pr,>s; to. Lender any
<br />arimunct necessary to make ulp Rhe deficiency in one or It vm payments as required) try $:ender.
<br />Upon pag;ma at. in fast of all sums secured by this Security Instrument, i e;Jer shall Franz fatly ret"t ifd to Harrower
<br />any Funds held bt Lander. If under paragraph 19 the Property is s,,0 s r acquired by Lender; Lamler-kb4l. apply, no later
<br />than immediatityy prior to the sale of the Property or its acquisitiom. Ny Lender„ b.y Funds he:d try ti er at the time of
<br />application as a ci : it against the sums secured by this Security instrument. ...
<br />3. Applleation of Payineats. Unless applicable law provides otherwise; -all payments receiveii y;iender under
<br />paragraphs Land 2 shall be applied: first, to late charges due under Ohm dote; second. to prepayment charge9 due under the
<br />Note; third, toawunts payable under paragraph 2; fourth. to interest due; and last. to principal due,
<br />4. Charps; Leas. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to'the
<br />Property-which'may attain priority over this Securef Instrument, and leasehold payments or grounds rents, if any.
<br />Borrower shall pay these obligations in the manner prczj;i&dd in paragraph 2. or if not paid in that manner.. %grower shall
<br />paj- them on timedirectly to the person owed payment. Baff' ow& QW1 promptly furnish to Lender all not' oEacr^ +cams
<br />to be paid under this paragraph. if Borrower makes these payments. directly, Borrower shall promptly furnish to Lea&7
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument, it;tEess Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Le.adm ('< P,,titests in good
<br />A—h—h to iien by, or defend- ;a„irst - rdo.wmcn. ; of the licit ia. 11;58S yrti2icutugs wliiLh in operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property. or (c) secures fre m ehe holder of the lien an
<br />agreement satisfactory to L --der subordinating the lien to this Security Instrument. If U- ndereAciermines that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender m" give Borrower a
<br />notice identifying the lien. &- trrower shall satisfy the Gen or take one or more of the actions set forth ateve•within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This 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 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, Borrwwv w shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by &,rruwer.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reskelration 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 this 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 Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend or
<br />postpone the due date of the.nwnthty payments raferre-d.to in paragraphs l and 2 or change the amount of the payments: If
<br />tita n paragraph 19 the PropciU- is acquired by Lender;. Borrower's right to any insurance policies and proceeds resulting
<br />frortmdamage to the Property prior to the acquisition slirall•pass to Lender to the extent of the sums secured by this Security
<br />instrument immediately pributo the acquisition.
<br />b. Preservation and Maintenaatt:+eof Property; Leaseholds. Borrower shall not destroy, damage or %ubstanitally
<br />change the Property, allow rfrc 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 Leader's Rights in the Property; Mortmae Insurance. if Borrower fair to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal prnxeedtng that may significantly affect
<br />lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce law% (Ir
<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 action% may include paying any sums secured by a lien which has pnonry over this Securrt%
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make tepmr% Although
<br />Lender may take action under this Iaragraph 7. Lender does not have to do %o
<br />Any amounm disbursed by Lender under this paragraph? %hall became addiii- mal debt of Hot rimer secured hr chi%
<br />Securityin%trument Unlc%% liarrower and Lender agree to other term ,. ofpavmeni. thew aini�unt%%hallhrarmtric•.tfrimt
<br />the date of di%bur%ement at the Note rate and 0,41 he payahle. %%tth tntcrc%t. upon mwu.r tiim, I rider to Hoyro%%c-r
<br />reque%ting pa%memt
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