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<br />89- 1.03162
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows-
<br />1. Psysent of Prindpal acrd Intert~ah Prepayment and Late Chu vs. 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. Fanda for Taxes and l asurance. 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 />iortgage insurance premiums, if any. These items arc called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable eatimates 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 />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender tray 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 arc 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 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 on monthly payments of 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 sums secured.. by this Security Instrument, Leader shall promptly refund td 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 tender at the time of
<br />application; a4 a credit against the sums secured by this Security Instrument.
<br />3..Ajtplication of Psywests. Unless applicable taw provides otherwise, all payments received by Lender under
<br />paragraphs hand 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, •t 6hriterest due; and last, to principal due.
<br />4. Ckaries; Liens. Borrower shall pay all taxes„ asseWments, charges, fines and impositions attribut able to the
<br />Property' which may attain priority over this Security Insttramment, and leasehold poments or ground m nt% if any.
<br />Borrower shall pay these obligations in the manner provided• iii paragraph •2,• or if not paid in that manner. Buriv:er shall
<br />pay them on time directly to the person owed paFment. Borrower "I promptly furnish to Lenders all notices of amounts
<br />to be paid under this paragraph. if Borrower makes these payments directtly, Borrower shah pt+i wptly, 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 accepts_ ble to Lender; (b) contests in good
<br />faith the iienby, or defends sgaipm enforcement or the Lien tit, 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 (e)-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 />the Property is subject to a lien which may attain priority over this Security Instmment, Lender may give - Bormwer a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the meteors set forth above w #hirt b da)i
<br />of the giving of notice.
<br />.. Sr Hared leswance. Borrower shall keep the improvements now existing or hereafter emted on the Property
<br />insu"de igainst loss by fire. hazards included within the t*a- "extended coverage" and-any other haWds for whscb Lender
<br />c+equires insurance. This insurance shall• be maintained in: the amounts and for the periods that Lender requires. The
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<br />msiumce carrier providing the insurance shal be chosen 0y 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 />Lmder.shall have the right to hold the policies and renew9s~ If Lender requires. Borrower shall promptly; give to Lender
<br />all, receipts of paid premiums and renewal notices. in the e`�mr of loss, Borrower shalt give prompt notie� co'the insurance
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<br />carrieir and Lender. Lender may make proof of loss if not-ni c& promptly by Borrower.
<br />Vaiiess Lender and Borrower otherwise agree in writisig„ insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is ewnomicaIly feasible and Lender's security is not lessened. If the
<br />restoratioiz or repair is not economically feasible or Lendees security would be lessened, the insiinar= proceeds shall be
<br />applied: to the sums secured by this Security instrument. wf>xther or not then due, with any excess paid to•'Oarrower. 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 monthly payments referred to in paragraphs f 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 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. Presmation and Maiateaance 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. PnKeetion of Leader's Rights in tiro Property; Mortgage Insurance. if Borro,ec fails ca. N. rform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding than er'a 'signifte:antly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enObrce 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 hits priority over this Security
<br />instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Althauglt
<br />Lender may take action under this paragraph 7. Leader does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt .if 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 use payable, with interest. upon notice from:.i.ender to Borrower
<br />requesting payment
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