|
F.
<br />In-
<br />UNiVORM COVENANTS Borrower and Lender covenant and agree as follows: 89-°a 103675
<br />I. p4ment of Principal and interest; Prepayment and Late Charges. Borrower shall promptly pay when du:
<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 ton 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 acssments 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 "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, aWW the Funds to pay the escrow items.
<br />Lender may not charge farshr}lYJi�sg. rind applying the Funds, analyzing the accdr4; or verifying the escrow items, unless
<br />Lender pays Borrower tnte(fg� the FU�rtds and applicable law permits Lender to make such a charge. Borrower and
<br />Lertder may agree in writfrr t)sat 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 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, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. U 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 />paragraphs 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 due.
<br />4. Charges; Liees. 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 if not paid in that manner. Burrower 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 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 />aged in writing to the payment of the obligation secureei ay tnc iiebte ifr za t�tst-tii�t a:.:. �.»bha to'..: na.�P °`; �j'�`— '�`�ttn in nvtxui
<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 enforctent of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />ancement satisfactory: to Lamer subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Property is subject to a &= which may attain priority over this Sxuriti tnstrumcrtt, axuuer :tta� giYC i3r:awer a
<br />notice identifying the lien. Bcrrcaw&stWI satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance.. i3arrc*ater shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, wards included within the term "extended coverage" and any other hazai'dsfor 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 Lenders 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 in hold the policies and renewals. if Lender requires, Borrower Shull promptly give to Lender
<br />all receipts of paid premium i and renewal notices. in the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Leader may make proof of loss if riot made promptly by Borrower.
<br />Unless Len&r and Borrower otherwise agree in writing, insurance proceeds shall he 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 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 nettle 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 Burrower otherwise agree in writing, any application ofproceeds to principal shall not extend or
<br />postpone the 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 Lender. Borrowers 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. Preservation and Maintettaace 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; %, IGTtpytge Insurance. if Borrower fails to perform the
<br />covenants and agreements; 4vntaincd in this Security° instrument, or there is a legal proceeding that may significantly affect
<br />"Lender's rights in the Property (suei5;ps•a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations);. then Lender may do and,puy for whatever is necessary to protect the value of the Property and Lender's rights
<br />in the Propprty,. 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 attorneys fees and entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7, Lender does not ha%e to do so.
<br />Any amount; disbursed by Lender under this paragraph.-7;hall become additional debt of Hotruwer secured by this
<br />Security Instrument Unless Berri ?wcr and Lender agree to other terms (if pay meat, these amount. %hall bear interest from
<br />the date of dishursetnent at the No:c rate avid shall he payable. with rntcrc,t. urion moue; from i muter to ljorrosser
<br />rrquecting p.quient
<br />It
<br />rr
<br />
|