|
1
<br />90-- -10 5'7 4 C
<br />UNIKWM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Paytaeat of Principal sad laterast; Prepayttiteat sad Late Charges. 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. Fatstila tar Tara saW Imttrsacs. 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 />1 one- twelfth of-. (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or grouted 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 estunate the Funds due on the
<br />basis of eurrent 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 />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge Borrower and
<br />Loader 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 />Shah 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 />"Security Instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments vru Funds parable 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 Boirrowees 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 ws 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. 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 />paragraphs I 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. Cbarges; Liens. Borrower shall pay all taxes, assessments, charges, tunes and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and lea%chvold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paraftr;:tph 2, or if not paid in than manner, Borrower shall
<br />pay them on time di:>`ctly to the person owed payment. Borrower Aml� promptly furnish to Leea�:r 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 />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 enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />i prevent the enfomment 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 determines sha! sea%• part of
<br />the Prk,- eny is subject to a lien which may attain priont'v over this Security Imm.ument, Lender may gio.e Dorrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of tht actions sit forth above within 10 clay
<br />of the giving of notice.
<br />S. Hazard Iasurance. Borrower shall keep the improvements now existing tit hereafter erected on the Property
<br />1 insured against loss by fire. hazards included within the ten.m "extended coverage" and any other hazards for which Lender
<br />t' requires insurance. This insurance shall be maintainead if: the amounts and for the periods that Lender ,equires. 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 freed the policies and renewals. If Lender requires. Borrower shall prompd) lave to Lender
<br />all receipts of paid premiums awi renewal notices. In the event of loss. Borrower Kh ;dt give prompt notice to ehe insurance
<br />carrier and Lender. Lender may make proof 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 le :tined. 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 oaRect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by reds Security Instrument, whether or not then due The 30-day period will begra
<br />when the notice is given.
<br />Unless Lender and Borrow er otherwise agree in vi ruing, any application of pn;.cceds to principal sbAL1 not extend or
<br />postpone the due date of the marnrhly payments referred to in Paragraphs I and 2 usy :aunae the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to an) insurance p,:,:ac% and proceeds resulting
<br />from damage ri. the Property prior to the aequtsitMOn shall pass to lender its the extent of the s,:m secured by this Security
<br />Instrument immediately pnur to the acquisition.
<br />6. Preservation aid Maintenance of Property; Leaseholds. &orruwrr shill mn de,t rot), darna�• n vuhstanhath
<br />change the Property, allow the Property to detera-sratoe or commit waste If this Secunry Instrument -s on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title its the Propert), the ieasrhold 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; Motrt;pge Insurance. If Borrower faik tit perform the
<br />covenants and agreement% contained in this Security Instrument, or there I% a legal priwteding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in banhrupic), probate. for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessar) to protect the s alue of the Propert% and I ender', right%
<br />in the Property. Lender's actions may include paying any sums secured h) a Iten w htch ha. prtunt) user this Securit%
<br />Instrument, appearing to court, paying reaminableAttorneys' fees and entering on the Prop<rt) to male repays Although
<br />Lender may take Action under thii- paragraph 7. Lender don- nut hats to do so
<br />An) amountsdtshurscd h) lender under this paragraph 7 shall hecome:ulduionaldebt of Nnrrtmei %c, urcd h% tht%
<br />Securty Instrument unless IIUrrOwtr and Lender agree it%other teens of paymcm. Thew amounts %hall hc•.0 timers %t fro-III
<br />the date of disbursement at the Note rate and ♦hall he pitiable. with mien•.t 1114•11 n.Vh,r tt.•nr I rn,hr I., 11"rw%%t -r
<br />requesting payment
<br />al
<br />
|