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19
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<br />89�°• 103936
<br />UNMORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Chases. Borrower .hull promptly pay %litin due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late, charges duo 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 Wt yeearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on thu
<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 at
<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,. urtlasc
<br />Lender 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 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 payinonts of Funds. If the
<br />amount of the Funds held by Lender is not sufficient to pay tht; escrow items when due. Borrower shall- prey 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. If under paragraph 19 the Property is sold on acquined.by Lender, Lender sliall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender.'any Funds held by Leader at the time of
<br />application as acredit against the sums secured by this Security,iustrument.
<br />3. A "Heation 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 pale under paragraph 2; fourth, to interest due; and last, to principal due. .
<br />4. Charges; Lien.. ; Borrower shall pay all, taxes, assessments. charges, fines and impositions. attributable to the
<br />Property which may attain priority. ever 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, Borrower 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 L rider
<br />r=ipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />Sere ft i »--'!t!! °^ !.he r^3y5.':eft! of th=' *.io ituS" by thrYisn in gann�r a��rntahlr to T xttd�r (hl �nntcctc ire Q•txld
<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 enforcement cif the lien or forfeiture of any part of the Property; or (c) secures from the,hcrlder of the lien an
<br />agreement satisfactory ter. Lender suheirdinatine the lien to this Security Instrument. If Lender deterad es that any part of
<br />the Property is subject to a lien 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 or more of the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keels 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,otlier haiaards.for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lei?.der requires. The
<br />insurance carrier providing the insurance shall be chosen by W.rrower 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 mortgao clause.
<br />Lender shall have the ri&-to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renew•at notices. -In the event of loss, Borrower shall give prompt notice to the insurance
<br />earrierand Leader. Lender may make proaf of toss if not made promptly by Borrower.
<br />Untess Lender and Borrower otherwise agree in writing. insurance proceeds shall beapplied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lenders 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 />t TnIms 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 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 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 Maintenance 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; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce 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 hen which has priority aver this Security
<br />Instrument. appearing to court. paying reasonable attorneys' fee-. and entenng on the Property to make repairs Although
<br />Lender may take action under this paragraph 7. Lender does not have to do -.o.
<br />Any amountsdtsburwd by Lender under this paragraph 7 shall become additional debt of liorro%, er secured by this
<br />Security Instrument Unless Borrower and Lender agree to other terms ,•f payment, these amounts shalt hear interest from
<br />the date of disbursement at the Notc rate and shall he payable, with interest. upt•n nrllre frorn Lender to Borrower
<br />reyurstrng payment
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