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F t - .I
<br />89-- 103999
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. F'uads 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 date under the Note, until the Note is paid in full, a sum ( "Funds ") equal to
<br />one - twelfth of (a) yearly tuxes and assessments which may attain priority over this Security Instrument: (b) yearly
<br />kawhold 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 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 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 Borrow ees 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. 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 />& Application of Payments. Unless applicable law provides otnerwise. 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, toannounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />6. CbuVw Iaas.. 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, 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 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 waiting 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 />prevent the enforcement of the liener forfeiture of any part of the Property; or (c) secures from the holder of the lien an
<br />asre4*-?nt satkfhe -tefy to F wnAnrsubo!dira�ing *.h- ; =� t to t.hi! c..- ^'_!ity Instrument. If Lender determin- -1h2! -ny part of
<br />flue Property is subject to a lien: whbch may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifyfng the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />of the plying of 'notice.
<br />6..1114sasd Insunuice. Borrower shall keep the improvements now existing or heriafter erected on the Property
<br />insured agami t loss by fire, hazards included within the term "extended coverage" and any btfier hazards for which Lender
<br />t Wres insurance. This insurance shall be maintained in the amounts and for the periods that Lewder requires. The
<br />insurance. carrier, providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably vsithheeid.
<br />All %sari= policies and reacwtals shall be acceptahia io Lender and shall include a standard mortgage. clause.
<br />Leader shall have the ri h.t to hold the'policies and renewals..If 1,= der recloires, Borrower shall promptly give to Lender
<br />a4 receipts of paid premiums and renewal notices. In the event:•oilom. Borrower shall give prompt notccaie to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borroweroijherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged, if the r;ttn' ration or repair is economically feasible and Lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lenders 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 sdxiea claim, then Lender May collect the insurance- proceeds. Lender may use the.procec& to repair or restore
<br />the Property or to pay sums secured by this Security Instrumeni; whether or not then dtee: fht' 3d-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 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. Ptresetnation and :Maintenance of ProperW 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. Pirottetion of Leader'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 whate%er 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 prionty o%cr 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%c to do so
<br />Any amounts disbursed by lender under this paragraph' shall ticcnme additional debt i•f liormwer act ured by this
<br />Security Instrument. Unless itncrower and Lender agree to other terrris of p.i% mcni. tliese amounts shall bear interest from
<br />the date of disbutsernent at the Note rate and shall he p.nahle. with ieterest. upon twit.•e from Lender t.. Horrower
<br />requesting payment
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<br />1-91
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