|
I
<br />9o--1 O 5 8 4 3
<br />UNIFORM COVBNAM'S. Borrower and Lender covenant and agree as follows:
<br />1. Payosnt of Principal and Interest; Prepayment ad 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. 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 (tall. 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 />leaaehold 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 ofeurrent 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 />estate agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lander may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Dander 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 />regttires 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 />j "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 data 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 snake 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 bj 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 />;
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />;
<br />4. Charges; Liens. 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 />I ;
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Le11der all notices of amounts
<br />L
<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 />-
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />t
<br />agaves in writing to the payment of the obligation secured by the hen in a manner acceptable to Lender; (b) contests in gad
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />t
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) sec.:res 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 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. Haxi rd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured agaistst liras by fire. hazards included within the term "extended coverage" and any other hazards for which Lender
<br />-
<br />kegaiires insurance. This insursace shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the assurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />4mmatsonably withheld.
<br />w
<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 hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and In the event of loss. Borrower shall give prompt notice to the insurance
<br />carder 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 1he.Property damaged, if the restoration or repair is economically feasible and Leader s security is not lessened. If the
<br />restoration c. repair is not eccnornic2M.- hraihle or Lender's se. -- .ty would Iw !awned, the insurance proceeds shall be
<br />applied to the sums secured by this Secuncy Instrument. whtther or not then due. with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer ear othin 30 days a notice from Lender that the insurance carrier has
<br />ufFea+od 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 doe 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 I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower'% 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 +ums secured by this So -unty
<br />Instrument immediately prior to the acquisition
<br />` - -- -
<br />i. Preservation and Malateasnee of Property; Lesseholds. 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. Proteetisu of Leader's Rights is the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Secunty Instrument. sir there is a legal prrl mlmg that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnatian or to enforce laws (it
<br />L regulations), then Lender may do and pay for whatever is necessary to protect the %slue of the Property and Lender% nghts
<br />in the Property. Lender's actions may Include paying any .ums secured by a lien whit.h has prom% o%er this Serum)
<br />Instrument, appeanng in court, paying reasonable attorney-' fees and entering on the Propert% it, make repairs Although
<br />to
<br />Lender may take action under this paragraph 7, 1 ender doe+ nut hale to do tar
<br />Any amounts disbursed by Lender under this paragraph 7 %hall (kYotne addition it debt ,it Nivrower seti ured by ihi%
<br />Security Instrument Unless Bommer and I ender agree to tat her term% of pa%inew. i hew anioutw. %hall hear Interest from
<br />the Bate of i1 butve111e111 At the \oir rate ind %hall he p.i--at+lc- with uilcrr.i. njwm lwii, r iiim, I cn.ici i., M,rro%rr
<br />requesting payment
<br />
|