|
F
<br />7
<br />89-- 10402tf
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Parrasat at Prladpal aael Interest; PraMyttttettt and 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. Fuwtis h r Tascsa and Imniraaee. 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 flail, a sum ( "Funds ") equal to
<br />one 4wel th of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />Iweisold payments or ground rents on the Property, if any; (e) yearly hazard insurance premiums; and (d) yearly
<br />Watgttge irouranm premiums, if any. These iteen)s are called "escrow items." Lender may estimate the Funds due on the
<br />bask of e:urrent data and ressonable estimates of lirture escrow items.
<br />Tito Funds sUH be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agatcy (including Leader if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Leardsr may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Leander pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Leader 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 />sWl give to Borrower, witho4 charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debtththe Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instnment.
<br />If tee amount unt of the kuids held by Lender, together with the fixture monthly payments of Funds payable prior to
<br />the due data of the escrow itrnns, shall exceed the amount required to pay the escrow items when due, the excess shall: be,
<br />at Borrower's option, either pe^ mpdy repaid to Borrower or credited to Borrower on monthly payments of Funds. V Glee
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when n due, Borrower shall M tsL;endeti sxry
<br />amount recess aq to make up the deficiency in one or more payments as requiftd bx harder.
<br />Upotr 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 paraggaph.19 the Property is sold or acquired by Lender,1gender, shall apply, no-lat!=
<br />than immediatidi Dior to the sale of the Prrgmly or its acquisition by Lender, any Funds W by Lender at.the rime of
<br />applica*a ss':r crtdit against the sutras secured by this Stvurity Instrument.
<br />�a Apgiieadm of Pgncstrt. Unless applicable law provides otherwise, all payments soceived by Lender under
<br />paragraphs' 1 and- 2 shall be applied: first, to late charges due under the Note; second, to prepoym, a rat charges due under the
<br />Note; thir4 to kttro wts payable under paragraph 2; fourth, to interest due; and last, to princi* due.
<br />g. Glaegeet Bear• Borrower shall pay an taxes, assessments. charges, Ones and frarr�ositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leawhd d payinemts or ground rents, if any.
<br />Borrower shall pay these obli pt •ions in the manner provided in paragraph 2, or ifMX, paid in that manner, Borrower shall
<br />i.
<br />pay than on time directly to the person owed payment. Borrower shall promptly furnish t Linder all notices of amounts.
<br />to be paid under Wit paragraph. If Borrawrer makes these payments directly. Borrower shiU pwmpdy furnish to Lender;
<br />f =-
<br />receipts evidencix g,the payments.
<br />Borrower sfptil promptly discharge any lien which has priority over this Security instrument t<nje% Rmew l
<br />-
<br />svx= in writing to the psymxzet 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 enfaerement of the lien or forfeiture of any put 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 I- ewdlee* dee!er iftles that any
<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 enf`the.actions set forth above within 10 days
<br />of the giving of notice.
<br />S, Elasard Iaaturaaee. Borrower shalt keep 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 other hazards for 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 chasers by Borrower subject to Lender's approval which shall not be
<br />unreisombly 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 hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender
<br />_
<br />all roxipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carr sec and L ender. Lender may make proof of loss if not made promptly by Borrower.
<br />—_
<br />Unless Leander and Borrower otherwise sgree 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 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 />ofe ed- to settle a claim, them Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the property or to pay sums secured by tins Security Instrument, whether or not then due. The 30-day period will begin
<br />when the notice is given.
<br />Unless Leader 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'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 />f. Preaervatioa sad Mafateaaaee of Property; Leareboldr. 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 kale. 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. Protecting of ImWer's Rights im the Phiperty; Mortgage Iasurame. If Borrower fails to perform the
<br />covenants and agr=ments 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 Gender 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 lien which has priority o%er this Security -
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to matte repatrs AIthough
<br />Lender
<br />may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Harrower secured by this
<br />Secunty Instrument Unless Borrower and Lender agree to other terms of payment. these amount,, shall hear interest from
<br />the date of disbursement at the Note rate be
<br />*•
<br />and shall payable, with interest. 1JIXm n(,tice from l :racier r;• Por r. -%%er
<br />requesting payment.
<br />r'
<br />ti.
<br />
|