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89 i04035
<br />UNIFORM COVENANi'S. Harrower and Lender covenant and agree as follows:
<br />1. Payment of Principal #card Interest: Prepayment and Late Champ. 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. Fumde for Taxts sad lasuranee. 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
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<br />one-twelfth of. (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />Ienehold payments or ground rents an the Property, if any; (c) yearly hazard insurance premiums; and (d) ytarty
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis ofeurmt 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 SecurityInstrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the dote 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 Bomwer 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 defickncy 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 Leader. If under paragraph 19 the PropertyAt sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to,theUle 4A.tb* Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />sipplioxtionasacroetiiitaga=' ttbg iurm ssecuredbythisSecurityInstnnnent.
<br />3. AptHeation of Payments.- Unless applicable law pro%ides otherwise, all payments received by Lender under
<br />paragraphs I acid 2 s#iald t�-- applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, tounounts payable under paragraph 2; fourth, to interest dqe; and last, to principal due.
<br />4. Cbar$w Liens. Borrower shall pay . all taxes, assesatnents, charges, fines and impositions attributable to the
<br />Property which may attain priority.o -wa this Sbeurity Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations its the manw provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them od time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />be paid under this paragraph. If Borrower makes these payments directly. Borrower, shall promptly firmish to -Lender
<br />.veceipts evidencing the payn=ts.
<br />Borrower shall praaeptly disgitarge any lien which has priority over this Security Instrument unless Borrower. (a)
<br />_ aptes in wr*ito the 6awrieniof fire olhligation secured by thr_..lien in ,..nuance �!eeM+tAbls to Lender,
<br />faith the lien' by, or Met* .cnforoanent of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent the enforcement afE 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 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. Hasid hwursoce. Borrower shall kacp the improvements now existing or hereafter emted on the Property
<br />insured against loss by fire, hazards incltt W'witl -mahe term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance. shalt Ere mairiiainod in the amounis and' for the periods that Lender requires. The
<br />insurance carrier providing the msumn'oe shall be chosen by Borrower stibject to Lenders approval which sW10ot be
<br />unreasonably withheld. ;
<br />All insurance potiefas and renewals shall be acceptable to Lender arid. shall ineWde a standee¢ mortgage clause.
<br />Lender shall have the rigs ;t6.hold the policies and renewals. If Lender requires, Borrower shall promoly give to Lender
<br />lira receipts of paid prcmiutiss and reni;s al notices. In the event of loss, Borrower shall give prompt notice to the.insurance
<br />cannier and Leader. Lender may make pr oof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to sesretation 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 />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 />Unless Lender and Borrower othera,�ise 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. Proweratiots OW Maiatenow of Pro". Leneiolds. 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• Protettios of Leaders Ruts is 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 />replations). then i.ender 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 over 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 have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured b) this
<br />Secunly instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear intetest from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon nonce from Lender to Borrower
<br />requesting# payment.
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