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<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 09— 104090
<br />1. Payment of Priselpal and Interest; Prepayment 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 />Z, Fmide for Tatter sad Iaaarism. Subject to applicable law or to a written waiver by Lender, Borrower shall pay
<br />Lender
<br />to on the day monthly payments are due under the Note, until the Note is paid in flrll. a sum ("Funds") equal to
<br />ore- twelfth of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leaxhaad payments or around 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 ofcurrent 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 alloncy (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 />chap 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 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 Larder. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />than immedititefy prior to the sale of the Property'or its acquisition by Lender, any Funds held by Lender at the time of
<br />application ass credit against the sums secured by this Security Instrument.
<br />3. Appiliodke of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 and, 2 shalt be applied: fitsC,; bee late charges due under the Note; second, to prepayment charges due under the
<br />Notary third, to ssntadiunts pagalfk under paragraph 2; fourth, to immm due; and last, to principal due.
<br />4 CharM Lima. 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.
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<br />Borrower shall pay these oMptions in the meaner provided in. paragraph 2, or if not paid in that manner. Borrower shall
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<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
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<br />to be paid under this paragraph. If Borrower makes these paytt em directly, Borrower shall promptly furnish. to Lender
<br />Borrower shall promptly discharge any lie which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good
<br />faith the lief by, or defends against enforcement of the lien im legal proccedinp which in the Lender's minion operate to
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<br />prevent the eaRiecemert of 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 whic>b may attain priority over this Security Instruments, Lender may give Borrower a
<br />no(ice identifying the lien. Borrower shaft satisfy the lien or take one or monk of the actions set forth above within 10 days
<br />of tlbe giving of notice.
<br />S. Has ird Inntraace. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured ageiasrioss 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 chosen by Borrower subject to Lender's approval which shall not be
<br />unttmsonably withheld.
<br />All imtrraaoe 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. Nmender requires, Borrower shall promptly give to Lender
<br />all ape of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
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<br />canner and Lender. Letndes may make proof of loss if not made promptly by Borrower.
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<br />Unless Larder and Borrower otherwise agree 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 />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 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. P"Omvatioa NW Mainte•amm of ProperW Lea WwWIs. Borrower shall not destroy, damage or substantially
<br />'change
<br />the Property, allow the Property to deteriorate or commit waste. if this Security Instrument is on a leasehold,
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<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. Proteetioa of Leader's Rights 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 />Larder'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 y-a lien which has priority over this Security
<br />Instrument.
<br />appearing in court, paying reasonable ataorneys' 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 by this
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<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
<br />requesting payment.
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