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<br />UNIFORM COrt:NANIS Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and interest; Prepayment and Late Oarges. 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 far 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 full, 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 />leasehold payments or ground rents on the Properly, if any; (c) yearly hazard iasur nce 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 cutrent 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 Harrower. 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 />thisSecurity 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 payrnernts of Funds. if the
<br />amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall Tray to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lendzn;.
<br />Upon payment in full of alC "errs secured by this Security Instrument. Lender shall promptly refund w, Ri7crower
<br />any Funds held by Lender. If under paragraph 19• the Property is sold or acquired by Lender. Lender cQeat1P, app1%. rea later
<br />than immediately prior to the salty of the FroNrty or its acquisition by U=Jer, any Funds held by L Qndv4 at t;,:e t�= of
<br />application as a credit against the: sruns secured by this Security Instrument.
<br />& Application of Psymetrrz6 Unless applicable law provides otherwise. all payments received by Lender router
<br />paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due unt9v- the
<br />Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. Charge% lUem. 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 writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, lire) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lenders opinion operate to
<br />prevent the enforcement 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 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. Hazard Insurance. Borrower shall 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 chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably 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 II :ndtr
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier 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 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:'= -swer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collet die insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this S&.urity 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 />pes4—,one 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 IQ• the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from 6niage to the Property prior to the acquk Lion shall pass to Lender to the extent of the sums secu -eti by this Security
<br />lastrtuaent immediately prior to the acquisition.
<br />Or". Preservation and :t2i$ hinmanae ef FtripaTy; Leaseholds. Borrower shall not- destroy. daimige or substantially
<br />ch=V the Property, allow the Fnq-eny. ro• '(iw%rtorate or coinrnit waste. If this SL unty tnetrument is on a leasehold.
<br />Borrower shall comply with the and if Borrower acquires fee title r(� the Or'npirty, the leasehold and
<br />fee title shall not merge unless Lea& ' xgre to Ow merger in writing.
<br />7. Protection of Lender's RUghts fir lire Property; Mortgage insurance. if Borrower flails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that maynienificantly affect
<br />Lender's rights in the Property Ouih as a proceeding in bankruptcy, probate. for condemnation or it) enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lenders 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 by this
<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 he payable, with tnterest, upon notice from Lender to Borrower
<br />requesting payment.
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