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g� 10560.5
<br />UNIFORM COVENANTS. Borrower and Lender covet Iannde agree as folio over shall promptly pay when due
<br />1. Payaaetet or Primilpttl and Ieterat; Pre�tsyanau
<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. Faarisfor Taxes and iasataace.. 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 />kasehold payments • or ground rents on the Property, if at r, (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if arty. These items are called "escrow items:" Lender may estimate the Funds due on the
<br />basis of current 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 (itKll;ding 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 apply* the Funds, analyzing the account or verifying the escrow items, unless
<br />Laster 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 />puMose for which each debit to the Funds was trade. The Funds are pledged as additional security for the sums secured by .
<br />U&Seeurity instrument.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Ftri.paable prior to
<br />the due dates of the escrow items, shall exceed the atiYc�st require# Lo pay the escrow items when duo,.:±rcess shall be,
<br />at Borrower's option, either promptly reed to Bo -rower. escnaiiied to Borrower on monthly paymer:?x r; .Funds. If the
<br />a i+ e W items when due, Borrower shelf . t: * :� Lender any
<br />atsriw►t of the Funds held by Lender is not sufficient try; ;"� .. ,w.�•..... • .
<br />mist necessary to make up the deficiency in one o rat tr�,ts;�ztyiritnu as requiri soy Lender.
<br />Upon payment in full 'of all sums secured by I ra'.&=rity Itustrument, ;Cinder shall promptIy:icfurid to Borrower
<br />any Funds held ISy Lender. If under pawZnph 19 the. Propt:4 is said or aCg7J'r si by Lender. Lender s:ia11 Apply, na later
<br />than imttsodiaal 7 prior to the We of the Property or its Lend r , any Funds held by Lender at the time of
<br />application as;: !edit agai: he sums secured by this rrty' T� �dii ►ent:
<br />3, a� tioa of ft.-Fwah. Unless applicably i n �� 's'
<br />all payments received fro Lender under
<br />paragraphs 1.l-ir3 2 -shall be,applied: first, to late charges due unee&Lie *N►, �Y gad, to prepayment chaxIM due under the
<br />Note; third, r; aunts payable under aghy; (;�nrth, to inta:e s 4' fir! �1.L t, to principal due. : f
<br />4 Ueru. Borrower pay soli taxes, assessre::ts, cfii; fines and itr3posttians attributable td the s
<br />property wliicdt nsay attain priority, over this Security Instrument, and leasehold payrrieots rzt:jrcund rents, if any.
<br />116#6wer shall pay these obligations in the manner urrivided in paragraph 2, or. if not paid in tlstt manner. Borrower shall -
<br />is
<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; (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 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 foinh4bovu within 10 days
<br />of;ita giving of notice.
<br />- - 5. Hazard lssur�i"*. Doff -owes shall! M :�a the improvements. now P+tist ±rigor hereafter rn�cter! on the Prnperiy
<br />insured against loss by fire, hazards included w ithir 4he term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall: be mnais.,?ained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurasw A.- shad t.e i:hosen by Borrower subject to Lenders 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 pratlipily give to Lender
<br />- - T -- all receipts of paid premiums and renewal notices. in the event of loss, Borrower shall gi%,:1:comYt retire to the insurance ^- "
<br />carrier and Lender. Lender may make proof of loss if not made promptly, by Borrower. ' . , ~�
<br />Unless Lender and•i3Urrower otherwise agree in writing, insurance priweeds shall be.aVplied tit restoration or repair
<br />of the Property damagrti;:if: the restoration or repair is economically feasibba-and Lender,., security is� "or lessened. If the
<br />restoration or repair ii nit economically feasible or Lenders security would be lessened,.tir:_ insurance proceeds shall be
<br />applied to the sums n'o-cured by this Security Instrument. whether or not then due. with any excess paid to Borrower. If
<br />! ., :grower abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />4cred 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 34-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'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 preaeriatiion and :Maintenance of Property; Leaseholds. 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 acquiresfee title to the Property. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; "Mortgage insurance. If Borrower fails to perform tine ;
<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 it ptutetdiag in bankruptcy. prebste, for condemnation or at enfi-Irce laws or
<br />regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lendcr'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 />L. 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 Burrmt er 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 be payable, with interest, upon notice from Lender to {lorwr %C1
<br />'. requesting payment.
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