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<br />UNIPoltM CoveurwNn. Borrower and Lender covenant and agree as follows: r `'
<br />1. Payment of Primelld and InUrsatq PnMyatant anti Late Charges. Borrower shall promptly pay when due
<br />Oita principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Fug ds far T uaa nd lasers ses. Subject to applicable lsw or to a written waiver by Lander. Borrower shall pay
<br />to Lander 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 toes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground 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 />bash of ourrent data and reasonable estimates of future escrow items.
<br />The Funds shall be bald in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lander is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />Lander nay not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Finds and applicable haw permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless in 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 />&hall 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 Insminent.
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due data 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 nweisary to make up the dellciency in one or more payments as required by Lender.
<br />Upon payment in iidl of aB sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Leader. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later
<br />that immediately prior to the sale of the Property or its acquisition by Lender. any Funds held by Leader at the time of
<br />application as a credit against the suns &ecured by this Se:aurity Instrument.
<br />3. Agtpltpatioa of Paysasab. Unless appliessble law provides otherwise, all payments received by Lender 'under
<br />paragraphs 1 and 2 shall bee a lied: Ant, to late chugs due under the Note; second. to prepayment charges due under the
<br />Nona; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />4. CYarge� Lisp, Borrower shall pay all terra, asaestments, charges, fines and impositions attributable to the
<br />property w►hieh easy attain priority over this Security instrument, and ieaseboid payments or ground feats, if any.
<br />Barrows shs8 pay these obligations in the manner provided in paragaph 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 />receiptsevidetcing the payments.
<br />Borrower shall promptly discharge any lien which has priority otter 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 Gen 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 forth above within 10 days
<br />of the ,giving of notice.
<br />$. Hu rd iasurame, Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by Are, hazards included within the term "extended coverage" amd any other hazards for which Lender
<br />requires insuntttce. 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 chap have the right to hold the policies and renewals. if Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier sod Lender. Lander 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 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 I and 2 or change the amount of the payments. If
<br />under paragraph lei uhe 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, presemdom sail Maintenance of Properil, Leaseholds. Borrower sha11 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 />o—...— -L.p =..L. w fth the provisines of the le-sap and it harrower acquires fee title to the Property. the leasehold and
<br />fee title shall mac merge unless Lender agrees to the merger In writing
<br />7. Protection of Leader's Rights in 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 u a proceeding to 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 a lien which has pnonty over this Securtry
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property ro make repairs. Although
<br />Lander 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 be payable, with interest, upon notice from Lender to Borrower
<br />requesting psyrnem.
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