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<br /> ` ,t , _ • .' , ' Q�� �(��p�� LoanNo. 25433
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<br /> UNIFORM COVENANT.Borrower and Lender covenant and agree as follows:
<br /> 1. Payme,nt of �rincipal and Interest; Prepayment and Late Chaig�es. Bonower shall promptly pay when due the principal and
<br /> interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br /> 2. Funds for Tases and Insurance. Subject to applicable law or a written waiver by Lender, Borrower shall pay to Lender on
<br /> the day monthly payments of principal and interest are payable under the Note, until the Note is paid in full, a sum("Funds") for:
<br /> (a)yearly taxes and assessments which may attain priority over this Security Inshvment as a lien on the Property; (b) yearly leasehold
<br /> payments or ground rents on the Property,if any; (c)yearly hazard or property insurance premiums;(d)yearly flood insurance premiums,
<br /> if any; (e)yearly mortgage insurance premiums,if any;and(�any sums payable by Borrower to Lender,in accordance with the provisions
<br /> of paragraph 8,in lieu of the payment of mortgage insurance premiums.These items are called "Escrow Items". Lender may, at any time,
<br /> collect and hold Funds in an amount not to exceed the maximum amount a Lender for a federal related mortgage loan may require for
<br /> Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C.
<br /> #2601 et seq.("RESPA"),unlessanother law that applies to the Funds sets a lesser amount.If so,Lender may,at any time,collect and hold
<br /> Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and
<br /> reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law.
<br /> The Funds shall be held in an institution whose deposits are insured by a Federal agency,instrumentality,or entity(including Lender,
<br /> if Lender is such an institution)or in any Federal Home Loan Bank.Lender shall apply the Funds to pay the Escrow items.Lender may not
<br /> charge Borrower for holding and applying the Funds,annualiy analyzing the Escrow account,or verifying the Escrow Items,unless Lender
<br /> pays Borrower interest on the Funds and applicable law pernuts Lender to make such a charge.However,Lender may require Borrower to
<br /> pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan,unless applicable
<br /> law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay
<br /> Bonower any interest or eamings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the
<br /> Funds.Lender shail 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 all sums secured by this Security
<br /> Instrument.
<br /> If the Funds held by Lender exceed the amounts pernutted to be held by applicable law, Lender shall account to Borrower for the
<br /> excess Funds in accordance with the requirements of applicable law.If the amount of the Funds held by Lender at any time is not sufficient
<br /> to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Bortower shall pay to Lender the amount
<br /> necessary to make up the deficiency.Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole
<br /> discretion.
<br /> Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to borrower any Funds held by
<br /> Lender.If under paragraph 21,Lender shall acquire or sell the Property,Lender,prior to the acquisition or sale of the Property,shall apply
<br /> any funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payment received by Lender under paragraphs 1
<br /> and 2 shall be applied; first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2;third,to
<br /> interest due;fourth,to principal due;and last,to any late charges due under the Note.
<br /> 4. Charges;Liens. Bonower shall pay all taxes,assessments,charges,fines and impositions attributable to the Property which may
<br /> attain priority over this Security Instruments, and leasehold payments or ground rents,if any.Borrower shall pay these obligations in the
<br /> manner provided in paragraph 2, or not paid in that manner, Bonower shall pay them on time directly to the person owed payment.
<br /> Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br /> direcdy,Borrower shall promptly furnish to Lender receipts evidencing the payments.
<br /> Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing
<br /> to the payment of the obligation secured by the lien in a manner acceptable to Lender;(b)contest in good faith the lien by,or defends again
<br /> enforcement of the lien in,legal proceedings which in the Lende�'s opinion operate to prevent the enforcement of the lien;or(c)secures
<br /> from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender deternunes
<br /> that any part of the Property is subject to a lien which may attain priority over this Security Ins�ument,Lender may give Borrower a notice
<br /> idenrifying the lien.Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of giving of notice.
<br /> 5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br /> against loss by fire,hazards included within the term"extended coverage",and any other hazards, including floods or flooding, for which
<br /> Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance
<br /> carrier providing the insurance shall be chosen by Bonower subject to Lende�'s approval which shall not be unreasonable withheld.
<br /> If Bonower fails to maintain coverage described above, Lender may, at Lender's opinion,obtain coverage to protect Lender's rights in the
<br /> Property in accordance with paragraph 7.
<br /> All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have
<br /> the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br /> renewal notices.In the event of loss,Borrower shall give prompt notice to the insurance carrier and Lender.Lender may make proof of loss
<br /> if not made promptly by Borrower.
<br /> Unless Lender and Borrower otherwise agree in writing,insurance proceeds shall be applied to restoration or repair of the Property
<br /> damaged, if the restoration or repair is economically feasible and Lende�'s security is not lessened. If the restoration or repair is not
<br /> economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br /> Instrument,whether or not then due,with any excess paid to the Borrower.If Borrower abandons the Property,or does not answer within
<br /> 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds.
<br /> Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instntment,whether or not then due.
<br /> The 30-day period will begin when the notice is given.
<br /> Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone
<br /> the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments.If under paragraph 21 the
<br /> Property is acquired by Lender,Bonowe�'s right to any insurance policies and proceeds resttlting from damage to the Property prior to the
<br /> acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br /> 6. Occupancy,Preservation,Maintenance and Protection of the Pmpe,rty;Borrowei's Loan Applicatioa;I.easeholds. Borrower shall
<br /> occupy,establish,and use the Property as Borrowe�'s principal residence within sixty days after the execution of this Security Instrument
<br /> and shali continue to occupy the property as Borrower's principal residence for at least one year after the date of occupancy,uniess Lender
<br /> otherwise agrees in writing,which consent shall not be unreasonably withheld,or unless extenuating circumstances exist which are beyond
<br /> Bonower's control.Bonower shall not destroy,damage or impair the Property,allow the Property to deteriorate,or commit waste on the
<br /> Property.Borrower shall be in default if any forfeiture action or proceeding,whether civil or criminal,is begun that in Lender's good faith
<br /> Form 3028 9/90
<br /> PAGE 2 of S HP•828 2/83
<br /> Printed on Laser by��',Buena Park,CA 90821 Ph:(714)884-2121
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