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<br />88- 100565
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<br />UNIFORM COVE?-;ANTS, Borrower and Lender covenant and agrec as 1,,110\\ s
<br />I. Payment of PrinciplIl Rnd Interest; Prepayment Rnd Late Charges. Borrowcr shall prornptl~ pay whcn duc
<br />the principal of and interest on the debt evidenced by thl' Note and any prepayment and latc chargcs duc undcr thc ~olc,
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a writtcn wallcr by Lcnder. Borrower shall pay
<br />to Lendcr on the day monthly payments arc due under the Note, until the Note is paid in full. a sum ('Tunds"') equal to
<br />one-twclfth of: (a) yearly taxes and asscssments which may attain priority ol'er this Security Instrument: (b) ycarly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums: and (d) yearly
<br />mortgage insurancc premiums, ifany. These items are called "escrow items," Lender may estimate the Funds duc on the
<br />basis of current data and rcasonable 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 intcrest 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 />purpose for which each debit to the Funds was made, The Funds are pledged as additional security for the sums securcd 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 exccss 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 Lender. If under paragraph I q the Property is sold or acquired by Lender, Lcnder shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at thc time of
<br />application as a credit against lhe sums secured by this Security Instrument.
<br />3. Application of Payments, Unless applicable law provides otherwise, all payments receivcd by Lcndcr under
<br />paragraphs I and 2 shall bc applied: first, to late charges due under the Note; second, to prepayment charges duc undcr the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due,
<br />4. Charges; Liens, Borrower shall pay all taxes, assessments, charges, fines and impositions attributablc to thc
<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 manncr, Borrowcr 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 Instrumcnt unlcss Borrower: (a)
<br />agrees in writing to the payment of the '1bligation secured by the lien in a manner acceptablc to Lcndcr; (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) securcs from thc holdcr of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lcndcr dctcrmincs that any part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lcndcr may give Borrowa a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of thc actions set forth abovc within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance, Borrower shall keep the improvements now existing or hercaftcr crccted 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 ap.d for the periods that Lender requires, The
<br />insurance carner 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 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 and Lender. Lender may make proofofloss 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 Prol'erty, 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 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. Preservation 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 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. ProtectIon of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform thc
<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 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 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 />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 sccurcd by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, thcsc amounts shall bear intcrest from
<br />the datc of disburscment at thc Notc rate and shall be payablc, with intcrcst. upon nolICC from Lcndcr 10 Borrowcr
<br />rcquesting payment
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