|
<br />I
<br />
<br />UNIFORM COYENANTS. Borrower and Lcnder covcnant and agree as follows: 88- 100695
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and intcrest on the dcbt evidenced by the Note and any prepaymenl and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a wntten 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 />onc-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 Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow itcms." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates offuture 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 Lcnder 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 thc account or verifying the cscrow itcms, unless
<br />Lender pays Borrowcr interest on the Funds and applicable law permits Lendcr 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 requircd to pay Borrower any interest or carnings on the Funds, Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing crcdits 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 sccured by
<br />this Security Instrument.
<br />If the amount of thc Funds held by Lender, together with the future monthly payments of Funds payablc prior to
<br />the due dates of the escrow itcms, shall exceed the amount rcquired to pay the escrow items whcn 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 19 the Property is sold or acquired by Lcnder, Lender shall apply, no later
<br />than immediately prior to thc sale of the Propcrty or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender undcr
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest duc; and last, to principal due.
<br />4. Charges; Liens. 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 ifnot paid in that manner, Borrowcr shall
<br />pay them on time directly to the person owed payment. Borrower shall prcmptly furnish to Lendcr all notices of amounts
<br />to be paid under this paragraph. If Borrower makes thesc payments dircctly, Borrower shall promptly furnish to Lcnder
<br />receipts evidencing the payments.
<br />Borrower shail promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment c~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 determincs 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 morc of the actions set forth above within 10 days
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvcmcnts now cXlsting or hereafter erected on the Property
<br />insured against loss by fire, hazards included within thc tcrm "extcnded covcragc" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the penods that Lender requires. The
<br />insurance carrier providing the insurance shall be choscn by Borrowcr subjcl.t to Lendcr'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 Lcnder rcquires, Borrowcr shall promptly givc to Lender
<br />all receipts of paid premiums and renewal notices. In the evcnt of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lcnder. Lender may make proof of loss ifnot made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically fcasiblc and Lcnder's security is not Icssened. 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 exce~:; paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lendcr that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lcnder may use thc proceeds to rcpair or rcstorc
<br />the Property or to pay sums secured by this Security Instrument, whethcr 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 thc amount of the payments. If
<br />under paragraph 19the Property is acquired by Lender, Borrower's right to any insurance policies and procccds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to thc extent of the sums sccured by this Security
<br />Instrument immediately prior io the acquisition.
<br />6. Preservation and Maintenance of Prope~; Leaseholds. Borrower shall not destroy, damagc or substantially
<br />change the Property, allow the Property to deteriorate or commit wastc. If this Security Instrument is on a leaschold,
<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 pcrform thc
<br />covenants and agreements contained in this Security Instrument, or therc is a legal procecding that may significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probatc, 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 priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entcring on the Property to makc rcpairs. Although
<br />Lender may take action under this paragraph 7. Lender does not havc to do so.
<br />Any amounts disbursed by Lender undcr this paragraph 7 shall become additional debt of Borrower sccured by this
<br />Security Instrument. Unless Borrower and Lcnder agree to other terms of paymcnt, these amounts shall bcar intcrest from
<br />the date of disbursement at thc Notc rate and shall be payable, with intcrest, upon nOllce from Lender to Borrower
<br />requesting payment.
<br />
<br />L
<br />
<br />...
<br />
|