|
<br />I
<br />
<br />UNIFORM COVENANTS, Borrower and Lender covenant and agree as follows: 88-101485
<br />1, Payment of Principal and Interest; Prepliyrnent and Late Charges. Borrower shell promptly pay when due
<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. Funds for Taxes and Insurance. 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 priorily 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 ilems." 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 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 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 />purpose for which each debit to the Funds was made, The Funds are pledged as additional security for the sums secured by
<br />this Securily 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 escro..... 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 Ihe Funds held by Lender is not sufficient 10 pay the escrow items when due, Borrower shall pay to Lender any
<br />amount ne('cssary 10 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 Lender, Lender shall apply, no later
<br />Ihan immediately prior to the sale of the Property 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 under
<br />paragraphs 1 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 due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessmenlS, charges, fines and impositions attribulable 10 the
<br />Property which may attain priority over this Security Instrumenl, and leasehold payments or ground rents, if any,
<br />Borrower shall pay these obligations in Ihe manner provided in paragraph 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 nOiices of amounts
<br />to be paid under this paragraph, If Borrower makes these payments directly, Borrower shall promptly furnish to lender
<br />receipls 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 acceplable to Lender; (b) contests in good
<br />faith the lien by, or defends against enforcement of Ihe lien in, legal proceedings which in the Lender's opin:on 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 Ihe actions set forth above within 10 days
<br />of the giving of notice.
<br />5, Hazard Insurance. Borrower shall keep the imprm'ements now exisling or hereafter erected 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 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 acceplable 10 Lender and shall include a standard morlgage clause,
<br />Lender shall have the right to hold Ihe policies and renewals, If lender requires. Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices, In the evenl of loss, Borrower shall give prompt nOlice to the insurance
<br />carrier and Lender, Lender may make proof ofloss if nol made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repl'iir
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />reslOralion 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 Instrumenl, whether or not then due, with any excess paid 10 Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai the insurance carrier has
<br />offered to settle a claim, Ihen Lender may collect the insurance proceeds. Lender may use the proceeds 10 repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whelher or not then due, The 3D-day period will begin
<br />when Ihe notice is given,
<br />Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not extend or
<br />poslpone Ihe due date of the monthly paymenls referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lend,er, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior 10 the acquisition shall pass to Lender to the exlent of the sums sccurr.d by I his Security
<br />Instrument immediately prior to the acquisilion,
<br />6, Preservation and Maintenance of Propert)'; Leuseholds. Borrower shall not destroy. damage or substantially
<br />change Ihe Property, allow the Property to deteriorale or com mil waste. If this Securily Instrumenl is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title io the ')wperty, Ihe leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />1. Protection of Lender's Rigbts in the Property; Mortgage Insurance. If Borrower fails 10 perform Ihe
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding Ihat may significantly affecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or 10 enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary 10 proteCI the value of the Propeny and Lender's rights
<br />in the Properly.l.ender'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 011 the Property to make repairs. Although
<br />Lender may take action under this paragraph 1. Lender does not have to do so,
<br />Any amounts disbursed by I.ender under this paragraph 7 shall become additional debt of Borrower sccnred by this
<br />Security Instrument. Unless Borrower and lender agree to other terms of pay men I, these amounls shall bear interest from
<br />the dale of disbursemenl al Ihe Note rate and shall be payable. with interest, upon nOlice fmlll Lcnder II' norrowcr
<br />requesting payment.
<br />
<br />~ .~
<br />
|