|
<br />I
<br />
<br />88- 101801
<br />
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payrnen2 of Principal and Interest; Prepayment and Late Charges. Borrower shall 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. f<"unds 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 arc 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 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 />basis of current data and reasonable 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 j;'unds, 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 Fund~ are pledged as additional security for the sums secured 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 excess shall be,
<br />at Borrower's optio::, o;:ither 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 necessar}' 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. Ifunder paragraph 19 the Property is sold or acquired by Lender, Lender 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 the time of
<br />application as a credit against the sums secured by this Security I nst rumen!.
<br />3. Application of Payments, Unless applicable law provides otherwise. all payments received by lender under
<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 due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
<br />Propert}' 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 irnot 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 />receipts 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 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 satisfactorj to lender subordinating the lien to this Security Instrument. If Lender determines that any part of
<br />the Propeny 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 />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the term "extended cO\'erage" 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 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. I n the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender 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 rcp"ir
<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 10 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 Propeny 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 hy this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenation and Maintenance of Pro pert)'; Leaseholds. Borrower shall not destroy, damage or !oubstantially
<br />change the Property. alia..... the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply wilh 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 the
<br />covenaniS and agreements contained in this Security Instrument, or there is a legal procl.'eding that may signit1cantly alleet
<br />lende,'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 Ihe Propeny and Lender's rights
<br />in the Property. lender's actions may include paying any sums secured by a lien which has priority o\'er 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 7, Lender does nol have todo so.
<br />. Any amounts disbur!OCd b)' Lender under this paragraph 7 shall become additional debt of Borrower secured by II\lS
<br />Security Instrument. UnleS!> Borrower and lender agree to other terms of pa}'l1lelll. these amounts shall bear lilt crest frum
<br />the date of disbursement at the Note rate ;md shall be payable, with interest. \lpon 11l1tICe fmm Lender to Borrower
<br />requC!>ting paymenL
<br />
|