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<br />88- 1022'(6
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<br />UNtfORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Paymeat of PrlDdpal and laterelt; Prepayment and Late awges. Borrower shall promptly pay when due
<br />the prinl:ipal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
<br />2. Funds for Tues antIllllurance. 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 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 />IDOrtgaseinsurance premiums, if any. These items arc called "escrow items," Lender may estimate the, Funds due on the
<br />basis of C:llmnt data and reasonable estimalCS of future escrow items.
<br />The Funds shall be hdd in an institution the deposits or accounts of which arc 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 esc:row items.
<br />Lender may"not charge for holding and applying the Funds, analyzing the ae<:ount 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 interC!'.t 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 liS 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 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 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 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: lirst, 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, lines 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 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 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 forfciture 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 the actions set forth above within 10 days
<br />of the giving of notice.
<br />S. Huard 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 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 nol be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be ae<:eptable 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 prompl nolice 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 repr-ir
<br />of Ihe Property damaged, if the restoration or repair is economically feasible and Lellder's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security WQuld be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this s.:curity Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 3() days a notice from Lender that the insurance carrier has
<br />oft'ered to settle a claim, then Lender may collect Ihe 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 10 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 oflhe 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 exlent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Presenatioa and Maintenance of Property; Leaseholds. Borrower shall not deslroy. damage or subslanlially
<br />change the Property. allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shan comply with the provisions of the lease. and if Borrower acquires fee title to the Proper! y. the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />1. Protection of Lender'. Rlahll In the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affecl
<br />Lender's righl. in the Property (such as a proceeding in bankruplcy, probate, for condemnation or to enforce laws or
<br />rqulations). then Lendel' may do and pay for ,,'hatevCf' is neces.\llry to protect lhe value of the Property and Lender's righls
<br />in the Property. Lender's aclioRS may include paying any sums secured by a lien which has priority over Ihis SecurilY
<br />Instrument, appearing in court, paying reasonable attorneys' fees and enlering OR lhe Property to make repairs. Allhough
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amaunl1 di!iburwd by Lender under this paragraph 7 shan become additional debt of Borrower secured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
<br />the dale of di\bursement al the Note rate and shall be payable, with intCf'esl, upon notice from Lender to Borrower
<br />requotin. paym(nl.
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