|
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 88-102299-
<br />1. Payment of Principal and Interest; Prepayment and Late Cbarges. Borrower shall prompiJy pay when d'II'e
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under Ihe Note.
<br />1. FwuIs for Taxes and IRllurance. 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 Propeny, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mongage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current d:lta 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 ofthe Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds arc 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 ellceed the amount required to pay the escrow items when due, the ellcess 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 sufficienl 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 Propeny is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the: sale of the Propeny 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. Appliution of Payments. Unless applicable law provides otherwise, all payments received by Lende:r under
<br />paragraphs I and 2 shall be applied: fir1it, to late: charges due under the Note; second. to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; founh, to interest due; and last, to principal due.
<br />4. CbarJa; Uelll. Borrower shall pay all talles, assessments, charges, fines and impositions attributable to the
<br />propeny 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 acceptablc 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 pan of the Propeny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennilles that any pan 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 fonh above within 10 days
<br />of the giving of notice.
<br />S. Hszard lnauranc:e. Borrower shall keep the improvements now ellisting or hereafter erected on the Propeny
<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 />unreuonably withheld.
<br />All iRllurance policies and renewals shall be acn:ptable to Lende:r and shall include: a standard mongage clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all m:eipl& of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lend:r. 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 repair
<br />of lite Propeny damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
<br />reatoration 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 Ihe Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />otrered to seule 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 nOI then due. The 3O-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 elllend or
<br />postpone the due date ofthe monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Propeny is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shall pass to Lender to Ihe elllent of the sums secured by this Secunty
<br />Instrument immediately prior to the acquisition.
<br />6. Praen.tlon and Maintenance of ProperfW; Leuebollb. Borrower shall not desl roy, damage or substantially
<br />change the Propeny, allow the Propeny to deteriorate or commit waste. If this Securily Instrument IS on a leasehold,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 the Property. the leasehold a!1d
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protec:tion of Lender'. Rlptl In the Property; MortPlle Insurance. If Borrower fails to perform Ihe
<br />covenants and agreements contained in this Security Instrument. or there IS a legal proceeding that may Significantly affecl
<br />Lender's rilhts in the Propeny (such as a proceeding in bankruptcy, probate. for condemnation or 10 enforce la'Ns or
<br />rqulations), then Lender may do lInd pay for whatever is necessary to protecl the value of the Property and Lender's nghts
<br />in the Propeny. Lender's actions may include paying any sums secured by a lien which has pnonty over thiS Secunly
<br />Instrument, appearing In coun, paying reasonable allorneys' fees and enlenng on the ProperlY to make repaIrS. Allhough
<br />Lender may take acllon under Ihis paragraph 7, Lender does not have to do so.
<br />Any amounls dlsbul"l'ed by Lender under Ihis pam graph 7 shall become addlllOnlll debt of Borrower securro by thiS
<br />Secunty Instrument, Unless Borrower and Lender agree to olher terms of payment. thC!;e amounts ~hall hear Inleresl from
<br />the date of disbursement at the Nole rate an~ shall he payable. "11th Interest. upon notl<:e from Lender 10 Borrower
<br />requesting payment
<br />
|