|
<br />os 1 n')~~~
<br />aNI;;;;;~~MP Borrower and Lender covenanl and agree as follows: ~....
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pa~ when due
<br />the principal of and interesl on Ihe debt evidenced by the Note and any prepayment and lale charges due under the Note,
<br />2. Funds for Tale.; and Insurance. Subject to applicable law or 10 a wrillen waiver by Lender, Borrower shall pay
<br />to Lender on Ihe day monthly payments are due under the Note, until the Note is paid in full, ~ ;um ("Funds") equal to
<br />one-twelflh of: (a) yearly taxes and assessmenls which may allain 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) ~'early
<br />morlgage insurance premiums, if any, These ilems are called "escrow items," Lender may estimale the Funds due on Ihe
<br />basis of current dais and reasonable estimates of future escrow Items,
<br />The Funds shall be held in an institution the deposits or accounts of which are insured 01' guaranleed by a federal or
<br />state agency (including Lender if Lender is such an institution), Lender shall apply the Funds to pay Ihe 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 Ihe Funds, Unless an agreement is made or applicable la""
<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 credils 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 Security Instrument,
<br />If the amount of the Funds held by Lender, together with the future monthly paymenls 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 excess shall be.
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monlhly payments of Funds, If the
<br />amount of the Funds held by Lender is not sufficient to pay Ihe 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 Securily 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 10 the sale of the Property or ils acquisition by Lender. any Funds held by Lender at the lime of
<br />applicalicn as a credit against the sums secured by Ihis Security Instrument.
<br />J. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under the Note; second. to prepaymenl charges due under Ihe
<br />NOle; Ihird. 10 amounts payable under paragraph 2; fourth, to interest due; and last, to principal due,
<br />4. Charges; Uens. Borrower shall pay all taxes, assessments. charges. fines and impositions anribUlable to the
<br />Property which may aUain 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 lime directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounlS
<br />to be paid under this paragraph, If Borrower makes these payments directly. Borrower shall promptly furnish 10 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 Ihe 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 the lien in, legal proceedings which in the Lender's opinion <'remle 10
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from Ihe holder of Ihe lien an
<br />agreement satisfactory 10 Lender subordinating the lien 10 this Secarity Instrument, If Lender delermines that 3n~' p;lrt of
<br />the Property is subjecl to a lien which may allain priorilY over this Security Instrument, Lender may give Borro\\'eT a
<br />notice identifying Ihe lien, Borrower shall salisfy the lien or take one or more of the aclions set forth above withm IOda}'S
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep Ihe improvemenls now existing or hereafter erected on Ihe Pn>pen)'
<br />insured against loss by lire. hazards included within the lerm "extended coverage" and any other hazards for ",'hich Lender
<br />requires insurance. This insurance shall be mainlained in the amounls and for the periods that Lender reqUIre<; The
<br />insurance carrier providing the insurance shall be "hosen by Borrower subjecl to Lender's appro\'al which shall nOI be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable 10 Lender and shall include a standard mortgage clause.
<br />Lender shall have the righl to hold the policies and renewals. If Lender requires, Borrower shall promptly gi"e to Lender
<br />all receipts of paid premiums and renewal notices, In the evenl of loss, Borrower shall give prompt notice to the msurance
<br />carrier and Lender, Lender may make proof of loss ifnot made promptly by Borrower,
<br />Unless Lender and Borrower olherwise agree in writing, insurance proceeds shall be applied 10 restorallon or rcpalr
<br />of the Property damaged, if the restoration or repaIr is economically feasible and Lender's securily is not lessened If Ihe
<br />resloralion or repair is nol economically feasible or Lender's security would be lessened, Ihe insurance proceeds shall be
<br />applied to the sums secured by this Security Inslrument. whelher or nOI then due. wilh any excess paid 10 Borrower If
<br />Borrower abandons the Property, or does nOI answer wilhin 30 days a notice from Lender that the insurance carrier has
<br />olTered 10 seule a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds trI repan or restore
<br />Ihe Property or to pay sums secured by this Securily Inslrument, whether or nol Ihen due. The 30-dilY period wm begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any applicalion of proceeds 10 prinCipal shall nOl extend.or
<br />poslpone Ihe due dale of the monthly paymenls referred to in paragraphs I and 2 or change Ihe amnunt of the p:lymel11' If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right 10 an~' Insurance pohm:s and proceeds resulllng
<br />from damage to the Properly prior 10 the acquisition shall pass to Lender to Ihe eXlenl oflhe sums secured by thIS Seeumy
<br />Instrument immedialely prior to the acquisition.
<br />6. Praenatlon and Maintenance of PropertYi Leueholcls. Borrower shall nol destroy. damage or sUbSlanl1all~
<br />change the Properly. allow the Property to deteriorale or commit waSlc. If this Security Inslrument is on a leasehold.
<br />Borrower shall comply with Ihe provisions of the lease, and if Borrower acquires fee lille to lhe Property, the leasehold and
<br />fee title shall nol merge unless Lender agrees to lhe merger in writing.
<br />7, Protection of Lender's Rights In the Property; Morlgage Insurance, If Borrower f8lls to perform lhe
<br />covenants and agreemenls contained in Ihis Securily Instrument, or there is a legal proceeding lhat may significanth affecl
<br />Lender's rights in the Properly (such as a proceeding in bankruptcy, probate. for condemnation or to enforce la\\, or
<br />regulalions),lhen Lender may doand pay for whalever is necessary 10 prolectlhe value oflhe'Propert~ and Lellder'~ rI!!IIl'
<br />in Ihe Properly. Lender's actions may include paying any sums secured by a lien wlllch hns pTloTlly fHe. 1111~ Se.:urlly
<br />Instrumenl, appearing in courl, paying reasonable allorneys' fees and entering on Ihe "wpen) 10 make rel'alr\ Aithnu!!h
<br />Lender may lake action under Ihis paragraph 7, Lender does not have to do sn
<br />Any atTIounlS disbursed by Llnder under this parngraph 7 shall become addlllnnal ddll of !lolrtmet "~'lured h\ Ihl'
<br />Security InRtrument OnleR' Borrower nnd Lender agree In other lerm~ nf payment, . !lese aml'llnt' ,!lall heal IIllnt'\! r,,'1ll
<br />lhe date of disbursemenl at rhe Note rale nnd shall he paynhle. WIth interest, upon notIce from Lender,,, B"",'l\et
<br />reque,"nll: payment
<br />
|