|
<br />88 'nn":l~5
<br />UNIFORM COVENANTS. Borrower and Lender covenan;-;;d a~~~i'owt
<br />t. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promplly pay when due
<br />the principal of and interest on lhe dcbt evidenced by the Note and any prepayment and late charges due under the N!l1e,
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pllY
<br />to Lender on lhe day monlhly payments are due under lhe NOle, untillhe Note is paid in full, a sum ("Funds") equal 10
<br />one-lwelfth of: (a) yearly laxes and assessments which may attain priority over lhis Security Instrument: (b) yearly
<br />leasehold paymenls or ground renls on lhe 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 currenl data and reasllnable e<timales offulure escrow items.
<br />The Funds shall be hcld in an instilution lhe deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an instilulion). Lendcr shall apply the Funds to pay t he escrow itcms.
<br />Lender may not charge for holding and applying lhe Funds, analyzing the account or vcrifying thc escrow items, unless
<br />Lender pays Borrower interesl on thc Funds and applicable law permits Lender 10 make such a charge. Borrower and
<br />Lender may agree in wriling thai intercst shall be paid on the Funds. Unless an agreement is madc or applicable iaw
<br />requires inleresl 10 be paid, Lender shall not be required to pay Borrower any interest or camings on the Funds. Lender
<br />shall give 10 Borrower, wilhoul charge, an annual accounting of lhe 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 sl"Curcd by
<br />lhis Sccurily Instrument.
<br />If the amounl of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />lhe due dates of the escrow ilems, shall exceed lhe amount required to pay the escrow items when due, .hc excess shall be.
<br />al f1orrower's option, eilher promplly repaid 10 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 10 Lender any
<br />amounl necessary 10 mJke 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 promplly refund 10 Borrower
<br />any Funds held by Lender. If under paragraph 19 lhe Property is sold or acquired by Lender. Lender sha!! apply. no later
<br />lhan immedialely prior 10 the sale of the Property or its acquisition by Lender, any Funds held by Lcnder at the lime of
<br />application as a credit against the sums secured by lhis Security Instrument.
<br />3, Application of Payments, Unless applicable law provides otherwise, all payments receh'l-d by Lender under
<br />paragraphs I and 2 shall be applied: firsl, to late charges due under lhe NOle; second, to prepayment charges due under the
<br />NOle; third, 10 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 imposilions 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 lhese obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay them on lime direclly to the person owed payment. Borrower shall promptly furnish to Lender allnOlices of amounts
<br />to be paid under lhis paragraph. If Borrower makes these payments directly, Borrower shall promplly furnish 10 Lender
<br />receipls evidencing lhe 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 lhe lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent lhe enforcement of the lien or forfeiture of any pari of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien 10 this Security Instrument. If Lender delermines that any pan 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 lake one or more of the actions set forth above within 10 da~'S
<br />of the giving of notice.
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on Ihe Properl~'
<br />insured against loss by fire, ha7.ards included within the term "extended coverage" and any olher ha7.ards 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 lhe insurance shall be chosen by Borrower subject 10 Lender's approval which shall not be
<br />unreasonably wirhhcld.
<br />All insurance policies and rencwals shall be acceptable to Lender and shall include a slandard mortgage clause.
<br />Lender shall have Ihe right to hold the policies and renewals. If Lender rcquires, Borrower shall promptly gh'e 10 Lender
<br />all receipls of paid premiums and renewal notices. In Ihe event of loss, Borrower shall give prompt notice 10 Ihe insurance
<br />carrier and Lender. L,:nder may make proof ofloss ifnot made promplly by Borrower.
<br />Unless Lender and Borrower othcrwisc agree in writing, insurance proceeds shall be applied to restoralion or ~palr
<br />of Ihe Property damaged, if the restoralion or repair is economically feasible and Lender's security is not lessenl-d. If Ihe
<br />restoralion or repair is nol economically feasible or Lendcr's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whelher or not then duc, with any excess paid 10 Borrower. If
<br />Borrowcr abandons the Properly, or does not answer wilhin 30 days a notice from Lender that Ihe insurance carrier has
<br />offered to seule a claim, Ihen Lender may colleclthe insurancc proceeds. Lcnder may use the proceeds to repair or restore
<br />the Property or to pay sums secured by lhis Security (nstrumenl, whether or not then due. The 30-day period will begin
<br />when the no lice is givcn.
<br />Unless Lender and Borrower olherwise agree in writing, any application of proceeds to principal shallnol extend or
<br />postpone the due dale of lhe monthly payments referred 10 in paragraphs land 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's righlto any insurance policies and proceeds resulting
<br />from damage to lhe Properly prior to the acquisition shall pass to Lender to Ihe extent of the sums secured by this Security
<br />Instrumenl immedialely prior to the acquisition.
<br />6. Preservation and Mai"tenanee of Property; Leaseholds, Borrower shall nol destroy, damage or subslantially
<br />change the Property, allow the Properly to deteriorale or commil waste. If lhis Security Instrumenl is on a leasehold.
<br />Borrower shall comply with lhe provisions of the leasc, and if Borrower acquires fee title to lhe Properly, the leasehold and
<br />fee titlc shall nOI merge unless Lender agrees 10 the mcrger in writing,
<br />7, Protection of Lender's Rights in the Property; Mortgage Insurance, If Borrower fails to perform lhe
<br />covenanls and agree men Is conlained inlhis SecurilY (nslrument, or lhere is a legal proceeding lhat may significantly alfeel
<br />Lendcr's righls in the Properly (such as a procecding in bankruplcy, probatc, for condemnation or to enforce laws or
<br />regulalions), lhcn Lender may do and pay for whatever is necessary to protecllhe value of lhe Property and Lender"s righls
<br />in thc Propcrty. Lender's aclions may includc paying any sums secured by a lien which has priority over 1 his Security
<br />Inslrumcnl, appcaring in court, paying reasonablc allorneys' fees and emcring on the Property to make rcpairs. Although
<br />Lender may take action undcr Ihis paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lendcr under this paragfllph 7 shllll bccome additional deht of Borrower secured by thiS
<br />Securily Instrumcnt. Unless Borrower and Lcnder agree 10 olher terms of pay men I, these amnunls shall h~ar inl~resl ffl)1ll
<br />thc dale of disbursemcnt 111 the Nolc rate and shllll he payahle, with intel'l:st, upon nmke fwtlt LL'lIdel' Il' IllH'r,mL'1'
<br />requesting payment.
<br />
<br />~..--,'
<br />
<br />OR"""I
<br />
|