|
w
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 88- 10346
<br />1. Payment of Principal and Interest; Prepayment and bate Chargev. Borrower shall promptly pay w en due
<br />the principal of and interest ore the debt evidenced by the Note and any prepayrut nit and late charge.- Jt-r under the Note.
<br />2. 'Funds for Taxies and Insurance. Subject tau applicable law or to a w r' :ten waiver by Lender, Borrower %hall pay
<br />to Lender on the day monthly payments are due under the Note, until the Not. 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 />ba,-is of current data add reasonable estimates of future escrow items.
<br />The Funds shal! 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) - Leander 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 lave
<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, wit hout 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 )"!tnds 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, 'tie eRce.ss shall be,
<br />at Sor- mver'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 [.ender 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 Prraprrly or its acquisition by Lender, any Funds held by Lander 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 i>ayrnents 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; :tad last, '!o principal due.
<br />4. Charges; Liens, Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />I'rnperty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Bnrrower shall pay Ihese 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 />io be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
<br />receipts evid(ricing the payments.
<br />13orrov:er shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in wriu g 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 d6,nrl.s avdinst 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 front the holder of the lien an
<br />agreement %aiisf•?ctory to Lenoier subordinating the lien to this Security Instrument. If Lender determine-, that arty part of
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />not:cc identifying :he 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 />5. Hazard Insurance. iorrower shall keep the improvements now existing or hcrenfter erected on the Property
<br />insured against lost. 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 perio d% that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's otp;rroval which shall not be
<br />unreasonably withheld,
<br />All insurance riAicies 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 />fll receipts of paid premiums and renewal notices. in the event of los,, Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof of loss if not rnadc promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration yr repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not Ics%cned. If the
<br />restoration or repair is not economically feasible or Lender': security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or riot then due, with any excess paid to Burrower, If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />olfercu to settle a ,_!arm, then Lcnder may collect the insurance proceeds, Lender may .ise the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security instrument, whether or not then due, 7 he 30 -day period will hegin
<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 refcrred to in paragraphs I and 2 or change the arnount 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 by this Security
<br />instrument immediately prior to the acquisition.
<br />6, Preservation and Maintenance of Properly; Leascholds, Horrower shall not destroy, damage or subslan „ally
<br />change the Property, allow the Properly to deteriorate or cornmil waste. It' this security lnslruntenl is on a leasehold.
<br />Borrowcrshall comply with the provision% of the lease, and if Iforrower acquires fee title In lfre Property, the leasehold and
<br />fee title shall not merge unic%% I -ender agrees to the merger in writing,
<br />7. Protection of Lcnder'+ Rights In the Property; Mortgage Insurance. If Iforrower fails to perfo ra the
<br />covenants and agreentcnl%contained in this Security Instrument, or there is it legal proceeding that may %ignificanll •r affect
<br />Lender's rights in the Properly (such as a procecdirtg in hankrupicy, probate, for corn ;entnalion or to enfOrce koxs or
<br />regulati,ms), then Lend, r otay do and pay for whatever is rtccessary to protect the value of the Property mill Lender'% rights
<br />in the Property. I ender's actions may include paying any sums %ccurrd by a licit which has priority o%Cr this S"tiriiy
<br />instrument, appearing in court, paying reasonable attorneys' fee-, and rnlcring on the Properly to make repairs. Although
<br />Lender may take; action under this paragraph 7, Lender doss not have Io do so.
<br />Any amounts disbursed by^ Lender uneler Ibis paragraph 7 shall become at dilron;d dehl of Ilorrtl�►er secured by this
<br />Security In %trument, Unless Iforrower and Lender agree In other icrnts of prrymerl, these amounts shall hear interest from
<br />the date of disbursement at the Note rat: and shall he payahle, with inicresl, upon notice front Lerner to Ilorrower
<br />requesting payment.
<br />
|