|
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<br />I, Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note,
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay
<br />to Lender on lhe day mOnlhly paymenls are due under the Note, Unli! the Nole is paid in full. a sum ("Funds") equal to
<br />one-lwelfth of: (a) yearly taxes and assessmenls which may attain priority over this Securily Instrument; (b) yearly
<br />leasehold payments or ground rents on the Property, if any; (c) yearly hnzard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any, These items are called "escrow items," Lender may eSlimate t he Funds due on the
<br />basis of currenl data and reasonable estimates offuture escrow items,
<br />The Funds shall be held in an institution the deposils or accounls of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution), Lender shall npply the Funds to pay the escrow items.
<br />Lender may nol charge for holding and applying the Funds. analyzing the account or verifying the escrow items, unless
<br />Lender pays Borrower interesl on the Funds and applicable law permits Lender to make such a charge, Borrower and
<br />Lender may agree in writing thaI inlerest 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 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 as additional security for the sums secured by
<br />this Security Inslrument.
<br />If lhe amounl of lhe Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />lhe due dates of the escrow items. shall exceed lhe amount required to pay the escrow items when due, the excess shall be.
<br />at Borrower's option, either promptly repaid [0 Borrower or crediled to Borrower on monthly payments of Funds, If the
<br />amount of the Funds held by Lender is nol sufficient [0 pay the escrow ilems when due. Borrower shall pay 10 Lender any
<br />amount necessary to make up lhe defiCiency III one or more payments as required by Lender,
<br />Upon payment in full of all sums secured by this Security Inslrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, If under paragraph I Cj the Property is sold or acquired by Lender, Lender shall apply. no later
<br />than immediately prior 10 Ihe sale of Ihe Property or ils acquisition by Lender. any Funds held by Lender at the lime of
<br />application as a credil agalllst Ihe sums secured by Ihis Security Instrument.
<br />3. Application of Payments. Unless applicable law provides olherwise, all payments receIved by Lender under
<br />paragraphs I and 2 shall be applied: first, 10 late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, [0 amounls 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 impositions allributable to the
<br />Pru~rty which may allain priorilY over Ihis Security Instrument. and leasehold payments or ground renls, if any,
<br />Borrowpr shall pay these obligalions IIIlhe manner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay lhem on lime directly 10 the person owed payment. Borrower shall promptly furnish 10 Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes Ihese payments direclly. Borrower shall promptl~' furnish to Lender
<br />receipts evidencing lhe paymenls.
<br />Borrower shall promplly discharge any lien whIch hu. pllorily over this Secunty Instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obhgation secured by the lien III 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 III the Lender's opinion operate to
<br />prevenlthe enforcement of the lien or forfeilure of any pari of the Properly; m (c) securcs from the holder of the lien an
<br />agreement satisfactory III Lender subordinming the lien III Ihis Security InSlrument, If Lender determines that any part of
<br />lhe Properly is subject 10 a lien which may allain priority over Ihis SecurilY Instrument, Lender may give Borrower a
<br />notice identifying lhe lien, Borrower shall salisfy the lien or lake one or mme of Ihe actions sel forth above within 10 days
<br />of Ihe giving of notice,
<br />5. Hazard Insurance. Borrower shall keep the improvements now eXISting or hereafter erected on the Properly
<br />insured against loss by fire, hazards included within Ihe tenn "eAlended coverage" and any olher hazards for which Lender
<br />requires insurance, This insurance shall be mainlained in the amounts and for I he periods lhat Lender requires, The
<br />insurance currier providing the IIIsurance shall be chosen by Borrower subject to Lender's approval wh,ch shall not be
<br />unreasonably wilhheld,
<br />All insurance policies and renewals shal! be acceptable III Lender and shalllllclude a standard murlgage clause,
<br />Lender shall have lhe righlto hold the pohc..:" and renewals, If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices, In the evenl of loss, Borrower shall gIve prompt notice III the insurance
<br />carrier and Lender. Lender may make proof of loss if no! made promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree III wntlllg. insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. If the reslllration or repair IS economically feasible and Lender's security is nol lessened. If the
<br />restoration or repair is nOI economically feasible or Lender's secumy would be lessened. Ihe insurance proceeds shall be
<br />applied to the sums secured b~' thIS Security Instrument, whether Dr not then due. Wllh any excess paId 10 Borrower. If
<br />Borrower abandons the Property, or does not answer withlll JO days a nollce from Lender thai the insurance carner has
<br />offered 10 seltle a claim, then Lender may collect the IIIsurance proceeds, lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Securily Instrument. whelher or nnt Ihen due, The 3D-day period w,lI begin
<br />when the notice is given,
<br />Unless Lender and Borrower olherwise agree III ",ming, any application "fproceeds to principal shall not ex lend or
<br />postpone the due date of the monthly payments referred 10 III paragraphs I and 2 or change the amount of the paymenls, If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's nghlto any IIIsurance policies and proceeds resulllng
<br />from damage to the Property prior to the acquisition shall pass to Lender lothe exlenl "flhe sums secured by IhlS Secunty
<br />Instrument immediately prior to the acquisition,
<br />6. Preservation and Maintenance o(Property; Leaseholds. Borrower shall not deslroy, damage or substantially
<br />change the Property. allow the Property 10 deteriorate or commit waste, If thIS Secunly Instrument is on a leasehold,
<br />Borrower shall comply with Ihe provisions of the lease, and If Borrower acqUIres fee lIlle lothe Property, lhe leasehold and
<br />fee lit Ie shall not merge unless Lender agrees 10 the merger in writlllg,
<br />7, Protection of Lender's Rillhts in the Property; !\Iortga~e Insurance. If Borrower fads In perform Ihe
<br />covenants and agreements contained in this Security Instrument. or there i!\ a legal pn'l.'r:t:'dlf1g lhal may ~lp.l1lfkanlly affecl
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, fm L'IIndcmnalllHl m 10 enll",-e law, IIr
<br />regulations), then Lender may do and pa~' for whatever IS necessary to prnleL'lthe ,alue IIfthc Properly and Lender', nght,
<br />in Ihe ProperlY, Lender's actions may lIIc1ude paying any sums seL'ured h~ a lien \\ IlIch has pnllllly IIH" !hlS Secunly
<br />Instrument. appearing in court, paying reasonable ultorneys' fee!ll and c:ntenng on the ~)r()pl'rl~ to ma"-c repair' Although
<br />Lender may lake action under Ihis paragraph 7, lender does not have 10 do '00
<br />Any amoUnl~ disbursed hy Lender under Ihis paragraph 7 "hall hccomt: ath.lltIllnalllt'hl tlr B.,ITr\\\\cr 'oCl..'urcu hy thl'
<br />Sccunt)' Inslrument. Unk~s Borrower and Lender agree to olher term' (If ra~ melll 1 hC'l' anlllunl... ,hall r.t.'ar IntcrcM from
<br />the date of dlsbur\emenl al the Note nile and ~hall he payahlc. ""h 111I1:rc,t. upl1n rH'lln' (fllnl I (.'!1dt'r In Bnrrtl"t"r
<br />requestmg paymenl
<br />
<br />88-103938
<br />
|