|
<br />UNIFORM COVENANTS, Borrower and Lender covena,1'l and agree as follows:
<br />1. 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 Tuxes and Insurance, Subject 10 applicable law or to a wrillen 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 f\lll. a sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may allain 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, ifany. These items are called "escrow items." Lender may estimate lhe Funds due on the
<br />basis of current data and rca.'iOnab]e estimates of future 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 sueh 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 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 securilY 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 ,he escrow items when due, the excess shall be.
<br />al 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 sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />amount necessary 10 make up Ihe deficiency In one or more pllyments 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 1 Q the Property is sold or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or lis llcquisillon by Lender, any Funds held by Lender atlhe time of
<br />application as a credit against the sums secured by I his 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: firsl, 10 late charges due under the Note; second, to prepayment charges due under the
<br />Note; third, 10 amOUnlS payable under pardgraph 2; fourth, to nllerest due; and last, to principal due.
<br />4. Charges; Liens. Borrower shall pa)' all taxes. assessments, charges, fines and impositions allribulable to the
<br />Property which may attain priorily, over this Security Instrumenl. 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 />pa)' them on time direclly to the pernon owed paymenl. Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph, If Borrower makes rhese payments directly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing Ihe payments.
<br />Borrower shall promptly discharge any lien which has pnonly over this Security Instrument unless Borrower: (a)
<br />agrees In wriling to the payment oflhe obligation secured by the hen In a manner acceptable to Lender: (b) contests in good
<br />faith the lien by. or defends againsl enforcement of the hen 10, legal proceedmgs which in the Lender's opmion operate to
<br />prevent the enforcement of the lien or forfeilure of any part of the Propeny: or (c) secures from the holder of the lien an
<br />agreement satisfactory to lender subordlllaling the lien to rhls Security Inslrumenl. If Lender determines that any part of
<br />thc Property is subject to a lien which may attain prionly over this Secunly Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of Ihe actions sel forth llbove within 10 days
<br />of the giving of notice.
<br />S. Huard Insurance. Borrower shall keep the improvemellls now existing or hereafter erected on the Property
<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 10 the amounts and for the periods thai Lender requires. The
<br />insurance carrier providing Ihe insurance shall be chosen by Borrower subject 10 lender's approval which shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to lender and shall Include a standard mongage clause,
<br />Lender shall have Ihe right to hold the policies and renewals, If Lender requires, Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In Ihe event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of loss if not made prompt ly by Borrower,
<br />Unless Lender and Borrower otherwise agree 10 writing. Ulsurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. if the restoration or repair is econonllcally feasible and Lender's security is not lessened. If the
<br />restoration 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, wllh any excess paid to Borrower, If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the msurance proceeds. Lender may use the proceeds to repalT or restore
<br />the Property or to pay sums secured by this Secnrit}, Instrument. whether or not then due. The 30,day period will begin
<br />when Ihe notice is given.
<br />Unless Lender and Borrower otherwise agree in wrirlng, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred 10 in paragraphs J and 2 or change Ihe amount of the payments, If
<br />under paragraph I Q the Property is acquired by Lender. Borrower's righl 10 any insurance policies and proceeds resulllng
<br />from damage to the Property prior to the acqUlsl!ion shall pass to Lender to the extenl of the sums secured by IllIs Secunty
<br />Instrumenl immediately prior 10 the acquislllon,
<br />6, Presenatlon and Maintenance of Property; Leaseholds, Borrower shall not deslroy, damage or subslllntlally
<br />change the Property. allow the Property to deteriorate or commit waste. If thiS Security Instrument is on a leasehold.
<br />Borrower shall comply with Ihe provisions of the lease. and If Borrower acquires fee title to the Property, the leasehold and
<br />fee tille shall not merge unless Lender agrees to the merger In writlOg.
<br />7. Protection 01' Lender's Rlahll In the Properly: Mortlllllle Insurance. If Borrower fails 10 perform Ihe
<br />covenants and agreements contained in this Secumy Imlrlllnelll. or there is a legal proceeding thai ma}' significantly affect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce law, (If
<br />regulations), then Lender may do and pay for ....halever IS necessary to protect the "alue of the Property and Lender', nghls
<br />in the ProperlY, Lender's actions may include paYlOg any sums secured by a lien which has pnority lwer lhis Secunt)
<br />Instrument, appearing in court, paying rC'dsonable attorney' fees and enlenng on the Property 10 make repairs Although
<br />Lender may take action under Ihis paragraph 7. Lender dOC'< not ha"e 10 do so
<br />Any amounts disbursed by Lender under thIS pllragraph 7 shall become additIOnal debl of Ilormwer 'el'ured bllllls
<br />Security h,slrument, Unless Rorrower and Lender agree to olher term' "fpaymenl.these :Iltlount' shall hear IIlter,...1 from
<br />the date of disburo;emenl at tbe Note rale ami ,hall he pllyahtc. ,,"h Illlere'I, "pon nollce from lender 1<' lIorrower
<br />requestmg payment
<br />
<br />88-104'02:2
<br />
<br />C.
<br />
<br />U~
<br />I';"
<br />t:\;
<br />
<br />H
<br />~
<br />~;
<br />r
<br />1;,
<br />I"
<br />l
<br />
|