|
<br />88- 104196
<br />
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. Payment of Principal and Interest; PreJlllyment and Late Charges. Borrower shall promptly pay when due
<br />the principal of and interesl on the debt evidenced by the NOle and any prepayment and lale charges due under the Note.
<br />2. Fundi for Toes and Insurance. Subjeclto 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 full, a sum ("Funds") equal 10
<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 />basis of current data and reasonable estimates offuture escrow item~.
<br />The Funds shall be held in on institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such all institution). Lender shall apply the Funds to pay the escrow ilems.
<br />Lender may net charge for bolding lUId 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 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 ofthe 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 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, the ClIcess shall be,
<br />at 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 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 Property or its acquisition by Lender, any Funds held by Lender at the time of
<br />application as a credit against the sums secured by this Security Instrument.
<br />!. AppUcatiOll of PtIymenb. Unless applicable law provides otherwise. all payments 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; and last, to principal due.
<br />4, CIIarpI; Ueaa. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain pnority. 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 thai 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 />to be paid under this paragraph. If Borrower makes these paymenls directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrumenl 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 the lien by, or defends against 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 from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part 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 take one or more of the actions set forth above within 10 days
<br />of the giving ofnotice.
<br />5. Huanlluunace. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "ClItended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />inlurance carrier providing the insurance shall be chosen by Borrower subjecl to 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 mortgage clause.
<br />Lender shall have the riabt to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender lIUly r.lBke proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be Ilpplied to restoration or repair
<br />of the Property damqed, if the restoration or repair is economically feasible and Lender's security is nOllessened. If the
<br />resloration or repair is not economically feasible or Lender's security would be lessened, the insurance prO'".eeds shall be
<br />applit.d 10 the sums secured by this Securily Instrument, whether or not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does nOI answer within 30 days a notice from Lender that the insutance carrier has
<br />olrered to settle a claim, then Lender may collect Ihe insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or not then due. The 3O-day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds 10 principal shall nOI eXlend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or chwge Ihe amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurallce policies and proceeds resulling
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent oflhe sums secured by Ihis Securily
<br />Instrument immediately prior to the acquisition.
<br />6. PraenatloD and Maintenance of Propcry; Leuebolds. Borrower shall not destroy, damage or subslanllally
<br />chanle the Property, allow the Property to deteriorate or commit wasie. If Ihis Securily Instrumenl is on a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, Ihe leasehold and
<br />fee title shal~ not merle unless Lender agrees to the merler in writing.
<br />7. ProtecdoII of Leader'1 Atllttl In the Property; Mort_ Inlurance. If Borrower fails 10 perfonn the
<br />covenantl and alreementl contained in Ihis Sccurily Inllrumenl. or there is a legal proceeding thai may lillnilicanlly aKeel
<br />Lender'l rilhtl in the Property (such as a proceeding in bankruptcy, probale. for condemnallon or 10 enforce laws or
<br />relulationl), then Lender may do and pay for whatever is necessary 10 protectlhe value oflhe Property and Lender's nghls
<br />in the Property. Lender'l actionl may indude paying any sums secured by a lien which has priority over Ihis Securily
<br />Instrun1ent, appearinl in court, paying reasonable allorneys' fee5 and ~ntering on the Property 10 make repairs. Allhough
<br />Lender may take aClion under Ihis paralraph 7, Lender does nOI have to do so
<br />Any amounll disbursed by Lender under Ihis parallraph 7 shall become addillonal debt of Borrower secured by thiS
<br />Securily [nllrument. Unless Borrower and Lender ag..ec 10 olher terms of payment, these amounts shall bear inleresl from
<br />the dale of disbunemenl at the Note rale and shall be payable. wllh II1leresl, upon nollce from under 10 Bormw~r
<br />requcstinl paymenl.
<br />
|