|
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows: 88- 104237
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />Ihe principal of and inlerest on the debt evidenced by the Note and any prepayment and late charges due under the NOle,
<br />2. Funds for Taxes and Insurance. Subject 10 applicable law or 10 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 to
<br />one-twelfth of: (a) yearly talles and assessments which may altain 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 curren I data and reasonable eslimates 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 inslitution). Lender shall apply the Funds to pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the at:count 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 10 pay Borrower any interesl or earnings on the Funds. Lender
<br />shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits Ie the Funds and the
<br />purpose for which each debillo the Funds was made. The Funds are pledged as addillonal security for the sums secured by
<br />this Security Instrument.
<br />If Ihe amount of the Funds held by Lender, togelher with the future monthly payments of Funds payable prior 10
<br />the due dates of the escrow items, shall ellceed the amount required to pay the L'SCroW items when due, the ellcess 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 Ie the sale of the Property or its acquisition by Lender, any Funds held by Lender at Ihe time of
<br />application as a credil againstlhe sums secured by this 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, 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, te> principal due.
<br />4. Charges; Liens. Borrower shall pay all talles. assessments. charges, fines and imposilions allributable to the
<br />Property which may allain priority over this Securily Instrumenl, and leasehold paymenls or ground renlS, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or If not paid in Ihal manner. Borrower shall
<br />pay them on lime direclly to the person owed payment. Borrower shall promplly furmsh to Lender all notices of amounls
<br />to be paid under Ihis paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priorily o\'er thiS SecuTlly Instrument unless Borrower: (a)
<br />agrees in writing to the paymenl of the obligation secured by Ihe lien m a manner acceptable 10 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 fmm the holder of Ihe lien an
<br />agreemenl satisfactory 10 Lender subordinating the lien 10 thIS Security Instrument. If Lender determines that any part of
<br />the ProperlY is subjecl to a lien which may allain priority over thiS Secunty Instrumenl, Lender may give Borrower a
<br />notice idenlifying the lien, Borrower shall satisfy the lien (1f take one: or more e>fthe actions sel forth abo\'e within 10 day'5
<br />oflhe giving ofnolice.
<br />S. Hazard Insurance. Borrower shall keep the improvemenls now elllslmg e>r hereafter erecled on Ihe Property
<br />insured against loss by fire. hazards included wilhin the lerm "elllended coverage" and any olher hazards for which Lender
<br />requires insurance. This insurance shall be mainlamed in lhe amounts and for Ihe penods Ihat Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borwwer 'UbJCl'I to Lender's appw\'al whIch shall not be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable te> Lender and shall mclude a slandard mortgage clause.
<br />Lender shall have the right 10 hold the policies and renewals. If Lender requires. Borrower shall promptly give 10 Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall gl\'e prompt notIce to Ihe msurance
<br />carrier and Lender. Lender may make proof of 10" Ifnol made promplly by Be>rrower
<br />Unless Lender and Borrow~r otherwise agree m wnllng. msurance pwcet.-ds shall be applied 10 reslOralion or repair
<br />of the Property damaged, if Ihe resloralion or repair IS economically feaSible and Lender's secunly IS not lessened. If the
<br />restoration or repair is nOl economically feasible or Lender's securilY would be lcssened, Ihe msurance proceeds shall be
<br />applied 10 the sums secured by Ihis SecurilY Inslrument, whelher or not Ihen due, wllh any ellcess paid 10 Borro"'er. If
<br />Borrower abandons the Property, or does nol answer within 30 day's a nollce from Lender thai the insurance carner has
<br />offered to seltle a claim, then Lender may collect Ihe msurance proceeds, Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this S,-"Curity Instrument, whether or not then due. The 3O-day period will begm
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing. any applicatIon of proceeds to prmclpal shali nol e~lend or
<br />postpone the due dale of the monlhly payments referred 10 in paragraphs I and 2 or change Ihe ame>unl of the paymenlS If
<br />under paragraph 19 the ProperlY is acquired by Lender. Borrower's right 10 any msurance poliCies and proceeds resultmg
<br />from damage 10 the ProperlY prior to Ihe acquisition shall pass to Lender tolhe ell lent of the sums sccurL-d by IhlS Secunty
<br />Inslrument immediately prior 10 Ihe acquisition.
<br />6. Preservation and Maintenance ofProperJ!'; Leasebolds. Borrower shall nOI deslmy. damage or substanllally
<br />change Ihe Property. allow the Property to deteriorate or commil w~ste. If Ihls SecurllY Inslrument IS on a leasehe>ld,
<br />Borrower shall comply with the provisions of the lease, and if Borrower acqUIres fee lItle III the Properly, the leasehe>ld and
<br />fee title shall not merge unless Lender agrees 10 the merger in wrillng,
<br />7. Prrtec:tion of Lender's Rights in tbe Property; Mortl!ll!:e Insurant'e, If Borrower falls tn perfe>rm Ihe
<br />covenants and agreements cOnlained in this Secunty Instrumenl, or there IS a legal pmceedmg Ihat may ,igllllkanlly alTCl'1
<br />Lender's rights in Ihe Properly (sueh as a proceeding in bankruplcy, probale. for l'nnde.mnallnn nr 10 enforce laws or
<br />regulations), then Lender may do and pay for whate\'er is necessary In pTllIc:ct I he \ alUl' of I he PTIlpert)' and Lender', nghl'
<br />in Ihe Property, Lender's actions may include paying any sums secured h)' a hen wllll'h ha, pnonl)' (1\l'r 11m Sl'Cunt)'
<br />Inslrument, appearing in court, paying rea,onable allorneys' fees and elllerlng nil the I'roperl)' 10 ma~e repaIrs Ahhnugh
<br />Lender may take action under Ihis paragraph 7, Lender does ne>t have 10 do \('
<br />Any amounts disbursed by Lender under this paragraph 7 ,hall hc:coml' addlll<lIlal deht of Il,'rr,,,.er ,el'ufl'd In Ih"
<br />Security Inslrument, Unle,;s Be>rwwer nnd Lender agree te> olher lerm, of payment, tlll',e amolllll' ,hall h,'a, mlen"1 f""l1
<br />Ihe date of disbursement at the Nllle rale and shall he payah1e. With 1I11,'rl"1. up"" ""Ill'" ffllm lender 1<' 11"""''''1
<br />requestmg payment.
<br />
|