|
<br />U"rrOR\1 C,.VI:S^",\ Borrowcr and LendcrcO\'cnantlllld aBrec a... fnllow",
<br />1. 1).~'menl of Print'lpal and Interest; Prepaymenl and late CharRes. Borrowcr "hull prompll)' pa~' whell dUe!
<br />Ihe prmC:lpal ufllnd 1II1ereM on Ihe debt evidenced by the N01eand any prcpuymclIIlInd Illtc ~hllr~cs due undcr Ihe Note.
<br />1. Funds for Taxes and Insurance. Subject to applicnble Inw ur 10 a wrtllel1 wal\'er hy tender, Borrowcr "hull PIlY
<br />to Lender on tile do)' monthl)' pl1)'mcnl~ urc due under tile Narc, unlil the Nole !, pllld in full. n sum ("Funds") equlll to
<br />anc.twclfl:h of: (a) )'carl)' taxes Dnd Q~mcn1s "'hich may UUn!n priorit}, (wcr IhlS Securil)' Ino;,lrumenl; (b) yearly
<br />leasehold pU)'menIS or ground renls on lhe Property, if any; (c) yearly haznrd in...urance premiums: and (d) yearly
<br />mortgage insurance premiums. ifany, These items Brc called "L"SCroW ilems." Lender may eslimale the Funds due on Ihe
<br />basis of current data and reasonable estimates offuture escrow items.
<br />The Fund.!. shall be held in an institution the deposils or nccounl... of which are insured ar guaranlced by n federal or
<br />state agency (including lender if Lender is such an institution), Lender shall npply lhe Funds to pay the escrow items,
<br />Lender ma)' not charge for holding and applying the Funds. analyzing the accounl or verifying Ihe escrow items, unless
<br />Lender pays Borrower inleresl on Ihe Funds nnd applicable law permib Lender to make such a charge, Borrower and
<br />Lender may agree in writing Ihat interest shall be paid on lhe Funds. Unless an agreement is made or applicable law
<br />requires interest 10 be paid. lender shall nol be required 10 pay Borrower any interesl ar earnings on the Funds, lender
<br />shaH give to Borrower. WilhoUl 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 wa.'i made. The Fund~ are pledged as additional securily for the sums secured by
<br />this Security Instrumenl,
<br />If the amount of the Funds held by Lender. together wl1h Ihe future monthly pnyments of Funds payable prior 10
<br />the due dates of the escrow items, ..hall exceed the amount required to pay Ihe escrow items when due. the excess shall be.
<br />at Borrower'!. option. either promptly repaid to Borrower or credllcd 10 Borrower on monthly payments of Funds. rr the
<br />amounl of Ihe Funds held by lender 1S not sufficu:nt 10 pay the esCfll\\.' Hems when due. Borrower .shall pay 10 Lender iiny
<br />amount nccosary to make up the deficlenq in one or more payments us required by lender.
<br />Upon payment m full of all ~ums ~ecured hy this Secunly Imtrumenl. Lender shall promptly refund to Borrower
<br />any Fund!lo held by lender. If under paragraph p~ the Properly l!'t ..old or acquired by Lender, Lender shall apply. no laler
<br />than immedulIdy pnor to Ihe sale oflhe Property or ils acqui...lllon by Lender, any Funds held by Lender at the lime of
<br />applicalion a." a credil agumstlhe sums secured by this Seeunty Imlrument.
<br />J. Application of Payments. Unless applicable law pr-o\'ldes olherwI\e. all paymenls rec~ivcd by lender under
<br />paragraphs I and 2 ~hall be apphed: firsl. to lale charges due under the ~otc; ~econd. 10 prepayment charges due under the
<br />NOle; third. [0 amounts pnyable under paragraph 2; founh. 10 inter~l due: and Iasl. 10 principal due,
<br />4. Charges; Liens. Borrower .!.haJl pay all taxes. as!loe!.smenl!'t, charg.es. fines and impositions allributable to the
<br />Propeny which may attain priority over this Security Inslrumenl. and leasehold paymenls or ground rcnt!'.. if any.
<br />Borrower shall pay th~e obhgatJom. in Ihe manner provided in paragraph 2. or if not paid 111 that manner. Borrower shall
<br />pay them on 1ime directly 10 the pen.on owed payment Borrower shall promptly furnish 10 Lender all notices of amounts
<br />10 be paid under this paragraph, If Borrower makes these pay men Is directly, Borrower shall promplly furnish 10 Lender
<br />receipts evidenCing the paymenls
<br />Borrowcr shaH promplly di!.Charge any lien which has pnorit) over this Secunly In...trument unlc:s..o;, Borrower: (a)
<br />agrees m wriling to the payment oftheobhgauon secured by the hen In a manner acceptable to Lender: (b) conlests in good
<br />faith the lien by. or defends against enforcemenl of the hen in. legal proceedin~ which 111 the Lc:nder'!j, opinion operale 10
<br />prevent Ihe enforcement of Ihe hen or forfelturc of any part of Ihe Property; ur Ic) <;c:curL"S from Ihe holder of lhc lien an
<br />agreement !.ali...faclory to lender subordinating the hen 10 Ihl" Seeunt)' In~lrument. If Lender del ermines thai any part af
<br />the Propeny IS !lubja:1 In a hen whll;h may allam pnonly {wer Ihl~ Sr:CUnl)o' Instrument. lender may give Borrower a
<br />nollce Identifymg the hen. Oorrower shalJ ~tisfy the hen nr lake one or more nf Ihe aClHlII' sel fonh above within 10 dn)'s
<br />of the gIving of nOlice,
<br />S. Huard Insurance. Borrower shall keep Ihe Impnl\-'emenh nlm el1~lmg or hereafter erecled on lhe Property
<br />insured against loss by fire. hazards Induded wnhllllhe h:rm "c'\tended c~weragc:" and any olher hazards for which Lender
<br />requires insurance. This Insurance shaH be malOtalllcd HI the amol1nl' and I'm I he penod.. thai Lender requires, The
<br />insurance carrier prm'ldlng the Hlsurance shall be chosen by HMwwer "'l1hJe..'1 to Lel1l.kr'.. apprcl\'al which shall nol be
<br />unreasonably withheld,
<br />All insurance rohcle, lInd rencwals shall be acceplable 10 Lender and ...hall IOdurJe a !ttandard mortgage clause.
<br />under shall have the righ1 to hold 1he poJicie. lInd renewals, If Lender r~Ulre"t, Horrower shull prompll)' give 10 Lender
<br />all receipts afpaid premium!oo and renewal nollco., In Ihe e\-'ent of loss, Sorrnwer "hall gl\'l: prompl nnllce to Ihe insurance
<br />carrier and Lender, Lender may make proof of lo~ If nol made promptly by Barro".er
<br />Unl~, Lender nnd Borro\l,;er 01hef\-\'ise agree m wnlmg, lOsurancc proc:...eed~ ,hall hc applied In reslorallon or repair
<br />of the Propeny damaged. If the rotoration or repair i... economlcall)' faMble and Lender.... secunty IS nof lessened, If Ihe
<br />restorallon or repair is not economicall~' feas1ble or lender's ...ecUf1t~' wlluld he IC!lo!\ened, the in...urance proceeds shall be
<br />apphed to the s.um!> ...o:ured by thl" Sccunty lnstrumenl, ",'helher or nol Ihen due. '-"lIh any c:\ces... paid 10 Borrower, If
<br />Borrower abandon!-1he Propcn)'. or does nol ans"'cr wlthm 30 days lJ nOllce from Lender that the Insurance carrier ha...
<br />offered to ~tlle a claim. 1hen Lender may collect Ihe msurancc proceed.... lender may u\e the proceeds to repan or restore
<br />the Property or 10 pa)' "ums secured by Ihi!lo Secuflly In"trumenl. \\-helher or nol then due The 3D-day penod will begin
<br />\I,'hen the notice 1.... ~I\:en,
<br />UnJo<; Lender and Borrower otherwi"e agree IJI wnlIDg, any appllcallon of pn,ceeds 10 pnn"'lpal shall nol c:\lend or
<br />postpone the due date of the momhly paymenls referred 10 in paragraph... t and 2 or chang.e Ihe amaunl of the paymenl.... If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's nghtto any m"urance pllll"'le~ and proceeds re...ulting
<br />from damage to the Propcny pnor to 1he acqu1Sl110n shall pas.....w Lender to Ihe eAlent of Ihe ..urns ~ccured by thl" SecunI)'
<br />Ins1Tumenl ImmedlOlel:)' pnor to Ihe acqulSIttOn.
<br />6. Preservation and ~taintenance of Propert}'; Leaseholds. BOfro"Cr ...hall nnt de...troy, damage or ~ubstanliaJJy
<br />change the Propcn~'. allow the Property to deteriorate or commit \\'a\le. (f thl", Set:Unly IO"ilrUmenl I~ on a lea!>chnld,
<br />Borro\\;er shaH C<lmply \\;th the prm.isions of the lea...e. and if Borrower aequITes fee TItle IDlhe Propert), the leasehold :md
<br />fee IIIle shall nOl merge unlt:ss Lender agrees 10 the merger 111 "'nung.
<br />7. Protection of under.s Rights in the Propert)'; "lortR8~e Insurance. If BorTO"er falb fl) perform the
<br />CQ\;enanlS and agrec:ments contained m thl!-o Security Instrument. or Ihere I' a leg.al prn..:o:t:'dmg Ihat ma~ 'lgOlficanll~ alTccI
<br />under's nghts In the Properly (such as a proct.'eding in bankruplc), prohale, fnr condemnation l1r In enfori:c law.. (Ir
<br />regulations),lhcn lender mn)' do ilnd pa)' for 1010 batC"'CT i'!t neco.saf)-' It... prolecl the \-alue of Ihe ProperlY and Lender'.. nght..
<br />111 the Propcr1) Lender', acllon!> ma~' mdudc paymg an}' ~um!l \ccufl:d 1:0) a hen \\-hlch ha.. pflOnl) meT tlll~ Se~.unt~
<br />Instrument. appeann~ In .."t.1urt. pa~ IIlg rea.'l1nahlc attorne)'!>' fees and enlenng: on the Pfl\rcrl~ 10 maKe rep;,ur.. Although
<br />Lender ma)'1akr aellOn under Ihl10 parngraph:, Lender doci not ha\-c to LI{I "ll
<br />An)' amount" dl..buf'OCd by Lender under Ih,.. paragraph; ..haIll1t"1.."rnc :HJ,jllltlll;,tJ del1t "f Hrofn'" ~'l ..l....un:J 11\ lh...
<br />5o;Un1)' In!tlrurnc01 ttnlo.s HnrrU\\Cf and lender agree to other lerm~ \.r rit~ menl, thC">l' .Jf1l1'UIl!~ ..h,atl tx'ar mien'''' 'fPIll
<br />the dale of dllthuf'>('menl at Ihe SOle rate and ,hall t\C' pa)'ahlr, \\lth lIlI..-rl"'!. up',n !lplllT lrl'lII I l'l 1I.k , h' B\ln,'"er
<br />rr-quC'Stlng P3) menl
<br />
<br />OB- 105107
<br />
|