|
<br />.
<br />t.:NIHlIlM CO\'LNANTS Dorrowernnd Lcnderco\lcnnn1 nod IIp:rct' II' (ollow!'! . 88-- 105540
<br />1. Payment of I)rlnc:ipat .nd Interest; Prt'paymenl and Latc! CharRcs. BOf'rower shull promptly pa}' when due
<br />the principal of and mteft.os1 on the debt evidenced by the NOle Rod UIl)' prc:pa}nlenl nod late charge~ due under the Note.
<br />2. Funds for Taxes and Insurance. 5ubjl:CI10 applicable In\\' or 10 n wnllen 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. 11 sum ("Funds") cqualto
<br />on~lwclnh of: (0) yearly UUles and a~ses.'imenls which mD)' attain pnority o\ler lhl!l Securiry Instrument: (b) yearly
<br />leasehold payments or ground rents on the PropenYl if any; (e) yearl}' hazard im:urance premiums; Bnd (d) yearly
<br />mangagc insurance premiums. if Bny. These items are called "cscrow items," Lender may estimate the Funds due on the
<br />basis of current data and reasonable 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 appJy 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 inlerest 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 nol be required to pay Borrower any interest or earnings on the Funds, Lender
<br />shall give 10 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 Instrument.
<br />Ifthc 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 amounl required to pay the escrow items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower OJ' credited to Borrower on monthly payments of Funds. If the
<br />amount of the Funds held by Lender is not sufficie:ntto pay the escrow items when due, Borrower shall pay 10 Lender any
<br />amount neces.c;ary to make up the deficiency in one or more payments as required by Lender,
<br />UpCln payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
<br />an)' Funds held by Lender, If under paragraph 19 the ProperlY is sold or acquired by Lender. Lender shall apply, 00 later
<br />than immediately prior to Ihe sale of the Property or its acquisition by Lender. any Funds held by Lender atlhe time of
<br />application as a credit against Ihe: sums secured by this Security Instrument.
<br />3. Application of Payments. Unless applicabJe law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall Ix applied: first. to late charges due under the Note; second, to prepayment charges due: under the:
<br />Nat~ third, to amounts payable under paragraph 2; founh, 10 interest due; and last, 10 principal due.
<br />4, Charges; Liens. Borrower shall pay all taxes. assessments, charges. fines and impositions attributable to the
<br />Property which may attain priority 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 that manner, Borrower shan
<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 payments directly. Borrower shall promptly furnish to Lender
<br />receipts evidencing the payments,
<br />Borrower shall promptl). discharge any lien which has priority over this Security Instrument 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 b}', or defends againsl enforcement of the lien in. legal proceedings which in the Lender's opinion operale to
<br />prevenl the enforcement of the lien or forfeiture of any pan of the Prop-:ny; or (c) secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender detennines that any part of
<br />the Propert). is subject 10 a lien which may Bttain priority oYer this Security Instrument, Lender may giye Borrower a
<br />notice identifying the hen, Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />oftbe giving of notice.
<br />5, Huard Inmrance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />Insured Bgainst los~ by fire. hazards included within the: term "extended coverage" and any other hazards for which Lender
<br />requires insurance. TIns insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carner proViding the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shalJ include a standard mortgage clause.
<br />Lender shan have .he ngh' to hold the policies and renewals. If Lender requires, Borrower shall promptly give '0 Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower sban give prompt notice to the insurance
<br />carrier and Lender. Lender ma)' make proof ofloss ifnot made promptly by Borrower,
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair
<br />of the Property damaged. iftbe restoration or repair is economically feasible and Lender's security is not lessened, If the
<br />restoration or repair is not economically feasible or Lender's security would be lessc::ned, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, whether or not tben due, with any excess paid to Borrower, If
<br />Borrower abandons the Property. or docs 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 insurance procc:c:ds. Lender may use the proceeds to repair or reslore
<br />the Property or to pay sums secured b)' this Securily InstrUment. whether or nol then due. The 30-day period will begin
<br />when tbe notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, an)' application of proceeds to principal shall not extend or
<br />postpone the due dale ofl"e monthly payments referred 10 in puagraphs I and 2 or change the amount of the payments, If
<br />under puagraph 19 the Properly is acquired by Lender, Borrower's right '0 any insurance policies and proceeds resulting
<br />from damage 10 the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />hwrummt immediatc:b' prior to the acquisition.
<br />6. PreoenatlOll aDCI MaIa~ or Property; LeluehoIdI. Borrower shall not destroy, damage or substantially
<br />change the Propeny. allow the Propeny to deteriorate or commit waste. If this Security Instrumenl is on a leasehold,
<br />Borrower shall campI}' ....Ih the provisions of the lease. and irBorrower acquires fee title to the Propeny, the Jeasehold and
<br />fee title shall nat merge unless Lender agrees to the merger in writing.
<br />7. ProtectIoa of Leader'. JUab.. ia the Property; Mortgage Insurance. If Borrower fails 10 perform the
<br />covenants and agreemenls contained in this Security Instrument. or there is a legal proceeding thai may significantly affect
<br />Lender's rights in tbe Property (such as a proceeding in bankruptq', probate. for condemnation or to enforce laws or
<br />rq:ulations). then Lender may do and pay for whatever is necessary to protecl the value ortbe Property and Lender's rights
<br />in tbe Property. Lender's actions ma)' include paying an)' sums secured by a lien which has priority over this Security
<br />Instrument. appearing in coun.. pB)'lng reasonable attorneys' fees and cotmng on the Property to make repairs. Although
<br />I...cnder may rake action under this paragraph 7. Lender does not have to do so,
<br />Any amounts disbursed b)' Lender under tbis paragraph 7 shall become additional debt of Borrower secured. by Ihis
<br />Sccurit)' Instrument. Umc:ss Borrov.'er and Lender agree 10 other leons of payment, thc:s~ amounts shall bear interest from
<br />tbe date of di,burscment at th~ N01e rat~ and shall be p3)-ablc:. With mlerest. upon nollc(' fn,m LendeT to Borrower
<br />requestmg payment
<br />
|