|
<br />UNIFORM CoVENANTS Borrower and Lender covena8S;d.;gr!a~f~!~ 0
<br />I_ I'aymeBI of PrI.clpaI and 1.1.....1; Prepaym..1 and Lat. Charges. Borrower shall promptly pay when due
<br />the principal orand inttrest on the debt evidenced by the Note and any prepayment and lale charges due under the NOle.
<br />1. Fu.ds for Tn.. and Insurance, Subject to applicable law or '0. written waIVer by Lender, Borrower shall pay
<br />'0 Lender on ,he day monthly payments are due under the Note. until the Nole is paid in full, a .um ("Funds") equal to
<br />one-Iwelfth or: (a) yearly taxes and assessments which may atlain priority over this Security Inslrument: (b) yearly
<br />leasehold payments or ground rent. on Ihe Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items &rc called "escrow items." Lender may estimate the Funds due on the
<br />basis of cum:nt data and reasonable estimates of future escrow items.
<br />The Funds sball be held in an instilution the deposits or accounts ofwbich are insured or guaranleed by a federal or
<br />state agency (including Lender if Lender is sucb an instilution). Lender shall apply Ihe Funds 10 pay tbe escrow items.
<br />Lender may nol charge for holding and applying Ihe Funds, analyzing tbe account or verifying the escrow items, unless
<br />Lender pays Borrower inlerest on tbe Funds and applicable law permits Lender 10 make sucb 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 Bnd the
<br />purpose for wbich eacb debilto the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrumenl.
<br />If the amount ofthe Funds beld by Lender, together with Ihe future montbly 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 excess 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 ofthe Funds held by Lender is not s11flicienlto pay the escrow ilems wben 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 lhis SecurilY Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragrapb 19 tbe Property is sold or acquired by Lender. Lendershall apply, no laler
<br />than immediately prior to the sale of the Propeny 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 />3, Applicatio. of Paymenla. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs 1 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. Cbarga;; 1Jeaa. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
<br />Properly 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 shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
<br />10 be paid under Ihis paragrapb. If Borrower makes these paymenls directly, Borrower sball promplly furnisb 10 Lender
<br />receipts evidencing the payments.
<br />Borrower shall promptly discbarge any lien wbicb has priority over this Security Instrumeot unless Borrower: (a)
<br />agrees in writing to tbe paymenl oflhe obligation secured by tbe lien in a manner acceptable to Lender; (b) contesls in good
<br />faitb the lien by, or defends against enforcemenl oflbe lien in. legal rroceedings wbicb in the Lender's opinion operale to
<br />prevent the enforcement of the lien or forfeiture of any part of lhe Property; or (c) secures from the bolder of Ibe lien an
<br />agreemenlsatisfactory 10 Lender subordinating Ihe lien to ,his Security InSlrumen'. If Lender detennines Ihot 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 fonh above within 10 days
<br />of the giving of notice.
<br />5. Hazanllaauraaee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire. hazards included within the tenn .'extended 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 />insurance carrier 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 sball be acceptable 10 Lender and sball include a standard mortgage clause.
<br />Lender IhaJJ have the righllo bold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />aU 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 may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
<br />of Ihe Property damaged, if the resloration or repair is economically feasible and Lender's securily is nOllessened. If lbe
<br />rrstoration or repair is not economically feasible or Lender's security wouJd be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrumern, whether or not then due. with any excess paid to Borrower. If
<br />Borrower abandons the Property. or does not answer within 30 days a notice from Lender thai the insurance carrier has
<br />oft"ered to settle a claim. tben Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay lums secured by Ihis SecurilY Instrument, whelher or notlhen due. The 3lklay period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />UDder paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to lhe acquisition.
<br />6. PreftrTation aDd Malntnancc of Propcrw; Lcucbolds. Borrowcr shall not destroy. damagc or substantially
<br />change the Propeny, allow the Propcny to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title 10 the Propeny, the leasehold and
<br />fee title aha11 not merge unless Lender agrees to the merler in writing.
<br />7. Protedioa of leDder'. RJptl in the Property; Mortpge' lnaurance. If Borrower fails to perfonn Ihe
<br />covenants and agreements contained in this Securily Inslrument, or there is a legal proceeding that may significantly affect
<br />Lender"s ri&h1S in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regu1alions), tben Lender may do and pay for whalever is necessary to protect the value oflhe Property and Lender's rigbts
<br />in tbe Properly. Lalder's actions may include paying any sums secured by a lien which has pnority over Ihis Security
<br />Imtrument. appearinl in coun. p8)'lng reasonable at1omeys' fees and entering on the Property (0 make repairs. Although
<br />Under may take action under rhis pangraph 7,l..ender does not have rodo SQ.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by thiS
<br />Secu.nty Instrument Unleu Borrower and Lender agree to other temu of payment. Ihese amounlS shall bear mterest from
<br />the date of disbuncmenl a. the Note rale and shall be pay~7 ~\th. ,"teresi, upon notice from Lender 10 Borroaier
<br />reqUCIunl payment .r ~ ,
<br />
|