|
<br />88- 105915
<br />
<br />UNIFORM COVENANTS Borrower and Lender covenant and ogree os follows:
<br />1. Payment of PrIncipal and Interatj Prepllymenl and Lale CharKes. Borrower shall promptly pay when due
<br />the principal orand interest on the debt evidenced by the: Note and any prepayment and late charges due under the Note.
<br />Z. Funds ror Taxes and Insurance, Subject to applicable law or 10 B written waiver by Lender. Borrower shall pay
<br />to Lender on the day monthly payment:) ilre due undc:r the Note, unlil the Note is paid in full, a sum ("Funds") equal 10
<br />one-twelfih of: (8) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />leasehold payments or ground rents on the Propeny, if anYi (e) yearly hazard insurance premiums; and Cd) yearly
<br />mongage insurance premiums, if any. These items are called "escrow items," Lender may cstimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow hems.
<br />The Funds shall be held in an institution the deposhs or accounts of which arc insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply Ihe Funds to pay the escrow ilems.
<br />Lender may not charge for holding and 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 sha}) 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 intercsl or earnings on the Funds. Lender
<br />sball give to Borrower. without charge, an annual accounting of the Funds showing credils and debits 10 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 o[the Funds held by Lender, together with Ihe future mnnthly payments nf Funds payable prior to
<br />the due dale; orthe 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 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 thedeticiency in one or more paymenrs as required by Lender.
<br />Upon payment in full of aU sums secured by this Security Instrument. Lender shall promptly refund to Borrower
<br />any Funds held by Lender. If under paragraph 19 the Propeny 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 />3. Application of Payments, Unless applicable law provides otherwise, aU payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to late charges due under lhe Note: second, to prepayment char~es due under the
<br />Note; third, to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due. .
<br />4. CIarges; Uens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority. over rhis 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 nol 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 />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 promptly 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 tbe lien in a manner acceptable to Lender; (b) contests in good
<br />faitb 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 (e) 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 pan 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 )0 days
<br />of the giving ofnoticc.
<br />5. Hazanllnsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire, hazards included within the term "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 nor be
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptabJe to Lender and shall include a standard mongage alause.
<br />Lender shall hive the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all rccc:ipts 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 ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise i:lbree in writing, insurance proceeds shall be applied to restoration or repair
<br />of the Propcrty damaged, if the restoration or repall !S economically feasible and Lender's securily is not lessened. If the
<br />restoration or repair is not economically feasible or V:nder"s security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrurdent. whether or not Ihen due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insutance carrier has
<br />ofl'ered to settle a claim. then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeny or to pay sums secured by Ihis SecurilY Instrument, whether or nol then dUe. The 3D-day 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 I and 2 or change the amount of the payments. If
<br />under 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 the acquisition.
<br />6. Preoenatlon and Maintenance of Prnporjlr; Leaaebolda. Borrower shall nol deslroy. damage or SUbslanlially
<br />change the PropenYl allow the Propeny 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 to the PropenYl the leasehold and
<br />fee title shall not merge unless Lender agrecs.to the merger in writing.
<br />7. ProlectiOD or Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument. or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Propcny (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may do and pay for whatever is necessary 10 protCCI the value of the Property and Lender's righls
<br />in the Propeny. Lender's actions may include paying any sums secured by a lien which has priorilY oller this SccurilY
<br />Instrument, appearing in court. paying reasonable attorneys' fees and entering on the Property to make repairs. AlIhough
<br />Lender may take action under this paragraph 7, Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by Ihl!t
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these: amounts shall bear interest from
<br />the date of disbursement al the Note rate and ..hall ~ payable. with mleres1, upon notice from Lender 10 Borrower
<br />reque5unJ payment.
<br />
|