|
<br />UNIFORM Cm'ENANTS norrower and Lender covennn' nnd agree", follow" 88- 106003
<br />1. Payment of Principal and Interest; Prepayment and Late ChOfRCS. Burrower !'Ihllll prompt I)' puy when dul.:
<br />the princil1111 ofund interest on the debt evidenced by the Note and any prepayment and IUlc charg.es due under the Nole.
<br />Z. Funds for Taxes and Insurance. Subject to applicnblt: II1W or to u written \\'uiycr by l.cl1th:r. Borrower shall pay
<br />to lender on the day monthly payments arc due under the Note. until the Note is paid in rull. a sum ("Fund:;") I:qunl to
<br />one-twelfth of: (D) yenTty loxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />lensehold payments or ground rents on the Property, if nny; (el yearly hazard insurance premiums: and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow ilems." Lender may estimate Ihe Funds due on the
<br />basis of current data and reasonable estimates offuture 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 insli1ution). Lender shall apply 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 interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lcnder mey agree in writing that in1erest shaH be paid on the Funds. Unless an agrecmen1 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 and the
<br />purpose for which each debit 10 the Funds was made. The Funds are pledged as additional securily for the sums secured by
<br />this Security Instrument.
<br />Jf the 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 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 the deficiency in one or more payments as required by Lender.
<br />Upon payment in full of all sums sc:cured 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 10 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, nil pnyments 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, 10 interest due; and last, to principal due.
<br />4. Chnrges; 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 shall
<br />pay them on 1ime 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 promplly furnish to Lender
<br />receipts evidencing the payments.
<br />Borrower shaH promptly discharge any Uen which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in writing to the payment orthe obligation secured by the lien in a manner acceptable to 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 from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien to Ihis Security Instrument. If Lender determines that any part of
<br />the Property is subject to a lien which may auain 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 />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propeny
<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 not be
<br />unreasonably wilhheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include 11 standard mortgl1ge clause.
<br />Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />all 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 roay make proof ofloss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shaH be applied to restoration or repair
<br />of the Property damaged, if the 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 liCCUrity would be lessened, the insurl1nce proceeds shall be
<br />applied to rhe sums secured by this Security Instrument, whether or not 1hen 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 insurance carrier has
<br />offered to settle a claim, then Lender may coHect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Propeny or to pay sums secured by this Security Instrument, whether or not then due. The 30.daj: period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shan not c:xtend or
<br />postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amounl oflhe payments. If
<br />undcr paragraph 19 the Property is acquired by Lender, Borrower's right 10 any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender 10 the ex1ent of the sums secun.-d hy this Security
<br />Instrumcnt immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not deslro)'. damage or !tubstantially
<br />change the Property, aHow the Property to deteriomte or commit was1e. If this Security In!ttrument is 011 a leasehold.
<br />Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title 10 the Property. the leasehold and
<br />fee title shaH nol merge unless Lender agre~s to the merger in writing.
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in thls Security Instrument. or there is a legal proceeding tlmt may !tignificuntly nffect
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation Dr to enforce laws or
<br />regulations), Ihen Lender may do and pay for whatever is necessary to protect the value of the ProperlY and Lendcr's rights
<br />in the Property. Lender's actions may include paying any sums secured by a hen which has prioril)' (J\"er this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Propert)' to make: repairs. Allhaugh
<br />Lender may take action under this paragmph "7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this pDrllgraph"7 shall become additional debt of Burrower !teeured by this
<br />Security Instrument. Unless Borrower and Lender bgree 10 other lenus of payment. thc!tt: amnunl'o !thall hear mten:st from
<br />the datc of disbursement III the Note rate and !thl1I1 be pa}'uble. with intere!lt. upnn Ol'tiee ff{lm Lender tn Burrower
<br />requesting payment.
<br />
|