|
<br />..
<br />
<br />88- 107058
<br />
<br />t:NIFORM COVENANTS narrower und Lender covenant Dnd agree U!\ (ollm\',:
<br />I. Peym.n! of Prioclpal .nd Inl.r..I; Prepaymenl and Lal. Charges. Dorrower ,hall promptly pay whell due
<br />Ihe prlllcipal ofalld illlere,1 on Ihe debl evidellccd by Ihe NOle and any prepaymenl and laic charge, dlle IInderlhe Nule,
<br />2. Fund. for Tax.. and Insurance. Subjecllo upplicable law or 10 a wrillen wlliver by Lellder, Dorrower ,hall puy
<br />10 Lender on Ihe day monlhly paymenls arc due under Ihe Note, untillhe NOle i, paid in full, a ,urn ("Fund,") equaltu
<br />one. twelfth of: (a) yearly laxe; und assessmenls which may allain priorilY over Ihb Security Instrument; (b) yearly
<br />leasehold pa)ments or ground renls on the Property, if any; (c) yearly huzllrd insurance premiums; and (d) yearly
<br />mortgage insurao!":'" "'ff"miums, jf an,,'. These Items Drc called "escrow items." Lender may estimate the Funds due on the
<br />basis of current dat-l .'!'il:j !,-'';\sonnblc estimates offuturc escrow items.
<br />The Funds sr,.ui be held in an institution the deposits or accounts of which urc insured or guaranteed by n federal Of
<br />slate agency (indllding Lender if Lender is such an instilulion). Lender shall apply the Funds 10 pay the escrow items.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays Dorrower inlere,1 on the Funds and applicable law permils Lender 10 make such a charge. Dorrower alld
<br />Lellder may agree in writing Ihat interest shall be paid on Ihe -ullds. Unless all agreement is made or applicable law
<br />requires interest to be paid, Lender shall nol be required 10 pay Borrower any interest or carnings 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 WIlS made. The Funds arc pledged a, additional ,ecurity for the sums secured by
<br />this Security Instrument.
<br />If the amount of the Funds held by Lender. togelher wilh Ihe fUlure monlhly payments of Funds payable prior to
<br />the due dates of the escrow items, shall exceed the amount required to pay lhe escrow items when due, the excess shall be.
<br />nt 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. BorrO\\'cr shall pay to Lender any
<br />amount necessary to make up the deficiency in one or more payments as required by Lender.
<br />Upon paymenl ill full of all sums secured by Ihis Securily lnstrumenl. Lender shall promptly refund to Dorrower
<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 Ihe Property or its acquisition by Lender. an)' Funds held by Lender at the lime of
<br />application as a credit against the sums secured by this Seeunly Instrument.
<br />3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: first, to laIC charges due ullder the Note; second, to prepaymenl charges due under the
<br />Nole; third, to amounts payable under paragraph 2; fourth. to interest due: and last. to 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 shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to L.ender 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 promplly di,charge any lien which hIlS priority over this Security Instrumenl unless Dorrower: (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 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 forfei!ure of any part of the Property; or (c) secure; from the holder of Ihe lien an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any pan of
<br />the Propeny 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 forth above within 10 days
<br />oflhe giving of no lice.
<br />S. Hazard Insurance. 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 shaH be chosen by Borrower subject to lender's approval which shall not be
<br />unrcnsonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right 10 hold the policie; and renewals. If Lender requires. Dorrower shall promptly give to Lender
<br />all receipts of paid premiums and renewal nollers. In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof ofloss if nol made promptly by Dorrower.
<br />Unless Lender and Borrower otherwise agree in writing. insurance proceeds shall 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 />resloration or repair is not economically feasible or lender's security would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument, 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 that the insurance carrier has
<br />offered to settle a claim. then lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />Ihe ProperlY or 10 pay sums secured by this SecurilY Instrument, whether or not then due. The 30-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 nol extend or
<br />poslpone the due date of the mOIl!hly payments referred 10 in paragraphs 1 and 2 or change Ihe 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 Preperty prior to the acquisition shall pass to Lender to the extent of Ihe sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6, Presenation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or ~uh~tantially
<br />change the Property, anow the ProperlY to deteriornte 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 Properly, the leasehold and
<br />fee title shan not merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the PropertYt l\lortgage Insurance. If Borrower fails to perform the
<br />covenants and agreements contained in this Security (nstrument. or there is a legal procceding that may sign1ficantl~ atTcl,:1
<br />Lender's rights in the Property (such as 11 proceeding in bankruptcy. probate. for condemnation or to enforce law, tlT
<br />regulations), then Lender may do and pay for whate\'er is necessary to protect the value of the Properl)' and lender'.. nght<.
<br />in the Property. Lender's actions may include paying I1ny sums secured by a lien which ha~ pnority O\'cr lhts SccurllY
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repatT'.. Although
<br />lender may take action under this paragraph 7, lender docs nol ha\'e to do so.
<br />Any amounts disbursed by lender under this pamgmph 7 !'ohall become addllinnal Licht nf Rnrnw.cr "l'\.'ured hy t11l:'''
<br />Secunty Instrument L'nk~~ Borrowcr and lender agree to other lenn~ I,"lf payment. the..e anwunl'> ..hall hear II1len....t ffllm
<br />the date or dl~h\Jrsemcnl :It Ihe !':l1h: nile :lnd ..hall be payable. \\l1h lnterc'!. uplln Ih"tKC frl'm Ll,'nJt.'r It. Bilrn\\\Cr
<br />rntu~tlng paymC'nl
<br />
|