|
"
<br />87- -10181 4
<br />�7_ ♦ �y
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1 U1 (Q8
<br />1. Payment of Principal and Interest: Prepayment and Late Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note_
<br />2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to
<br />Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds") equal to
<br />I one- twelfth of: ;a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold
<br />j payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and
<br />reasonable estimates of future escrow items.
<br />f` 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 t including Lender if Lender is such an institution). Lender shall apply the Funds to pay theescrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays
<br />c Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Iender may agree in
<br />writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, withour
<br />_ charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the
<br />Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument-
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be- at
<br />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 Leader 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 this Security instrument, Leader shall promptly refund to Borrower any
<br />Funds held by Lender. If under parts .graph 19 the Property is sold or acquired by leader, Lender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application
<br />as a credit against the sums secured by this Security Instrument_
<br />3. Application of Payments. Unless applicable law provides otherwise. all payments received by Lender under
<br />paragraphs 1 and 2 shall be applied: first, to late charges due tinder the Niue; 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. 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 orground rents, if any. Borrower
<br />shall pay these obligations in the manner provided in paragraph ' or if nor paid in that manner, Borrower shall pay thereon
<br />time directly to the person owed payment. Borrower shall prompriy furnish to Lender all notices of amounts to be paid under
<br />this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower- ta)
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests ingxd
<br />faith the lien by. or defends against enforcement of the lien in, legal pr x:eedmgs which in the Lender's opinion operate to
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or r c) secures from the holder of the hen an
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument- If Lender determines that any part of the
<br />Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the
<br />as
<br />giving of notice.
<br />=�
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing of hereafter erected on the Propem
<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 die periods thar Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall nor be
<br />E
<br />unreasonably withheld.
<br />All insurance
<br />`
<br />policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause_ L.eruier
<br />shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender all receipts
<br />I
<br />of paid premiums and renewal notices_ In the event of loss, Borrower shall give prompt notice to the insurance carrier and
<br />'y
<br />Leader. 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 restoramin. or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and Untlers security is nor lessened. If the
<br />restoration or repair is not economically feasible or Lender's security- would be lessened- the insurance proceeds shall be
<br />.applied to the •ums secured by this –Security Instrument_ whether or not then &, , with any excess paid to B rri :wrr. if
<br />--
<br />_ - Borrower abandons The Property, or does nor answer wtthm 30 hays a notice from Lender that the insurance carrier h'a<
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the
<br />Property or to gay sums secured by this Security Instrument, whetheror nix thendue. The ;U -day period will begin when the
<br />notice is given. -
<br />Unless Lender and Borrower otherwise agree in wilting, any application tit proceeds to principal shall not extend t':E
<br />p 6tponr the due date of the monthly payments referred to in paragraphs I and = or,flange. the amount of the payments. If
<br />under paragraph 10 the Property is acquired by Lender. Borrower s right ro im insurance pohcies and pntste is resulting
<br />from damage to the Property prior ro the acquisition shall pass to Lender to the extent x)f the ,un)s xvurc_` N this Secunn
<br />Instrument immediarely prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not desrroy. damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste- If rhts Siecurity Instrument is on a leasehod
<br />- f3.rr r chill . nt.• .,h .},..., .=r . �. to .tea :[ t�� _>4 n-
<br />_
<br />fee tide shall not merge unless Lender agrees n) the merger in writing
<br />--
<br />?. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants
<br />and agreements contained in this Security Instrument or there is a legal proceeding that may significantly affect Lender s
<br />rights in the Property i such. as a proceeding in bankruptcy, probate. for condemnarionor toenforce lawsor regulations!. then
<br />Lender may do and pay for whatever is necessary to protect thca.value of the Property and Lenders rights in the Property
<br />Unders actions may include paying any sums secured by a lien which has priority over this Security Instrumenr, appearing, in
<br />court, paying reasonable attorneys' fees and entering on the Property to make repairs Although Lender ma_v take action
<br />t
<br />under this paragraph 7, Lender does not have to do so
<br />L Any amounts disbursed by Lender udder this paragraph Shall ileft)nie additional dvbr ,)f B irn—er ,ecured by rhi,
<br />Security Instrument, L.'n less Bt it rower and iender agte it) 11[I14e to rm,.tt pay itM'nt. the >t .t int)u m, Sftal1 !wAr interest trx)in
<br />the date of disbursement at the Note rate and shall be payable, w ich inte re, r. tp m nw ioe trt,m Lenxirr ct. tlxt. t ,war rcquestmk
<br />payment
<br />sy
<br />{
<br />
|