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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 87-102649
<br />I. Payatent of Priacipal and lnteresh Prepyntenl
<br />and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any
<br />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
<br />to Lender on the day monthly
<br />shall pay
<br />payments are due under the Note, until the Note is paid in full, a sum ("Funds ") equal to
<br />one - twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b)
<br />kasehold payments or ground rents
<br />yearly
<br />on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate
<br />basis of current data and
<br />the Funds due on the
<br />reasonable estimates of fut ure escrow items.
<br />The Funds shall be held in an institution
<br />the deposits or accounts of which are insured or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to
<br />Leader may not charge for
<br />pay the escrow items.
<br />holding and applying the Funds, analyzing the account or verifying the escrow items,
<br />Lender pays Borrower interest on the Funds
<br />unless
<br />and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest/ shall be paid on the Funds.
<br />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
<br />shall give to Borrower,
<br />on the Funds. Lender
<br />without charge, an annual accounting of the Funds showing credits and debits to the Funds
<br />Purpose for which each debit to the Funds
<br />and the
<br />was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instrument.
<br />If 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
<br />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
<br />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
<br />secured 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,
<br />than immediately prior to the sale
<br />no later
<br />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. Appligtioa of Pay'mots. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs i and 2 shall be applied: first, to late charges due
<br />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 />Cbargesr Liens. Borrower shall pay all taxes,
<br />Borrow4,
<br />assessments, charges, fines and impositions attributable to the
<br />er hall pay these obligationssin over
<br />tiled Instrument, and
<br />the matnn� pmt paragraph
<br />pay them on lime directly to the 2J or if nodt paid in that manner, Borrower shall
<br />Y person owed payment. Borrower
<br />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 the hen in a mariner acceptable to Lender;
<br />faith the lien by, or defends
<br />\
<br />(b) contests in good
<br />against enforcement of the hen in, legal proceedings which in the Lender's opinion operate to�
<br />prevent the enforcement of the lien or forfeiture of an
<br />agreement satisfactory to Lender subordinating the lien to this SecuProperly, ity rument. If Lender tdetermitnes that any part of
<br />the Property is subject to a lien which may attain
<br />priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower hall satisfy the lien or take one or more of the actions set firth
<br />of the giving of notice.
<br />above within 10 days
<br />S. Hazard iRSttranee. Borrower shall keep the improvements now existing or hereafter erected on the Property
<br />insured against loss by fire• hazards included within the "extended
<br />term coverage" and any other hazards for which Lender
<br />requires insurance. This insurance %hail be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by
<br />unreasonably withheld. Borrower subject to Lender's approval which shall not be
<br />All insurance
<br />policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender hall have the right to hold the policies and renewals. If Lender
<br />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 />career ad Lender. Lender may make proof of toss if not made
<br />promptly by Borrower.
<br />Unless Lender and Borrower otherwise
<br />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
<br />restoration or repair is not lessened.
<br />not if the
<br />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
<br />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 Lende r may collect the insurance
<br />proceeds. Lender may use the proceeds to repair or restore
<br />the Property to pay sums secured by this Security Instrument, whether or not then due- The 30 -dav period will begin
<br />when the notice ce 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
<br />under paragraph 19 the Property is
<br />payments. If
<br />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
<br />Instrument immediately
<br />prior to the acquisition. by this Security
<br />6. PreserratiOR and 3faintenance of Property;
<br />Leaseholds. Borrower shall riot destroy, damage or sub%tanbaily
<br />change the Property, allow the Property to deteriorate or commit wasle. If this Security Instrument is on
<br />Borrower shall comply with the leasehold,
<br />a
<br />provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protection Of Lender's Rights ill the Property; :Mortgage Insurance. if Borrower fails to perform the
<br />covenants and agreements contained in this Security Instrument,
<br />�..._"�."".
<br />or there is a legal proceeding that may significantly affect
<br />Lenders rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), then Lender may. 4]10 and pay for whatever is necessary
<br />to protect the value of the Property and Lender's rights
<br />m the Property. Lender's actions may include paying any sums secured by a lien which has priority o%cr this Security
<br />instrument, appearing in eourt, paying reasonable
<br />attorneys' fees and entering on t y to make repairs. Although
<br />he Propert
<br />Lender may take action under this paragraph 7. Lender doe s not have to do so.
<br />Any amounts disbursed by Ly
<br />ender under this paragraph 7 shall become additional debt of Borrower secured b this
<br />Security In %Irument Unless 13o,rrowcr and Lender agree to other terms of payment, these amounts shall ht interest lions
<br />the date of di%bursrmrnt at the 'Vote rate ;rod sh all he in f
<br />requesting payment paYahle, xith interest. upon notice from I ender 1rest
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