|
f
<br />87-- 103626
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I. 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 by Lender,
<br />waiver Borrower shall pay to
<br />Lender on the day monthly paymens 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) yearly leasehold
<br />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 it ems." Lender may estimate the Funds due on the basis of current data and
<br />reasonable estimates of future 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 institution). lender shall apply the Funds to pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender
<br />4 _
<br />pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender 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
<br />_
<br />shall give to Borrower, without
<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 arc pledged as additional security for the sums secured by this Security Instrument.
<br />-1:
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />i` due dates of the escrow items, shall exceed the amount required to the escrow items due,
<br />pay when 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 />°-
<br />amount of the Funds held by fender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
<br />armwnt 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, lender shall promptly refund to Borrower any
<br />w
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by lender, [ender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by lender, :my 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 I 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, 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, leasehold
<br />and payments or ground rents, if any. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on
<br />timedirectly to the person owed payment. Borrower shall promptly 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: (a)
<br />agrees in writing t0 the payment of the obligation secured by the lien in a manner acceptable to lender; (b) contests Ingo od
<br />faith the lien by, or defends against enforcement of the lien in, legal
<br />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 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 Burrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or rake one or more of the actions set forth above within 10 days of the
<br />giving of ndrice.
<br />5. 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 chat Lender requires. The
<br />insurance
<br />carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to lender and shall include a standard mortgage clause. Lender
<br />shall have the right to hold the policies and renewals. If lender
<br />requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower
<br />shall give prompt notice to the insurance carrier and
<br />Lender, 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 restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible
<br />and lender's security is not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security would he lessened, the insurance proceeds shall be
<br />applied to the sums secured by this Security Instrument,
<br />whether or not then due, with any excess paid to Borrower. If
<br />&mower abandons the Property, or does not answer within 10 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 the
<br />Property or to pay sums secured by this Security Instrument,
<br />whether ur not then due. The 30 -day period will begin when the
<br />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 1 and 2 or change the
<br />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 sh =!1 pass to lender to the extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, danr,tge or substantially
<br />change the Property, allow the Property to deteriorate
<br />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 Property, the leasehold and
<br />fee tick shall not merge unless lender agrees to the merger in writing.
<br />7. 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 Len(ler's
<br />significantly affect
<br />rights in the Property ( such as a proceeding in bankruptcy, probate, for condemnation or w enforce laws or regulations), then
<br />Lender may dot and pay for whatever is necessary to protect the value of the Property and Lender's r ights in the Property.
<br />Lent4er'sActions may include paying any sums secured by a lien which has priority over this Security instrument, appearing in
<br />town, paying reasonable attorneys' fees and entering on the Property to make repairs Although Lender may take action
<br />utd#et this Paragraph 7. Lender does not have to do so.
<br />Any arotnts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
<br />Security Instrumem. Unless Borrower and lender agree to other terms of payment, these amounts shall hear interest trom
<br />thedatcod dislwrsenwrot at the Norte rate and shall be payable, with interest, upon nonce f r. nn Lender to hot rower requesting
<br />pagrt�tr.
<br />.t
<br />
|