|
UNIFORM COVENANTS. Burrower and Lender covenant and agree as follows: V 103707
<br />1 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 in 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 />one- twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument, (b) yearly Ieasehold
<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 items." 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 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 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 are pledged as additional security for the sums secured by this Secur ^y Instrument.
<br />If the amount of i he 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 u) 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, Burrower shall pay to Lender any
<br />amount necessary m) make up the deficiency in one or more payments as required by Leader.
<br />Upon payment in full of all sums secured by this Security Instrument, fender shall promptly refund io Borrower any
<br />Funds held by lender. if under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, nu 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 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, u) interest due; and last, to principal due.
<br />$. 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. 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 />time directly to the person owed payment. Borrower shall promptly furnish to) Lender all notices of amounts lobe paid under
<br />this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing
<br />the payments.
<br />Burrower 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 Ina 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 W secures from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the lien w 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 IO days of the
<br />giving of notice.
<br />5. Hazard Insurance. Borrower shall keep tale 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 shall be chosen by Borrower subject to Lender's approval which shall not be
<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 requires, Borrower shall promptly give al Lender all receipts
<br />of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice it) 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 and lender's security is not lessened. If the
<br />restoration or repair is not rconumically 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 W 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, whether or 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 I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right cu any insurance policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass w Lender al 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, damage ur substantially
<br />change the Property, allow the Property ul deteriorate 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 title shall not nwrge unless Lender agrees to the merger in writing
<br />7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Burrower fails «) perform the covenants
<br />and agreements contained in this Security Instrument, or there is a legal proceeding char may significantly affect Lender's
<br />rights in the Property ( such as a proceeding in bankruptcy, probare, l r condemnation or to enforce laws or regulations), then
<br />Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights nl the Property.
<br />t Len&f's Actions may include payingany sums secured by a lien which has priority liver this Security instrument, appearing it]
<br />Lcourt, paying reasonable attorneys fees and entering on the Property to slake repairs. Although Lender may take action
<br />under this paragraph 7, Lender dues not have to tit) so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall becoane additional debt of Borrowet secured by this
<br />Securuy Instrument, Uness Btrrowet and Lender agree io other (crins of payment, these aintllllrs shall Blear intcrtst troll)
<br />rhetfatcof disbursement at the None rate acid shall he payable, with interest, upxul notice from Lender n.liorrower requesting
<br />payment
<br />M
<br />
|