|
86- 102983
<br />"IFORMCOVENANTS. Borrower and Lender cot. enant and agree asfoflow °s.
<br />I. Payment
<br />of Princilal and ifuttrest; Prepayment and Late Charges. Borrower shall promptly pay whet: due
<br />the principal of and interest on I he debt evidenced by the Note and
<br />any prepayment and late charges due under the Note.
<br />2. Funds for Taxes and Insurance. Subject to applicable law' or to:a
<br />written waiver by Lender, Borrower shall pay
<br />to fender on tire day monthly payments are due under the Note, until the Note I,. paid in full, a sum ("Funds ") equal to
<br />one- twelfth Of (a) taxes
<br />yearly and assessments which may attain priority .vet this Security Instrunaenr. (b) yearly
<br />leasehold payments or ground ants the Property,
<br />on if any. (c) yearly hazard Insurance premiums; and (d) yearly
<br />mortgage insurance premiums, if any These items are o alied "escrow items." Lender
<br />basis
<br />may estimate the Funds due on the
<br />ofcurrent data and reasonable estimates o'
<br />items.
<br />The Funds shall be in an institution the deposits
<br />or accoum s of which are insured or guaranteed by a federal or
<br />slate agency (including Lender if Lender is such an institution). Lender shall
<br />apply the Funds to pay the escrow item%.
<br />Lender may, not charge for holding and applying the Funds, analyzing the
<br />account or verifying the escrow items, unless
<br />Lender pays Borrower interest on the Funds and applicable taw permits Lender to make such a charge. Borrower
<br />Lender may agree in writing interest
<br />that and
<br />shall he paid on the Fund, t riles% an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower interest
<br />any or earnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual arc rifer tt g of the Funds showing credits and debits to t he Funds and the
<br />purpose for which each debit to the Funds Funds
<br />was made. The Funds are pledged aw additional security riot the sums
<br />this Security Instrument. by
<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 required to the
<br />pay escrow Items when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower
<br />'S
<br />on monthly payments of Funds. If the
<br />amount of the Funds held by Lender not sufficient to pay the escrow items when due, Borrower
<br />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 oaf all sums secured by
<br />this Security Instrument, Lender shall promptly refund to Borrower
<br />any Funds held by Lender, if under paragraph 14 the Property is sold
<br />or acquired by Lender, Lender shall apply, no later
<br />than immediately prior to the sale of the Property or its acquisition by Lender, Funds
<br />any held by )..ender at the time of
<br />application as a credit against the sums uxured 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
<br />under the Note: second, era prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to due.
<br />4• Charges;
<br />principal
<br />Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable h? the
<br />Property which may attain
<br />priority over this Security Instrument, and leasehold payments or ground rents, if mv.
<br />Borrower shall pay, these obligations in the manner in
<br />provided paragraph 2, or if nut paid m that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall
<br />promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower
<br />receipts evidencing the payments. shall promptly furnish to Lender
<br />Borrower shall promptly discharge any Iien which has priority over this Security IitsIrument unless Borrower: tat
<br />agrees in writing to the payment of the obligation secured by the lien in
<br />a manner acceptable to Lender; (h) comests ;u goxxj
<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 tiorfeiture ofany part of the Property:
<br />or (c) secures from the holder o1 the lien an
<br />agreement satisfactory to Lender sutxrrdmating the lien to this Security Instrument. If Lender cleterrnrnc% that any
<br />the Property is subject to lien
<br />a part of
<br />which may attain priority over this Security instrument. Lender may give Borrower a
<br />give o
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more
<br />3t.
<br />of the giving of notice. of the acnom se t forth ahoy clays
<br />5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected nn the Property
<br />insured against loss by fire, hazards included within the term "extended
<br />coverage" and anti other hazards for w hick Lender
<br />requires insurance. This insurance shall be maintained in the arnounts and for the
<br />insurance
<br />periods that Lender requires. The
<br />carrier providing the insurance shall he chosen by Borrower %uh)ccr to Lcndcr's
<br />unreasonably
<br />withheld. approval which shall not be
<br />All insurance policies and renewals shall he acceptable to Lender and shall include it standard mortgage clause.
<br />Lender shall 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 loss, Borrower
<br />of shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make proof of Joss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in
<br />writing, insurance -
<br />proceeds shall be applied to restoration or repair
<br />of the Property damaged, If the restoration
<br />or repair is economically feasible and Lender'% security a not lessened. If the
<br />restoration or repair is not economically feasible or Lender's security
<br />would be lessened,
<br />applied to the sums secured by this Security Instrument, whether or not then the Insurance proceeds shatl be
<br />due, with any caress paid to Borrower. If
<br />Borrower abandons the Property, or does
<br />not answer within 30 days a notice from !.ender that the insurance carrier has
<br />offered to settle it claim, then Lender may coUeet the insurance
<br />proceeds. Lender may use the proceeds to repair air restore
<br />the Property or to pay sums secured by ahts Security Instrument,
<br />whether or riot theca due. The 30 -day period will begin
<br />when the notice is given.
<br />Unless Lender and Borrower otherwise
<br />agree in writing, any applicatom of proceeds to prutcipal shall not e tend or
<br />postJKme the duedale of the monthly payments referred to in paragraphs I and 2
<br />or. ha ige the arm,unl of the payments. If
<br />under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and
<br />from damage to the Property
<br />proceeds resulting
<br />prior to the acquisition sliall pass to [ender to the extent of rho •.tuns secured by this Security
<br />Instrument immediately prior to the acquisition
<br />6. Preservation and Maintenance, of Property; Leaseholds. Borrower ,haii nor destiny, darnage of ,uhstaariall, �
<br />change the Property, allow the Property
<br />to deteriorate or commit waste. If this Securuy Inshuntent i, on a Ieasehokl.
<br />Borrower shat{ comply with the {,ravisronc of the least, and d Borrower acquires fee title to the Property. t he leawhold
<br />fee title shall) not merge unless Lender
<br />agrees to the merger in writing. :and
<br />7. Protection of Lender's Rights in the Property;
<br />Mortgage Insurance. It Borrower fails to pc;fr,rrn the
<br />covenants and agreements contained in Olis Secunry Instrument, or there r, a legal prek:eeding that may sI) niiicanth aflcrr
<br />Leader's rights in the Property Isuch
<br />as a Proceeding in hankrupiiy. prohate. for cnndenuaauon : o r,, rnt<,rc,• fa,a, „
<br />regulations), then Lender may do and pay for whatever I % necessary
<br />to ttrt rht,aluevi'the }'r „peel, and t ender
<br />ur the Proycrty. LtlnderNo actions may include paying any surtax strclred by ,a hen which hay
<br />instrument. appcanng In <.aurat
<br />1,r1,critt :•.:•r this
<br />court. paying rraacomable attorneys' !'acs and Co' rering cm the Proper; t ;, ni.akr repast, \it!aouh
<br />I.cndet may lake action under this Paragraph t ender d�cs 11:1%
<br />not e u, do) u,
<br />Any amc,unts disbursed by L ender under this paragraph %kdt bt.rn *;e addu : +v :a! dot•; ,,I fi;.,,,, , r sr.,irril by that
<br />4 Sn"Unly Jn%iru•ient Untcss Birrc..wer I
<br />and : tdcr agree to r,Iher .cr ,� - r r ay anrni, iii cue u+ war nut r _ t Ir pan
<br />the date tit ehst+unrasaes; at the Nore rate nd'ball Ec t sy ai w r h
<br />rc ucstrng pay-nacnt - .:a rt °,t roc . , ?"'f!”. t -ndc, r., li ,rr„H to
<br />�
<br />..... i
<br />
|