|
86- 10848.7
<br />UNIFORM COVFNrANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payantat of PrWW and fnitrlst; PrepayRStat 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. FtWa far TOO" and Iwratta. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to
<br />Leader on the day monthly payments are due under the Note, until the Note is paid in full, a sum ( "Funds ") equal to one-
<br />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 items." Lender may estimate the Funds due on the basis of current data
<br />acid reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or accounts of which are insured of 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 verifving the escrow items, unless Leader pays
<br />Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender mar agree in
<br />writing that interest shall he paid on the Funds. Unless an agreement is made or applicable law requires . interet +t 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 credit:. and debits <e .::c Funds and the purpose for which each dehit 'o
<br />the 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 payment; of Funds payable prior to ;he
<br />due dates of the escrow items. shall exceed the amount required to pay the escow items when due, the excess shall be, at
<br />!,'onower's option, either promptly repaid to Borrower or credited or. monthly payments of Funds. if the amount of the
<br />Funds held by Lender is not sufficient to pay the escrow items when due. Borrower shall pay :o Lender any amounr
<br />necessary to make up the deficiency in one or more payments as required b•. Lender.
<br />Upon payment in full of all sums secured by this Security: instrument. Lender shall promptly rerurd :C Borrower any
<br />Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later than
<br />immediately prior to the sale of the Property or its acquisition by Lender, anv Funds held by Lender at the time of
<br />application 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 p rindpai due.
<br />4. Charges; Liens. Borrower shall pay all tares, assessments, charges, tines 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 shali pay them on
<br />time directly 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 the
<br />payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good faith
<br />the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
<br />prevent
<br />the enforcement of the lien of forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement
<br />satisfactory to Lender subordinating the lien to this Security instrument. If Lender determines that any part of the Prctperry i=
<br />'a
<br />subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower notice identifying the
<br />lien. Borrower shall satisfy the lien or take one or more of the forth
<br />actions set above within I0 nays of the giving of notice.
<br />5. Hazard lasarance. Borrower shall keep the improvements now existing or hereafter erected on the Property it -sured
<br />against loss by fire, hazards included within the :crm "extended
<br />coverage" and any other hazards for which Lender requires
<br />insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The carrier
<br />insurance
<br />providing the insurance shall he chosen, by Borrower subject to Lender's approval which ;hall not be unreasonably withheld.
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause,
<br />shall have the right to hold the
<br />policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts
<br />of paid premiums and renewal noti, In the event of loss, Borrower shall give prompt notice to the insurance
<br />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 of
<br />the Property damaged, if the restoration or repair is economically feasible
<br />and Lender's security is not lessened. 1£ 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 sum secured by this Secur; ;tv Instrument, whether or not then due, with any excess paid to Borrower. I£
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance
<br />carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair
<br />or restore
<br />the Property or to pay sums secured by this Securitv Instrument, whether or not then due. "rhe 30 -day period will begin when
<br />the 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 referred in
<br />payments to paragraphs I and 2 or charge ;he amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance
<br />policies and proceeds resulting
<br />from damage to the Property prior to the acquisition shall pass to Lender to the extent of the
<br />Burns, secured h, °his Security
<br />instrument immediately prior to the acquisition.
<br />6. Presmallon and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or uhstantially change
<br />the Property, allow the Property to deteriorate or commit If
<br />waste. this Securitv Instrument is on a leasehold• Borrower shall
<br />comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title
<br />.hall not
<br />merge unless Lender .agrees to the merger in writing.
<br />7. Protecdoa of Lender's Rights In the Property; Mortgage Insurance. If Borrower fails to perform t' c covenants
<br />and
<br />agreements contained in this Security Instrument, or there is a legal g proceeding that may significantl} affect l..ender s rights ill
<br />the Property (such as a proceeding in bankruptcy, for
<br />_
<br />probate, condemnation or to enforce laws or regulationo, then Lender
<br />may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property !
<br />uder'
<br />actions may include paying any sums secured by a lien which has
<br />priority over this Security instrument, appearing n court.
<br />paying reasonable attorney's fees and entering oft the Property to make repairs. Although Lender ntay take _chop under this.
<br />paragraph 7 Lender does not have to do so. .4ny amounts disbursed by Lender under this Paragraph :hall ,r;.•uc
<br />additional debt of Borrower secured by this Security
<br />�_,
<br />instrument. Unless Borrower and I ender agree
<br />Payment. these amounts shall beat interest from the date of disbursement
<br />! s
<br />at the vote rase and rat *e ayal •si crest.
<br />upon notice from Lender to Borrower requesting payment.
<br />_.�d
<br />
|