|
86- 104309
<br />Ukit0lta4C0VVNANte Borrower and Lendercove nant anti agreeacRdlow".
<br />n due
<br />1. Payment of f'riweipol mw Interest; Prepoyment ad sate Car. IIorniwcr Qhall promptly p4the Note.
<br />The principal of and interet nThedebt evidenced by the Note and any prepayment and late charge% due under
<br />2. Faris lerTimes sad inmrow, subject to applicable law or a wnnc •..c r by Lender, Iterrower .hall pay
<br />10 Lender on the "day mortlhly paytt►ents are due under the Note. until the Note is pa:e► m full, a sum ("Fund%') cquai to
<br />3
<br />Otte- twelfth of (a) yearly taxes and assessments which may attain priority over this Security Instrument; Ili) yearly
<br />leasehold payments or ground rents on "thc iroperty, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage
<br />a insurance premiums, if tiny. Tdwse items are called - escrow items." Lender may c%timate the Fundsttuc on the
<br />basis of current data and reasonable estimates 1,
<br />fwurcescrow items.
<br />The Funds shrill be held in sit mstituttoh lherls er accounts of which are insured or guaranteed by a federal or
<br />stale agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
<br />" Lender may not charge for holding and applying [fie Funds, analyzing the account or verifying the escrow items, unless
<br />Lender pays lkwrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree m writing that interest shall be raid ten the Funds Unless an agreement us male or applicable law
<br />requires interest to be paid. Lender shall Plot he required to pay ikxrower any imcrest or crnings on the Funds. Lender
<br />shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
<br />purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
<br />this Security Instruments
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due tlatcsofThe escrow hams, shall exceed the amount required to pay the escrow items when due, the excess shall be.
<br />al Borrower's oplinn, :cilher promptly repaid to Borrower orcridited in tlorrower on m�nlhly paymenh of Funds. If the
<br />amount of the Funds beldby lender is not sufficient to pay the escrow items 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 L 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, no later
<br />than immediately prior to the sale of the Properly or its acquisition by Lender, any Funds held by Lender at the time of
<br />application ac a credit against the sums secured by this Security Instrument.
<br />3. Application of f aynteats. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraph& I and 2 Shall be applied: find' To amounts payable under paragraph 21 second, to interest
<br />due; and last, to principal due.
<br />e. Clu roll; L.deisa. Borrower shall pay all taxes, assessments, charges. hoes and impositions attributable to the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
<br />Borrower shall pay These obligations in thefmanner provided in paragraph 2, or if not paid in that manner, Borrower shall
<br />pay Them on time directly to the person owed payment. Borrower 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 thepayment of the ohligation secured by the lien in a 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 (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
<br />the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
<br />notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
<br />ofthe giving of notice.
<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 le maintained in the amounts anti for the perirds that Lender requires. The
<br />insurance carrier providing the insurance: shall he chosen by Borrower suhjecl 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.
<br />Lender shall have The right to hold the policies and renewals. If Lender 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 in the insurance
<br />carrier and Lender. Lender may make proof of toss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically f'eaable and Lender's security is not lessened. if the
<br />e restoration-or repaii,is not economically feasible or Lender's security would be lessened. the insurance proceeds shall he
<br />applied to the terms secured by this Security Instrument, whether ar not then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 10 days a nonce from lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect The insurance proceeds. Lender may use the prccceds to repair or restore
<br />The Property or to pay sums secured by this Security instrument, whether or not then due. The 10 -Jay period will begin
<br />when 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 duc dale of the monthly payments referred to in paragraphs t and 2 or change the amnuni of the payments. If
<br />under paragraph 19 the Property is , aired by Lender, Borrower's right to any imurance policies and proceeds resulting
<br />Ile
<br />from damage to the Property prior to the acquisition shall 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 desirny, damage or substantially
<br />change the Property, allow the Property to 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 merge unless Lender agrees to the merger in writing.
<br />7. Protection of Lender's Rights in the Properly; Moriltage Insurance. If Ilorrower fails to perform the
<br />covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
<br />Lender's rights in the Properly (Such as a proceeding in bankruptcy, probate, for condenru:umn or to enforce laws or
<br />regulatnms). then Lender may do and pay for whatever is necessary to protect the value of the iroperly and Lender's ngluts
<br />in The Property. Lender's actions may include paying any Sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paying reasonable attorneys' fecs:md entering on the Property to make repairs. Although
<br />Lender may take action under this paragraph 7. Lender does not have to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Horrower secured by Ilit%
<br />Security Instrument. Unless Borrower and Lender agree it) other ferias of payinent, thew amounts shall hear interest from
<br />the date of disbursement at the Note rate and shall he payable. with oiler st, upon notice from Lender to Borrower
<br />requesting payment.
<br />
|