|
86-- 105583
<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
<br />the 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 waiver by Lender, Borrower shall pay
<br />to 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
<br />leasehold payments or ground rents on the Property, if arty; (c) yearly hazard insurance premiums; aril (d) yearly
<br />mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current data and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or account~ 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.
<br />Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless
<br />Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings 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 Instrument.
<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 it) pay the escrow items when due, the excess shall be.
<br />at 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 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
<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 Property or its acquisition by Lender, any 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 1 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. and leasehold payments or ground rents, if any.
<br />Borrower shall pay these obligations in the manner provided in paragraph 2, or If nut paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furm%h 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 hen which has priority over this Security instrument unless Borrower: (a)
<br />agrees in writing to the payment of the obligation secured by the hen in a mariner acceptable to Lender: (b) contests in good
<br />faith the lien by, or defends against enforcement of the hen 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) secure% from the holder of the lien an
<br />agreement satisfactory to Lender subordinating the hen to this Security Instrument. If Lender determines that any pan of
<br />the Property is subject to a hen 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 abiive within 10 daps
<br />of t he gi ving of notice.
<br />5. Hazard Insurance- Borrower shall keep the improvements now e.xt%ting 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 I ender
<br />requires insurance. This insurance shall he maintained in the amount~ and for the periods that Lender requires The
<br />insurance carrier providing the Insurance shall be chosen by Borrower %ub)ecl to Lender',, approval which shall not be
<br />unreasonably withheld
<br />All insurance policies and renewals shall be acceptable to Lender and %hail include a standard mortgage clause.
<br />Lender shall have the right to hold the policies and renewals If Lender requ-rcs, 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 to the insurance
<br />carrier and 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 reptur
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is riot lessened If 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 sums secured by this Security Instrument, whether or riot then due, with any excess paid to Borrower. If
<br />Borrower abandons the Property, or do-vs not answer within 30 days a notice from lender that the insurance carrier has
<br />offered to settle a clams, then Lender may collect the insurance proceeds lender may use the proceeds to repair or restore
<br />the Property or to pay %ums secured by this Security Instrument. whether or not then due. The 30 -day period will begin
<br />when the notice is given
<br />Unless Lender and Borrower otherwise agree in w nnng, any application of proceeds to principal shall not extend or
<br />postpone the due date oft he monthly payments referred to in paragraphs I and 2 or change the amount of the pay merit.. if
<br />under paragraph 1p 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 shall pass it) Lender to the extent of the sums so ured b., this Sec unt y
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance of Property; leaseholds. Borrower shall nut destroy, damage or substantially
<br />change the Property, allow the Property to deteriorate or commit waste If this Serurny Instrument is on a leasehold.
<br />Borrower shall comply with the proviston%of the lease, and dBorruwer acquires fee title to the Properly, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in %rating
<br />1. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower falls io perform the
<br />covenants and agreement %contained in this Security Instrument, or there t% a icgal rrrn eeding that may signifc<unly a;fert
<br />Lender's rights in the Property (such as a proceeding in bankruptcy, probme, for condemnation ,,r i,; enforce Iaws or
<br />regulations), then i colder may do and pay for whatever Is nectsvory to protect the v aluc of l he Profx•ri s eohd t enders ri ho
<br />in the Property Lender's actions may include paying any sums wcurtd by ., lien whirl: has pnnnl% otct Ilns sc,unn
<br />Instrument. appearing in court. paying reasonable atuvrney%' fec%and enlcrrlir on the Property make rrhan. •V!b
<br />L I critter may rake action under Ibis paragraph 7, Lender does nut base
<br />Any amount% dl %hurled hi I ender under this paragraph " %hati tn•son :C addnl, oaI ilet,t .•I fi„ r •sr . ..
<br />5es'uni) In%Irumeni 1, nie%% Borrower and l fader agree ioothei towns M ilavmcut !hive ,nn, .,,rr• sh,,l! hc,r,
<br />the elate of alt%berr%cmcirt 'al Iti,• `siotc ralr and shall he pavahlc %ilh icier %t , n r•,at,r !r,• ! , h, u,
<br />requtrstin ;laymen!
<br />
|