|
UNIFORM COVENANTS Borrower and Lender covenant and agree as follow85--w 000856
<br />1. 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 it 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 is 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 any; (c) yearly hazard insurance premiums; and (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 he 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.
<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 %urns 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 to 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. Borrower shall pay to Lender any
<br />amount necest;ary 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 lite 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; ccond, to prepayment charges due under the
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest dr_, and last, to principal due.
<br />4. Charges, Liens. Borrower shall pay all taxes, assessme..,tts, charge%, tines 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 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 Iender
<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 the payment of the obligation secured by the lien in a manner acceptable to Lender, (h) contests in gexpd
<br />faith the lien by, or defends against enforcement of the lien itt, 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 Instrumenr 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 It) days
<br />of the giving of notice.
<br />S. Hazard Insurance. Borrower shall keep the Improvements now existing or hereafter erected on the Property
<br />insured against loss by !ire, hazards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. This insurance shall he maintained ul the amounts and fix the periods that Lender requires. The
<br />insurane, carrier providing the insurance shall he chosen by Borrower subject to lender's approval which shall not he
<br />unreasonably withheld.
<br />All insurance policies and renewals shall he ,acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right to hold the policie% and renewals. If Lender requires, Borrower shall promptly give to tender
<br />all receipts of paid premiums and renewal notices In the event of loss, )iorrower shall Ri. ve prompt notice to, till' Insurance
<br />carrier and Lender. Lender may make proof of loss If not made promptly by Borrower.
<br />Unless Lender and lkirrow'cr oiherw'lse agree In wilting, 111%nriallce proceeds %hall he applied to lesloralion 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 economically feasible or Lender's security would he lessened, the insurance proceeds %hail be
<br />applic%F to the sums secured by this `.iecurity Instrument, whether or not then due, with arty excess paid Io Borrower. It'
<br />Borrower abandon-. the Property, or does not an%wcr within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, there Lender may collect the insurance proceeds. Fender may use the proceeds to repair or restore
<br />the Property or to pay %unls secured by this Securely Instrument, whether or not then due. The 10-day period wdll begin
<br />when the notice is given,
<br />Little-.% Lender and W)rrower otherwise agree in w riling. any application of'proceed% to principal shall not exlend tit
<br />postpone the due date of the monthly payment% r'ef,,rred 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 u) any Insurance pohcies and procccd% re%ultmg
<br />from damage to the Property prior to the acqulsltton shall pass to Lender to the extent of the suns% secured M this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Prewrvation acrd Maintenaece of Property; Leaseholds. Borrower %hall not destroy, damage or suhstunnalh
<br />change the Property, Alas& the Property io deteriorate or commit waste. If ilri% Security Instrument is on a lewwllold.
<br />Borrower shall comply wtth the prove %tons of the lease, and if Borrower acquires fec title to the Property, the leasehold and
<br />fee title shall not merge unlo% Lender agrees to the merger to writing.
<br />7. Proteetltm of Leader's Nights in the Property; Mortgage Insurance. iI Borrower Fails to petfoinn the
<br />covcnanl%and agreements contained in this Security Instrument, or therc is it legal prtxcet ing that may Sognilieawly idrect
<br />Lender'% right% in the Property (such a% a proceeding in bankruptcy, probate, for condeminahon or to crlhnce• idws or
<br />regulations), then Lenlcr may d10 acid pay for whatever i% ne'ces%ar%' to protect tile value of the Propel ty and I elidea'% rights
<br />to the Property. Lender'% actiota% may include paying and %urns secured by it hen whlch has priority oecr I111'. Sc.urily
<br />Instrunicilt, appearing in court, paying rca%a,n'•ahlc tuorne}%' lee% and entering on the prol,vi t% I., mike icl,mi % llthough
<br />Lender may takeaclum uneler thl %panigralih 7. Lender dons not havc iodo%o
<br />Atay anrount %diahursed by I ender under tilts paragraph 7 Shall hel'0I11C addltltnal debt I N1110ucr "-runvl 1 "i till',
<br />°s`ea;urtly Imlrurncnr Unless Mirrowc, and Lender;1greetor,lher tetnsofp:wmrnr, these;an,nunl%shall heal niloiv %I final
<br />the dale oil chatpulvemrnt at the Hale rate and %hall he payahle, with 1nre,c%t. upon rtollrc from 1 endvt 10 Boltower
<br />rerquesling payment.
<br />W
<br />
|