|
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 85-002331
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges clue 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, it sum ("Funds") equal to
<br />one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (h) yearly
<br />leasehold payments or ground rents on the Property, if any; (e) 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 eurrent data and reasonable estimates of future escrow items.
<br />The Funds shall be, held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
<br />slate agency (including Lender if Lender is such an institution). Lender shali 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 to pay the escrow items when due, the excess shall be.
<br />at Borrowef 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 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 I and 2 shalt 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 not paid in that manner, Borrower shall
<br />pay them on time directly to the person owed payment. Borrower shall promptly furnish to lxnder all notices of amounts
<br />to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish a, Lender
<br />reccipt,i"idencing 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 hen in a manner 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 tie
<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 lien to this Security Instrument- if Lender determines that any part of
<br />the Property is subject to a lien which may attain pnonty over this Security Instrument, lender may give Borrower a
<br />notwi identifying the lien. Borrower shall satisfy the hen or take one or more of the actions set forth above within 10 days
<br />of the Sit, ing of m?1tce.
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property,
<br />insured against loss by fire. hatards included within the term "extended coverage" and any other hazards for which Lender
<br />requires insurance. Thr% insurance shall be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall he chosen by Borrower subject to Lender's approval which shall not br
<br />unrcasonabiv withheld.
<br />All insurance pohe ins and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
<br />Lender shall have the right u> hold the polwic°s and renewals. If Lender requires, Borrower shall promptly give to Lender
<br />1 all rcctipts of prrnttums artd rertewaf rit,twiLs In the event of loss. Borrower shall give prompt notice to the insurance
<br />carrier and Lender. Lender may make prot4of [toss if not made promptly by Borrower.
<br />Unless•; Lender and Bmrowcr owherwtw agree in writing, insurance proccedsshall he applied to restoration or repair
<br />of the Property damaged, if the restoration or repair is economically feasible and I.rnder's security is not lessened. If the
<br />restoration ctr repair is rust economically feasible or Lender's security would he lessened, the insurance proceeds shall tit-
<br />applied to the sums sod urcd by this Sccurtty Instrument, whether or not then due, with tiny excess paid to Borrower. If
<br />Bctrtowcr aballuclons the Property, of does new answer within +0 days as notice from Lender that the insurance carrier has
<br />o4kred it) settle a claim. then Lender may collect the insurance proceeds, Lender may use the proceeds to repair or restore
<br />the Property or tie pay -urns scLurrd ht, this Security In%truincrit, whellier or not their clue. The 10 -day period will begun
<br />when the n ottce is given.
<br />Unless Linder and Borrower othcrwt"c agree in writings. any application of proceeds to principal shall not extend or
<br />polstporte the due date of the m+ottihly payrnent" referred to in paragraphs i and 2 or change the amount of the payments Lt
<br />under paragraph 19 the Property is acquired by lender. Borrower's right to any insurance pohcitw and pr(cctds resulting
<br />from damage to the Property prior to the acquisition shall pass to i ender to the extent of the sums sod ured by this Set:Irrny
<br />Inwirun"l immediately prior to the uclumuon.
<br />i. Prewriontiun and Maintenance of Property; (was+t•holds, lion Iwer shall not destroy. damage or substantially
<br />Changr the Property. allow the Property to drlenoratc or s:ommu waste. It this tic.urity Instrument 1" on as Icaascholcl,
<br />Wnrower !shall comply will) tier provrwions i +f Ilse lease, and d Burrower actIture4 fee Into-to liar Property. the leasehold and
<br />fee hike -hall not merge units- Linder agrees to the merger to writing
<br />1, ProWtioat of Lender's Rights in the Prrrperly; Mortgage Insurance. i Borrower ]sins to l,crtornr the
<br />covetumisand agreements ccmiamed in Ibis scrurity Instrument, or there ts.t livid pntccedhng that 111,1% stgndicanth aticct
<br />L.cmkr`w rights In the Property (such aa% it ptttredmg lit I,ankruptc%. probate, Iot c. nctemnauorr or t„ enfi,rcr laws or
<br />regiulalum%l, then Lender may do and pay for whatever rx necessary to protect lite %,aloe of the Proi,c i Iy curd l.cndrr's right%
<br />in the Property. L.ender'v acitonw may include paying any sums setinrecl by a hvii winch has pru+rity o%er this Sccunl%
<br />t tr nt, appearing ut - aturl, paying reastonahle attorttev%* fees and cntcrtug on the Prolxrly t,, make repair'. ,%Ith :u eh
<br />Lender may take asiton under this paragraph ?• tender dtW- not bate t„ do s,t
<br />Any anottontw dt%burwed by Lander under this paragraph " "hail Ioccomw addlUolr ,1l debt of Borrower sei iared by lhrs
<br />unity�nnrrurownt. I.' ntr, awlhtrrowrraascfB_<: aidrragreeloetchertd :in�s,,(payntrnt,ihcu: troy ,rnatsslttllly ^arrnrerrsllroni
<br />the tote d,f dtalstdr ntenr at ihr 'Vote mate tsrttl shall he payah[e. wnh interest. up,r) Twit, fmax 1 colder to 11 "Ir„wcr
<br />rc4u> M1ng gxaynwnt
<br />
|