|
UNtFoRIM COVFNANTS. Borrower and Lender covenant and agree as follows: 85-002972
<br />I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall prompt;; pay when title
<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" ritien waiver by Lender, Borrower shall pay
<br />to Lender on the day monthly payments are due tinder 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 Iriority over this Security Instrument; (h) 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 oil 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 accounts cif which are insured or guaranteed by deral or
<br />a fe
<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 snake such a charge. Borrower and
<br />Lender may agree in writing that interest shall be paid on the Fund,. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shall not be required to pay Borrower ,nly 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, rile 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 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 othena tse, 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 ttie
<br />Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principai 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 to 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 the payment of the obligation secured by the lien to a manner acceptable to Lender: (h) contests to 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 rllay 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 />Of the giiing of notice.
<br />5. Hazard Insurance. Burrower shall keep the improvements now existing or hereafter crected 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 .hail he maintained in the arnotints and for the pmtsk t� The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to ) Lender'. appr ,%ill w F icil )fallen of he
<br />unreasonably withheld.
<br />All insurance right policies t It ahol renewals shall be acceptable of Lender and shall include a standard mortgage clau.e.
<br />Lender shall ha`e the right te± hold the pa)hcies and renewals, if Lender requires, Borrower shall proniptl) give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall gist prompt notice to the Insurance carrier and Lender. bender may make prot)f 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
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. !f the
<br />restoration or repair is not economically feasible or Lender's security would he lessened, the insurance proceeds shall he
<br />applied to the sums secured by this security Instrument, whether or not then due, with any excess paid to Burrower. If'
<br />Borrower abandons the Prof "crty, or dews not answer within 30 days it notice from Lender that the insurance .arrier has
<br />offered to settle a claim, there Lender inav collect the insurance. proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sun's seci.ired by this Security Instrument, whether or not then dtae. the ?t) -day periuti will begin
<br />when the notice is gieera.
<br />L"aless Lender and Borrower otherwiw agree In writing, any application of proceeds to l,rincrpal shall nut cstend or
<br />under a the due date e the reouthly p;a )nneiits referred to ua paragraphs I and d rtr change the amount of the pa} meals. If,
<br />under paragraph 19 the Property i. acquired by Lender. Borrowcr'�s right to any insurance pohcres acrd proceed, rcullnnf
<br />from damage to the Property prior to the acquisition shall pass to Lender to tilt "(111 of the surfs wcured by flu, ticrurits
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation and Maintenance (if Property; Leaseholds. Borrower shall not destroy. danfagc or saahaaut: ally
<br />change the Pr<)perty, allow tilt 1'ruperty to drtcrnlratc or cornnui waste if tills
<br />Burrower shall comply wish the provistons of the lease, aild rl horrrtwcr acgtures fee [lilt, t,rt rherPropi:rt�tr, lthcrlrcasehold alid
<br />fee. title shall not merge unless lender agrees to the mergcr Ili writing.
<br />7. Protection Of Lender's Rights in the Property. Mortgage Insurance. If 1loriowcr [:Ills it) prr[orrii stir
<br />covenants and agi-ecments contained of tilts Security instrument, or there I,,,r 1tg;Il f,r�,rct'eding th;u nu1� sia!nUicantl� ,1fte, i
<br />Lender's rights in file Property lruch as a pr)cecciinc; in hankni Iik. ,,;
<br />regulations). then Lender allay do and pay for whatevcr Is ucce.�aryl to pr1110 r stilt t�alut rirf'thelProf,t�rty andtlIt lict, I'm" t of
<br />In the Property Fender's actions rn,ay ulcltlde 1�aylir� aub .urns �zl Cerro w o h has ,
<br />Instrumerff, appearing rn court, pafylrlg ftraa�,aiilahleaflorlrc'yti ft e. and trirc'rUI > t i tit'riil o%t'r 1111'. Sic, time,
<br />y t n tilt f rof,ct t} its nrakr rrl ,ors �1lthougll
<br />Lender inav take action under stir +, par at�ralrh ' %. I.enderr titres nor hate t,, do sr,
<br />eiuy anrutrnt. drshur.cd by Lcua9r�r unaier drib frarat;ialrh "sham! hctolrtt• arititionoll 19rh1 of Itori Duct s <:t ul cif !�s t!ris (
<br />caaiity lnarurfunt l'n1�'.. itoerowe'raI,lot I elides ,agrea r,t otht'r tttnl� �•P
<br />tilt tl,itt' trf riitihurst °iur,nr al lilt' 'w;otq' rate f`,I�nrcr'i. sliest aristtunt, sh,111 hint rnicic.i i,ttilr
<br />Intl "11,111 hi px�;rhlc,
<br />B'f. "iluc,01lig lia" lll'rll c'tc .l, �r1 +, +t1 tl, �l ii. ,_• (rt !ll f : IS, {,'i t
<br />Idt�tt,,r�c•I
<br />sl
<br />
|