|
85- 0064t317
<br />UNiFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />I Payment of Principal and Inter Prepayment and Late C%arges. Borrower shall promptly pay when due
<br />the principal of and interest on the debt evidenced by the Noteand any prepayment and late charges due under the Note.
<br />2. Fainds fit• Tases snd ivas trainim 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 />'
<br />one- tweiRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
<br />kasehold payments or around rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
<br />mortgage' insurance premiums, if any. These 'item are called "escrow items." Lender may estimate the Funds due on the
<br />basis of current dataand 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 />statile 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 />Leader nay 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 pledgee' 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 data 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 necessary to makeup the deficiency in one or more payments as required by Lender.
<br />Upon payment in foil 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. Apple aatinn of Payments. Unless applicable taw provides otherwise, all payments received by Lender under
<br />paragraphs i 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. CbarVs; Liens. Borrower Shall pay all taxes, assessments, charges, fines a A impositions attributable to the
<br />Property which may attain priority cvc-,- 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 Lender
<br />receipts evidencing the payments.
<br />'
<br />Bormwtr 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: (b) contests in good
<br />faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lenders opinion operate to
<br />y.
<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 />;.
<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 1 0 days
<br />of the giving of notice.
<br />_
<br />3. Hazard Iaaarance. 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 be maintained in the amounts and for the periods that Lender requires. The
<br />insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
<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 shalt promptly give to lender
<br />all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall gyve prompt notice to the insurance
<br />Lender.
<br />carrier and 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 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 be lessened, the insurance proceeds shall he
<br />applied to the stuns secured by this Security Instrument, whether or not then due• with any excess paid to Borrower. If
<br />Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to settle a claim, then Lender may collect the insurance proceeds. lender may use the proceeds to repair or restore
<br />the Property or to pay sums 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 writing, any application of proceeds to principal shall not extend or
<br />postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
<br />under paragraph 14 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 to Lender to t he extent of the sums secured by this Security
<br />Instrument immediately prior to the acquisition.
<br />6. Preservation tai Mainteunce of Pro",; Leaseholds. Borrower shall not destroy, 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 Properly, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing.
<br />7. Protectimt of Leader's Rights in the Property; Mortgage Insurance. If Borrower 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 Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations). then Leader may do and pay for whatever is necessary ui protect the value of the property and lender's rights
<br />in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this SecuniN
<br />Instrument, appearing in court, paying reasonable attorneys' fees and entering on the 1'roperip to make rel+airs Although
<br />Leader 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 Borrower secured by this
<br />Security Instrument Unk- -% Borrower and Lender agree to other terms of payment• these amounrs. hall N-At interest from
<br />the date of disbursement at the Nrrtc rate and sha11 he payable• with mierect, upon rioncc from t ender io liorn>wer
<br />requeWM9 pa lymem.
<br />I
<br />
|