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<br />84 -002826
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<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 />Ihe 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 Insuranee, 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 tl,e 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 />leasehol!l 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 hems," 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 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, ulll~
<br />Lender pays Borrower interest on the Funds and applicable law pennits 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 sunissecuredby
<br />this Security Instrument,
<br />If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable priQrto
<br />the due dates of the escrow items, shall exceed the amount required to pay the escrow ilems when due, the excess shall be,
<br />at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of F'und$,Ifthe'
<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 refu"dtoB<>rt'o~er
<br />any Funds held by Lender. If under paragraph I 9 the Property is sold or acquired by Lender, Lender shalla"ply:no4a~
<br />than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lendetatthe'tiJnr;-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 <Ilodei':
<br />paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due lIDderthe
<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 attribul!lblelO tbe..
<br />Property which may attain pnority over this Security Instrument, and leasehold payments or ground. rents.)f IIl!Y:
<br />Borrower shall pay these obligations in the manner provided in paragraph 2. or ifnot paid in that manner,Bprrower.,sh\Jll.
<br />pay them on time directly to the person owed payment, Borrower shall promptly furnish to Lender all noticesofamoJllits.
<br />to be paid under this paragraph, If Borrower makes these payments direc'ly, Borrower shall promptly furnish.toLender
<br />receipts evidencing Ihe payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument
<br />agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender;
<br />faith the lien by, or defends against enforcement of the lien in, legal. proceedings which in the Lender's
<br />prevent the enforcement of the lien or forfeiture of any part of the Property; or (c)
<br />agreement satisfactory to Lender subordinating the lien to this Security Instrument,
<br />the Property is subject to a lien which may auain priority over this Security Instrument,. Lender
<br />notice identifying the lien, Borrower shall satisfy the lien or take one or more of the actionssetfortb
<br />of the giving of notice,
<br />S. Hazard Insurance. Borrower shall keep the improvements now existing or hereaftererected'on.theP~y;
<br />insured against loss by fire, hazards included within the term "extended coverage" and any other bazards fot,whiclIl.cmc:!e~
<br />requires insurance, This insurance shall be maintained in the amounts and for tbe periods that Lender requires,The
<br />insurance carrier providing Ibe insurance shall be chosen by Borrower subject to Lender's approval which. shalIJ10.t,1le' .
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgaae:clau5(e<
<br />Lender shall bave the right to hold the policies and renewals, If Lender requires, Borrowersball.promptly;gi'(e't6~~ .
<br />all receipts of paid premiums and renewal notices, In the event of loss, Borrowersball give prompt noticeto,tbeillS!lr~
<br />carrier and Lender. Lender may make proof of loss if not made promptly by Borrower,
<br />Unless under and Borrower otherwise agree in writing, insurance proceeds Sballbe.appliedJorestot;ati~n:or'~r'
<br />of the Property damaged, if the restoration or repair is economically feasible and Lender's security is notlessenl!!:!dfth.e,
<br />restoration or repair .s nol economically feasible or Lender's security would be lessened, theinsurane<> PtQCeeds.sjlaltbe
<br />applied to the sums secured by this Security Instrument, whether or not then d"ej with "ny exeessJl8id.lo\llOrtoll/er,.lf
<br />Borrower abandons Ihe Property, or does not answer witbin 30 days a notice from Lender that theinsut;anceCarrierbas
<br />offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair. or restore
<br />Ihe Property or to pay sums secured by this Security Inslrument, whether or not then due, The 3D-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 I and 2 or change the amount of the payments. If
<br />under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />from damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Securily
<br />Instrument immediately prior to the acquisition.
<br />6, Preservation and Maintenance of Property; 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 compl)' with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
<br />fee title shall not merge unless Lender agrees to the merger in writing,
<br />7. Protection of Lender's Rights in Ihe Property; Mortgage Insurance. If Borrower fails to perfonn the
<br />co~'enants ~nd a~reemenls cOiltained in this Security Instrument, or Ihere is a iegal proceeding that may significantly affect
<br />Lender's nghts m the Propert)' (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
<br />regulations), lhen Lender may do and pa)' for whalever is necessary to protect the value of the Property and Lender's rights
<br />in the Propeny. Lender's actions may include paying any sums secured by a lien which has priority over this Security
<br />Instrument, appearing in court, paymg reasonable attorneys' fees and enlering on the Property to make repairs, Although
<br />Lender 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 becomc addItional debt of Borrower secured by thIS
<br />Security Instrument. Unless Borrower and Lender agree 10 other terms of payment. these amounts shall bear interest from
<br />the date of disbursement at the Note rate and shalt be payable. WIth interest, upon notlCe from Lender to Borrower
<br />reques,ing payment.
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