|
<br />I
<br />
<br />I
<br />
<br />UNIFORM COVENANTS Borrower and Lender covenant and agree as follows:
<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 a wrinen 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 10
<br />one-twelfth of: (a) yearly laxes and assessments which may attain priority over this Security Instrument.; (b) yearly
<br />leasehold payments or ground rents on Ihe 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 be held in an institution the deposits or account.s of which are insured or guaranteed by a federal or
<br />stale 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 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 Borrower's optlon, 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 i~ems when due, Borrower shall pay to Lender any
<br />amount necessary to make up the deficiency in one or mOTe payments as required by Lender.
<br />Upon payment II1 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, 110 later
<br />tnan 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 Instnlment.
<br />3, Application of Payments, Unless applicable law 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, Charges; Liens, Borrower shall pay all taxes, assessments, charges, fines and impositions attributable 10 the
<br />Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shaH pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower sball
<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 hen which has prionty over this Security Instrument unless Borrower: (a)
<br />agrees in writmg to the payment of the obligation secured by the lien in a Jr..nner acceptable to Lender; (b) contests in good
<br />faIth the lien by, or defends agamst 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 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 10 days
<br />of the giving of notice,
<br />5, Hazard Insurance, Borrower shall keep the improvements now existing or hereafler erected on the Property
<br />msured against loss by fire, hazards included within the term "extended coverage" and any otber 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 shaH 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 shall promptly give to Lender
<br />all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
<br />carrier and Lender, Lender may make proof ofloss 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 economicallv feasible or Lender's securitv would be lessened, the insurance proceeds shall be
<br />applied to the sums secured by Ihis Sec'urity Instrument, whether 0; nol then due. with ~ny excess paid to Borrower. If
<br />Borrower abandons the Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier has
<br />offered to senle 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 tbe 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', 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 Security
<br />Instrument immediatdy prior to the acquisition.
<br />6. Presenation 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 comply WIth the proviSIOns of the lease, and if Borrower acqUIres fee title to the Property, Ihe leasehold and
<br />fee title shall not merge unless Lender agree:i to the merger in writing.
<br />7, Protection of Lender'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 Lender may do and pay for whatever is necessary to 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 hen which has prlority over this Security
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make repalr~. Although
<br />Lender may take action under thls 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 ~ecured by this
<br />Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amount~ shall bear inieresl from
<br />the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower
<br />requestmg payment.
<br />
<br />84 - 002878
<br />
<br />L
<br />
|