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<br />84 - 005595
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<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 84 - 005334
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due
<br />Ihe principal of and interest on the d~bt evidenced by the Note and any prepayment and late charges due under Ihe Note,
<br />2. Funds for Taxes and Insurance. Subjecllo applicable law or to a written waiver by Lender, BC'Tower shall pay
<br />10 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 taxes 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 institulion 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 nol charge for holding and applying the Funds, analyzing the account or verifying the escrow items,unless
<br />Lender pays Borrower interest on Ihe Funds and applicable law permits Lender to make such a charge. Borrower and
<br />Lender may agree in writing that inlerest shall be paid on Ihe Funds. Unless an agreement is made or applicable law
<br />requires interest to be paid, Lender shaH not be required to pay Borrower any interesl 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 amounl of Ihe Funds held by Lender, together with the future monthly payments of Funds payable prior to
<br />the due dares of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shaII be,
<br />al Borrower's option, either promptly repaid 10 Borrower or credited to Borrower on monthly payments of Funds. If the
<br />amounl of the Funds held bv Lender is nol sufficient 10 Dav Ihe escrow items when due, Borrower shall nav to. Lender any
<br />amount necessary to make up the deficiency in one or m~re- 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 immedialely prior to the sale of the Property or ils acquisition by Lender, any Funds held by Lender at the time of
<br />applicalion as a credit against the sums secured by this Security Instrument.
<br />3. Application of Payments~ Unless applic..able law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall be applied: firsl, to late charges due under I" . "lole; second, to prepayment eharges due under the
<br />Note: third. to amounts payable under paragraph 2; fourth. to jnt?'"" _." and last, It' Jrincipal due.
<br />4. Charges; Liens. Borrower shall pay all taxes. a..-:sf'- nCilts. charges. fines a...Y}d impositions attributable to the
<br />Property which may attain prionty over this 3ecurity Instrument, and leasehold payments or ground rents, if any,
<br />Borrower shall pay Ihese 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 paymenl, Borrower shall promptly furnish to Lender all notices of amounts
<br />to be paid under this paragraph. If Borrower makes Ihese payments directly, Borrower shall promptly furnish to Lender
<br />receipts evidencing Ihe payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
<br />agrees in wriling to Ihe payment of the obligation secured by the lien in a manner acceplable 10 Lender; (b) contests in good
<br />faith Ihe lien by, or defends against enforcement of the lien in. legal proceedings which in the Lender's opinion operate to
<br />prevenl the enforcement of the lien or forfeilure of any part of the Property; or (c) secures from the holder of the lien an
<br />agreement satisfaclory to Lender subordinating the lien to Ihis Security Inslrument. If Lender determines that any part of
<br />the Property is subject 10 a lien which may attain priority over this Security Inslrument, Lender may give Borrower a
<br />notice idenlifying the lien. Borrower shall satisfy the lien or take one or more of the aclions set forth above within 10 days
<br />of the giving of notice,
<br />5, Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ereeled on Ihe Property
<br />insured against loss by fire, hazards included within the term "ext~nded coverage" and any other hazards f()f which Lenuer
<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 10 Lender's approval which shall nOI be
<br />unreasonably withheld,
<br />All insurance policies and renewals shall be acceptable to Lender and shall include a slandard 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 receipls of paid premiums and renewal nOlices, 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 promplly by Borrower.
<br />Unless Lender and Borrower otherwise agree in wnting, insurance proceeds shall be applied to restoralion or repair
<br />of the Property damaged, if Ihe restoration or repair is economically feasible and Lender's security is nol lessened, If the
<br />restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shall be
<br />applied to Ihe sums secured by this Security Instrument. whelher or not then due, wilh any excess paid to Borrower. If
<br />Borrower abandons Ihe ProperlY, or does not answer within 30 days a notice from Lender that Ihe 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 Properly or to pay sums secured by this Security Inslrument, whelher or not then due, The 30-day period will begin
<br />when the notice is given,
<br />Unless Lcnder and Borrower otherwise agree in writing, any applicalion of proceeds to principal shall not extend or
<br />poslpone the due dale of the monthly payments referred to in paragraphs 1 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 Property prior to the acquiSition shall pass 10 Lender to the extent oflhe sums secured by this Security
<br />Instrument immediately prior to Ihe acquisition.
<br />6, Preservation and Maintenance of Property: Leaseholds, Borrower shall not destroy, damage or substantially
<br />change the Prooerty, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the proviSIOns oflhe 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 III writing.
<br />7, Protection of Lender's Rights in the Property! Mortgage Insurance, If Borrower fails to perform the
<br />covenants and agreements COlllaim:u III ihi~ Security InSIrUmcHI. or there I~ a k'gai pnxt'culIlg Ihat may slgnificantiy atiel..'[
<br />Lender's rights in the Property (such a~ a proceeding In bankrupH,,~Y. pn)bate. fOf condemnation Of to enforce laws Of
<br />regulations), then Lender may do and pay for whatever IS necessary to protecl th,' value of the Property and Lender's nghls
<br />in the Property. Lender's actions may include paying allY sums secured hy a lien whidl has priority (Wer this Secunty
<br />Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property 10 make n:patrs, Although
<br />Lender may take action under thIS paragraph 7. Lender does not havc to do so.
<br />Any amounts disbursed by Lender under this paragraph 7 shall t'1ecnme addltlunal debt nf Borrower ~e\.'ured by {tw.
<br />Security Instrument. Unless Borrower and Lender agree to other terms (--,fpayment, these i10hHWls shall hear 1l1lcrcsI frnm
<br />the date of disbursement at the Note rail' and shall be payable. with lIlterest, uriJll Ill'lll't' frnm ll'llJer ti' Bl.lrrnwcr
<br />requesting paymem.
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