|
2oiooo7s7
<br />UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />1. Payment of Principal and Interest; Prepayment and Late Charges. Burrower shall promptly pay when due the principal of
<br />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 written waiver by Lender, Borrower shall pay to Lender on
<br />the first day of each month, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over
<br />this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents nn the Property, if any; (c) yearly hazard or
<br />property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums
<br />payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums.
<br />These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a
<br />lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures
<br />Act of 1974 as amended from time to time, 12 U.S.C. 5S 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser
<br />amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the
<br />amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance
<br />with applicable law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender,
<br />if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not
<br />charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender
<br />pays Bnrrnwer interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to
<br />pay aone-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law
<br />provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower
<br />any interest or earning, on the Funds. Borrower and Lender may agree in writing, however, that interest shall he paid 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 purpose for
<br />which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument.
<br />If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the
<br />excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient
<br />to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount
<br />necessary to make up the deficiency. Borrower shall make up the deftciency in no more than twelve monthly payments, at Lender's sole
<br />discretion.
<br />Upon payment in full of all sums secured by this Security Tnstrument, Lender shall promptly refund to Borrower any Funds held by
<br />Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply
<br />any Funds held by Lender at the time of acquisition or sale 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 under paragraphs 1 and 2
<br />shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due;
<br />fourth, to principal due; and last, to any late charges due under the Note.
<br />4. Charges, Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property, which may
<br />attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the
<br />manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment.
<br />Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments
<br />directly, .Borrower shall promptly furnish. to Lender receipts evidencing the payments.
<br />Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a) agrees in writing to
<br />the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against
<br />enforcement of the 1ren in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from
<br />the holder of the lien an agreement satisfactory to Lender subordinating the lien. to this Security Instrument. If lender determines that any
<br />part of the Property is subject to a lien, which may attain. priority over this Security Instrument, Lender may give Borrower a notice
<br />identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within ] 0 day, of the giving, of notice.
<br />5. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured
<br />against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which
<br />lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier
<br />providing the insurance shall be chosen by Borrower subject to Lender's approval, which shall not be unreasonably withheld. If Borrower
<br />fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in
<br />accordance with paragraph 7.
<br />A1.1 insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have
<br />the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and
<br />renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance cattier and Lender: Lender may make proof of loss
<br />if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration nr repair of the Property
<br />damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not
<br />economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security
<br />Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
<br />days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender
<br />may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then. due, the 30-day
<br />period will begin when the notice is given.
<br />Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend nr postpone the due
<br />date of payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by
<br />Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to
<br />Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition.
<br />b. Occupancy, Preservation, Maintenance and Protection of the Property, Borrower's Loan Application; Leaseholds.
<br />Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security
<br />Instrument and shall continue to occupy the Property .as Borrower's principal residence unless Lender otherwise agrees in writing, which
<br />consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall
<br />not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default
<br />if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith. judgment could result in forfeiture of the
<br />Property or otherwise materially impair the lien created by this Security Instrument or Lender's
<br />dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other
<br />material impairment of the lien created by this Security Instrument or lender's security interest. Borrower shall also be in default if
<br />Bnrrnwer, during the loan application process, gave materially false or inaccurate information nr statements to Lender (or failed to provide
<br />Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations
<br />concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is nn a leasehold, Bottower shall
<br />comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge
<br />unless lender agrees to the merger in writing.
<br />
|