HomeMy WebLinkAbout0948 UNIFORht COVEN~NTS. Borrower and I.ender covenant and agrce as follows:
1. Paymeot of Principal and Interest; Prepayment aad Late Charges. Borrower shall promptly ~y v?~hcn due
the principal of and interest on the debt evidenccd by the Note and any prepaymen~ and latr rharges Jue under the Note.
2. Funds tor Taxa and Insurance. Subject to applicable taw or to a written~w•aiver by I.ender, Borrow~er shall pay
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fuads") equal to
one-twelRh of: (a) yearly taxa and assessments which may attain priority over this Security Instrument; (b) yearly
leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurancc premiums; and (d) yearly
mortgage insurance premiums, if anp. 'These items are cailed "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonabk atimata of tuture escrow items.
The Funds shall be held in an institution the d~posits o~ accounts of which are insured or guaranteed by a federal or
state agency (including Lender iC Lender is such an institution). l.ender shalt apply the Funds to pay the escrow i~ems.
Lender may not charge for holding and applying the Funds, analyzing ~he accaur~t or verit'y~ing the cscrow ite~ns, ~sr!ess
Lender pays Borrower interat on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. U~less an agreement is made or applicable law
requires interat to be paid, Lender shall nol be required to pay Borrow•er any interest or earnings on the Funds. Len~ier
shali give to Borrower, without charge. an annual accounting of the Fur.ds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledgecl as additional security for the sums secured by
chis Security Instrument.
If the amount of the Funds held by Lender. togtiher with the future monthly payments of Funds payable prior to
the due data of the escrow items. shall ~xcecd the amount required to pay the escrow items when due, the excas shall be.
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amaunt of the Funds held by l.ender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon payment in full of all sums socured by this Security Instrument, Lender shali promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
application as a crcdit against the sums securcd by this Security Instrument. .
3. Application of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charga due under the Note; second, to prepayment charges due under the
Notr, third, to amounts payable under paragraph 2; fQUrth. to ~nterest dut; ~nci iast, to principai due.
4. C1~argex I.ieas. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrum~nt, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower maka these payments directly, Borrower shall promptly furnish to Lender
receipts cvidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to 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 enforcemtnt of the lien in, legal proceedings which in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures trom the holder of the lien an
agrcement satisfactory to Lender subordinating the lien to this Security Instrume~it. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security [nstrumerit. Lender may give Borrower a
notice identifjring the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice. ~
5. Hazard Insurance. Borrower shall keep the improvements now• existing or hereaRer erected on the Property
insured against loss by fire. hazards included within the term "extended coverage" and any other hazards for which Lender
~ requires insurance. This insurance shall be maintaincd in the amounts and for the periods that Lender'requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approva) which shall not b~
' unreasonably withheld.
' All insurance policies and renewals shali be acceptable to Lender and sball include a standard mortgage ciause.
' Lender shall have the right to hold the policies and renewals. If Lender requires. Borrow•er shall promptly give to Lender
F all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall grve prompt notice to the insurance
! carrier and Lender. I,ender may make proof of loss if not made promptly by Borrower.
~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal) be applied to restoration or repair
~ of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lesseneci. If the
restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be .
~ applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
~ offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
~ the Property or to pay sums secured by this Securiry Instrument, whether or not then due. The 30-day period will begin
~ wnen the notice is given. -
~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
y postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
~ under paragraph 19 tht Propeny is acquircd by Lender. Borrower's right to any insurance poficies and proceeds resulting
r from damage to the Property prior to the acc~uisition shall pass to Lender to the extent of the sums secured by this Security
q Instrument immediately prior to the acquisition.
~ 6. Prtsenation and Maintenance ot Property; Leaseholds. Borrower shall not destray, damage or substantially
~ change the Property, allow the Proptrty to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee titte shall not merge unlas Lender agrees to the merger in writing.
_ 7. Protectioa oi Leader's Rights ie tbe Property; Mortgage Insurance. [f Sorrower fails to perform the
covenants and agrcements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Ptoperty (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then Lender may do and pay for whatever is nccessary to protect the value of the Property and Lender's rights
in the Propeny. Lend~r's actions may include paying any sums secured by a lien which has priority over this S~rurity
[nstrument, appearing in court, paying reasonable attorneyi fees and entering on the Property to make repairs. A:_hough
s Lender may takc action under this paragraph 7. Lender does not have to do so.
Any amounts disbursed by L.ender under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from k
the date of disburument at the Note rate and shall be payable, with intcrest, upon notice from Lender to Borrower
~ requesting payment.
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