HomeMy WebLinkAbout0981 U'Vlf=t)R~1 COVf_NAhTS Horrower and Lender covena~t an~! agrre 3~ fuliuHS:
1. Paymeat ot Priacipal and Interest; Prrpayment and l.ate Charges. BorroN~er ~hall prumptly pa~• when due
the pnncipal of and ~nterest on the debt evidencec! by tht Note and any prepaymer.t and iate charg~~ du~ under the Note.
2. Fuacis for TaYes and Insuraaee. Subject to applicable law or to a writ!e~ waivei by Lender, Borrower shall pay
to Lender on the day monthly payments are due under the Notc, until the Note is paid in full, a sum ("Funds") equal to
one-twelRh of: (a) yrarly taxes and assessments which may attain priority o~•er this Security lnstrume~t; (b) yearly
leasehoid payments or gruund ~ents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums. if any. These items are c~iled "escrow items." Lender may estimate the Funds due on thr I
basis of cunent data and reasonable estimates of Puture escrow items.
The Funds shall be held in an institution the deposits or accounts of which are inwred or guaranteed by a federal or
state agency (including Lender if Lender is such an institution). Lender shalt apply the Funds to pay the escrow items.
Lender ~nay not charge for holding and applying the Funds. analyzing the account or verifying the escrow items, u~less
I.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
! ender may agree in wnting that interest shall be paid on tht Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender shall not be require~l to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annuai accuunting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged :~s additiona) security for the sums secured by
this Security lnstrument.
If the amount of the Funds held by I.ender, together with the tuture monthly payments of Funds payable prior to
the due dates of the escrow items, shall exceed the amount required to pay the escrow items w~hen due, the excess shali be,
at Borrower's option, either promptly repaid to Bo~ rower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrewer shal! pay to Lender an~•
amount necessary to make up the deficiency in one or ~r.ore payments as required by Lender.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Bc~rrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired b~~ Lender, Lender shsl) 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 credit against the sums secured by this Security Instrument. ~
3. Application of Paymeats. LTr.!rss applicable law provides otherwise, alt payments received by Lender under I
paragraphs 1 and "1 shatl be apptied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument. and leasehold payments or ground rents, if any_
Borrower shall pay these obligations in the manne: provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time: directly to the persou owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promotly 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 enforcement 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 tLe Property; or (c) secures from the holder of ihe lien an
agreement satisfactory to Lender subordinating the lien t~ this Security Instrume~t. If Lender determines that aay part of
the Property is subject to a lien which may attain priority over this Sc~curity lnstrument, Lender may~ giv~ Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of ihe actions set forth above within 10 da}~s
of the giving of notice.
5. Hazard Insurance. Sorrower snall keep the improvements now existing or hereafter erected on the Propeny
insured against loss by fire, haTards included within the term "extended coverage" and ar~y other hazards for w~hich Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
~ insurance carrier providing the insurance shall be chosen by Borrower s~~bject to Lender's approval which shall not be
~ unreasonably withheld.
, All insurance policies and renewals shall be acceptable to Lender and shall include a stardard mongage clause.
~ Lender shall have the right to l~old the policies and reneKals_ If Lender requires, Borrow~er shall promptly give to Lender
! all rec:eipts of paid premiums and renewal notices. In the event of loss, Borrower shall gi~e prompt notice to the insurance
~ carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and B.~rrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
of the Prop°.rty damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. 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 ezcess paid to Borrow~er. If
Borrower ahandons the Property, or does not answer within 30 days a notice f'rom Lznder that the insurance carrier has
~ offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to renair or restore
the Property or to pay sums secured by this Security Instrument, whether ar not :hen due. The 30-day per.:,d will begin
r when the notice is given.
Unless Lender and Borrower otherwise agree in writing, an}• application of proceeds to principai shall not e~tend or
postpone the due date of the monthly payments referred to in paragraphs l~and 2 or change the amount of the payments. If
under paragraph 19 the Property is acs~uired hy Lender, Borrower's right to any~ insurance poiicies and prxeeds resulting
~ from damage to the Prapeny pnor to the acquisition shall pass to Lender to the extent of the sams secured by this Security~
~ Instrument immeaiately prior to the acyuisition.
~ 6. Preservation and'~tainte~ance of Property; Leaseholds. Borrower shall not destroy, damage or substantially~
cha~ge the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
~ Borrower shall complp with ti~e provisions of the lease. and if Borrower acquires fee title to the Propertp, the leasehold and
~ fee title shall not rr.erge unless Lender agrees to th;, merger in w~riting.
~ 7. Protection ~t i.ender's Righ!~ in the Propertp; ~iortgage Insurance. If Borrow~er faifs to perform the
` cevenan?s arid agreements contained in this Security tnstrument, or there ~s a legal proceeding that may significantly affect
Lender's rights in the Property (such as a proceecling in bankruptcy, probate, for condem~ation or to enforce laws or
: regulations), then Lender may do and pay for whate~•er is necessary to protect the value of the Froperty and Lender's rigirts ~
in the Property. Lender's actions may include paying any sums secured by a Iien which has priority over this Security ~
Instrum~nt, appearing in caurt, pa~~ing reasonable attorneys' fees and entering on the Property to maice repa~rs. Altheugh
Lender may take action under this paragraph 7, Lender does not have sa do so.
~ Any amounts dis~ursed by Lender under th~s paragraph 7 shall become additional debt of Borrower securrd by this
Security Instrument. Unless Borrow•er and Lender agree to other terms of.payment, these amounts shall bear interest from
the ~+ate of disbursement at the Note rate and shall be payable, with interest. l~pon notice from L.ender to Borcower
requesting paymen[.
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