HomeMy WebLinkAbout0942 ~
~
UrvIFORM CovENANTS. Borrower and Lender covenant and agree as follows: ~
1. Payment o! Principal and Iaterest; Prepsyment wd I.ate Chuges. Borrower shail promptly pay when due
the principal of and interest on the dcbt evidenced by tht Note and any prepayment and late charges due under the Note.
2. Funds (o~ Taxes u~d Inaurance. Subject to applicable law or to a written waiver by Lender, Borrower shal! pay
to Lender on the day monthly payments are due under the Note, until the Note is paid in fuU, a sum ("Funds") equal to
one-twelRh of: (a) yearly taxes 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 insurance premiums; and (d) yearly }
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the ~
basis of cunent data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or ~
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
L.ender may agree in writing that interest shali be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting 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 as additional security for the sums secured by
this Security Instrument.
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall excced the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borrower 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, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by I,ender.
Upon payment in fuli of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by L,ender. 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 credit against the sums secured by this Security Instrument. ~
3. Applicatioo of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: firsi, 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 taaes, assessments, charges, fines and impositions attributable to the i
Property which may attain priority over this Security Instrument, and leasehold paymenis or ground rents, if an}~.
Borcower 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 Borrow~er inakes these payments directly, Borrower shall promptly furnish to I.ender
receipts evidencing the payments.
Borrower shali promptly discharge any lien which has priority over this Security Instrument unless Borrov?•er: (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 the Property; or (c) secures from the hoider of the lien an
agreement satisfactory to Lender subordinating the lien to this Security InstruFnent. If L.ender determines that any part of
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
notice identifying 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. -Borcower shall keep the improvements now existing or hereafter 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 shaU be maintained in the amounts and for the periods that I,ender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not t~e
unreasonably withheld. ~
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
k Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
i carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
j of the Property 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 L,ender's security would be lessened, the insurance pra;eeds 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 dces 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. L,ender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security InstrUment, whether or not tt~en due. The 30-day period will begin '
when the notice is given.
' Unless Lender and I3orrower otherwise agree in writing, any application of proceeds to principal shall not extend or
postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by L.ender, Borrower's right to.any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shal) pass to Lender to the extent of the sums secured by this Security
~ Instrument immediately prior to the acquisition.
~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Property, allow the Property 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 iee titie to the Property, the leasehold and
~ fee title shall not merge unless Lender agrees to the merger in writing.
~
~ 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the :
~ covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantiy aRect '
~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then I,ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
F in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
s Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although •
Lender may take action under this paragraph 7, Lender dces not have to do so.
Any amounts disbursed by Lender under this ~aragraph 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
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
~
~ GK
~ Bo~ 455 P~~~ 9~1
:
.
~ _r~~ b r:;;~ ...x,s _ _
- - -