HomeMy WebLinkAbout0941 UNIFORM COVExwtvrs Borrow~cr and Lender co~~~Rant and agrce ~s fou~wY~ ,
1. Pay~ent ot 4'~iacipal asd leterat; Prepaye~eat aad [.att (.1ar~es. Borraw~tr shall p~umptly pay whcn due
the principal of and interat on th~ debt evidenced by the Note and any Prepayment and late charges duc under the Note.
2. Fue?ds tor Taxa aad In.wrance. Sutsject to applicable law ~r to a writtrn w•siver by l.ender, Burrowcr shal! pny
to Lendcr on the day monthly paymrnts ue due undcr the Nott. until the ?Votc is paid in full, a sum ("Funds") equa! to ~
one-twelfth of: {a) yeuly taxa und sssessmrnts which may attain priority over this Secunty lnstr~ment; (b) ~•early
lcasehold payments or ground rents on tht Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
rttortgage insurance pretniums, if any. These iterns an called "acrow items." l,cnder may estimate the Funds due on the i
basis ofcurrens data and re~sonable estimata of future cscmw items. ,
The Funds shall be held in an institution the dtposits or accounts of which are insured or guarantectii by a i'ecleral or
state agrncy (including Len~er 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 verifyi;~g the acrow items. untess
I.ender pays Borrawer int~rest on the Fe:nds 8nd applicable Iaw permits Lender to make such a charge. Borrower and ,
Lender may agrce in writing ihat interest shall tse paid an the Funds. Ualas an agreemer~t is made or applicable law
r~quires interest to be paid. ~rnder shall not bt reqvired to pay Borrower any interest or earnings on th~ Funds. Lcader
shall give to Borrowor, without charge, an annual aocounting of thc Fu.~ds showing credits and debits t~ the Funds and the
purpose for which each debit to the Fui~ds was made. Tht Funds are pledged as additional security ~or the sums secure~ by
thu Security lnstrument.
If thc amount of the Funds httd by Lender, togethor with the iuture monfhly paymeats of fiunds payable priar to
the due dates of the escrow items, sha!! eacad the amount requircd to pay the escrow items whm due, the excess shall be,
at Borrower's optio~, either prompily repaid to Borrower or credited to Borrower on monthly paymznts of Funds. If the
amount of the Funds held by Ltnder is not sufficient to pay the escrow items when due. Borrower shall pay to Lender any
amount nocessary to make up the de8ciency in one or more paym~nts ss roquired by I.ender.
Upon payment in full of all sums securtd by this Socurity Instrnment, Lrnder shall p:amptly refund to Borrower
any Funds held by Lender. If under paragraph 19 ihe Property is sold or acquirai by Lender. I.ender shall apply, no later
than immodiately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of ~
appfication as a crodit against the sums socured by this Sacurity Instrument. -
3. Application of Payments. ~ Unless applicable Iaw provides otherwise, ali payments rxeived by Lender under
paragraphs 1 and 2 shall be applied: first, to late ch~~ges due under the Note; socond, to prepaymsnt charges dae under the
Note; third. to amounts payable under paragraph 2; fourth. io interest due; and last, to principal due.
4. G7ixrges; I,iens. Borrower shall pay all taxes, assessments, charges, fines and im~ositions attributable to the
Property which may attain priority over this Security lnstrument. and leasehold payments or ground rents. if any.
Borrower shall pay these ot~ligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow~r shall
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Len~er all notices of amounts
to be paid under this paragraph. If Borrower maZces these payments directly, Borrower shall promptly furnish to Lender ~
receipts eridencing the payments. '
Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a)
agrees in writing to the payment of the obligation socured by the lien in a manner acce~table to Ler?der, (b) contests in good ~
faith the lien by. or defends against rnforcemtnt of the licn in, legal praceedings which.in the Lendcr's opinion aperate to
prevent the enforcement of th~ lien or forfeiture of any part of the Pronerty; or {cl secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Ler~der determines that any part of I
the Property is subject to a lien which may attain priority over ihis Security Instrument. Lender may give Borrower a j
notice identifying the licn. Borrower shall satisfy the lien or take one or more of the actions set forth above w~ihin 10 days I
of the giving of notice. i
Ha~ard Insurytnce. Honower stall keep the improvemenu now existing or hereafter erected on the Property
insurod against loss by fire, hazards included within the term "eatended coverage" and any other haZards for which I.ender ~I
requires insurancr,. Th:s insurance shali be maintaind in the o...c;:^:s r.^.~ f~r ihP ~ric~s that T..ender roquires. The
insurance carrier providing the insurance shall be chosen by Ba~rrower subject to Ixnder's appraval which shall not be
unreasonably withheld.
Ait insurance policies and renewats shall be acceptable to Ixnder and shall iaclud~ a standard mortgage clause.
Ixndet shall have the right to hold the policies and renewals. If I.ender reqeires, Bonower shalt promptiy give to Lender
all receipts of paid premiums and renewal notices. In the event of lo~s, Borrcwer shall give prompi not~ce to the i~surance
carrier and Lender. Lender may make proof of losc if not made promptly by Borrower.
Unless L.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
of the Property damaged, if the restoration at repair is econorrtically feasible and I.ender's security is not lessentd. If the
restoration or repair is not econcmically feasible or Lender's security would be lessened, the insurance proceeds shall be
app;ied to the sums secured by this Security Instrument, whether or not then due, wcth any excess paid to Borrower. If
Borrower abandons the Property, or does not answer within 30 days a notice from Ixnder 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 Security Instrument, whether or not then due. The 30-day period will begin
when the notice is given.
, Unless Lender and Bonower 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 1 and 2 or change the amouni of the payments. If
under paragraph 19 the Property is acquired by I.ender, Bonower's right to any insurance policies and Proceeds resulting
from damage to the Property prior to the acquisition shati pass to Lender to the eateni af the sums secured by this Security
Instrument immediately prior to ihe acquisition.
6, Presenation and ititaintenance of Property; Leasehoids. Borrower shall not d~troy, damage or substantially
change the Prope~ty, atlow the Property to deteriorate or commit waste. If ihis Security Instrumenc is on a leaseho[d,
Borrower shall com~ly with the provisions of !he iease, and if Borrower acquires iee title to the Property, the leasehvtd and
fee Sitle shall not mrrge unless Ltnder agree.s to the merger ir: writing.
7. Protection of Leader's Rig6ts in t6e Property; Mortgsge Insurance. If Borrower fails to perform the
covenants and agreements contained in this Cecurity Instrument, or there is a legaf proceeding that may significantly afi'ect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for conderr.naiion or to enforcc laws or
regulaticns), then Lender may do and pay for whatev~r is necessary to F:
~?ect t6e value of the Property and Lxnder's rights
in the Property. L,ender's actions may incl~~de paying any sums secured by a lien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' fces and entering on the Property to make repairs. Afthough
Lender may take action under t'~is paragraph Lender dc~es not have to do so.
Any amounts disbursed by LtndPr under this paragraph 7 shaU become adci~tional debt of Borrower ucurcd by this
Sxurity Instrum~nt. Unless Borrower and Lender agree to other terms of payment, these amounts shall ixar interest trom
tht date of disbursement at the Note rate and shall be payable, with int~rai, u¢on notice from I.ender to Borrower
requesting payment.
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