HomeMy WebLinkAbout0946 UP:IFORIN C(1VENANTS Borrower Ynd Lender co~~enant ~nJ $gree folluM~s: ,
1, paymcnt of ~'rincipal and lt~teres~ Prt(:aye~st aed L,ate Cba~es. &~rrow~e~ shill prumptly pay v?htn due
thr pnncipa! uf snd ~nterest on the ciebt evidenced by the Notc and any prepaymrnt and late rhai ga due under thc Note.
2. Fu~ds tor Tua aad lesunrce. Sub~ect to applicabie law or to a wntten w~~~ver by Lt~dtr, Borrowcr shall pay
to Lender uo the day monthly p~ymrnts are due under tne Note, until the Note is paid in (ull, a sum ~"Funds") equal to _
one-twelZh of: (a) yeuly taxes and asussmrnts which may att,iin prionty over this Secunty Instrument; (b) yearly
leasehold psymcnts or ground rents on the Proptrty, if any; (c) yGarly hazerd insurance premiums; and (d) yearly
mortgage insurance premiums, it any. These ite?ns sre callod "esc~ow items." i.ender may atimate the Funds due on the
aasis otcurrent data and reasonablc tstimates 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 (inclu3ing Lender if Lender is such an institution). Ltnder shall apply thG Funds to pay the acrow items.
Lender may not charge for holding ar~d applying the Funds. analyzing the ~ccount or verifying the escrow items. unless
Lender pays Borrower interest on the Funds aad applicable law permits Lender to make such a charge. Borrower and
Ltnder may agree in writing that interat shall be paid on the Funds. Unless an agreement is madc or aPpticable law
requires interest to b~ paid. Lendrr shaU not be roquired to pay Bornower any interest or earnings on the Funds. Lender
shall give to Borrower. without charge, an annusi accounting of the Funds showing crodits an~ debits to the Funds and the
purpose Cor which each debit to the Funds was made. The Funds arc pledged as additional socurity for thc sums suured by
this Security Instrument.
If the amount of the Funds h~ld by Lender. together with the future monthly paymrnts of Funds payable prior to
the due dates of the escrow items, shall exc~od the amount requirod to pay the escrow items when due, the excess steall be,
at Borrowar's option. either promptly r~paid to Borrower or creditai to Borrower on monthly payments of Funds. If the
amount of th~ Funds h~ld by i.ender is not sufficirnt to pay the escrow items when due. Borrower shall pay to Lender any
amount n~ry to make up ihe ~e6ciency in ane or mure paymrnts as roquired by Lender.
Upon payment in full of all sums securod by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by l.ender. If under paragraph 19 the Froperty is sold or acquirod Uy I.ender, Lender shall apply, no later
than immediately prior to the salt of the Property or its acquisition by Lender, any Funds held by Lendtr at the time of
applicat:on as a credit against the sums securod by this Security Instrument.
3. AppUcation oi Paymenta. Unless agplicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shalt be apglied: first, to late charges due under the Note; second, to prepaymeni charges due under the
Note; third, to amounts payable under paragraph 2; fourth. ta interest due; and last. to principal due.
4. Gbarge~ Liens. Horrower shall pay all taxes, assessments, charges, fines and impositions attributable to the ~
Property which may attain priority over this Security Instrument, and lcasehold payments or ground rents, if any.
Bonower shall pay these abligations in the manner providcd in paragraph 2. or if not paid in that manner. Bonower shall t
pay them on time directly to the person owed payment. Borrower shall promptly furnish to [.ender 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 promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligatior. secured by the lien in a manner acceptable to I.ender; (b) contests in good ;
~ faith the lien by, or defends against enforcement of the lien in. legal proccedings which in the Lender's opinion operau to '
~ prevent the enfon:ement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of thc lien an
~ agreement satisfactory to Lender subordinating the lien to this Security In~trument. If I,ender determines that any part of
~ the Property is subject to a lien which may attain priority over this Sxurity Instrument. I.encler ma~• give Borrower a
~ notice identifying the 1len. Borrow~r shall satisfy the Gen or take one ar more of the actions set forth above within 10 days
of the giving of notice.
S. Ha~rd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property #
insured against loss by &re, hazards included within the term "extended coverage" and any other hazards for which Ler.der :
( requir~s insurancs. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
! insurance carrier ptoviding the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
{ unreasonably w+ithheld.
All insurancr policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
Lender shall have the right to hold the policies and renewals. If I.ender roquires, Borrower shall promptly give to Lender
al! receipts of paid premiums and renewal natices. In the evtnt of loss, Borrower shall give prompt notice :o the insurance
. carrier and I.ender. I,ender may make proof of loss if not made promptly by Borrower.
` UnL~s Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoratian or repair
of the Property damaged, if the restoration or repair is cconomically feasible and Lender's security is not lessened. If the
restoratien or repair is not econamically feasible or Ixnder's security would be lessened, the insurance procetds shall be °
applied to the sums secured by this Security Instrument, whether or not then due, with any eacess paid to Borrower. If ;
Borrower abandons the Property, or does not answer within 30 days a notice from Lxnder that the insurance carrier has ~
offered to settle a claim, then Lrnder may collect the insurance proceods. I.ender may ux the procreds to repair or restore `
the Property or to pay surr~ secured by th~is Security Instrument, whether or not then due. "fhe 30-day period will begin
~ when the not:ce is given.
Unless I.ender and i3orrower otherwise agree in writing, any application of proceeds to principal shall not extend or
~ postpone the due date of the .nonthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
~ irom damage to tht Property prior to the acquisition shall pass to Lender to the extent of the sums ~ecured by ihis Security
i Instn;rnent irnm~iiately prior to the acquisition.
~ 6. Presenation and Mainteaance of Property; I.easehoids. 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,
~ Bonower shall camply with the provisions of the lease, and if Borre ~er acquires fce title to the Property, the leasehold and
fee title shall not merge anless Lender agrees to the merger ir. writing.
7. Protection ~f Lender's Rig6ts in the Property; Mortgage Insnrance. If Borrower fails to perforn the
covenants and agreements contained in this Security Instrument, oti• there is a legal proceeding that may significantly affect
L.ender's rights in the Propesty (such as a proce~ding in bankruptcy. probate, for condemnation or to enforce laws or '
regul3tions), then Lender may do an~ pay for whatever is necessary to protect the value of the Property and ixnder's rights
v urit
in the Property. Lender's a~tions may inelude pay7ng any sums secured by a lien vvh~ch has pnonty o er thes Sec y
?nstrament, appcaring in court, paying reasonabie attorneys' fces and entering on the Property to make repairs. Althougn
Lender may take action under this paragraph 7, I.ender dces not have to do so.
Any amounts disbursed by Lende~ under shis paragraph 7 shall became additional debt of Borrower secured by this
Security Instrument_ Unless Borrower and I.ender agree to other terms of payment, these amounts shall brar interat from
the date of disbnrsement at the Note rat~ and shali inc payable, with interest, upon notice fro:n Lender to Borrower
roquesting payment.
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