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HomeMy WebLinkAbout0965 ~ , . . ~ ; ~i 1, ~ i~1.~ i~4 . i UNIFOAM CovEN~tvTS. Bonower and Lendcr covenant and agree es follows: 1. Payme~t ot Principal and Interes~ Prepaymeat and Lte Char~es. B~rrower shall promptly pay when due the principal of and interest on the debt evidencxd by the Note and any prepaymena and late charges due under the Note. 2. Ftinds [or Tua aad Iawcaace. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lendu on the day monthly payments are due under the Note, until the Note is paid in full. a sum ("Funds") equal to on~-twelfth ol: (a) yearly taaes 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) yearl~~ moregage insurance prrmiums. if any. Thae items are called "escrow items." L~nder may atimate the Funds due on the basis of currcnt dsta and reasonabk estimates of futun escrow items. The Funds shal! be h~ld in an institution the deposits or accounts ef which are insured or guaranteed by a federai or state agmcy (including Lender if Ler~der is such an institution). I.ender 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 Lender may agra in writing that interest shall be paid on the Funds. Unless an agrcement is made or applicable law requires interest to be paid. I.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lrnder shall give to Bonower, without charge. an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which tach debit to tht 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 tfie escrow items. shall ea~ocd the amount roquired to pay the escrow items when due. the excess shaU be, at Borrawer's option, either promptiy regaid to Borcower or credited to Bonower on monthly payments of Funds. If the amount of the Funds held by Lendcr is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount no~sary to make up the deficienry in one or more payments as required by Lender. Upon payment in fuli of ail sums socured ~y this Security lnstrument, Lender shall promptly refund to Bonower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by I.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds hetd by L.er.der at the time of application as a credit against the sums secured by this Security Instrument. 3. ApplIcatioa of Paymeats. Unless applicable law provides oiherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to Iate charges due under the Note; stcond, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last. to principal due. 4. Qis~rge~ Liens. Borrower shall pay all taxes. assessments, charges, fines and impositions attribu:able to the Property which may attain priority c~ver this Security Instrument, and leasehold payments or ground rents, if any. Borrower shal! pay these obligatians in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owod 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 ~ayments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unlc~s Borrower: (a) agrees in writing to the payment oithe obligation securod 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 holder of the lien an agreement satisfactory to Ixnder subordinating the lien to this Security Instrument. If Lender 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. Bonower shall satisfy the lien or take one or more of the aciions set forth above within 10 days of the giving of notice. 5. H~rd Insurance. Borrower 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 shall be maintained in the amounts and for the periods that Lender requires_ 'I'he insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall nut be . unreasonabfy withheld. ; All insurance policies and renewals shall be acceptable to Lender and shall include a si~ndard mortgage clause_ I.ender shall have the right to hold the policies arid renewals. If Lender requires, Bonower sha11 promptly give to Lxnder ~ all ~pis of paid premiums and renewal natices. In the event of loss, Bof-rower shall give prompt notice to the insurance ~ carner and Lender. Ixnder 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 of the Property damaged. if the restaration or repair is economically feasibte and Lender's security is not lessened. If the ~ restoration or repair is not economically feasible or Lender's s~urity would be lessened, thP insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrew~r. If Borcower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has oliered to settie a claim, then I.ender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore the Properiy 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. Uniess I.ender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of tht monthly payments referred to in paragraphs I and 2 or change the amount of the payments. It under paragraph 1Q the Property is acquired by Lendet, Borrower's right to any insurance policies and proceeds resuiting ; from damage to the Property prior to the acquisition shall pass to I.ender to the eatent of tfie sums secured by this Security Instrument immediately prior to the acquisition. 6. Preser~atioa and Maintensnce of Property; Lesseholds. 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, ,a Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and ~ fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Le~der's Rights in t6e Property; Mortgage Insurance. If Borrower fails to perform the ~ covenants and agreements contained in this Security Instrument, or there is a tegal proceeding that may significantly affect ~ I.ender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ regulations), then L.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ''s in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security ~ Instrument, appearing in coun, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, I,ender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shali become additional debt ~f Borrower secured by this Security Instrument. Unless Borrower and I.ender 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. ~ ~ ~ • . ~ aa~ n~ ~~J ~ ~ ~t ~