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HomeMy WebLinkAbout0974 UNIFORM COYENAN'fS. Borrower and Lender covenant and agree:ls f0114ws: ; l. Payaaent o[ Principal and Iatcres~ Prepayment and L.~te CUuges. `'~orrower shal~ promptly pay when due the principal of and inierest on the debt evidenced by the Note and any prepayment and late charges due under the Note. Z. Fueds tor Taxes nnd 1Rturw~ce. Subjeci to applicable law or to a written waiver by Lender, Borrower shall pay to Lrndr~ on the day monthly payments are due under the Note, until the Note is paid in iull, a sum ("Funds") equal to ono-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrum~nt; (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. Thae items are catled "escrow items." Lender may estimate the Funds due on the ~ basis of cunent data and reasanabk estimates of fvtuae rscrow items. + The Funds shall be held in ar~ institution the depc~sits or accounts of which are insur,.~ or guaranteed by a federai or ' state agency (including L.ender if Ixnder is such an institution). Lender shall apply the Funds to p~y the escrow items. Lender may not eharge for holding and applying the Funds, analyzing the account or veritying the eserow items, unless Lender pays Bonower interest on the Funds and appticable law permits Lender to make such a charge. Borrower and ~ Lendcr may agree in writing that interest shaJl bc 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 Bonower, without charge, an annual accounting of the Fur.ds 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 [nstrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of ihe escrow items, shal! eaceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Bottower or creditzd to Borrower on monthiy payments of Funds. If the ' amount of the Funds field 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 *nore payments as required by I.ender. ' ~ Upon payment in full of a!1 sums secured by this Security Instrument, Lender shall promptty refund to Bonower j any Funds held by I.en~er. If under paragraph l9 the Property is sold or acquired by I.ender, I,ender shall apply, no later than immediately prior to the saie of the Property or its acquisition by I.ender, any Funds held by Lender at the time of r application as a credit against the sums secured by this Security Instrument. ' 3. Applieation of Payme~ts. Unless applicable law provides otherwise, all payments received by Lender under - parag~aphs 1 and 2 shall be applied: 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. Charge~; Liens. Borcower shall pay al! 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 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 Borrower makes these payments directly, Bonower shall promptly furnish to I.ender ~ receipts evidencing tFe payments. f Borrower shall promptly 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 the Propeny; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If L.~:nder determines that any part of the Propert} is subject to a lien which may attain priority over this Security Instrument, Lender may give Bonower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set farth above within 10 days of the giving of notice. S. Hazard Insurnnce. Borrower shall keep the improvements now existing or hereafter erected an 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. The insurance carrier providing the insurance shall be chasen by Ba~rower subject to Lender's approval which shafl not be unreasonably withheld. ~ Al! insurance policies artd 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 Lender requires, Borrower shall prompdy give to Lender ~ all recei~ts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance ' carrier and Lender. Lender may make proof of loss if reot made prompt}y by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal! be applied io restoration or repair of the Property damaged, if the restoration or repair is economica]!y 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 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 I.ender may collect the insurance proceeds. t,ender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrumeni, wheiher or not then due. The 30-day perio~ will begin when the notice is given. Unless I.ender and Borrower otherwise agree in writing, any application of proceeds to principaf shall not extend or pastpone the due date of the monthiy payments referred to in paragrapfis 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 poticies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Mainteaance of Property; Leasehotds. Borrower shall not destroy, damage or substantially - change thc Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a Ieasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehotd and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protectian of Lender's Rights in ihe Property; Mortgage Insurance. if Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legai proceeding that may significantly affect ~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Ixnder's rights in the Property. L.ender's actions may include paying any sums secured by a tien which has priority over this Security Instrument. appearing in court, paying reasonable attorneys' Fees and entering on the Property to make repairs. Although Lender may take action under ihis paragraph 7, I,ender dces not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Bonower and L.ender agree to other terms of payment, these amounts shatt bear interest from ~ the date of disbursement at the Nate rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. ' e t~Gf ' ~ ~ , - - - ~ ~-w . ~ ~w.