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HomeMy WebLinkAbout0967 UNIFORM CovEN~N1`s Borrower and l.ender covenani and agree as follows: 1. Payment of Principsl and laterest; Prepayment aad Late C6arges. Barrow~er shal! promptly pay when due ihe principal of and interat on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Fuads (or Tuces and Iasuranet. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, unti! the Note is paid in full, a sum ("Funds") equal to one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly Icasehold payments or ground re~ts on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, iP any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of tuture escrow items. The Funds shaU 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 th: Funds to pay the escrow items. Lender may noi charge tor 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. Borrow~er and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applica~le law requires interest to be paifl, I.ender 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 additionaf security for the sums secured by this Sccurity 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, shali exceed 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 I.ender is not suti'icient 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 Lender. Upon payment in ful! of all sums secured by this Security lnstrument, L.ender shall promptly refund to Borrow~er any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prior to tha sale of the Property or its acqwsition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable !aw provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charg~ 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 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 aot paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender a11 notices of amounts to be paid under this paragraph. If Bonower 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 unles~ Borrow•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 holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If L.ender determines that any part of the Property is subject to a lien which may attain priority over this Security lnstrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien ar take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall ke?p the improvements now existing or hereafter erecied on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which I.ender 'i requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The j insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be i unreasonably withheld. ; Ail insurance 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 Lender requires, Borrower shall promptly give to Lender ? all receipts of paid premiums and renewai notices. In the event of loss, Borrower shall give prompt notice to the insurance ~ ~ carrier and Lender. Lender may make proof of loss if not made promptiy 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 restoration or repair is economically feasible and Lender's security is not lessened. If the ~ restoration or repair is not economically feasibte 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 Propert~, 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. 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 wili begin : when the notice is given. Unless L,ender and Borrower otherwise agree in writing, any aFplication 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 amount of the payments. If ~ under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resuiting ~ fr~m damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums s~cured by this Security Instrument immediately prior to the acquisition. ~ 6. Preservation and Maiatenance of Property; I,easeholds. 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 fee title to the Property, the leasrhold 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 perforr ~ the ; covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect s I,ender's rights in the Properiy (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 ~ in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security ~ [nstrument, aPpearing in caurt, 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 paragraph 7 shall become additional debt of Borrower secured by this ~ Security Instrument. Unless Bc~rrower and Lender agree to other terms of payment, these amounts shall bear interest from the date uf disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ~ rcquesting payment. ~ ~ ~ r ~f~~~ I~~ t~ ~ ~ ~ ~ „ - - - _ - sw :a s. ~ ~c., 4....4 _ ' e