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HomeMy WebLinkAbout0935 UN~FOtttN CovEN~NTS. 8orrower and Lender covenant and agree as fotlows: t l. Paymeet ot Principal aad latereat; Prep~ya~eat and Late Chuga. Borrower shaU promptly pay when due the principal of and interest on thc dGbt evidenced by the Note and any prepaym~nt and Iate charga due under the Note. 2. Funds tor Tua aad Iawrsoce. Subject to applicable law or to a written waiver by I.ender, Borrower shali pay to Lender on the day monthly payments sre due under the Note, ~ntil 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 lnstrument; (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. These items are called "escrow items." Lender may estimato the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shal! be held in an institution the dtposits or accounts of which are insured or guaranteed by a federa) or state agency (including Lender if Lender i:; such an institution). Lend~r shall apply the Funds to pay the escrow items. ~ I.ender 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 I.ender to make such a charge. Borrower and Lender may agree in writing that interat shall be paid on the Funds. Unless an agreement is made or applicable law ~I ' requires interest to be paid, I,endcr shall not be required to pay Bonower any interest or earnings on the Funds. Lender ~ shall give to Borcower, without charge, an annual accounting of tfie 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 additional security for the sums serured 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 the escrow items, shall 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 Lender is not sufi'icient to pay the escrow items when due, Borrower shall pay to i.ender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, L.ender shall promptly refund to Bo~rower any Funds held by Lender. If under paragraph I9 the Property is sold or acquired by I,ender, I.ender shall apply, no later than immediately prior to the sale of the P.roperty or its acquisition by L.ender, any Funds held by L.ender at the time of application as a credit against the sums secured by this Sxurity Instrument. 3. Applieatioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 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. Charges; Liens. Borrowcr 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 not paid in that manner, Borcower 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 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 lnstrument unless 8orrower: (a) ~ agrees in writing to the Fayment of the obligation secured by the lien in a manner acceptable to Lender; {h) contests in good i faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to j 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 Lender determines that any part of j the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a ~ notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days ; of the giving of notice. S. Hs~rd Insurance. Bonower shal! 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 ar:~ounts and For the periods that Lender requires. The ' insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. • Al) insurance policies and renewals shall be acceptable to L.ender 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 rer.eipts of paid premiums and renewal notices In the event of lass, Borrower shall give prompt notice to the insurance ~ carrier and Lender. I.ender may make pr~of 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 f of the Property damaged, if the restoration or repair is economically feasible and L.ender's security is not lessened. If the ~ restoration or repair is not economically feasible or I.ender's security would be lessened, the insurance proceeds shalt 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 does 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 will begin when the notice is given. Unless Lender and Borrower 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 amount of the payments. If under paragraph 19 the Property is acquired by Ixnder, Borrower's right to any insurance policies and proceeds resulting K 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. PreservsNon and Maiatenance of Property; Leaseholds. 9orrower 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 leasehold and fee titte shall not merge unless Lender agrees to the merger in writing. ~ 7. Protection o[ Lender's Rights in t6e Property; Mortgage Insurance. If Borrower fails to perforr:~ the g covenants and agreements contained in this Security Instrument, or there is a tegal proceeding that may significantly aPFect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or f regalations), then L.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ~ in tt~e Property. L.ender's actions may include paying any sums secured by a lien 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 this paragraph 7, Lender dces not have to do so. ~ Any amounts disbursed by I.tnder under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Ur.lcss Borrower and I,ender agree to other terms of payment, these amounts shall bear interest from tht date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ~ requesting payment. ~ , r,K ~ ~ ao~K 4~ PacE ~ _ ~ _ - . ,.r~. ry~~ ~