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HomeMy WebLinkAbout0948 UNIFURM CO\'ENAN iS Borrower and Lender cu~enant and agree as follows: 1. Paymeat of Principal aad laterest; Prepayment aad I~te Char~es. E3~rrowrr shall prumptly pay when due the pnnc~pal of and ~nterest on the ~iebt evidencc~i by the Note and any prepayment and late charges due under the Note. 2. Fuads tor TaYes aad Iasuraace. Subject to applicable law or to a written waiver by l.ender, f3orrower ~ha~ll pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to unc-twel`th of: (a) yearly taxes and assessments which may attain prionty over this Se:.urity 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 estimate the Funds due on the bas~s of current data and reasonable estim3tes of fuwre escrow items. The Funds shall be held in an institution the deposits or accaunts of which are ~nsured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall appl}• 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 agree in writing that interest shall be paid on Ihe Funds. Unless an agreement is made or appGcable 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 Borrower, withuut charge, an annual accounting of the Funds shewing credits and debits to the Funds and the purpose for which each debit to the Funds w•as made. The Funds are ple~+ged 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 pa~~able prior to the due dates of'the escrow items, shall ezcc~d the amount required to pay the escrow~ items when due, the exress shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments ot~ Funds. If ihe amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount neti:essary 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, Lender shall promptly refund to Burrower 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 the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of ' application as a credit against the sums secured by this Security lnstrument. 3. Applicatioa of Payments. Unless applicable law provides otherwise, all p:~yments 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; Lieas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable t~ the ~ Yroperty w~hich may attain priority c,ver this Secunty Instrument, and leasehold payments or gruund 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, Borrower shall promptly furnish ta 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 o~ 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 w~hich 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 Lender determines that any part of the Property is subject to a lien which may attain priority over this Security lnstrument, I.ender 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. 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 an}• other hazards for which Lender requires insurance. This insurance sha(1 be maintained in the amounts and tor the periods that Lender requires. The insurance carrier providing the insuranee shatl be chosen by Borrow•er subject to Lender's approval w~hich shall not be unreasonably withheld. Alf insurance policies and renewals shall be acceptable to Lender and shall ~nclude a standard mortgage clause. Lender shall have the nght to hold the policies and renewals. If Lender requires. Borrower shall promptl}• gi~~e to Lender all receipts of paid prerniums and renewal natices. In the event of loss, Borrower shall give prompt notice to the insurance rarrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherw•ise agree in wnting, insurance proceeds shall be applied to resroration or repair of the Property ~+amaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economicaUy feasible or Lender's security would be lessened, the insurance proceeds shall be applied tu the sums secured by this Secunty Instrument, whether or not then due, with any excess pa~d to Borrower. If Borrower abandons the Property, or does not answ~er within 30 days a not~ce from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proe~eeds. Lender may use the proceeds to renair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period w~ll begin when the notice is given. Unless Lender and Borrower otherwise agree in w•riting, any application of proc;eeds to pnncipal shall not extend or postpone the due date ef the monthly payments referred to ~n paragraphs 1 and 2 or change the amount of the pa}~ments. If under paragraph 19 the Property is acquire~ by Lender, Borrow~er's right to any insurance ~licies and proceeds resulting from damage to the Properiy ~rior 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 Maintenotnce of Property; Leaseholds. Borrower shall not destroy, ~iamage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Secunty [nstrument is on a leasehc~ld, Borrower shali comply with the peovisions of the lease, and if Borrower acquires fee title to the Property. the leasehotd and fee title shall not merge unless Lender agrees ro the merger in writing. 7. Protection of Lender's Rights in the Property; :~lortgage Insurance. If Borrouer fails to perforr i the covenants and agreements coniained in this Security Instrument, or there is a legal prcx:eedi~g that may Significantlp atiect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to en(orce laws or regulations), then Lender 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 ma~• include paying any sums secure~ by a lien which has priority~ o~er this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action ~nder this paragraph 7, Lender dces not ha~~e to do so. Any amounts disbursed by Lender under this paragraph 7 shall become add~tiona) debt of Borrawer secured by this Secu~ity Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from ; _ - the date of disbursemer.t at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ; requesting pa}~ment. - ~ ~ ~ . ~ ~ ~~?~x 463 P~GE 94~ ~ . ~ . - - j . - ,~;~~}~s~r.