HomeMy WebLinkAbout0955 UNIFORM CUVENANTS Borrower and Lender covenant and agrce u follows:
1. P,yment of Principal ind laterest; ~reparment and Late Ch~trges. Borrower shall promptly pay when due
thz principal of and intertst on the debt cvidcnce~d by the Note and any prepayment and late charges due under the Note.
Z. Fuads for TaYes and Insuranre. Subject to applicable law or to a written waiver by Lender, Borrower shaU pay
to Lender on the day monihly paymcnts are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelfth of: (a) yearly taza and assessments which may attain priority over this Security Instrument; (b) yearly
Icasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. Thest items are called "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of Cuture escrow items.
The Funds shall be held in an institution the dcposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if Lender is such an institutio~). 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 veriiying 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 the Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender sha11 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 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 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 Bonower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not sufticient 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 full of all sums secured by this Security Instrument, L,ender shall promptly refund to Borrower
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 oc its acquisition by Lender, any Funds held by Lender at the time of
application as a credit against the sums secured by this Security Instrument. ,
3. Applieation of Payments. L~nless 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 am~unts 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 not naid in that manner, Borrow•er 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 Sorrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidenciog the payments.
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 acce~table to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, lega! proceedings which in the [.ender'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 Iden 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 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.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against ioss by fire, hazards included within the term "extended coverage" and any other hazards t'or which Lender
requires i~surance. This ir~surance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's ap~roval which shall not be ~
unreasonably withheld. ;
All 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 renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance ~
carner and I.ender. Lender 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 ~
; ot 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 feasible or Lender's security would be lessened, the insurance proceeds shall be
~ apptied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. [f ,
i Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
E 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 ~ecurity Instrument, whether or not then due. The 30-day period will begin
t when the notice is given.
° L'nless Lender and Borrower otherw•ise agree in writing, any appli~ation of proceeds to principal shall not extend or
g ~stpone 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 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 immediateiy prior to the acquisition.
~ 6. Preservation and Maintenance of Property; Leaseholds. 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,
s Borrower shall comply with the provisions o!'the lease, and if Borrower acyuires fee title ro the Property, the leasehold 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
:.ovenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to en(orce laws or
regulations), then I.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
Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
lxnder 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
k Security Instrument. Unless Borrower and Lender 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 ~
r requesting payment. '
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