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Home My WebLink About0988 U!~~FOKf?t CovEN~NTS. Borrower and Lender covenant and agree as follows: l. Paymeat of Principal and Ieterest; Prepaymeat and I.ate Charges. Borrower shall promptty pay w~hen due the pnncipal of and interest on the debt evidenccd by the Note and any prepayment and late charges due under the Note. 2. Funds [or Taxes and Iesurunce. Subjtct to applicabie law or to a written waiver by Lender, Borcower shall 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 one-twelRh oP: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly {easehold payments or ground rents an the Prop~erty, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance gremiums, if any. These items are called "escrow items." Lender may estimate the Funds due nn the basis of current data and reasonable estimates of future escrow items. The Funds shall 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 the Funds to pay the escrow items. Lender may not charge fot holding and applying the Funds, analyzing the account or veriPying the escrow• items, un~ess 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 ar aQplicable law requires interest to be paid, Lender shall not be required to pay Borrow~er 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 whicfi eacfi debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security lnstrumerit. Ii 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 amaunt of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrow~er shall pay to Lender an~~ amount necessary to make up the deficiency in one or more payments as tequired by Lender. Upon payment in ful! of all sums secured by this Se~:unty Instrument, Lender shall promptly refund to Barrow~er any Funds held by Lender. If under paragraph 19 the Property is sold or acquired bp 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 secureci by this Security lnstrument. 3, Apptication of Payments. Unless applicabie law provides otherw~ise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepa}ment charges due under the tiote; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. ~i. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and im~sitions attributable to the Pruperty whicfi may attain priority over this Security lr.strument, and leasehold payments or ground rents, i! any. Borrower shall pay these obligations in the~manner provided in paragraph 2, or if not paid in that manner, 8orrower shall ~ pay them on time directly to the person owed pa}~ment. Borr~~•er shatl promptly~ furnish to Lender all notices of amounts to be paid under this paragraph. If Borrow~er makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower sha11 promptly discharge any lien which has priority o~~er this Security Instrument unless Borrower. (a) agrees in writing to the payment of the ob{igation secured by the lien in a manner acceplable to Lender, (b) contests in good !'aith the lien by, or defends against enforcement of the lien in, legal praceedings w~hich ir. the Lender's opinion operate to pre~•ent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the hotder of the lien an agreement satisfactory to Len~er subordinating the lien ta this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority o~~er this Security Instrument, Lender may~ give Borrower a notice identif~•ing the lien. Borrow~er shall satisfy the lien ar take one or more of the actions set forth above within l0 days uf the giving of notice. 5. Hazard Insurance. Borrow•er shall keep the improvements now~ cxisting or hereafter erected on the Property insured against loss by fire, hazards included within the tcrrn "extended co~•erage" 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 shail be cho~en by Borrower subject to Lender's approvai w•hich shall not be unreasonably withheld. All insurance policies and rene~+~als chall be acceptable to Lender and shall include a standard mongage clause. Lender shall have the right to hold the policies and renew~als. 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 i carrier and Lender. Lender may make prcx~f of loss if not made promptiy by Borrower. Unlrss Ler~der and Borrower otherwise agree in writing, insurance proceeds shall be appiied to restoration or repair af the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. [f the ` restoration or repair is not economically feasible or Lender's security would be lessened, the inswance proceeds shail 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 Propeny, 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 p the Property or to pay sums secured by this Security Instrument, whether or not then due. T'he 30-day period will beg+n when the notice ~s given. ~ Unless i.ender and Borrower otherwise agree in w•riting, 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 Lender, Borrower's right to any insurance policies and proceeds resulting ~ from damage to the Property prior to th~ acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. ~ 6. Preservation and ~1~intenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the Property, alfow the Property to detenorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comQly with the provisions of the lease, and if Borrower acquires fee title to 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; ?~tortgage Insurance. If Borrower fails to perform ~he covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantl}- 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 da and pay for whatever is necessary to protect tfie 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 psiority 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 does not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this ~ Secutity Instrument. Untess Borrow~er and Lender agree to other terms of payment, these amounts shall bear interest from 4 . the date of disbursement at the !`'ote rate and shall be pay~able, with interest, upon notice from Ler.der to Borrower k requesting pa}~ment. r ~ P'~GE cy0~ B~~K ~ ~ ~ . - _ - . , S' - ' -e4- ~ ~ > ~ t. ,~y 2 +'+.xt°~~', '~~~~~~w~-'~"'`~~~`~ `