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Home My WebLink About0970 UNiFORM COVENAN'I'S. Borrower and Lender covenant and agree ag,folbws: l. Payment o( Principal and lateresh Prepayment and Late Charges. Borrow~er shall promptly pa}• w~hen due the principal of and interest on the debt evidenced by the Note and any prepayment and tate charges du~ under the Note. 2. Funds for T~uces and Insurance. Subject to applicable 1aw or to a written waiver by Lender, Borrower 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-twelfth of: (a) yearly taxes and assessments which may attai~ priority over this Security Instrument; (b) yearly teasehold 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 basis of current data and reasonable estimates of future escrow items. The Funds shali be held in an institvtion ihe deposits or accounis of which are insured or guaranteed by a federal or state agency {including I.ender if Lender is such an institution). I.ender shall apply the Funds to pay the escrar~~ items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless ~ L.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and T Pn~ier may agree in writine that interest shall be paid on the Funds. Unless an agreement is. made or applicable law requires interest to be paid, Lender shal) not be required to pay Borrower any interest or earnings on the Funds. Lender shAll give tn Rorrower. 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 seeurity 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 shal! be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthl~ payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender an~~ 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, Lender shall promptly refund ta BorroH~er any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by I.ender, 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 o( application as a credit against the sums secured by this Security Instrument. 3. Application 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. 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 ii' not paid in that manner, Bc~rrower 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 Barrower makes these payments directly, Borrower sha11 promptly furnish to Lender receipts evidencing the payments. Borrower shalJ 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 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 enforcerr~ent 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 ~vhich 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 fQrth above within 10 days of the giving of notice. 5. Ha7ard 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 any other h~zards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender require~. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shal( include a standard mortgage clause. Lender shall i~ave the right to ho.d 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 carrier and Lender. I,ender 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 restoratian or repair ot~ the Property damaged, if the restoration or repair is economically feasible and I.ender's security is not lessened. tf the restoration or repair is not economically feasible 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 an}- excess paid to Borroµ~er. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has oflered 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 w~ill begin when the notice is given. Unless Lender and Borrower othent~ise agree in writing, any application of proceeds to principal shall not eztend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount oF the ~a~ ments. 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 shal{ pass to Lender to the extent of the sums secured by ihis Securit}~ Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrow~er shall not desiro}~, damage or substantially change the Property, allou• the Property to deteriorate or cb,mmit waste. If this Security Instrument is on a le.«eho~d, Borrower shall comply w~ith the provisions of the lease, ar?d if Bortau~tr acquires fee title to the Property, the leasehuld and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's ltights in the Property; ~iortgage Insurance. If Borrower fails to ~rf~~rm the covenants and agreements contained in this Security Instrument, or there is a legat proceedin~ that ma}~ signi6rantl~ :~fTert Lender's righis in the Property (such as a proceeding in bankruptcy, probate, for rondemnatie~n ~r to enforcr l.t~~~s or regulat~ons), then Lender may do and pay for whatever is necessary to protect the value of the Propert}~ ar~d Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority aver this Scrurit}~ Instrument, appearing in court, pa~~ing reasonable attorneys' fees and entering on the Property to make repairs. A(th~~ugh Lender may take action under this paragraph 7, Lender does not nave to do so. Any amounts disbursed by Lender undet this paragraph 7 shall berome additiona~ debt of Borr~w~er secured b} this Security Instrument. Unless Borrower and Lender agree to other terms ~f payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with inte~est, upon notice from Lender to Borrow~er requesting payment. 600K ~W P~GE i7~~ ~ ~ _ _ - - - ~ ~ - ~ ,