HomeMy WebLinkAbout0981 UNlFORM COVENANTS Borrower and Lender covenant and agree as ft~llows:
1. Payment of Principa! and Interest; Prepaymeat and I.~te Charges. Borrow~er shall promptly pay when due
the principal oCand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. Funds tor Taxes and Insurance. Subject to applicable law 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-twelRh of: (a) yearly tazes and assessments which may attain priority over this Security Instrument; (b) yearly
le~asehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearty
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due o~ the
basis of current data and reasonable estimates of future escrow items.
The Funds shal! be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if I.ender is such an institution). Lender shaq apply the Funds to pay the escrow items.
Lender may not charge for holding ar.d 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
Lender may agree in writing that interest shali be paid on the Funds. Unless an agreement is made or appficable law
requires interest to be paid, Lender shall nut 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 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 ot'the Funds held b~~ Lender, together with the future monthly payments of Funds payable priur to
the due dates of the escrow items, shall eaceed the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, eether promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not suflicient to pay the escrow~ items when due, Borrower sha(1 pay to Lender any
amount ne.;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 Borrow~er
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 Instrument.
3. Application of Payments. Unless applicable !aw provides otherwise, ail payments received by Lender under
paragraphs 1 and 2 shal! be applied: first, to late charges due ander 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 im~sitions attributable to the
Property which may attain priority over this Security lnstrument, and leasehold payments or ground rents, if any.
Borrower shali 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 shal! promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to [.ender
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 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 a~hich in the Lender's opinion operate to
preveRt 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 Instrument, Lender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one ur more of the actions set forth above within !0 days
of the giving of notice.
5. Hazard 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 covera~e" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts an~ for the periods that Lender requires. The
~insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's appro~•al which shall not be
unreasonably withheid.
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 promptiy 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. Lender may make proof of loss if not made promptly by Borrower.
Un(ess Lender and Borrower otherwise agree in writing, insurance proceeds shali be applied to restoration or reQair
of tfie 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
applied to the sums secured by this Security Instrument, whether or not then due, with any ezcess ~aid to Borrow•er. If
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settte a claim, then Lender may coitect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums sec~red by this Security Instrument, w~hether or not then due. The 30-day period wi{1 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 i 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 result~ng
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. Preservatiun and Maintenance of Praperty; Leaseholds. Borrower shall not destro}•, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehotd,
Borrower shall comply with tf~e provisions of the lease, and if Borrower acguires fee title to the Property, the leasehold and
fee title;hall not merge unless Zender agrees to the merger in writing.
7. Prot~ction of Lender's Rights in the Property; Mortgege Insurance. If Borrow~er fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that ma}~ significantl~• afTect
Lender's rights in the Property (such as a proceeding in bankruptcy, prabate, for condemnation or to enforce taws or
reguiations), then Lender may do and pay for whatever is necessary t6 protect the value of the Propeny 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, appearinR in co~rt, paying reasonable attorne}•s' 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 Lender under this paragraph 7 shail become additional debt of Borrower secured by this
Secucity Instrument. Unless Borrow~er and Lender agree to other terms of pa}~ment, these amounts shall bear interest from
the date of disbursement at the tiote rate and shall be payable, with i~terest, u~n notice from Lender to Borrow~er
requesting payment.
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