HomeMy WebLinkAbout0988 Uh1FORM CC)YFNANTS. Borrow~er and Lender covenant and agree as folloa~s:
1. Yayment of Principa! and Interest; P~epayment and l.ate Chsrges. Borrower shall promptly pay w~hen due
the principal o~and interest on the debt evidenced by the Note and any prepayment and latt charges due under the Note.
2. Funds fo~ Taxes and Insurance. Subject to applicabte law or to a written waiver by Lender, Borrower shall pay
to Lender on the day monthly payments are due under the Note, until th~ Note is paid ~n full, a sum ("Funds") equal to
one-twelfth oL (a) yearly tazes and assessments which may attain priority over this Security ]nstniment; (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 ihe
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 ii' Lender is such an institution). Lender shall apply 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 ;
I.ender pays Borrower interest on the Funds and applicabte law permits Lender to make such a charge. Borrower and
L.ender 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 shall not be reGuired 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 srcured b}•
this Security Instrument.
If the amount of the fiunds hetd by Lender, together with the future monthly payments of Funds payable prior to
che due dates of the escrow items, shail exeeed the amount required to pay the escrow items w•hen due, the excess shalt 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 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 Sec~rity Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shali apply, no later
lhan immediately prior to the sale of the Property or its acquisition by Lender, an}• Funds held by Lender at the time of
application as a ~redit against the sums secured by this Se~:urity Instrument.
3. Applieation of Payments. Unless applicab(e law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shali be appiied: first, ta 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 ieasehold payments or ground rents, if anp.
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 a!1 not;ces of amounts I
to be paid under th~s paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish ro Lende~
receipts evidencing the payments.
Borrow~er 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 gc~d
faith the lien by, or defends against enforcement oF the lien in, legal prexeedings which in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c} secures f'rom the helder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument_ If Lender aetermines that any part of
ihe Property is subject to a lien which may attain priority ove~ 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 Iesurance. Borrower shal) keep the improvements now ezisting or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for w~hich Lender
requires insurance. This insurance 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 approval w~hich shall n<~t be ~
unreasonably withheld. '
Ail insurance policies and renewals shal) be acceplable to Lender and shali include a standard mortgage clause.
Le~der 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 renewai notices. In the event of loss, Borrower shal! give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal! be applied to restoration or repair
of the Property damaged, if the restoration or repair is economicali}~ 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, v?•ith any excess paid to Borrow~er. If
B~rrower abandons the Property, or does not answer within 30 days a notice from I_ender that the insurance carrier has
offered to settte a claim, then L,ender may coliect the insurance proceeds. Lender rnay use the proceeds to repair or restore
the Property or ta pay sums secured by this Security Instrument, w~hether or not then due. The 30-day period will begin
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principaf 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 resulting
from damage ta the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Securit}~
Instrument immediately prior to the acquisition.
6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Property, a:low the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee titie shatl 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 perform the
covenants and agreements contained in this Security Instrument, or there is a tegal proceeding that may significantly affect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or t~ enForce 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 may inciude paying any sums secured by a lien which has priority over ihis Security
[nstrument, 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 BorroK•er secured by this
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
requesting payment.
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