HomeMy WebLinkAbout0935 UNtFORM COVFNANTS. Borrower and Len~er covenant and agree as follow~s:
l. PAyment of Principal and Interest; Prepayment and I.ate Charges, Borrower shall prumptly pay~ w•hrn due
the principal of and interest on the debt evidenced by the Note and any prepayment and late ~harges due under the Note.
2. Funds for Taxes ~?nd Insurance. Subject to applicable law or to a written wai~~er by Lender, Bon-o~~er shalt pa}•
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fnnds") equa! to
one-twelfth of: (a) yearly taxes and as.sessments which may attain priority over this Security Instrument; (b) }~rarl~~
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." l.ender may estimate the Funds due on the
basis of current data and reasonable estimates oTfuture escrow items.
"I~he Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed b~~ a federal or
state agency (including Lender ii Lender is such an institution). Lender shaU 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
Lender pays Borrower interest on the Funds and applicable la~• pern~its Lender to make such a charge. Borro~ver and
Lender may agree in writing that intecest shall be paid on the Funds. Unless an agreement is made or applicable taa•
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 Fur~ds and the
purpose for which each debit to the Funds was made. The Funds are pfedged as additional security for the sums secured b~~
this Security Instrument.
If the amount of the Funds held by Lender, together with the future monthly payments of Funds pay~able prior to
the due dates of the escruw items, sha11 exceed the amount required to pay the escrow~ items a~hen due, the escess shall be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly 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 Security Instrument, Lender shall promptly refi~nd to Borrow~er
any Funds hetd by Lender. IC under paragraph 19 the Property is sold or acquired by Lender, Lender sha!! apply, no late;
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. I
3. Application of Payments. Unless applicable law provides otherwise, a!i payments received by Lender under i
paragraphs i and 2 shall be applied: first, to late charges due under the Note; second, to prepa}~ment charges due under the i
Note; third, to amounts payable under paragraph 2; fourih, to inrerest due; and last, to principal due. i
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Propeny which may attain ~priority over this Security Instrument, and leasehold payments or ground cents, if anp.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow~er shall
pay them on time directly to the person owed payment. Borrower shall promptl}• furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directty, Borrower shall promptl}~ furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge an~• lien which has priority uver this Security lnstrument unless Borrow~er: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in gocxi
faith the lien by, or defends against enforcement of the lien in, legal pra:eedings which in the Lender's opinian operate t~
prevent the enforcement of the Iien or forfeiture of any part of the Property; or (c) secures from the holder of ihe lien an
agreement satisfaciory to Lender subordinating the lien to this Security Instr~~ment. If Lender determines that any part of ~
the Property is subject to a lien which may attain priority over this Securit}• Instrument, Lender may give Borrow~er a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of tne actions set forth above w~ithin 10 day~s I
of the giving of notice. ~
5. Hazard Insurance. Borrower shaU keep the improvements noa~ existing or hereafter erectect on the Pro~rt}~
insured against toss by fire, hazards included within the term "extended coverage" and am• other hazards for «hich Lender
requires ins~rance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall he chosen by Borrower subjeet to Lender's appro~~al which shall not be
unreasonably withheld.
All insurance policies and renewals shail be acceptabte to Lender and shati inciude a standard mortgage clause.
Lender shall have the right to hoid the policies and renewals. If Lender requires, BorroKer shall prc~mpily give to Lender
all receipts of paid premiums and renewal notices. In the event of loss, Borrow~er shall gi~~e prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrow~er.
Uniess Lender and Borrower othent~~ise agree in writing, insurance proceeds shall be appiied to restoration or repair
of the Property damaged, if the restoration or repair is economicaliy feasible and Lender's securit~~ is nc~t lessened. If th~
restoration or repair is not economicalty feasible or Lender's security would be lessened, the insurance pra:eeds shall be
applied to the sums secured by this Security Instrument, whether or not then due, with an}~ excess paid to Borrower. If
Borrower abandons the Property, 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
the Property or to pay sums secured by this Security Instrument, w•hether or not then due. The 30-da}~ ~eriod w•ill begin
w~hen the notice is given.
Unless Lender and Borrower otherwise agree in writing, an~~ application of prcxeeds to principal shall not extend ~r
postpone the due date of the monthfy payments referred to in paragraphs 1 and 2 or change the amount of the pa}~ments. If
under paragraph 19 the Property is~acquired by Lender, Borrow~er's right to any insuranre policies and proceeds resulting ~
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b~~ this Securit~
Instrument immediatei}~ prior to ihe acquisition. =
6. Preservation and :~taintenance of Property~; Leaseholds. Borrower shall not destro~~, damage or tubstantial!}
change the Property, aUow~ the Property to deteriorate or commit w~aste. If this Se~:urity lnstrument is on a lea~ehold.
Borrower shall comply with the provisions of the lease, and if Borrow•er acquires fee title to the Pm~ert}•, ihe leasehold and
fee title shall not merge unless Lender agrees to the merger in w~riting.
7. Protection of Ixnder's Rights in the Property; ~iortgage Insurance. lf Borr<~aer faiis to ~rfc~rm the
covenants and agreements cvntained in this Security I»strument, or there is a legal proceeding that ma}~ signifirantly affect
Lender's rights in the Property (such as a proceeding in bankruptc}•, probate, for condemnation or to eniorce laws ~~r
regulations), then Lender ma}• do and pay for w~hatever is necessar}• tn protect the ~~alue of the Propert}~ and Lender's rights
in the Property~. Lender's ac~ions may include paying any sums secured b}~ a lien w•hich has priorit}~ o~~er this Security
Instrument, appearing in court, pa}~ing reasonable attorneys' fees and entering on the Propert} t~ make repairs. Altheugh
Lznder may~ take action under this paragraph 7, Le~der does not hati~e to do so.
Any amounts disbursed b}~ Lender under this paragraph 7 shall become additional debt of I3orro«er secured b~~ this
Security- Instrument. Unless Borrow~er and Lender agree ro other terms oi pa)'ment, these an~c~unts shall i~ear ;nterest from
the date of di~bursement at the ?vote rate and shall be payable, w~ith interest, upon n~ti~c fmm Lerder to Borrower
requesting ~a}•ment.
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