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HomeMy WebLinkAbout0989 UNIFORM COVEtvA~TS Borrower and Lender covenant and agree as follow•s: 1. Payment of Principal and Interest; Prepayment xnd L,Ate Charges. Borrower shall prumptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds tor Taxes and Insuranee. Subject to applicable law or to a wntten waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, unti) the Note is paid in full, a sum ("Funds") equal to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearl~~ leasehold payments or ground rents on the Property, if any; (c) yearly hazard i~~surance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Len;ier may estimate the Funds due on the basis of current data and reasonable estimates of iuture 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 L.ender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge for holding and apptying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and appiicable 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 or applicable law requires interest to be paid, Lender shall not be req~ired to pay Borrower any interest or earnings on the Funds. Lender shali give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for whict~ each debit tu the Funds was made. The Funds are pledged as additional security for the sums secured b}• this Security Instrument. It 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 monthl}~ payments of Funds. If the amount of the Funds held by Lender is n~t 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 to Borrower 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 appiicable 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 Nute; 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 attnin 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 if not paid in that manner, Borrower 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 Borrower makes these payments directly, Borrower shall promptly furnish to Lender 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 which in the Lender's opinion operate to prevent the enforcement of the lien or forfeit~re 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 lnstrument, 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 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 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 shall be chosen by Borrc~wer subject to Lender's approval which shall not be ' unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall in~lude a standard mortgage clause. ; Lender shall have the right to hold the policies and renewals. If Lender requires, Borrow~er shall promptly give to Lender g all receipts of paid premiums and renewal notices. In the event of loss, Borrower shaU 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 otherwi~e agree in writing, insurance proceeds shall be applied to restoration or repair g of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economicaliy 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 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 thic Security Instrument, whether 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 principal shail 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 resuiting ~ from damage to the Property prior to the acquisition shail pass to Lender to the extent of the sums secured by this Security ~ ~ Instrument immediately prior to the acquisition. I ~ ti. Preservation and liaintenance of Property; Leaseholds. B~rrower shall noi destroy, ~amage or substantially , ~ change the Property, allow 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 title shall not merge unless Lender agrees to the metger 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 legal proceeding that may significantly affect a` Lender's righis in the Property (such as a proceeding in bankruptcy, probate, for condemr.ation or to enforce laws or ~ regulations), then Lender may do and pay for whatever is necessary to 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, 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 became additional debt of Borrower secured by this Security Instrument. L,'nless 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, wiih interest, upon notice from Lender to Borrower ~ requesting payment. ~ . ~ ' BI;(lK P.'.GE c~0~ ~ ~ ~ _ x~ ~G ~ _ ~?'k ' '~"s ~ i