HomeMy WebLinkAbout0970 UN~FQRM CovEN~vrs. Borrower and Lender covenant and agrce as follows:
1. Payment of Priacipal and Interest; Prepaymeat and I,ste Charges. Borrower shall pramptly pay~ when due
the principal of and interat an the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. ~unds~for Taxes aad Insursaa. Subject to applicablt law or to a~:+ritten waiyer by Lende~, Borrower shall pay
to Leader on the day monthly payments are due under the Note, until the ~lote is paid in full, a sum ("Funds") ..qual to
one-tweltih of: (a) yearly taxes and assessments which may attain priority over this Security Instr~lment; (b) yearly
l.9sehold payments or ground rents on the Property, if any; (c) yearly hazard insuran:e premiums; and (d) yearly :
mortgage insurance ~remiums, if any. These items are calted "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits or accoants of which are insur.~ or gua~ anteed by a federai or ,
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to piy the escrow items.
Lender may not charge for holding and applying the runds. analyzing the account or verifying the esc~ow items, unless
Lender pnys 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 ihe Funds. Llnless an agreement is made or applicable !aw ,
requires interest to be paid, Lender shail not be required to pay Borrower any interest or earnings on the Funds. Len~er
~ shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additionai security for the sums secured by `
this Secunry Instrument.
lf the amount of the F~~ds held by Lendcr, toge:her 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 monthly payments of Funds. If the
amuunt of the Funds held by I.ender is not suft'icient to pay the escrow items when due, Barrower ~hall 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 ali sums secured by this Security Instrument, Lender shall promptly ref~nd to Borrower _
any Funds heid'oy' ender. If under paragraph 19 the Property is seld 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 Le~~der at the time of ~
appliration as a credit against the sums sxured by this Security Instrument.
3. Appti~ation of Payments. Unless applicable law provides oiherwise, all payments received by Lender under
paragraphs 1 and 2 shail be applied: first, to late charges due under the Note; second, to prepay~ment charges due under the
!~ote; 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 a~~y.
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 promptty furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shali promptly furnish to Lender
receipts evidencing the payments.
Barrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment 6f 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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an -
6greement satisfactory to Lender subordinating the lien to this Security Instrument. If f_ender determines that any part of I
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a : I
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days s
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of the giving of notice.
5. Hazard Insurance. Borrower shall keep the improvements noK• existing or hereaRer 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 shaU be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shal) be chosen by Borrov?~er subject to Lender's approval which shall not be
unreasonably withheld. ,
All insurance policies and renewals ~hall be acceptable to Lender and shali include a standard mortgage c(ause.
Lender shall have the right to huld the policies and renewals. If Lender requirn. Borrower shall promptly gi~~e to Lender
E 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 toss if not made promptly by Borrower.
~ Unless Lender and Borrower otherv~~ise agree in writing, insurance proceeds shall be appiied 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 cecurity would be lessened, the insurance proceeds shall be
applied to the sums secured by this Secu~~ity Instrument, whelher or not then due, with any excess Uaid to Borrower_ If
Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has 3
offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property cr to pay sums secured by this Security Instrument, whether or not then due. The 30-day period w~iil begin ~
when the notice is given.
t`nless Lender and Borrower oth~rwise agree in writing, any application of proceecis to principal shall not exsend 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 resulting -
from damage to the Property prior to the acquisition shail pass to Lender to the extent of the sums secured by this Securit}~ -
Instrument immediately prior so the acquisition. i
6. Preservation an~ Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantiall}~
change the Property, allow the P~opert} to dEteriorate or commit waste. If this Security Instrument is on a leasehold.
z BorrowPr shall comply with the provisions of the lease, and if Borrower acyuires fee title to the Properiy, the leasehold and ;
ffi fee title shall not merge unless Lender agrees t~ the merger in writing. ~
~ 7. Protection ~f Ix~der's Rights in the Property; Mortg9ge Insurance. If Borrower fails to perform the ?
~ ~o~enants and agreements contained in this Security Instrument, or there is a legal proceeding t~:at may significantly affect ~
~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ;
regulations), then Lencier may do and pay fcr whatevef is nerPssary to protect the value of the Property and Lender's rights '
~ in the Froperty. Lender's actions may include paying any sum~ secured by a lien which has priority over thi5 Security
~ Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Pro~erty to make repairs. Although
Lender may take action under this paragrapi~ i, iender dces not have to do so.
Any an:ounts d~sbursed by I.ender under ihis paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unless ~orrower and Lender agree to other terms of payment,lhese amounts shall bear interest from
the date of disbursement at the Noie rate and shall be pa~•able, with interest, upon notice from Lender to B~rrower
~ requesting payment.
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