HomeMy WebLinkAbout0972 UNIFOrtH CovENA!v7s. Borrower and Lrnder covenant and agree as follows:
1. Payment ot Principal and Interest; Prepayment and Late Charges. Barmuer shall promptly pay w•hen due
the principal of and interest on !he debt evidenceei by the Note and any p~epayment and late charges due under the Note.
2. Fuads for Taxes and Insurance. Subject to applicable law or to a w•ritten ~~ai~~er by Lender, Borrower shall pa~~
1 rn~1Pr nn ihP ~~y mnnthh naYments are due ui~J~r th.: Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Securit~• Instrum~nt; (b) yearl~•
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) ~~early
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estin~ate the Funds due on the
basis of current data and reasonable estimates of future ~scrow items.
-The Fu~ds shaU be held in an institution the deposits or accounts of which are insur.~ or gua~anteed by a federal or
state agency (including Lender if Lender is such an instit4tion). Lender shall apply the Funds to {~ay the escrow items.
Lender ma~~ not charge for holding and applying the Funds, analyzing the account or verifying the eu:row items, unless
Lender pays Borrower interest on the Funds and applicabie law permits Lender to make su~h a charge. Borrow•er 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 pa~d, Lender shall not be required to pay BorroN~er any interest or earnings on the Funds. Lender
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 additional sc~:urity for the sums secured by
this Security Instrument.
!f the amount oP the Funds held by Lender, together with the future monthly payments of Funds pay~able prior to
the due dates of the eurow items, shall exceed the amount required to pay the escrow~ items ~:•!:~n due, the excess shall be,
at Borrower's option, either promptly repaid to Borrower or credrted to Borrower on monthly payments of Funds. [f the
amount of the Funds held by Lender is not sufficient to pay the escrow~ items w•hen due, Borrower shall pay to Lender any
amount aecessary to make up the deficiency in one or more payments as required b~• Lender.
Upon payment in.full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
a„y ; If under paragraph 19 the Progerty is sold or acquired by Lender, Lender shall apply, no later
than immediately ~rior 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 seti:ured by~his Security Instrument.
3. Applieation of Payments. Unless applicable law provides otherwise, all payments received bj+ Lender under
~aragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to p: epayment charges due under the ~
'`ote; third, to amounts payable under paragraph 2; faurth, to interest due; and last, to principal due.
4. Charges; Liens. Borro~•er shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority ~ver this Security Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner pravided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time direcdy to the person ow•ed p3yment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borro~ti•er make~ these pa~•ments dire~:tly, Borrower shall promptl~- furnish to Lender
receipis evidencing the payments. ;
Borrower shall prompdy discharge an}• lien w~hich has priority over this Se~:urit}~ Instrument unless Borrower. (a) ~
agrees in w~riting 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 en(orcement of the lien in, legal proc:eedings w•hich in the Lender's opinion operate ro
prevent the enforcement of the lien or forfeiture of any~ part of the Property; or (c) secures fr~m the holder of the lien an
~greement satisfactory to Lender subordinating ihe l~en to this Securit}~ Instrument. If Lender determines that any part of
the Property is subject to a tien which ma}• attain priorit}• o.~er this Securit~~ Instrument, Lender ma~~ gi~~e Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one e~r mc~re of the actions set forth above ai~~~~~~ 10 days
of the gi~•ing of notice.
5. Hazard Insurance. Borrow~er shall keep the improvements naw~ existing or hereafter erected on the Propert}~ -
insured against loss by~ fire, hazards included w~ithin the term "extended coverage" and any other hazards for w•hich Lender
reyuires insurance. This insurance shall be maintained in the amounts and f~~r the periods that Lender requires. The
insurance carrier providing the insurance shall be chasrn b~~ Bo~ruw~er suhjert t~~ l.ender's appro~~al w~hich shall not be
! unreasonabl}~ w~ithheld. ~
~ All insurance policies and renewals shall t~ arceptable t~~ Lender and ~hall include a standard mortgage clause. '
~ Lender shall have ihe right to hold the ~licies and renewals. If Lender reyuireti, Borrow~er shall promptl~ gi~•e to Lender : i
~ all receipts of paid premiums and reneHal notices. In the e~~ent of lotis, Borrow~er tihall gi~•e pmmpt notice to ihe insurance .
' carrier and Lender. Lender ma} make proof of loss if not made promptl~ b}~ Borrower.
~ Unless Lender and Bormw•er otherw~ise agree in w•riting, inwranre prcxeedt shall t~ applied to restoration or repair =
~ uf the Propert}• damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the t
restoration or repair is not economicall~~ feasible e~r Lender's securit~- wc~uld be letisened, the insurance praceeds shall lie ;
applied ro the sums secured by~ this Security Intitrument, w~hether or not then due. w•ith am~ excess paid to f3orrow~er. If £
Borrower abandons the Property, or does not ansu•er w~ithin 30 da~s a notice from Lender that the insurance carrier has ~
offered to settle a claim, then Lender may collect the insurance prcxeeds. Lender ma}~ 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 wil( begin
H•hzn the notice is gi~•en.
Unless Lender and Borrower otherw~ise agree in writing, any~ application of prcxeeds to principal shall not extend or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 ~r change the amount of the pa~~ments. If ~
under paragraph 19 the Property is acquired by- Lender, Borrow~er's right to any~ insurance policies and proceeds resulting
from damage to the Property ~rior ro the acquisition shall pass to Lender to the cxtent of the sums secured b}~ this Securit~~
Instrument immediately prior to the acquisition.
6. Preservation and \iaintenanceof Property; Leaseholds. IIorrower shaf! not destroy~, damage or substantiall}~
change the Property, allow the Property to deteriorate or commit H~aste. If this Securit~~ Instrument is on a leasehold,
~ Borrower shall comply with the pro~~isions of the lease, and if Borro~tier acquirc~ fee title te the Pro}~rt}~, the leasehold and i
fee title sha11 not merge unless Lender agrees to the merger in writing.
~ 7. Protection of Lender's Rights in the Property; ~iortgage Insurance. If Borrower fails to per(orm the
~ covenants and agreemenis contained in this Security Instrument, or there is a legal prcxeeding that ma} significantly affect
~ Lendzr's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnati~n or to enforce law~s or
regulations), then Lender may do and pay for whatever is necessar}~ to protect the value of tne Property~ and Lender's rights
~ in the Property. Lender's actions may include pa~•ing any sums secured by a lien a~hich has priority o~~er this Security~
~ Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Propert~~ 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 ? shall bec'ome additional debt of Borrow~er secured by this
- Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear intere~t from
the date of disbursement at the Note rate and shall be payable. H~ith interest, upon notice from Lender to Borrow~er
requesting payment.
~
~D(?X P~4~E ~ ! ~
~ ~ ~
~ - } ~ : ~ - ~ ` ° _
~
~