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HomeMy WebLinkAbout0951 ! VLJ11- J ( ~hA~~~s UNIFORkt CoveynNTS. $orrower and Lend~r cuvenant and agree as follows: 1. Payment o! Principal and lnterest; Prepayment ar~d I.ate Cherges. BorroN~er shal) promptly pa~~ uhen 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 for Taxes and lasuntnce. Subject to applicable law or to a w-ritten waiver by Lender, BorroH~er shall pay~ to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelith of: (a) yearly tazes and assessments which may attain priority over this Security Instrument; (b) yearl}~ leasehold payments or ground rents on the Properry, if any; (c) yearly hazard insurance premiums; and (d) yearl~~ mortgage i~surance prerr~iums, if any. These ~tems are called "escrow items." Lender may estimate the Funds due on the basis of curre~t 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 if I.ender is such an institution). L.ender shalt apply the Funds to pay the escrow items. I.ender may not charge for holding and apptying the Funds, analyzing the accaunt or verifying the es~;row items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Ixnder 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, l,ender shall not be required to pay Borrow•er any interest or earnings on the Funds. L.ender shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to th~e Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additiona! security for the sums secured by this Security Instrument. If the amount of the Funds held by L.ender, together with the future month(y 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 shalt be. at Borrower's option, either promptly repaid to Bonower or credited to Borrower on monthly payments of Funds. If the amount of the Funds hetd by L.ender is not suRicient to pay the escrow items when due, Borrower shall pay ta Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in tull of all sums secured by this Security Instrument, Lender shall proinptly refund to Borrower ar~y Funds held by i.ender. 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. Applieation of Payments. Unless applicable law provides otherwise, all payments recei~~zd b}• Lender under paragraphs 1 and 2 shall be applied: first, to 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 atiributable to the Property which may attain priority aver this Security Instrurr_ent, and leasehold payments or ground rents, if any. Borrower shal! pay these obligations in the manner provided in garagraph 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 shali promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obiigation secured by the lien in a manner acceptabie 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 Frevent the enforceme~t of the lien or forfeiture 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 Instrument, Lender may give Borrower a notice identifying the lien. $orrower 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 insureii against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shal) 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 which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewats. If L.ender requires, Borrower shal! promptl~ give to Lender all receipts of paid premiums and renewal notices. In the event vf loss, Borrower shal! give prompt notice to the insurance carrier and I,ender. Lender may make proof of loss if not made promptly by Borrower. Unless L,ender 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 economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or L.ender's security would be lessened, the insurance proceeds shall be ~ applied to the sums secured by this Security Instrument, wheiher 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 I.ender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. L,ender may use the proceeds to repair or restore the Property or to pay sums secured by this 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 applieation of procee~s to principal shall not extend or posipone 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 shall pass to Lender to the eztent of the sums secured by this Secarity Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds, Borrower shall not destroy, damage or substantially change the Properiy, allow the Property to deteriorate or commit w~aste. 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 merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage In~urPnce. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legai proceeding that ma~• significantly afTect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to 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 ~n the Property. L,ender'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 maice 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 Borrow~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, w~ith interest, upon notice from Lender to Borrow•er requesting payment. 6041f( ~ 1 ~ P~GE ~'ll _ ~ _ - - - : - _ .