HomeMy WebLinkAbout0990 UNIFORht CovEN~NTS. Borrow~r and Lender covenant and agree as follows:
1. Payment of Prit~clpal aad Interest; Prepayment and Late Charg,es. Borrower shall promptly pay when due
the principal of and intcrest on the debt ~videnced by the Notr and any prepayment and late rharges due under thc Note.
2. Fuads for Tuces aad Insurance. Subject to applicable law or to a written waiver by l.ender, Borrower shall pa}~
to I.ender on the day monthly paymcnts are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelfth ot: (a) yearly taxes and assessmenta whic6 may attain priority over this Security lnstrument; (b) yearly
leasthold payme~ts or ground rents on the Property, if any; (c) yearty hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are calied "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonable cstimata of tuture escrow items.
The Funds shaU 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 inst?tution). Lender shall apply the Funds to pay the escrow items.
Lender may not charge for hoiding and applying the Funds. analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicabte 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, I,ender shall not be required to pay Borrower any interest or earni~gs on the Funds. Lender
shall give to Borrower, witfiout charge, an annual accounting of the Funds 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 security for the sums sec;ured by~
~his Security Instrument.
If 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, shal) exceed the amcunt 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
amount of'the Funds held by Lender is.not sufticient to pay the escrow items when due, Borrower shali pay to Lender any
amount necessary to make up the deficiency in one or more payments a~ required by Lender.
Upon payment in fu11 of ali sums secured by this Securily Insirument, 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 saie 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. Un(ess applicable law provides otherwise, ail payments received bv Lender under
paragraphs 1 and 2 shali 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 attributable ;o the
Pro~erty which may attain priority over this Security Instrument, and leasehold payments or ground rents, if an}.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay then~ on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid ander this paragraph. If Borrower makes t6ese payments directly~, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Ser,urity Instrument unless Borrower: (a}
~grees in writing to the payment of the obligation secured by the tien in a manner acceptable ro Lender, (b) contesis in good
~aith the iien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to
prevent the enforcerttent of the lien or forfeiture of any part of the Property; or (c) secures from the hotder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
the Propeny is subject to a lien which may attain priority over this Security Instrument. 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 Insuranee. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against (oss b}~ fire, hazards included within the t~rm "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 shatl be chasen by Borrower subject to Le~der's approval which shall n~t be
unreasonably withheld.
A1! insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
Lender shall have the right to hoid the ~licies and renewals. If Lender requires, Borrewer shall promptly give to Lender
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 loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
c~f the Property damaged, ii the restoration or repair is economically feasible and Lender's security is not lessened. If the
restoration or re~air is not economically feasible or Lender's security would be (essened, the insurance proceeds shap be
applied to the sums secured by this Security Instrument, whether or net then due, with any excess paid to Borrower. If
Borrower abandons the Property, or does not answer with~n 30 days a notice from Lender that the insurance carrier has
otfered to settle a claim, then Lender may collect the insurance proceeds. Lender rnay use the proceeds to repair or restore
the Property or to pay sums secured by th~s Security Instrument, whether or not then due. The 30-day period will begin
when the notice is given.
Unless I,ender and Borrower otherwise agree in writing, any application of proceeds to principal shall 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 resulting
from damage to the ProF+erty prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preservation and Maintenance of Property; I.easeholds. Borrower shall not destroy, damage or substantially
change the Property, allow the Propeny to deteriorate or commit waste. [f this Security Instrument is on a leasehotd,
Borrower shalf comply with the provisions of the Iease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge untess Lender agrees to the merger in writing.
7. Protertion of Lender's Rights in the Property; Mortgage Insurance. If Boreower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Praperty (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 LeRder's rights
in the P~operty. 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 become additional debt of' Borrower secured by this
S~curity Instrument. Unless Borrower and Lender agree to other terms of payment, these amou~ts shall bear interest from
the date of disbursemeni at the Ii'ote rate and sha11 be payable, with interest, upon notice frorr, Lender to Borrower
requesting payment.
B~`~ ~7~ ~~~F
- > :~j
. - ~
~