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HomeMy WebLinkAbout0955 .t • UNIFORM CovENw*tTS. Bonower ~?nd Lcnder oovenant and agroe as follows: l. Pay~meat ot Princlpal aod Intera~ Pre~nt ~ed Late Cl~arga. Borcower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and ~ny prepayment and late charges due under the Nu~e. 2. I~nds tor Tue,a aod Iawraece. Subjoct to applicable law or to a written waiver by I.er?der. Borrower shali 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 ' ono-twelfth of: (a) yearly taaes and issessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground raits on the Property. if any; (c) Yearly hazard insurance premiums; and (d) yearly mortgage insurancx premiums, if any. These items are cs:led "escrow items." Lender may atimate the Fuads due on the ~ basis of current data and reasonabk estimatea of future ascrow items. ~ 'The Funds shall be held in an institution the deposita or accounts of which are insurod or guarantad by a federal or ~ state agency (including Lender if I.ender is such an institution). Lender shall apply the Fun~1s to pay the escrow items. Lender may not chuge for holding and applying the Funds, aailyzing the acxount or verifying the escrow items. unless ~ Lender pays Borrower interat oa the Funds and applicable lsw permiis Lrnder to make such a charge. Borrower and ~ Lender may a?gree in writing that interest shall be paid on the Funds. Unless an agreement is msde or applicable law ~ roquires interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender ~ shall give to Borcower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and thc purpc~se for which each debit to the Funds was made. The Funds are pledged as additional security for the sums stcurod by ~ s this Security Instrument. - If the amount of the Funds held by I.ender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount roquired to pay the escrow items when duc. the eacess shall be, : at Borrower's option~ either promptly repaid to Borrower or creditod to Bonower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the ~scrow items when due, Bonower shall pay to Ler?der any amount necessary to make up the de6ciency in one or more payments as required by Lender. ? Upon payment in fuil of all sums secured by this Security Instrummt, I,ender shall promptly refund to Borrower 3 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 socured by this Socurity Instrument. 3. Applia~tion of Payments. Unless applicable 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 ~ Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. Gbarges; Liena. Bonower shall pay all taxes. assessments, charges, fines and impasitions attributable to the Property which may attain priority over this Socurity Instrumtnt, and le~sehold 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 Bonower makGS these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shal! promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment oi the obligation securod by the lien in a manner acceptable to Lender; (b) :.ontests in good faith the lien by, or defends against enforcement of the lien ir., legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forfeiture of any part of tbe Property; or (c) secures from the holder of the lien an ; agreement satisfactory to Lender subordinating the lien to this Socurity Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, I,ender 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. H~rd Ia4urance. Borrower shall keep the improvements now eaisting or hereafter erected on the Property ~ insured against loss by fiSe, hazards included within the term "txtended coverage" and any other hazards for ~ hich I.ender ~ I' requires insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The ~ i insurance carrier providing the insurance shall b~ chosen by Borrower subject to Ixnder's approval which shall not be ' ~ unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to I,ender and shall inclade a standard mortgage clause. ~ Lender shall have the right to hold the policies and renewals. If I.ender roquires, Bonower shall promptly give to Lender - all receipts of paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not madt promptly by Borrower. ; Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall 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 Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not ihen due, with any eacess paid to Bonower. If Bonower abandons the Property. or dces not answer within 30 days a notice from Lender that the insurance carrier has oflered 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 secure~ by ihis Security Instrument, whether or not then due. T'he 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments refened 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 extent of the sums secured by this Security Instrument immediately prior to the acquisition. ' 6. Pt~eservation and Maintenance of Property; I.eaSeholds. Borrower shall not destroy, damage 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 Propeny, the leasehold and ~ fee title shal! not merge unless L.ender agrees to the merger in writing. ~ 7. Protection ot Leeder'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 Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations). then I.ender may do and pay for whatever is necessary to protect the value of the Property 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 dishursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interesi from the date of disbursement at the Note rate and shall be payable, wiih interest, upon notice from L,ender to Borrower requesting payment. •~W = ~ ~ ~~76 ~~c~ ~54 _ _ = _ ~