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HomeMy WebLinkAbout0967 Utv~FORM CovEN~NTS Borrower and L.endtr covenant and agrce as follows: 1. Payment of Princlpal and Interest; ~epayment and I.ate Chuges. BorrQwer shall promptly pay when due thc principal of and interest on the debt evidenced by the Nott and any prepayment and late charges due under thc Note. 2. Funds to~ Taxes and Insunnce. Subjcct to applicabla Iaw or to a written waiver by Lender. Borrower sha!! pay to L,ender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelfth nf: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly leasehold payments or ground rents on th~ Property, if any; (c) yearly hazard insurance premiums; and (d) yearly - mortgage insurance premiums, if any. These items are called "cscr_w items." I.ender may estimate the Fu~ds du~ on the basis of current dasa and reasonable atimates of future escrow items. The Funds shall b~ held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (incfuding Lender if Lender is such an insticution). Ltnder shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to mak~ such a charge. Borrower and : Lender may agree in writing that interest shall be paid on the Funds. Uniess an agreement is made or applicable law requires interest to be paid, i.ender shatl not be required to pay Borrower any interest or earnings on the Funds. Lender chali give to Borrower, without cha~ge, an annua! accounting of the Funds show~ing 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 fo~ the sums secured by R this Security Instrument. ' tf the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to ~ the due dates of the aerow items, shali exceed the amount required to pay the escrow items when due, the excess shall be. at Borrower's option, eithtr promptly repaid to Borrower or creditec! to Borrower on monthly payments of Funds. If the ~ amount of the Funds held by I,ender is not sufi'icient to pay the escrow items when due, Borrower shall pay to Lender any amount ntcessary to makt up the deficiency in one or more payments as required by I,ender. Upon payment in full of ali sums secured by this Security Instrument, Lender shail promptly refund io Borrower any Funds held by I,ender. If under paragraph 19 the Property is sold or acquired by l.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds htld by i.ender at the time of ap~lication as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by L.ender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepaymcnt charges dae under the Note; third, to amounts payable under paragraph 2; fourth, to inierest due; and last, to principal due. 4. C6arges; Liens. Borrower shall pay all taxes, assessments, charges, hnes and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, iP 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 so the E?erson owed payment. Borrower shail 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 L.ender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priorit; over this Security Instrument unless Borrower: (a) agrees in writing to the paymer.: of 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 agreement satisfactory to L,ender 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, I.ender may give 8orrower 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by ftre, hazards ineludeci within the term "eatended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the arnounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shaii not be unreasonably withheld. All insurance policies and renewais shall be acceptable to I,ender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender reqs~ires, Borrower shall promptly give to L.ender all rereipts of paid premiums and renewal notices ln the event of loss, Borrower shall give prompt notice to the insurance carrier and Ler.der. l.ender may make praof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shali be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not iessened. If the restoratior? or repair is not economically feasible or [,ender's security would be lessened, the insurance proceeds shali be ' applied to the sums secured by this Security Instrument, whether or not then due, with any ezcess paid to Borrower. If Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insu:ance proceeds. Lender 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 application of Qroceeds to principal shall not eatend 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 i9 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 shalt 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; Leaseholds. Borrower shall not destroy, damage or substantiatly change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a Ieasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasrhold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protertion of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perforr ~ the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Ixnder's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce taws or regulations), then Lender may do and pay for whatever is necessary to protect t6e value of the Property and I,ender's rights in the Property. Lender's actions may inciude paying any sums secured by a lien which has prioritv over this Security Instrument, aYpearing in court, paying reasonabte attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender daes not have to do so. Any amounts disbursed by I.ender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Ueless Borrower and Lender agree to other terms of payment, these amounts shalt bcar interest from the date of disbursement at th~ Note rate and shatl be payable, with interest, upon notice from Lender to Borrower requesting paymeni. '~!?'~R p(I~~i! ~ ~'r~~ ~ ~~K~ ~ - ^ y•.x.~x .s ~~r., ~ ~ ~s"s;°7~ a.,~: -