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Home My WebLink About0985 UNIFORM CovE.~vANTS Borrower and Lender covenant and agrer as folioNS: 1, Payment ot Principat nnd Interest; Preps~yment and L.ate Cherges. f3~rruw~er tihull promptl~~ pa~~ whrn due the principal oFand interest on the debt evidenred by the Note and any prepay ment and late ~harges due undrr the Notr. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by 1_ender, Borrov?•er shall pay to Le~der on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to ? one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly ~ l~asehold payments or ground rents on the Property, if any; (c) yearly hazard insarance premiums; and (d) yearly ; moRgage insurance premiums, if any. These items are ralied "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accoun!s of w~hich are insur~:i or guaranteed b~~ a federa! or 'state agency (including Lender if Lend:r is such an institution). Lender shatl apply the Funds to Pxy the escrow• items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escroa~ items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid ~n the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall nat be required to pay BorroWer any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fur.ds thow~ing credits and debits tv the Funds and the purpose for which each debit to the Funds w~as made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together w•ith the future monthly payme~ts ot' Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the es~:row items when due, the excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Sorrower on monthly payments of Funds. if the amount of the Funds held by Lender is not sufficient to pay the escrow items when dve, Borrow•er shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of all s~s secured by this Security Instrument, Lrnder shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, I.ender shall apply, no iater 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. Application of Payments. Unless applicable law~ provides otherw~ise, all pa}~ments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; sec;ond, to prepayment charges due under the Note; third, to amounts payable unurr paragraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Giens. Borrower shall pay all taxes, assessments, charges, fines and impasitions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. f3orrower 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 pa~~ment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. [f Barcow~er makes these pa~•ments directly, Borrow~er shall promptly furnish to Lender receipts evidencing the pay ments. Borrower shall promptly discharge an}~ lien w~hich has priority over this Security Instrument unless Borrow~er: (a) agrees in writing to the payment of the obligation secured by the ]ien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings w~hich in the Lender's opinion operate to prevent the enforcement of the lien or forfeiwre 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 Securit}• Instrument. If Lender determines that any part of the Property is subject to a iien which may attain priorit}- over thi: Security lnstrument. Lender ma}~ give Borsower a notice identifying the lien_ Borrower shall satisfy the lien ~r take one or more of the actions set forth abo~~e w~ithin 10 days of the giving oFnotice. 5. Hazard Insurance. Borrower shall keep the impro~ements now~ existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended co~~erage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounh and for the periods that Lender requires. The insurance carrier praviding the insurance shall be chosen by~ Ro*row•er subject ro Lender's approval which shall not be unreasoRably withheld. All insurance policies and renewals shall be acceptable to Lender and shal! include a standard mortgage clause. Lendcr shalt have the right to hold the }~?olicies and reneH•als. If Lender requires, Borrow~er shal( promptl} give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrow~er sha11 give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nnt mad~ prompi!}~ by- Borrower. Unless Lender and Sorrower otherw~ise agree in writing, insuranre 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 securit~~ w~ould be lessened, the insurance proceeds shatt be applied to the sums secured by this Security Instrument, w•hether or not then due, with any excess paid to Borrow~er. If Borrower abandons the Property, or dces not answer aithin 30 da}~s a notice from Lender that the insurance carrier has offered to settle a claim, then Lender ma}• collect the insurance ~roceeds. Lender may~ use the proceeds to repair or restore the Property or to pay sums secured by this Security Instruriment, w~hether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherw ise agree in writing, any~ application of proceeds ro principal shall not extend or postpone the due date of the monthty payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Properiy ~s acqu~red by Lender. Borrow~er's right to any insurance ~licies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the e!ctent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shali not destroy-, damage or substantially change the Property, allow the Property to deteriorate or eommi; k~aste. If this Security Instrument is on a leasehold. Borrower shall comply with the provisions of the lease, and if Borrow~er acquires fee title to the Propert}•, 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; `tortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Seeurity Instrument, or there is a legal proceeding that ma}~ significantly~ affect 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 tne Proper~y~ and Lender's rights in ihe Properiy. Lender's actions may include pay~ing any~ sums secured by a lien which has priority o~~er 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 C,ender under this paragraph 7 shal( become additionai debt of Borrower secured by this Security Instrument. LJniess Borrower and Lender agree to other terms of payment, these am~unts shall bear interest from the date of disbursement at the Note rate and shall be pa}~able, w~ith interest, upon notice from Lender to Borrow~er requesting payment. ~ ? ~~'~K 4 77 PaGf ~ ~ ~ , - - 3 ~ ~~~~s`.~~v x~' ~Y ~ ~r~vx~.s~"„s~~ `~¢i' .~:.-a - - . . _ . _ . . . . _