HomeMy WebLinkAbout0953 UNtFORM CovEN~~TS. Borrower and Lender covenant and agra as follows:
1. ~aymea~ ot PriACipsl aed Incera~ PrePaye~ca~ aad Lace Cbar~es. Borrowcr shall ~rompt~y pay whn~ due
tht pnncipal of and interat on the dcbt evidenced by the Note and any prepayment and late chargts due uncler the tiote.
2. Funds tor Tua and Insw~aoce. Subject to applicable law or to a written waiver by L.euder, Berro~rer shall pay
to Lender on the day monthly payments are due under the Note, until the Note is p~?id in full, a sum ("Funds") rqual to
one-twelfth of: (a) y~arly taaa and assessments which may attain priority ovcr this S~curity Instrument; (b) yearly
i~~e.~F~~l~ naym~nts or g~ound rents on tAe Froperty. it anw ic) yeariy hutxrd inwruucr ~iciiiiuuis, ai~~ t~j y~~~y
mortgage insurance premiums. if any. Thae items are called "escrow items." Lender may atimate the Funds due on the ;
ba.cis of curcent data and rtasonable estimntes of future acrow items. ±
The Funds shall be hcld in an ir?stitution the deposits or a:co=~nts af wtsich art insured or gua:anttcd b~ s feders! or
state agency (i~~ciuding l.ender iC L.ender is su~h an institution~. L.ender shall appty thr. Funds to pay the cscrow items. ;
Lender may not charge for holding and applying th= Funds, analyzing the account or verifying th~ escrow items, unl~s i
Lender pays Borrower interat on the Funds and applieable law permits i,ender to make sucb a charge. Bor.*ower and ~
Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable luw ;
requires interat to be paid, I.ender shall not be rcquired to pay Borrower any ir~terest or earnings on the Funds. Lcnder
shall give to Borrower, without charge, an annual accounting of the Funds showing crodits and debits to the Funds and the ~
pu:pose for which each debit to the Funds was made. The Funds are pledgod as additional security for the sums securzd by ~
this Security Instrument.
` If th.c amount of the Funds held by i.encier. together with thc future monthly payments of Funds payabfe prior to ~
the due dates of the escrow items, shall exceod the amount required to pay the escrow items when due, the excess shall be. ~
at Borrowcr's option, either promptly repaid to Borrower or crodited to Borrower on manthly paymcnts of Funds. If the
amount of the Funds held by I.ender is not s4H'icient to pa~ the ~..row items when due, Borrawer sha11 pay to Lender a~y
amount necessary to make up the d~ficiency in one or more payments as required by Lender.
Upon payment in full of al! sums secuied by this Security Instrument, L.ender shall promptly rciund to Borrower
any Funds held by Lender. If under paragraph 19 the Froperty is sold or acquired by Lender, Lender shall apply, n~ later
than immediately prior to the sale of tha Property or its acquisition by Lender, any Funds hel~ by Lender at the time of
application as a credit against the sums secured by this Security Instrument. }
3. Applieatioa of Payments. L'nless applicable law pravides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under tlie Note; second. to prepayment charges due under the ;
Note; third. to amounts payable under paragraph 2; fourth, to interat due; and last, to principal due. - ~
4. Cfiarges; Liens. Borrower shall pay all tases. ass~ssments, charges, fines and impositions attributable to the
Property which may attain pnority over this Security Instrument, and Ieasehoid payments or ground r~nts, ii anf.
Borrowec shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manncr, Borrower shall
pay them on time directly to the person owed payment. Borrower shall pron~ptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall pron~gtly furnish to L,ender
rxeipts evidencing the payments_
Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to che payment 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 P~ope:ty; 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 Propery is subject to a lien which may attain priority over this Security lnstrumcnt, Lender may give Borr~wer a
notice identifying the lien. Bono~ver shall saSisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hazard Iasurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender .
requires insurance. 'fhis insurance shall 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 !x
unreawnably withheld.
All insurance pQiicies and renewals shall be acceptable to L.ender and shall include a standard mortgage clause.
, Len~er shall have the right tn hold the policies and renewals. If Lender requires, Borrower 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 rsot made promptlv by Borro~~ver.
Unless Lender an~+ Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
~ of the Property damaged, if the restoration or repair is econon~icaliy feasible and Lender's security is not lessened. If the
restoration or repair is ~ot economically feasible or Lender's security would be lessened, the insurance proceeds shall be
~ ap~lied to the sums secured by this Security Instrument. wheth~r or not then due, with any excess paid to Borrower. If
Bonower abandons the Praperty, or 3ces not answer within 30 days a notice from Lender th2t the insurance carrier has
offered to settle a claim, then Lender may callect the insurance Qroce~:'.s. 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 wil) begin
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to princi~~1 shall not eztend 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 resu{ting
from damage !o the Property Rrior to the acquisition shall pass to I,ender to the °xtent of ihe sums secured by this Security
Instrsment immediately prsor to the acquisition.
o. Presenation and Mainteiutnce of Property; Leaseholds. Borrower shall not destroy. ~amage or substantially
change the Property, allow the Pruperty to deteriorate or commit waste. If ti~~s Securit~~ In~trum.nt is on a leasehold,
Bor~ ower shall comply with the provisions of the lease, and if Borrower acqvires fee title to the Pruperty, the leasrhald and
~ ;ee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights in t6e Property; Tiortg~ge tnsurance. If Borrower fails to pcrl'on ~ the
covenants and agreements contained in this Security Instrument. or there is a legal proceeding that ma;~ s~gnificantly affect
I.ender's rights in the Pmperty (sueh as a proceeding in bankruptcy, probat~, for c~ndemnatiun or to enFOrce !aws or
regulations), then Ixnder may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Property. Len~'er's actions may inclade paying any sums secured by a lien which has priority over this Security ~
Instrument, appearing in court, paying reasonabie attorneys' fees and entering on the Property to make repairs. Although
I.ender may take action under this paragraph 7, L.ender d~es not have to do so. ~
Any amounts disbursed by Lender under this paragraph 7 shall b~come additianal debt of Borrower secured by this
Socurity Insirument. Unles~ fior~ower and Lender agree to othtr terms of payment, these amounts shafl bear interest from
the date of disb~~rsement at the Note rate and shall be payable, with intrrest, upon notice from L.ender to Borrower
requesting payment.
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