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HomeMy WebLinkAbout0921 UNIFORM COVEI~SANTS. Barrower and L.ender covenant and agree as f~lluvrs: l. Payment of Princip~! and Ipterest; Preps~yment aud Late Charges. BQrnewt~er shall prompdy pay when Jue the prinripal uf arxl interes~ on the dcM evidenced by thc hote and any prepayment and late charges due under the Nate. 2. Fuads far Taxes and lnsurance. Subject to applicable law or to a written waiver by l,ender, Borrowrr ~hall pay ta Lerxier ! un the day monthiy payments are due under the Note, until the Note is paid in full, a sum ("Funcis") equal to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yea~ly, I~a~ehoid pay~tlentz or ground renis on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage in3u~ante premiurt?S,= if ~ny. These items are cailed "escrow items." l.ender may estimate the Funcis due on the basis of current data and reasonable estimates ~f fulure escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a fede~al or state agency lincluding Lender if [.ender is such an institutian). Lender shall apply the Funds to pay the escrow items. Lender may not charge for hotding and applying, the Funds, analyzi~g the account or verifying the escrow items, unless Lender pays Borrower interest on the Fe~nds and applicable law permits l,ender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the ~unds. Unless an agreement is made or applicable law requires interest to be paid, Lender shatl not be required to pay Borrower any interest or earnings on the Funds. [.ender shall give to Sorrower, without 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 pledgecf as additional security for the sums secured by this Security Instrument. ' lf the amount of thc Funds held by Lender, together with the future mon[hly payments of Funds payable prior to the due dates uf the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, ; either prompdy repaid to Borrower or credited to Borrower on rrwnthly payments of Funds. If the amount of the Funds held by L.ender i+ not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as requi~ed by Lender. Upon payment in full of all sums secured by this Security Instrument, l.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sald or acquired by L.ender, Lender shall apply, no later than immediateiy 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 Peyments. Unless appiicable law provides otherwise, all payments received by Lender under paragraphs I and 2 should be applied: first to amounts payable ur~der paragraph 2; second to interest; and last to principal. 4. Charges; Lier~s. Sorrower sha!! pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold paymencs or ground rents, if any. Barrower 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 oa•ed payment. Borrower shall promptly furnish to txnder all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly fumish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Irtstrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by ti~e lien in a manner acceptable to Lender; (b) contests in good faith the lien ~y, or detends against enforcement of the lien in, legal proccedings which in the Lender's opinion operaie to prevent the enforcement of the lien or forfeiture of aoy part of the Prc>perty; or (c) secures from the holder of the lien an agreement satisfactory to Lender . .,~hnrd;na~ine the l;er~ 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. Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the fien ~~r sake one or more of the actions set forth above within 10 days of the giviag of notice. ~ S. Hazard Insuraace. Borrowe~ 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 I.ender requires insurance. This insurance shall be maintained in the amounts and for the periods that i.ender requires. The insurance carrier providing the insurance sf~all be chosen by Borrower subject to Lender's approval which shaN not be unreasonably withheld. Alf insurance poticies and renewals shall be acceptable to Lender and sha!! inelude a staadard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to L,ender 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. Uniess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Pro- oerty damaged, if the restoration or repair is ecanomically feasible and Lender's security is not lessened. If the restoration or repair i, not economically feasible or Lender's security would be lessened, the insurance proceeds shatl be apptied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to 8orro~Ner. [f Borrower abandons the Property, or dces not answer within 30 days a~no'tice~from Lender that th"e insurance carrier`h~s off~red to settle a claim, then Lender may collect the i~surance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums sec~~red by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless L.ender and Borrower otherwise agree in w~riting, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by l.ender. Borrower's right to any insuranre 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 immedia~eiy prior to the :~cquisition. 6. Preservation and Ms~intenance of Property; I,easeholds. Borrower shaH not destroy , damage or substantially change the Property, allow the Property to deteriorate ar commit waste. If this Securi[y Instrument is on a leasehold. Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Proteetion af Lender's Rights in the Property; Mortgage [nsurance. If Borrower fails to perform the covenants and agreements contained in this Security lnstrument, or there is a legal proceeding that may significantly affect 1.€nder's rights in the Property (such as a prc~ceeding in bankruptcy, probate, for eondemnation or to enforce laws or regulationsl, then Lender may do and pay for whatever is necessary to pratect 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 prioriry over this Security Instrument, appearing in court, paying reasonable atrorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does ncx have to do so. ' ~ ~ _ , ; . - ~ : 8a'~K 481 P~~~ 914