HomeMy WebLinkAbout0946 UNIFORM COVENANTS. Borrowzr and Lender rovenant and agree as foliows:
1. Pa~~meat of Rincjpiil ~nil Iaterest; Prpoyment and Late Charges. Borrower shall promptly pay when due the principal
of and interest on the deM evidenced by tl~e Note and any prepaymeM ~and I~te charges due; under the Note.
2. Funds [or Ta~tes ~td Insuraace. Subject to applicable law or to'~h wruten waiver`by Lend r, Bo~rower shall pay to l.ender
c~~ the day monthty ~,ayments are due under the Note, until the Note is paid in h~ll, a sum equal tq,o~twelfth of: (a)
yearly tazes and assessments which may attain priority over this Stcurity Instrument; (b) yearly leasehold payments or ground rents
on the Propetty, if any; yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items
are called "escrow items." l,ender may estimate the runds due on the basis of current data and reasonable estimates of future escrow
itcros.
The Funds shall be held in an instiwtion the deposits or accounts of which are insured or guaranteed by a federal or state agency ;
( inrluding L.ender if Lender is such an institution). l.ender shall apply the Funds to pay the escrow items. Lender may not charge i
For holding and applying the Fu~s. analyzing the account or verifyioQ the escrow items. unless l.e~xier pays Borrower interest on ;
the Funds and applicable law permits Lxnder to make such a chargt. Borrower anc! Lencier may agree in writing that interest shall ~
be paid on the Funds. Unless an agrerment is made or applicable !aw requires intercst to be paid, l.ender shall not be required to
pay Barrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the ~
FuRds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged ;
a~ additional security for the sums secured by this Security Instrument.
If the amount of the Funds held by l.ender, together with the future monthly payments of Funds payable prior to the due dates
' oF the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option,
either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of th~ Funds held by l.ender ~
is na 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 required by l.ender. ~
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds
held by L,ender. If under paragraph 19 the PrOperty is sold or acquired by l.endeF, Lender shall apply, no later than immediately ~
prior to the sale of the Property or its acquisition by l.ender, 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 otherwise, all payments received by Lender under paragraphs
I and 2 should be applied: first to amounts payable under paragraph 2; second to interest; and tast to principal.
4. Charges; Liens. Borcower shalt pay all taxes, assessm$nts, charges, fines and impositions attributable to the Property which
may attain priority over this Security instrument, and leasehold paymenis 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 shal! 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 Sorrower makes these
payments direcdy, Borrower shall promptly furnish to Lender receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Sgcurity Instrument unless Borrower: (a) agrees in
~vriting ro the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) cantests ip good faith the lien
by, or defeadsagainst enforcemeM of the lien in. legal proceedings which in the Lender's opinion operate to prevent the enforcement
of the lien or forfeiture of aay part of the Property: or (c) secures from the holder of the lien an agreement satisfactory to Lender
wbordinating the lien to this Security lnstrument. If Lender determines that any part of the p~~nertv is subiect to a lien which may
~ttain priority over this Security Instrument, Lender 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. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Propeny insured against
loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This
insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance
,hall be chosen by Borrower subject to Lender's appmval which shall not be unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage ciause. Lender shall
h;~ve the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to L,ender a!1 receipts of paid premiums
and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and I.ender. Lender may make
proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Pro-
pc:rty damaged, if the restorauon or ~epair is economically feasible and Lender's security is not lessened. !f 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 then due, with any excess paid to Borrower. If Borrower abandons the Property, or dces
not answer within 30 days a notice from Lender that the insurance carrier fias offered to settle a claim, then f.ender may collect the
insurance proceeds. l.ender 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 l.ender aad Borrower otherwise agree in writing, any application of prcxeeds to principal shall not extend or postpone
the due date of the monthly payments referred to in paragraphs 1 and 2 ar change the amount of the payments. If under paragraph
!9 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 ~cured by this Security ]nstrument immediately prior to the
aryuisition.
6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantia(ly change the
Property, allow the Praperty to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower lhatt compty
with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee tide shall not merge unless
(~:nder agrees to the merger in writing.
7. Protection of Leader's Kights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and
agreements cuntained in this Security l~swment, or there is a legal proceeding that may significantly affect Lender's rights in the
Propeny (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 ~alue 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. L.ender does
not have to do so. ~
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