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HomeMy WebLinkAbout0975 UNIFORM COVENANI'S. Borrower and Lender cuvenant and agree as follows: ; 1. Pa)'ment ot Principal aad latecesl; Prep~yment auu :..atr Charges. Borrower shall promptly pay when due the principai of and interest on the d:bt evidenced by tne i~ote and any prepayment ~nd late c~?~rg~es due under d~c Note. 2. Fuads for Taxes utd lnsurance. Subject to appiicable law or to a written waiver by L.enAe~,'~orrower shall pay to Lender ~ on the day monthly payments are due undt~ the Note, until the Note is paid in full, a surr~ ("Funds") equal oqe-twelRh af: (a) yeariy taxes and assessments which may attain priority over this Security lnurument; (b) yea?~~1e~sehold paXr~~its or ground rents on the Proptny, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "exrow items." L.tnder may sstimate the Funds due on the basi~ of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if L.ender is such an institution). L.ender shall apply the Funds to pay the escrow items. [.ender may~not charge for holding and applying the Funds, analyzing the account or verifyi~g the escrow items, unless Lender pays Borrower interest on the Funds and applicabte law permits L.ender to make such a charge. Borrower and l,encfer may agree. in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable !aw requires interest to be paid, l.ender shall not be required to , pay Borrower any interest or earnings on the Funds. l,ender shal! give to Borrower, without charge, an annual accounting of tbe Funds showing credits and debits ro the Funds and the purpose foe which each debit to the Funds was made. The Funds a~e pledged as additional security for the sums secured by this Secu:aty lnstrument. ~ If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates c~f the escrow items, shall exceed the amount required to pay the escrow ~tems when due, the excess shatl be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments ot Funds. If the amount of the Funds hetd by Lender i. na sufficient to pay the escrow items when due, Borrower shall pay to Lender any amcwnt necessar}~ to make up the deficier?cy in one or more payments as required by Lender. Upan payment in full of al) sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by I.ender, l.encler shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by l.ender at the time of application as a credit against the sums secured by this Security lnstrurt~nt. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 should be applied: first to amounts payable under paragraph 2; second to interest; and tast to principal. 4. Charges; Liens. Borrower shal( pay atl taxes, assessments, charges, fines and impositians attributable to the Property which may attain priority or•er ihis Security [nstrument, and teasehold payments or grour~d rents, if 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 to the person owed payment. Borrower shal! promptly furnish to l,ender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. . Borrower shall promptly discharge any iien which has priority over this Security Instrument unless Borrower: (a) ag~ees in writing to the payment of the obligation secured by the lien in a manner acceptable to I.ender; (b) contests in good faith the lien b~, or defends against enforcement of the lien in, legal proceedings rvhich in the Lender's opinion operate to prevent the enforcement ~~f the lien or forfeiture of any part of the Propeny: or (c> secures from the holder of the iien an agreement satisfactory to Lender ~utiordinating the lien to this Security [nstrument. If i.ender determines that any part of the Property is subject to a lien which may :~ttain priority over this Security Instrument, Lender may give 8orrower a notice iclentifying the lien. Barrower shall satisfy the lien cjr take ~one or more oi the actioos set forth above within !0 days of the giving of notice. S. Hazard Insur~nce. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against foss by t7re. hazards included within the term "extended coverage" and any other hazards for which l.ender requires insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The insurance carrier providing the insurance .hall be chosen by Borrower subject to Lender's appro~ca) which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall inctude a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptiy give to Lender all receipts of paid premiums and rene~al notices. In the event of ioss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lxnder and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Pro- pc:ny damaged, if the restoration or repair is economically feasible anci Lender's security is nat lessened. If the restoration or repair iti not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by tt-~is Security Instrument. whether or not then due, with any excess paid to Snrrower. If Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has offered to settie a claim, then Lender may coftect the insurance proceeds. Lender may use th~ proceeds to repair or resrore the Property or to pay sums secured by this Security Instrumertt, whether or not then due. The 30-day period wiit begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of praceeds to principal shall not extend or postpone tne due date of the monthly payments referred to in paragraphs ! antf 2 or change the amount of the payments. If under paragr~ph ! 9 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to Ihe acquisition shall pass to Lender to the extent of the sums serured by this Security Inswment immediately prior to the arquisition. 6. Preservation and Maintenance of Property; Leasehotds. Borrower shall not destroy, damage or substantiaily rhange the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold. Borrower shail comply with the provisions of the lease, and if Borrower acyuires fee titte to the Property, the teasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of I,ender's Rights irt the Property; Moctgage lrtsacance. If Borrower fails to perform the covenants and agreements contained in this Serurity Instrument, or there is a legal praceeding that may significandy affect [.ender's rights irt the Property (such as a prcxeeding in b~nkruptcy. probate, for condemnatio~ or to enforce laws or regulation~l, then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's rights in the Property. l.ender's actions may include paying any sums secured by a lien which has pric~rity over [his Security Instrument, appearing in court, paying reasonable . sttorneys' 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. ~~'n~~~~. ~~~f . . . . .