HomeMy WebLinkAbout0980 UNlFORM COVENANTS. &~rrower and l.cnder covenant and agree as follows:
1. Paymtat ot Princlpal ~ed Interest; Prepoytaent and l.ate Charges. &xrower shafl prumptly pay when Jue tt?e pnncipal
uf and interest on the debt evidtnced by the Note and any prcpayment and late charge~ ue unJer the N te. y
2. Funds for Taxes and Insursu~ee. Subjeet to applicable law or to a written waive~~' (sencier, Bot~~ shall pay to Lender
un the day monthty payments are dut under the Nae, until the Note is paid in full, a surr~ !"Fuads") equal to one-twelfth of: (a)
yearly taxes and assessments which may attain priority over this Security lnstrument: (bI leasehoid~ yi~~nts or gruunci rents
un the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage~Surance premiti~s', i~ any. These items +
:,re ralled "escrow items." Lender may estimate the Funds due un the basis of current data and reasonable estimates of fuwre escrow 1.
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
lincluding Lender if L.eneler is such an institution). l.ender shall apply the Funds to pay the escrow items. Lencier may na charge
tor holding and applying the Funds, analyzing the account or verifying the escrow items, untess L.ender pays Borrower interest on
the Funds and applicable iaw permits L.ender to msike such a charge. Borrower and [,ender may agrce in wriling that interest shall
be paid on the ~unds. Unless an agreemeot is made or applicable law requires interest to be paid, I.euder shall not be required ta
pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the
Funds showing credits and debits to ttx~ Funds a~d the purpose for which each debit to the Fu~x1s was made. The Funds are pledged
as additional security for the sums secured by this Securiry lnswment.
' lf the amount of the Funds held by l.ende?, together with the futu~e monthiy payments of Funcis payable prio~ to the due dates
u( the exrow items, shall exceed the amount required to pay the escrow items when due, the excess shali be, at Borr~wer's optian,
either promptly repaid to Borrower or credited to Borrower on manthly payments of Funds. If the amount of the Fonds held by Lender
~ is not sufficient to pay the escrow items when due, Borrower shall pay to l.ender any amount necessary to make up the deficiency
in one ur mor~e payments as required by Ler.der.
Upon payment in fu1! of all 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 Lender, l.ender 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; se:.ond to inttrest; and last to principal.
4. Charges; Liens. Borrower shall pay atl taxes, assessments, charges, fines and impositions attributable to the Property which
mev attain oriority over this Security Instnime~t, and leasehvld payments 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 shall pay them on time d~rectly to the person oweci
payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these
payment~ directly, Borrower shall promptly furnish to Lender receipts evidencing the payments.
Borrower shatl promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in
writing to the payment of the obligaticfn secured by the lien in a manner acceptable to [:ender; (b) contests in good taith the iien
by, or defends against enforcement of the lien in, legal proceedings which in the L.ender's opinion operate to prevent the enforcement
of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender
sutx~rdinating the iien to this Security Instrument. If l.ender determines that any pan of the Property is subject to a lien which may
~ttain priority over this Security Instrumem, Lender may give Borrower a notice identifying the fien. Borrower shall satisfy the liee~
or take one or more of th~ actions set forth above within 10 days of the giving of notice.
5. Hazard Insurance. Borrower shall keep the improvernents now existing or hereafter erect°d on the Property insured against
loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This
in.urance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance
tihall be chosen by Borrower subject to L.ender's approval which shall not be unreasonabiy withhetd_
R{I insurance pali:.:es asu3 renewals shall be acceptable te ~x~er and shatl include a standard mortgage clause. Lender sha!!
have the right to hotd the policies and renewals. if C,ender requires. Borrow~r shall Promptly give to Lender all receipts of paid premiums
and renewat 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 Barrower.
Unless Lender and $orrower otherwise agree in writing, insurance pra:eeds shall be applied to restoration or repair of the Pro-
peny damaged, if the restoration or repair is economically feasible and l.ender's security is not lessened. If the restoration or repair
is not economicatly 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 does
not answer within 30 days a notice from L.ender that the ins~rrance carrier has offered to settle a.claim, then txnder may collect the
insurance proceeds. 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 wh~n the notice is given.
Unless Lender and 8orrower othemise agrce in writing; any application of proceeds to principal shall not extend 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
! 9 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting from damage to the Property
psior to the acquisition shall pass to L.ender to the extent of the sums secured by this Security Instrument immediately prior co the
acquisition.
6. Presen•ation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the
F'ropeny, allow the Propeny to deteriorate or commit waste. (f this Security Instrum~:nt is on a teasehald, Borrower shall comply
with the provisions of the lease, and if Borrower acquires fee tide to the Property, the leasehold and fee title sha!! not merge unless
L.ender agrees to the merger in writing.
7. Protection of Lender's Rights io the Property; 111ortgage Insurance. If Borrower fails ro pe.rform the covenants and
agrcements contained in this Security Instrument, or there is a legal prc~ceeding that may significantly affect Lender's rights in the
Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or regulatiuns), then Lender may do
and pay for whatever is necessary• to prcxect 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 priority over this Security Instrument, appearing in court. paying reasonab(e
attorneys' fees and entering on the Property to make repairs. Although L.encier may take action under this paragraph 7, [~nder does
not have to do so.
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