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HomeMy WebLinkAbout0998 UNlFORM COVENANTS. Borrower atxi Len~kr cuvenant ar?c1 agre~: as follows: 1. Pa~ment of Pri~tcipwl and lnterest; t'rep~yment and l.ate Charges._Borrower shall promptly pay when due the p~inc+p:il ui and interest on the deM evidenced by the Nixe and any prepayment and tate charges due uncier the Note. 2. Funds for Taxes aad lnsurance. Subject to applicable taw or to a written waive~by Lender, Borrpv~r ~hall pay to lxrxier on the day monthly payments are due under the Nae, until th+e Note is paid in ful1, a t'~ Furds") e~1~~'tp one-twelfth of: (a) ' ye~rly taxes and assessments whic~ rnay attain prio~ ity over this Security Instrument; (b) ear+y leaseholb payments or grou~xi rents un the Property. if any; (c) yearly h~ard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items ~re cailed "escrow items." L.ender may estimate the Funds due on the basis of current data and reasonabi~ es~ima~e~ of future escrow items. ~ The Funds shall be hel~i in an insti~ution the deposits ur aceounts of which are insured or guaranteed by a federat or state agency lincluding L.ender if Lender is such an institution). Lender shall appiy the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, anafyzing the account or verifying the escrow items, unless I.ender pays Borrower ioterest on the Funds and applicable law permits Lender to make such a charge. Sorrower and Lender may agree. in writing that interest shall be paid on tF~e Funds. Unless an agreement is made or applicable law requires interest to be paid, Lcnder shali not be required to pay Barrower any interest or earnings ~n the Funds. l.ender shall give to Borrower, without charge. an annual accounting of t6e Funds showing credits and debits to the Funds and the purpose for which each ~lebit to the Funcis was made. The Funds are pledged a~ additional security for the sums x~~.r.: b; lhis Secur~!y lnctn~ment. If the amount of the Funcis held by [.ender, together with the future monthly payments of Funds payabte p~ior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shal! be, at Borrower's option. ~ either promptly repaid to Borrower or credited to Borrowec on monthty payments of Funds. lf the amount of the Funds held by Lender i~ not sufticient to pay the escrow items when due. 8orrower shal! pay to l.ender any amount necessary to make up the deficiency in one or more payments as required by Leneier. Upon payment in full of ai! sums secured by this Security Instrument. Lender shali promptly refund to Borrower any Funu~ held by Lender. If under paragraph 19 the Property is sold or acquired by Lende-~, Lender shall apply, no later than immediately ~rior 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 Securiry Instrument, 3. Application of Payments. Unless applicable laa provides otherwise, atl payments received by Lender under paragraphs I and 2 sh~wld be applied: first to amounts payable under paragraph 2; second to irtterest; ar~d last to principal. 4. ChArges; l.iens. Borrower shalt pay atl taxes, assessments, charges, iines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold 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 directly to the person owed payment. 8orrower shal! promptly furnish to i.::+K1er all notices of amounts to be paid under this paragraph. !f Borrower makes these payments direcdy, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall prumptly discharge any lien which has priority over this Security Instrument unless Borrower. (a) agrees in H riting to the payment of the obligation secured by the iien in a manner acceptable to Lender, (b) contests in good faith the lien ~y, or defends against enforcement of the iien in, legal proceedings which in the Lender's apinion operate ta prevent the enforcement of the lien or forfeiture of any part of the Propeny; or (c) secures from the holder of the lien an agreement satisfactory to L.ender ~ubordinating the lien 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 nocice identifying the lien. Borrower shall satisfy the iien «r take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazxrd lnsurance. Borrowe~ shall keep the improvements now existing or hereafter erected on the Property insured against lu.s 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 far the periods that Lender requires. The insutance carrier providing the insurance ~hall chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and rer~wals shal{ be acceptable to Lender and shali include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. [f txnder requires. Borrower shall promptly give ro Lender all receipts of paid premiums :~nd renewal notices. [n the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lc.: ~e: ^:a; ^:a!~e 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- peny damaged, if the restoration or repair is economically feasible and L.ender's security is not lessened. If the restoration or repai~ i~ not economically feasibte or Ixnder's security woul~ be lessened, the insurance proceeds shall be applied to the sums secured by this Securiry [nstrument, whether or not then due, with any excess paid to Borrower_ [f Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a clairr~, then Lender 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, whecher or not then due. The 30~ay period witl begin when the notice is given. Uniess L.ender and Borrawer otherw+se agree 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. !f under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds r~sulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior ro the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall ncx destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. [f this Security instrument is on a leasehold, Borrower shall comply with the provisions af the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lcnder agrees to the merger in writing. 7. Pr°oteetion of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements containsd in this S~curity Instrument. or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then L.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. l,ender'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 Propeny to make repairs. Although Lender may take action under this paragraph 7, Lender dces ncx have to do so. ~$1 Pa~;E yy~ .