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HomeMy WebLinkAbout0937 UNlFORM COVENANTS. Borrower and l~ndcr c~venant and agrec as follows: 1. Paymtat of Priocipd~and lptcrest; Prcp~ya~ent aud L,Ate Charges. Borrower shall promptly pay when dut tt?e principal of and interest on the dcbt evidenced by the Note and any prtpayment and late charges due uncier thc Note. 2. Funds [or Taxts and Insur~nce. Subject to applicable iaw or to a written waiver.b~t.~nder, Borrower shall pay to Lender on the day moMhly payments are due under the Note, until the Note is paid in full, a sum (~'F~p~s'?)~ual to one-twe~,lfth of: (a) yearly taxes and assessments which may att~in prioriry over this Serurity lnstrument; (b) yearly le~is paymen~br, gtound rents on the Property, if any; (c) yeariy hazard insurance premiums; and (d) yearly mortgage insurance promiums, if any. These items s*e called "escrow items." Lender may estimate tAe Funds due on the basis of current data and reasonable estimates of future esc~ow items. The Funds shall be held in an instiwtion the deposi~s or accounts of which are insured or guarantced by a federal or state agency (including I.ender if L.ender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may ~~u< <„a~~~ for holding and applying the Funds, analyzing the account or verifying the escrow items, unless [.ender pays Borrower interest on the Funds and applicable law permits Lea~r to mak~ such a charge. Borr+~wer and L.ender may agree in writing that interest shall be paid on the Fur~ds. Unless an agreement is mad~ or applicable faw requires intercst to be paid, Lender shall not be required to pay Borrower any i~ter~ct or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the ~unds stwwing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, toget~er with the future monthly payments of Funds payable prior to the due dates ~ of the escrow items, shall excced 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 E3orrower on monthly payments of Funds. If the amount of the Funds held by Lender . is na sufticient 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 Lender. Upon payment in full of all sums secured by this Security~lnstrument, Lender shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 14 the Property is sold or acquircd by [.ender, l,ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security lnstrument. 3. Application ot Ps~yments. Unless applicable iaw 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 last to principal. 4. Charges; Liers. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrurr~nt, 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 direclly to the person owed payment. Borrower shall promptly furnish to Lender 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 lien which has priority over thi~ Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acc~ptable to l..epdgr; (b) co~tests in good faith the fien 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 .ubordinating the lien to this Security Instrument. [f Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, L.ender 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 Property insured against loss by fire, tu3zards included within the term "extended coverage" and any other hazards for which Lender re4uires 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 approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to l.ender and shall include a standard mortgage ciause_ Lender shall have the right to hold the polici~s and renewals. If Lender requires, Borrower shall promptly give to L.ender all receipts of paid premiums and renewal notices. !n the event of loss, 8orrower shall give prompt notice to the insurance carrier and Lender. 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- pert~ damaged, if the restoration or repair is economically feasible and Lender's sec;urity is not lessened. If the restoration or repair ~ is not economically feasible or i.ender's security would be lessened, the insurance proceeds shall be applied to the sums secured by ~ this Security Instrument, whether or noi 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 claim, then Lender may collect the E insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this ~ecurity [nstrument, ~ whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal ~hall 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 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property f prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the ~ acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the ~ Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shatl 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 ~ L.ender agrees to the merger in writing. 7. Protectio~s of Lender's Rights in tfie Property; Mortgage tnsurance. If Borro+~+er fails to perform the covenants and : agreernents contained in this Security Instrument, or there is a legal proceeding that may signiticantly affect Lender's rights in the ' Property {such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or reguletions), then Lende~ may do and pay for whatever is necessary to protect 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 reasonable t attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, L.ender dces ; not have to do so. ~ • •a , • ~ ,Onlfi[ ~`c~ PAGE ~ quw . ' • - ~ , . ~ . . - 1 r.