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HomeMy WebLinkAbout0980 UNIFORM COVENANTS. Borrower and l.ender covenant and agree as foilows: 1. P~ytntat o~ Princip~l aod Intertst; Prcp~yment and l.~te Chacga. ~otrower shall promptly pay when due the principal of and intercu on the debt evidat~ced by the Nae and any prepayment 8nd Isie ~h~s ~ue bnd4r tha Note. 2. Funds for Taxes and lASUranee. Subject to applicabie law or to a writte~ ~vaiver by~~.ender, Borrower shall pay to l.ender on the day monthly payments are due under the Note. until the Note is paid in fuil, a sum ("Funds") equal to one-twelfth of: (a) yearly taxes and assessments which may attain prioriry over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurar~ce premiums; and ~~3 yeariy mongage insurance premiums, ii any. Tnese items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shail be held in an institution the deposits or accounts of which arc insured or guaranteed by a federal o~ state agency (including l.ender if Lender is such an institution). L,eruier shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the exrow items, unless Lender pays Borrower interest on t~ Funds and applicaAle law permits Lender to make such a charge. Bonower and Lender may agree. in writing that intercst shall be paid on the Funds. Unless an agroement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrowcr any interest or earnings on the Funds. t,ender shall give to Borrower, without charge, an annual accounting of tbe Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was macfe. The Funds are pledged as additional security for the sums secured by tMis Security Instrument. ~ (f tt~e amount of the Fu~s held by Lender, together 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 Borrower on monthly payments of Funds. If the amount of the Funds held by L,ender i~ not sufficient to pay the escrow items when due, Borrower sha11 pay to l.ender any amount r~ecessary to make up the deficiency in one or more payments as required by l.ender. Upon payment in full of all sums securcd by this Security Instrument, l.ender shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 19 the Property is sold or acquired by L.ender, Lender 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 Instrument. 3. Application o[ 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 last to principal. 4. Charges; I,iens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable tu the Property which may attain priority over this Security lnstrument, and leasehold payments or ground rents, if any. Borrower shall pay tt~ese 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 shall promptly t'urnish to L.ender all notices of amounts to be paid under this paragraph. lf Borrower makes these payments direcdy, Borrower shall promptly furnish to l.ender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable•to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings wMch in the L"ender's opinion operate tp prevent the enforcement of the lien or forfeiture of any part of the Property; o~ (c) secures from'tfie holder o~'•the lien an agreement satisfactory to Lender subordinating 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, L.ender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one e~ more of the actions set forth above within 10 days of the giving of notice. 5. Hazard losurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended roverage" and ~ny other hazards for which I.ender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lendtr requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. [f I.ender requires, Borrower shall promptty give to Le~er all receipts of paid premiums and renewal notices. tn the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make ~ i proof of loss if not made promptly by Borrower. ~ k Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Pro- perty damaged, if the restoration or repair 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. (f Borrower abandons the Property, or dces ' not answer within 30 days ~notice from L.ender that the insurance carrier has offered to settle a claitn, then Lender may collect the i ~ insurance proceeds. Lender may use the proceeds to rePair or restore the Propeny 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 and Borrower otherwise agree in writing, any application of proceeds ro 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 ~ ~ 19 the Praperty is acquired by Lender. Borrower's right to any insurance policies and proceeds resulting from damage to the Property ? ~ prior ro the acyuisition shall pass to L.ender to the extent of the sums secured by this Security Instrument immediately prior to the ' ~ acquisition. A 6. Preservatan and Maintenance of Property; Ixaseholds. Borrower shall not destroy, damage or substantially change the ~ Property, allow the Property to deteriorate or commit waste. If this Security Instrum~nt is on a leasehold. Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unles~ ` Lender agrees to the merger in wrifing. 7. Protection of i,ender's Rights in the Property; Mortgage insurance. lf Borrower fails to perform the covenants and agreements contained in this Security 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 Lender may do and pay for whatever is necessary to protect the va~ue 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 dces i not have to do so. , F € f - ~ ~ • ' . ~ gt3 P~~E 9~8 • ~t~7K~ ~ ~ ~ • • ' - - ' . ~ ~ - w , ~ . _ r.: , ~ _ ~ ~ _ ~