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HomeMy WebLinkAbout0999 UNIFORM COVENANTS. &x~ower and L,ender covenant and agree as follows: ~ l. Paymeat ot P~rincip~al slfd lnterest; Prep~yment a~td Late Cbuges. Bor~ower shali promptly pay when due the principal of and interest on the debt evidee~ced by the Note and any prcpayment and iate charges•duF under the Note. 2. Fuadti tor TAxes and lnsurance. Subject to applicable Iaw or to a written waiver by n~er, Borrowe~ shall pay to L.encier , on the day monthly payments are due unde~ the Note, until the Note is paid in full, a sum equal to one-tweifth of: (a) : yearly taxes and assessments which may attain priarity over this Security Instrument; (b) ye~l I~hold p+~p~ or ground rents on the Properry, if any; (c) yearly hazard insurance poemiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." l.ender may estimate th~ Funds due on the basis of current data and reasona~!~ .s:i^:~:zs u~ ~~~~~~~e z~-_r^w - items. The Funds shall be held in an instiwtion the deposits or accounts of which are insured or guaranteed by a federal or state agency (including ~.ender if I.tnder is such an instiwtion). I.ender shall apply the Funds to pay the escrow items. L.ender may not charge fo~ holding and applying the Funds, a~.o:~ zing the account or ve~ifying the escrow items, unless L.ender pays Borrower interest on the Funds and applicable law pertnits l.ender to make such a charge. Borrower and Lender may agree in writing that interest shall ~ be paid on thz Funds. Unless an agretment is made or applicable law requires interest to be paid, Lender shall not be required to f pay Borrower any interest or earnings on the Funds. l.ender shall give to Borrower, without charge, an annual accounting of the ~ Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged ~ a~ additional serurity for the sums secured by lhis Security instrument. ; If the amount of the Funds htld by l.ender, together with the future monthly payments of Funds payaoie priur io ine ~ue uairs ~ ~ of the escrow items, shali exceed the amount required to pay the escrow items when due, the excess shali be, at t3orrower's option, ~ ~ Pither promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. lf the amount of the Funds held by Lender is not sufticient to pay the escrow items when due, Borrower shall pay to L.ender any amount necessary to make up the deficiency ~ in one or more payments as required by Lender. Upon payment in full of al! sums secured by this Security Instrument, lxnder shall promptly refund to Borrower any Funds held by l.ender. If under paragraph 19 the Property is sold or acquired by l,ender. l.ender shat{ 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 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; second to interest; and last to principal. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or grourKi rents, if any. Borrower shai{ pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shafl pay them on time directly 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 dixharge any lien which has priority over this Sec~rity.lnstrymcnt un{ess Borrower. (a) agrees in ~ writing to the payment of the obligation secured by the lien in a manner acceptable to L.e~er. {b) contests in good. faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement ~ of the lien or forfeiture of any part of the Property; or (c) secures from th~ holder of the lien an agreement satisfactory to Lender ~ ,ubordinating the lien to this Security Instrument. If I.ender determines t~at 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 ideplifying the lien. Borrower shall satisfy the lien ~ or take one or more of che 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, hazards included within the term "extended coverage" and any aher hazards for which Lender requires insurance. This : insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance : ~hall be cnosen by Borrower subject to l.ender'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. li Lender requires. Borrower shall ptomptly give to L.ender all receipts of paid premiums and renewal notices. En the event of loss, Bo~rower 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 pruceeds shall be applied to restoration or repair of the Pro- ~ E p~:rty damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair j is na economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by ' ; this Security Instrument, whether ar not then due, with any excess paid to Borrower. If 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 ~ ~ insur~xe 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 will begin when the notice is given. ~ Unless I.ender and Borrower otherwise agree ~n wnting, any application of proceeds to pnncipal ~hall not extend or postpone , ~ the due date of the monthly payments referred to in paragraphs I 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 ? ~ prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the ~ dcquisition. : ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall ncx destroy, damage or substantially change the ~ Property, allow the Property to deteriorare or commit waste. If this Security Instrument is on a leasehold. Borrower shall comply ~ with the provisions of the lease, and if Borrower acquires fee tide to the Property. the leasehold and fee title shall not merge unless ~ Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; blortgage insurance. If Borrower fails to perform the covenants and agreements 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 regulations), then Lender 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 " ettorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender dces ? not have to do so. ~ . ~ ~ B~l3K ~Oe~ PACE e~ey~ ~ a. . : . ~ • ; r X ~ ~ • . ~ . f. • t ~ . . ~ . ~ ~ i. ~ ~ ' _ - -s . _ - _ _ _ _