HomeMy WebLinkAbout0956 Utv~~oRM Cov~~nrr's. Borrorrer uxi Lendcr covcnant and agra u follows:
l. Pty~t ot Prl~ciatl aod Intapt; Pre~yse~~t ud Lte Cbsr~es. Rorrower shall promptiy pay when due
the principal of and i»terest on the debt evide.uod by the Nott and any pnpayment and iste charges due under the Note.
2. ~ for Tua ud IRwrasa. Subject to sppli~bk taw or ta a written waiver Sy Lrnder, Borrawer shail pay
io Lend~r o~ t!u day monthly ps~rments sn due under the IYote, until the Note is paid in fu11, a sum ("Funds") equa! to
onc-twc[tth of: (a) yeuty tues aad assessments which may attain priority over this Security Instrurnrnt; (b) Yearly
leasehotd payments or ground r~euts on tbe ProptrtY, it anY; (c) y~rly hazard insurance premiums; ar.d (d) Yearly
a9ertgsge insurance praniums, if any. These iteujs are callod "escrow items." Lender may estimate the Fuc~ds due on the
basis ofcurrrnt data and reasonabk est;mites oifutun escrow items.
The Funds shall b~ held in ~n instituqon the deposits or accounts of ~+hich are insurod or guarantood by a federal or
state agency (including Leader ef La~der is such an institution). t~endrr shall apply the Funds to }~ay the escrow items.
I.ender may not charge for holding aad applyin~ the Funcla~ aaslyzing the account or vtrifying the escrow items, unlas
L.rnder p~ys Borrower interest on the Funds aad applicxbk law permits I.ender to make such s charge. Borrawer and '
' I,ender may agree in w?riting tl~at inttr~at shail be pa~id on tbe Fw?ds. Unksa an agraement is cnadc or applfcable la?w '
requira interrst w be paid, Lenc~er shsll not be rcquind :o pay Borrower any interest or earnings on the Funds. l.:.nder ~
~ shill givt to Berrower, ~vithout chuge, an anauat acxounting of t~ ~unds showing crodits and debits to the Funds and the ,
Furpose for which each debit to the Funds was made. 'ILe Funds sre pkdged as additional ~ecurity t'or tbe sums socured by
ihis S~urity Iastrumen~ ,
If the unount d the Funds hdd by Lender, together wit~ ihe futwe monthly payments of Funds payable prior to
tht due datcs oC the escrow? items, ahall exceed the ;unount required to pay tht escrow iteass when due, the exoess shall bt,
at Borrower's op~on, either promptl~r ;epnid to Horroaer or cridited to Horrower on monthly p~ymcnts of F~usds. If the
amount of the Funda heW by Lenda is not au~icieat ta puy the escrow? it~ !!+L+~± due, Borrower shall pay to Lender any
amount nece~ry W make up ihe de5cieacy in one or mare pnymaits at required by Lendcr.
Upoa payment in full of ail auma socurod by this Security Instrument, Lenda shall promptly refund t~ Bonower
ar?y Fuads held by I.ender. If under p~ragnph 19 the Proparty ia auld or acquircd by L.ender, I.ender shall apply, no later
than immodiately prior to the sale of the Praphty or its aoquisition by Lrnder~ uiy Funds held by Lrndtr at the time of
apptication aa a ci+odit against the sums secured by this Secwity Instrumeat.
3. A~iqdoi o~ Pa~eab. Unkss ap~?lic~bk liw provides Ml~ervvise, all papments rxeived by Lender under
p~rsgrapha 1 uid 2 sha11 De applied: Srst, W tate charges due under the Not~ seconti; to prep~ymcnt chsrges due under the
r1atC tlurd. to amounis payabk under P~8~Ph 2; fourth, W intatist duC and 1ast, to principal due.
4. Ctit~ I3as. Bortow?er ahall pay ali taaa. aa~dus. chugcs, Hries aed impoaitions attributabk to the
P~nperty which may attain primity ovtr thia Security Instrumeat, and kaxaoid pay~tnts or gr~und rents, if any.
Bomorver ahall pay there obli~tiana in tbe msnnu provided ia paragrapls 2, or if aot paid in that manneri Borrowec shall
P~Y tban o~ time directly to tbe peraon owed paymeat Borrowa shall promptly furniah to La~der all notices of unounts
to be paid und~er this p~r~ag~sph. If Bormwa n4akes theee pa~mqents direCtlY. Aor~r P~P~Y ~b to I.ender
~P~ ~6 ~ P~Y~~ -
Borrower shall P~PVY disclyarge any lia~ ~rhich has priority ov~r ihis_ Sxurity Instrument unless Borrower: (a)
agroes in ~vritinB to the payment of the obli~atiaa sxwed by tbe liea in s maaner acaeptabk W Lcader; (b) oontests in good
faith the lien by, or dtfends against u~forcemeQt of the liea in.legil DrOceedin8a ~qhich ia the Lender's opinion operate to
preveat tlne rnforr~nes~t of the lia? or farfafure of any part af the Property; or (cj secures from t6e holder of the iiea an
agrocmeat satisfactory to"I.mder subordiasting the lica to this Security In~trumen~ If~I~ader detartnines thst any part of
the Property is sub}ect to a lie,~ which may attain priority ovfr this $bctifity Iastn~4eFl~, Lrndrr may give Bomower a
notice identifjring the 1iea. Borroaer ahall satisfp the liea ar tafce one or mon of the actions sct forth abov~ within 10 days
of the giving of notiee.
S. H~ard ~rasce. Borrower s~?all kap the improvarirnts now eaisting or heraRer erxtod on the Property
insurod sg,~inst loss by 5n, haurds inclndod within the term "eactended ooverage" and any other hazards for which Lender
roquires insurancx. This inaurance a6all be msintained in the amounts and for the periods that Laider requires. The
insuraace carrier providiag the insursnoe shal! be chosai by Borroaer su5ject to I.endcr's appmval which shall not be '
nnressonably wiihheld.
All inaurance policies and renewals a6sll be aooeptabk w I,ender and shall include a standard mortgage clause.
I.ender shall have th~ right to hold the policies and ren~rals. If I,ender roquira, Borrow~er s6a11 promptly give to Lender
all raxipta of' paid premiums and rene~rai notices. In t6e eveat of ioss. Borrower shal! give prompt noticx to the insurance
curier and Lander. L~aN3er may make proof lasa if not made P~PUY bY Borrower.
i.rnless I.ende~ and Barrower otherwise ugn~e in writing, insurance proaeds shall be applied to restorniion or repair
of tbe Pmp~rty damagod, if the restoratio~n or repair is a;onomically fessible and Lender's security is not lesscned. If the
restoration or repair is not econom;cally fcasibk or I.eader's security would be l~ed, the insurat:ce proc~ads sha11 be
applied to the sums socurod by this Security Insw~a?ent, ahetha or not then duq with any eacess paid to Borrower. If
Bcrrower abandons the Pro~erty, or does not ans~rer within 30 dsys a noticx from Leaaer that the insurance carrier has
offered ta se±tle a claim, then Lender enaj+ colleet the usuraacx proceeds, Lender may use the proceeds to repair or restore
ihe Property or to pay sums secured by this Security L:strumrnt, whether or nM thrn due. T!i~ 30-day period will begin
when the notiae is givrn. •
Unless Lender and Borrower otherwise agra in writing~ any application of proceeds to principal sha11 not eatend or
pnstpone tbe ~ue date of the monthly payments referred to in psragraphs 1 snd 2 or chac?ge thr amount of the paymrnts. If
u.zdcr paragraph 19 the Praperty is acquired by Lender, Bortower's right to any insurance policies and proc~eds resulting
fmm damage to the F'roperty prior to the acquisition shall pass to Lender to ihe extent of the sums socurod by this Security
Instrument immediately prior to the acquisit~on.
6. Presenstioo aad Mainteaance ot PropErty; I.~6oldt. Borrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit wastt. If :his Socurity Instrument is on a leasehold,
Borrower shall r.ompty with the provisions of the le~se, snd if Borrower acquires fee title to the Property, the Ic~seholc! and
fee title sh~ll noi rr~rrgr unkss Lendrr agree.s to tbe merger in writing.
7. ~rotectlon o! ~dde~'a Rig6ts in the Property; Mortgage Insnrance. If Barrowcr fails to perform the
covenants and agreemrnts contsined in this Security Instrument, or there is a legal procecding that may significantly aifect
Lender's rights in the Property (such r:s a proceeding in bantcruptcy, probate, for condemnation or to er~fpret laws ar
reguiatians). thrn Len~er may do and pay for whatever is necessary to protect the ~alue of the Property and Lend~r s rights
in the Property. Lender's actions may include paying any sums secured by a lirn which has priotity o~~er this Security
Insirument, ap~aring in court, ~aying reasonabl~ attorn~n' fas and ~entering ~n the Property to make repairs. Although
Lrnder may ~a{ce aceion under this paragraph 7, Lender does not have to do so.
Any amounts disbursed b~ Lender under this paragraph 7 shall bccomeadditional debt of Barrower secured by this
Security Insteumrnt. Ur:less BorrowEt and Lender agree to otber terms of payment, these arnoanis shali bear interest from
the dato of disbursement at the Note rate anc! shatl be payable, with interest, upon notice from Lender to Borrov~er
requesting payma~t.
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