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Home My WebLink About0935 ? : UNIFORM C~OVENANTS. Born~we~ and L.ende~ covenant and agree as follows: 1. Paymeat o[[4~acipai utd [nterest; Preprtymeat aatt~Late~t'ges. Borro~vr~ shal! promptly pay when dut the principal ~ of a~ inttrest on the debt evid~pc~d by the Note ard any pr~cpay t nd fate ch~rges duc under the Note. ~ 2. F~ads tor Taxes aad lnwr~nce. Subject to applicable law or to a written waiver by Lender, Borrower shali pay to Lendr.r j on the day monthly paymtnts arc due undar the Note, until the Note is paid in full. a sum ("F.~~Fqual to one-twelfth of: (a) ~ yearly taxts and assessments which may attain prioriry over thi~ Securiry lnstrument; ~b) yearly _ d payments ar ground rents on the Propetty. if any; (e) yearly hazard insurance premiums; and (d) yearly mortgage insurance pre:miums, if any. These items ~ i are called "escrow items." L.ender may estimete the Funds due on the basis of current data and reasonable estimates of futurc escrow items. ~ The Funds shall be held in an instiwtion tht d~posits or accounts of which are insured or guaraateed by a federal or uate agency ~ f including Lender if L.ender is such an institution). I.ender shall apply the Funds to pay the escrov~ items. l.ender may not charge ~ for hoiding and applying the Funds, analyiing the account or verifying the escrow items, unless Lender pays Sorrower interest on the Funds and applicable law permits Ixnder to make such a charge. Borrower and l.ender may agrce in writing that interest shall ~ be paid on the Funds. Unless an agreement is made or applicable law requires intercst to be paid, L.ender shall not be rcquired to ~ pay Borrower any interest ot earnings on the Funds. Lender 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 as additional security for the sums secured by this Security Instrument. , If the amuunt of the Funds held by [.ender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shaii excced the amouRt required to pay the escrow items when due, the ezcess shall be, at Borrower's option, either promptly repaid to 8orrower or credited to Bonower on monthly payments of Funds. If the amount of the Funds held by [.ender is ~t sufficient to pay the escrow items when due. Borrower s6a11 pay to l,ender any amount necessary to make up the deficiency ~ in one or more payments as roquired by L.ender. Upon payment in full of all sums secured by this Security [nstrument, L,ender shall promptly refund to Borrower any Funds held by [.ender. If under paragcaph 19 the Property is sold or acquired by L.ende~, [.ender shall apply, no tater than immediateiy 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. Appliaetion of Payments. Untess applicabte law provides otherwise, a!1 payments received by I.ender under paragraphs ' t and 2 shouid be apptied: first to amounts payable ur~der paragraph 2: second to interest; and last ro principal. 4. Charges; Gleas. Borrower sha11 p~ay all taxes, assessments, charges, fines and impositions att~ibutable to the Pmperty which may attain priority over this Security Instniment, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not pa:d in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish ro L.ender all nc~tices of amounts to be paid under thi~ paragraph. [f Borcower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shalt promptly discharge any lien which has priority over this $ecu~ity Instrument unless Borrower: agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in goad faith the lien , by, or defends against enfarcement af the lien in, lega~ proceedings which in the Lender's opin'son operate to prevent the enforcement of the tien or forfeiture of any part of the Praperty; or {c) secures from the holcier of the lien an agreement satisfactory to Lender +ubordinating the lien to this Security lnstruinent. If Leoder determines that any part.of ihe, Property is subject to a lien which may attain priority over this Security Instrumeni, Lender may give Borrower a notice identifying the lien. Sorrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. S. Hazaxd 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 other hazards for which Lender requires insurarice. This insurance shatl be maintained in the amounts and for the periods that L.ender requires. The insurance carrier providing the insurance ,tw(! be chosen by Borr+ower subject to i.ender's approval which shall not be unreasonably withhtld. All insurance policies and renewals shall be acceptable to Lerxfer and shall include a standard mor~gage cla~se. L.ender shall have the right to hold the policies ar~d renewals. lf Lender requires. Borrower shatl promptly give to L,er~der all receipts cf paid premiums and renewa! notices. In tfie event of loss, Borrower shall give prompt notice to the insurance carrier and [.ender. 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- i peny damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair ' is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the surr~s secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. !f 8orrower abandons the Property, or dces not answer within 3ll days a notice from Lender that the insurance carrier has offered to settle a claim. tben l.ender may collect the insurance proceeds. Lender may t+se the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whetber 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 sha{1 not extend or postpone the due d~te of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If under paregraph 19 th~ Propeny is acquired by I.ender, Borrower's right to any insurance policies and proceeds resulting from ~iamage to the Property prior to the acquisition shall pass to Letsder to the extent of the sums secured by this Security Instrument irnmediately prior to the acquisition. 6. Preservation and Maintertance of Property; Leasettolds. Borrower shall not destroy, damage or subscantially change the Propeny, allow the Property to deteriorate or commit waste. !f this Security Instrument is on a leasehold. Borrower shall comply with the provisions of the !ease, and if Borrower acyuires fee titl~ 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; 114ortgage Insurance. [i 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 Propeny (such as a proceeding in bankruptcy, probate, for contlemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to Protect the value of the Properly 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, Lender does nat have to do so. ~ ~~~K4~~ P~~E • • . • i J i ~ ' t~Cl+?K 40~ FGGE i.~~U 4 , ' . . , . ~ ~ ~ :