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HomeMy WebLinkAbout0931 LINIFORM CovENANTS. Borrower and Lender covenant and agreo ps follows: . l. Paymeat of Principa! and Interest; Prepayment and I.ate Charges. Borrawer shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prcpayment and late charges due under the Note. 2. Funds tor Taxes'nd Iasurance. Subjxt to applicabie law or to a written waiver by Lender, Borrower shall pay~ to Lender on the day monthly payments are due under the Note. until the Note is paid in full, a sum ("Funds") equal to one-twelRh of (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." l.ender may estin~ate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the depc?sits or accounts of which are insured or guaranteed by a federal or state agency (including Lender it Ltnder is such an institution). Ixnder 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 escraw items, unless Lender pays 8onower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agrce in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable taw requires interest to be paid, Lender shall not be requirod to pay Bonower any interest or earnings on the Funds. [.ender shall give to Borrower, without charge, an annual accounting of th~ 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 stcurity for the sums secured by ' this Security Instrument. If the amount of the Funds held by Lender, together with the futun monthly payments of Funds payable prior to the due dates of the escrow items, shall eacced the amount roquired to pay the escrow items when due, the excess shall be, at Borrower's optian. either promptly repaid to Borrower or credited to Bonower on monthly payments of Funds. If the amount of the Funds held by Lender is not sutf'icient to pay the escrow items when du~, Borrower shall pay to Lender any amount necessary to make up the de6ciency in one or more payments as roquired by I.ender. Upon payment in full of all sums secured by this Security Instrument, L.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquire~i by Lender~ Lender shall apply, no later than immodiately prior to the sale of the Property or its acquisition by Lender, any Funds held by Ixnder at the time of F application as a credit against the sums secured by this Socurity Instrument. 3. Applieatton of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shaU be appliod: 6rst, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. C6uges; Liens. Borrower shall pay all taxes, ass~sments, charges, Hnes and impositions attributable to the Property which may attain priority over this Security Instrument, and l~asehold payments or ground rents, if any. Borrower shall pay ihese obtigations in the manner providod in paragraph 2. or if not paid in that manner, Borcower shall pay them on time directly to the person owod 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 I.ender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) ; agrces 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 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 the holder of the lien an agrcement 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, Lender may give Bonower a notice identifying the 1ien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. . S. H~rd Iosurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended coverage" and any other hazards for which I.ender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The ' insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be - li unreasonably withheld. ! All insurance policies and renewals shall be acceptable to Lender and shal! include a standard mortgage clause. f Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to L,ender E aU receipts of paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice to the insurance _ carrier and L.ender. Lender may make proof of loss if not made promptly by Borrower. : ~ ' Unless L.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair , of the Property damaged, if the restoration or repair is economically feasible and I,ender's security is not lessened. If the ~ restoration or repair is not economically feasible or Lender's security would be tessened, the insurance proceeds shall be applied to the sums secured by this Security Instrumeht, whether or not then due, with any excess p~id to Borrower. If ~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has o~'ered io settle a claim, then Lender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore ~ the Property or to pay sums secur~d by this Security Instrument, whether or not then due. The 30-day period will begin ~ ~ when the notice is given. ~ Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not eztend 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 I.ender, Borrower's right to any insurance policies and proceeds resulting F from damage to the Property pri~r to the acquisition shall pass to L.ender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. _ 6. Preservation and Msintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially ~ ~ change the Property, alfow the Property to deteriorate 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 shal! not merge unless L,ender agrees to the merger in writing. t 7. Protection ot Lender's Rights in the Property; Mortgage Insurance. If 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 L,ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. L,ender's actions may include paying any sums secured by a lien which has priority over this Security ~ Instrument, appearing in court, paying reasonable attorneys' fets and entering on the Propeny to make repairs. Although ~ I,ender may take action under this paragraph 7, L,ender dces not have to do so. ~ Any amounts disbursed by Lender under ihis paragraph 7 shall become additional debt of Borrow•er secured hy this ~ 4 Securiry Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from ~ the date of disbursement at the Note rate and shall be payable, with interest, upon natice from Lender to Borrow~er € requesting payment. € , ~ BO~K ~~7V PAGE ~~5 ~ - - _ - .