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HomeMy WebLinkAbout0991 UNIFORM CovENANTS. Borrower and Ltnder covenant and agrce as follows: 1. Payanent o! Principal aad Interest; Prepiymeat and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Ftinds for Tuts and Insuranee. Subject to applicable law or to a written waiver by Lender, Borrower shail 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-twelfth of: (a) yearly taues 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) ycarly mortgage insurance premiums, if any. These 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 shall be htld in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. I.ender may not charge for holding and applying the Funds. analyzing the account or veritying the escrow items, unless Lender pays Borcower interest on the Funds and applicable law permits I.ender to make such a charge. Borrowcr and Lendor may agrx in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires intertst to be paid. Lender shaU not be roquirod to pay Borrozver any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fvnds showing credits and debits to the Funds and the purpose for which cach debit to the Funds was mad~. The Funds are pledged as additional security for the sums seeured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall eaceed 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 Bonower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shali pay to Lender any amount necessary to make up the deficiency in one or more payments as rcquirod by Lender. 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 acquired by Lendtr, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a crodit against the sums secured by this Security Instrument. 3. Application of Payerenb. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, 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. C6arges; Lieas. Bonower 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 ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Bonower shaU I pay them on time directiy to the p~rson owed payment. Borrower shall promptly furnish to Ler+der alt notices of amounts ~ to be paid under this paragraph. If Borrower makes these payments directlS. Borrower shall promptly furnish to Lender receipts evidencing the payments. Bonower shall promptly discharge any lien which has priority over this Security lnstrument 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 which in the Lendee'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 agreement satisfactory to Ixnder subordinating the lien to this Security Instrument. If Lender determine.s 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 lien. Borrower shall satisfy the lien or take one or more of the 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 ins~ured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which I,ender requires insurance. This insurance shall be maintainal in the amounts and for ihe periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not be unreasonably withhetd. All insurance poficies 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. If Lender requires, Borrower shall promptly give to Lender ' all receipts of paid prcmiums and renewal notices. In the event of loss, Borcower sha11 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 proceeds shall be applied to restoration or repair ~ of the Property 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 L,ender's sec:urity would be lessened, the insurance proceeds shall be ~ applied to the sums secured by this Security Instrument, whether or not then due, with any eacess 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 insurance proceeds. L,ender 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 Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referced 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 from damage to the Property prior 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. Preservatioa aad Maintenance of Property; I,easeholds. Borrower shall not destroy, damage or substantially change the Property, altow the Property to deteriorate or commit waste. If this Security Insirument is on a leasehold, Bonower 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 unless Lender agrees to the merger in writing. ~ 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the ~ covenants and agreements contained in this Seturity Instrument, or there is a legal proceeding that may significantly affect k 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 an~ sums secured by a lien which has priority over this Seeurity ~ 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 not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date oi disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ' requesting payment. aooK PacE y~~ . _ ; _ - - _ - . _.~.x - . - ~.w_.._