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HomeMy WebLinkAbout0999 UNIFORM COVENANTS. Bonower and Lender covenant and agrQe a~,~llows: 1. Paywent of Principal and Iaterest; Prepaymeat and Late C6arges. Borrov~'ePshall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepsyment and late charget due under the Note. 2. Fuads for Taxes aad Insurance. Subject to applicable iaw 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-twelfth of: (a) ycarly 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 art called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. ' The Funds shail be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if I.ender is such an institution). L.ender shall apply the Funds to pay the es~:row items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicabte law permits Lender to make such a charge. Borrower and Lender may agra in writing that interest shall be paid on the Funds. Unless an agrament is made or applicable law requires interest to be paid, Lender shall not be required to pay Bonower 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 as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by I.ender, together with the future monthly payments of Funds payable prior to the due dates of the escruw items, shall excecd the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Boreower or credited to Borrower on monthly payments of Funds. lf the amount of the Funds hetd by Lender is not sufficient to pay the escrow items whe~i 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 a11 sums secured by this Socurity Instrument, I,ender shaU promptly refund to Borrow•er any Funds held by L,ender. If under paragraph 19 the Property is sold or acquired by L,ender, I.ender shall apply, no later than immodiately prior to the sale of the Property or its acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable Iaw 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 paragr~ph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shall pay all ta~ces, asse.SSments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borcower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall prorrptly 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 shalt promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payrnent 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 agreement satisfactory to Lender subordinating the lien to this Sec.urity Instrument. If Lxnder determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, L.ender 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 exis:' g 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 insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender'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. L,ender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and I.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 E of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the j restoration or repair is not economically feasible or I.ender's security would be lessened, the insurance proceeds shall be ~ applied to the sums secured by this Scx,urity Instrument, whether or not then due, with any eacess paid to Borrower. If ~ Bonower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has $ ~ ofi'ered to 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 secured by this Security Instrument, whether or not then due. ?he 30-day period wili begin ! ~ when the notice is given. ; F Unless Lender and Bonower otherwise agree in writing, any application of prQCeeds to principal shall not extend or ! r ; postpone the due date of the monthly payments refened 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 proceecls 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 acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially r change the Property, allow 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 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 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 ~•alue of the Property and Lender's rights in the Property. Lendei s actions may include paying any sums secured by a lien a~hich has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fecs and entering on the Praperty to make repairs. Although Lender may take action un~er this paragraph 7, I,ender docs not have to do so. Any amounts disbursed by L.ender under this paragraph 7 shall become additional debt af Borrower secured by this Security Instrument. Unless Borrower and I_ender 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 notice from Lender to Borrower requesting payment. ° ~ 493 ~ ~97 ?~~~R ~ ~ - - - - . _ . . - _ . y ~ a - - ~ - _ ~ . ~ ~ ~ ~ ~ ~~.~:.~'`e4':=~* - ~ - _ ~~~Y~~s~x"~'a~