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HomeMy WebLinkAbout0935 1~'hIFORM COVFtiANTS Barrower and Lender covenant and agre~as follo~•1: 1. Pay~ment of Principal and Interest; Prepayment and Late Chuges. Borrower sh~il promptly pa~~ ahen due the prinripal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the 1ote. 2. Funds for Taxes and Insuranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pa~~ 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 taxes and assessments which may ~ttain priority over this Security Instrument; (b) }~early leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearl~• mortgage i~surance premiums, if any. These items are called "escrow items." Lender may estin~ote the Funds due on the basis af current data and reasonable estimates of future escrow items. The Funds shall be held 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. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Rorrower interest on the Funds and applicable !aw permits Lender to make`such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law~ requires interest to be paid. Lender shall not be required to pay Borrower any interest or 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 additionat security for the sums secured 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 exceed the amount reqaired to pay the escrow items when due, the excess shall be, i at Borrower's option, either promptly repaid to Borcower or credited to Borrower on monthly payments of Funds. If the ' amount of the Funds held by I.ender is not sufficient to pay the escrow items when due, Borrower sha11 pay to Lender any amount necessary to make up the deficiency in one or more payments as required by I.ender. Upon payment in full of all sums secared by this Security Instrument, I,ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acqui~ed by Lend~r, 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 credit against the sums secured by this Security Instrument. 3. Applieatioa of Paymeats. 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. Gfiarges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehotd 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, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to I.ender al! notices of amounts ~ to be paid uncler this paragraph. If Borrower makes these payments directly, Bonower shall promptly furnish to Lender - receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument 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 proceetfings whieh in the Lender's opinion operate to prevent the ent'orcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an ~ agreement satisfactory to L.ender subordinating the lien to this Security Instrument. 1f Lender determines that any part of a the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Bonower shall satisfy the lien or take one or more af 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 a insured against loss ~y 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 Lender requires. T'he insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. Ati insurance palicies and renewals shaU be acceptable to Lender and shall include a standard mortgage clause. Lender shal] 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 Lender. Lender may make proof of loss if not made promptly by Bonower. 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 I,ender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due. with any excess paid to Borrower. If Borrower at~andons the Property, or dces not answer within 30 days a notice from L.ender that the insurance carrier has oPFered to settie a claim, ihen I,ender may collect the insurance proceeds. Lender may use ihe 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 tt~e notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the paymenis. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent oFthe sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrow~er shall not destroy~, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shatl comPly with the provisions of the lease, and if Borrower acquires fee tide to the Property, ihe 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 ma}~ significantl}~ affect Lender's rights in the Property (su~h as a proceeding in bankruptcy, probate, for condemnation or to enforce laws ~r regulations), then Lendec 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 any sums secured by a lien ufiich has priority over this Securit~~ Instrument, appearing in court, pavirtg reasonable aitorneys' fees and entering on the Propert}~ to make repairs. Although Lender may take action under this paragraph 7, Lender dozs not have to do so. Any amounts disbursed by Lender under this paragraph 7 shail become additional debt of $orrow~er secured b}• this Security Instrument. Unless Borrower and Lender agree to other terms of pa~~ment, these amounts shall bear interest From the date of disbursement at the Note rate and shall be pa}~able, with interest, upon notice from Lender ro Borro«•er requesting payment. 30~~ 496 FarE ;~35 _ • - = = -