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HomeMy WebLinkAbout0959 • UN~FOftM Cov~NwNTS. Borrower and I.ender covenant and agree as tollows: 1. Payment ot Principal snd Ynterest; Prepayment aad I.ate Charges. Borrow~er shxli promptly pay when due the principal of and int~rest on the debt evidenced by the Note and any prepayment and late charges due u~der the Note. 2. Fuads tor Tauces and Insutanc~e, Subjoct to applicable !aw 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) yearly ta~ces and asscssments 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 moi-tgage insurance premiums. if any. These items are called "escrow items." I.ender may estimate the Funds due on the basis ofcunent 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 federa! or state agency (inciuding I.ender if Lender is such an institution). Lender shall apply the !Funds to pay the escrow items. Ler,der may nc?t charge for holding and applying the Funds, analyzing tht account or verifying the escrow items, unless L.ender pays 8orrower interest on the Funds and applicabte law permits L,endtr to mak~ such a chargc. Borcower and L.ender may agree in writing that interest shatl be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, I.ender sha11 not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrowtr, 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 Instrament. If the amount of the Funds held by Lender, tog~ther with the future monthl~ 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 Bonower's option, either promptly repaid to Borrower or cralited to Bonower on monthly psyments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower chal! pay to Lender any amount necessary to make up the deficiency in one or more payments as required by ixnder. Upon payment in ful! of a11 sums secured by ihis Socurity Instrument, Lender shall promptly refund to Borrower any Fands held by I.ender. If under paragraph 19 the Property is sold or acquired by I.ender, 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. Applic~tion of Payments. Unless applicable law provides otherwise, all payments received by I.ender under paragraphs 1 and 2 shall be applied: first. ta 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. Charges; Liens. Borcower shall pay a11 taaes. 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 shali pay them on time directly to the pecson owed payment. Borrower shal! promptly furnish to Lender all notices of amounts to be paid under this paragraph. If 8onovver makes these payments directly, Borrower shalt 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 Iien by, or defends against enforcement of the lien in. legal proceedings which iR the Ixndtr's opinion operate to prevent the enforcerreent of the lien or forfeiture of any part of the Properiy; or (c) secures from the holder of the lien an agreement 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 Borrower 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 Iesurance. Bonower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendod coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that I.ender requires. The insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shali not be unreasonably withheld. All insurance policies and rertewals shall be acceptable to Lender and shall include a standard mortgage clause. I,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 Lender. L.ender 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 cconom~cally feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security woutd be lessened, the insurance proceeds shali be applied to the sums secured by this Security Instrument, whether or not then due, with any eacess paid to Bonower. If ~orrower abandons the Property, or does not answer within 30 days a notice from I.ender that the insurance carrier has offered to settle a ciaim, then I.ender may collect the insurance procceds. I,ender may use the praceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then dae. The 30-day period will begin when the notice is given. Untess Lender and Borrower otherwise agrce in wciting, 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 payments. If under paragraph 19 the Property is acquired by Lender, Bonower's right to any insurance poticies and proceeds resulting from damage to the Property prior to the acquisition sha11 pass to Lender to the extent of the sums secured by ihis Security Instrument immediately prior to the acquisition. 6. Preservation aad Maintenance of Property; I,eaaeholds. Borrower 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, Bonower shall comply with the provisions of the lease, and if Borrower acquires fee titie to the Property, the ieasehatd and fee title shall not merge untess I,ender agrees to the merger in writing. 7. Protection of I.ender'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 atfcct 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 L.ender's rights in the Property. Lender's actions may include paying any sums secured by a licn which has priority over this Security Instrument, appearing in court, paying rrasonable 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 disburxd by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Sxurity Instrument. Unless Bonower and Lender agrce 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 L.ender to Borrower requesting payment. BOOIt ~c7~ FAf.f i~~~ . . ' , - , ;,~,Y . _ ~n:J. e: