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HomeMy WebLinkAbout0938 . ~ , UNIFORwt CovENwtvTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal snd laterest; Prepayn~ent and I.ate Gfiarges. Borrower shall promptly pay when due the principal of and interest on ihe debt evidenced by the Note and any prepayment and late charges due under the Note. 2, Funds for Taxes and Insurance. Subject to applicable taw 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 ro one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly tcasehotd 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 caliad "eserow items." Lender may estimate the Funds due on the j basis af current data and reasonable es:imates of future cscrow items. ' The Funds shall be held in an institution the deposits or accounts ot which are insur,.~ or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to p~y the escrow items. I.end~r may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless j Lender pays Borrower interest on the Funds and applicable law permits L.ender to make such a charge. Borrower and i [,ender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicabte law ± requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender ' shali give to 8orrower, without charge, an annual accounting of the Fur.ds showing credits ar~d debits to the Funds and the ! ,purpose for which each debit to the Funds was made. 7'he Funds are pledged as additional security for the sums secured by i 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 required to pay the escrow items when due, the excess shall be, ~ at Borrower's option, either promptly repaid to Borcower or credited to Borrawer on monthly payments of Funds. If the ' amount of the Funds hetd by L.ender is not sufficient to pay the escrow items when due, Borrower shall pay to I.ender any j amount necessary to make up the deficiency in one or more payments as required by Lender. ~ Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower , any Funds held by I.ender. If under paragraph 19 the Property is sold or acquired by L.ender, Lender shatt appty, no later 1 than immediately prior to the sale of the Froperty or its acquisition by Lender, any Funds held by Lender at the :ime of application as a credit against the sums secured by this Security Instrumeni. 3. Applieatioa of Payments. Unless applicable law provides otherwise, al! payments received by Lender under i 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 tast, to principal due. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument. and leasehofd payments or ground rents, if any. Borrower sha!! pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Bonower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender aU notices of amounts ~ to be paid under this paragraph. If Borrower makes these payments direcdy, Borcower shall prompdy furnish to Lender ~ receipts evidencing the payments. ~ Bonower sha11 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 1 faith the lien by, or defends against enforcement of the lien in, legal proceedings w~hich in the Lender's opinion operate to i prevent the enforcement of the lien or forfeiture of any pan of the Property; 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 lnstrument, LeRder may give Borrower a notice identifying the lien. Borrower shal! satisfy the lien or take one or more of the actio~s set forth above within 10 days of the giving of notice. j 5. HaZard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coveragc" and any other hazards for which Lender I requires insurance. This insurance shail be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insuranee shal! be chosen by Borrou~er 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. Lender shall have the right to hald the policies and renewals. If Lender requires, Borrower shalt promptty give to Lender atl receipts of paid premiums and renewa! notices. In the event of loss, Borrower shalf give prompt Rotice to the insurance carrier and I.ender. I.ender may make proof of loss if not rnacle promptly by Borrouer_ Unless I,ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair oi 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 Lender's security would be lessened, the insurance proceeds shal! be applied to the sums secured by this Security Instrument, wheiher or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may colleci the insurance proceeds. Lender 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 periad will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any apptication of proceeds to principal shalt 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, 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 of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance ot Property; Leasebolds. Borrower shatl not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Ir~strument is on a leasehold, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee titlt to the Property, the leasehofd and fee title shall not merge unless Lender agrees ta the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance, if Borrower fails to perform ihe 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 e»force laws or regulations), then Lender may da 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 which has priority over this Security 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 Borr~wer secured by this Security 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 notice from Lender to Borrower requesting payment. eoo~ 49? ~~f 93fi ~ ~ _ ~ _ _ : ~ ...~.y ....x . , . - - ~ - . - $~~w- - - ~~.n. _ - _