HomeMy WebLinkAbout0998 UIVIFORM COYENANI'S. Borrower and Lender covenant and be is fq1bW~: '
1. Payment of Princlpal iwd Interes~ Prepsyment ~ed LteaC~rga. Borrowei shaTl promptly pay when due
the principal of and interest on the dtbt evidencod by the Note and any prepaym~nt and Iate charges due under the Note.
2, ~nds ~or Taxes and Ias~rwa. Subjoct to applicabk law or to a written waiver by Lender~ Borrower shall pay
to Lender on the day monthly payments are due undar the Note, until the Noie is paid in full, a sum ("Funds") equal to
ono-twelfth of (a) yearly taxts and assessments which may attain priority over this Security Instrument; (b) yearly
Itasehold p~symtnts or gmund rents on the Properiy, if any; (c) yeatly hazard insurance premiums; and (d) yearly ;
mottgage insurance premiums, if any. These items are callod "escrow items." Ltnder may estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be he[d in an institution the depaaits or aocounts of which are insurod or guaranteed by a federal or
state agency (including Laidu if I.ender is such an institution). Lender shall apply the Funds to pay the escrow items.
I.ender may not charge for holding and applying tha Funds, analyzing the acaount or verifying the escrow items. unless
Lender pays Bocrower int~rest on ttu Funds and applicabk law permits Lender to make such a charge. Borrower and
I,ender may agrce in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
, requires interest to be paid~ I.onder shatl not be rcquired to pay Borrower any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of tht Funds showing credi~s and debits to the Funds and the
purpose for which each debit to the Funds was mada The Funds are pfedged as additional security for the sums secured by ~
this Security Instrument. `
If the amount of the Funds held by Lender. together with the future monthly payrnents of Funrls payable prior to ~
the due dates of the escrow items, shall exceed the amount roquired to pay the escrow items when due, the excess shaU be,
at Borrower's option, either promptly repaid to Borrower or creditod to Bonower on monthly payments of Funds. If the
amoant of the Funds held by Lender is not su6icient to pay the escrow items when due, Bonower shall pay to I.ender any
amount nccessary to make up the deficicncy in one or more payments as requircd by Lender.
Upon payment in full of all sums securod 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 acquired by Lender, Lender shall apply, no later
than immediat~ly prior to the sale of the Property or its acquisition by I.ender, any Funds held by Lender at the time of
aPplicateon as a crodit against the sums secured by this Security Instrument. ~
3. AppUcation of Payments. Unless applicable law provides otherwise. all payments received by I.ender under ~
paragraphs 1 and 2 shall be applied: first. to late charges due ~u?der t~e Note; saond, to prepayment charges due under the ; I
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and lasi, to principal due. `
4. C7~arges; Liens. &srrower 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 shalt ; ~
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender ap notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender ~
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receipts evidencing the payments. ;
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a) ' j
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 Ixnde~ s opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Fmperty; 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 oi the actions set forth above within 10 days
of the giving of notice.
5. H~tzard Iasuraace. Bottower shall keep the improvements now existing vr hereafter erected on the Property ~
insured against ioss by fire, haiards included within the term "eatended 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. The
insurance carrier providing the insurance shall be chosen by Bonower subject to I.ender's approval which shail not be
unreasonably withheld. '
All insurance policies and renewals shall be acceptable to I.ender and shall include a standard mortgage clause.
I.ender shall have the right to hold the policies and renewals. If I,ender requires, Borrower shall promptly give to Lender
all receipts of paid premiums and reaewal notices. In the event of loss, Bonower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Bonower.
Uniess I.ender and Borrower othervvise agree in writing, insurance proceeds shall be apptied to restoration or repair
of the Propeny damaged, if ihe restoration or repair is economicalty feasibte and Lender's secvrity is not lessened. IF the
restoration or repair is not economicapy feasible or Lender's security would be lessened, the insurance proceeds shall be
apptied to the sums secured by this Security Instcument, whether or not then due, with any ezcess paid to Borrower. If
Borrower abandons the Property, or does not answer w+ithin 30 days a notice from Lender that the insurance carcier has
offered to settle a claim, then Lender may collect 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. Tt~e 30-day period will begin
~ when the notice is given. '
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Unless Lender and Borcower otherwise agree in writing, any application of proceeds to principai shall not extend or ~
postpone the due clate of the rnonthly 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 po(icies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Presenation and Mf~intenance of Property; I.easebolds. Borrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or cammit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the !ease, 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 ot Lender's Rig6ts in t6e Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agreements cuntained in this Security Instrument, or there is a legal proceeding thac 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 value of the Property and Lender's rights
in the Property. I,ender's actions may include paying any sums secured by a tien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' tees and entering on the Property to make repairs. Although
Lender may take action under this paragraph 7, Lender dces noi 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 L.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 trom Lender to Borrower
requesting payment.
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