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HomeMy WebLinkAbout0978 . . UNlFORN CO\~GNANTS. Borrower and Lender covenant and agree as fotlows: 1. Payme~t ot Principa! and Iaterest; Prepayment and I.at~ Charges. Borrow~er shall promptly pay H~hen due ; the principal uf and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. ~ 2. Funds for Taxes and Insurnnce. Subject to applicable law ar to a written waiver by Lender, Horrow~er shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equat to one-twelith of: (a) yearly taxes and assessments which may attain priorify over this Security Instrument; (b) yearly leasehold paymeuts or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." I.ender may estimate the Funds due on the basis oPcurrent data and reasonable estimates of future escrow items. The Funds shall be held in an in$titution 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 appiy the Funds to pay the escrow items. Lender may not charge for holding and appiying the Funds, analyzing the account or verifying ihe escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits l.ender 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 Fur.ds 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 securi[y 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 ~sayable prior to the due dates of the escrow items, sha11 exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly rep~id to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by [.ender is not suflicient to pay the escrow items when due, Bonower shal) pay to Lender any amount necessary to make up the deficiency in one or more payments as required by L.ender. Upon payment in full of all sums secured by this Security Instrument, i.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Propert~~ is sold or acquired by L,ender, I.ender 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. Apptieation 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; foucth, to interest due; and last, 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 leasehotd payments or ground rents, if any. Borrower shali pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall pay them on time dire~tly to the person owed payment. Borrower shall promptly furnish to L.ender all notices of amounts t to be paid under this paragraph. If Borrower makes these payments directly, Borrower 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 faiih the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcerr~ent of the lien or forfeiture of any part o6 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 Instrument, Lxnder may give Borrower a notice identifying the lien. Borrower shall satisfy t~e lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shail keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards includ~d within the term "eztended coverage" and any other hazards for which Lender requires insurance. This insuraRCe shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval whieh 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 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 shalt give prompt notice to the insurance . carrier and Lender. Lender may make proof of loss if not made prompdy by 8orrower. Unless Lender and Borrower otherwise agree in writi~g, insurance proceeds shall be applied to restoration or repair ~ , of the Property damaged, if the restoration a: 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 shall be ; applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If ; Borrower abandons t6e Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then [.ender 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 period will begin when the notice is given. ' Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principaf shall not extend or ~ postpone the due date ot`the monthly payments referred to in paragraphs 1 and 2 ~r change th'e amount of the payments. If 1 under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting ~ !'rom damage to the Property prior to the acquisition shall pass to Lender to the extent af the sums secured by this Security Instrument immediately prior to the acquisition. ' 6. Preservation and hiaintenance of Property; Leaseholds. Borrower shall not destroy, ~iamage or substantially change the Property, allow the Property to deteriorate or commit waste. tf this Security instrument is on a leasehotd, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Praperty, the )easehold and fee title shall not merge anless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; 1lortgage Insurance. If Borrower fails to perform the covenants znd 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 praceeding in bankruptcy, probate, for condemnation or to enforce laws ar regutations), then Lender may do and pay for u-hatever is necessary to protect the value of the Property and Lender's rights ir~ the Property. Lender's actions may include paying any sums secured by a lien w•hich 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 additionai debt of Borrow~er secured by this Security Instrument. Uniess Borrou~er and Lender agree to other terms of payment. these amounts shall bear interest from the date of disbursement at ihe Note rate and tihall be pay~able, ~•ith interest, upon notice from Lender to Borrower requesting payment. . aoox 499 97~ ~ ~ _ . _ _ _ . _ _ _ _ ~