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HomeMy WebLinkAbout0938 ~ UNtFORtrt CovEN~NTS. Borrower and Lxnder covenant and agree as follows: ; 1. Payment ot Priaclpal aed Intereag Pe~p~ya~sot aAd Lte Cbir~es. Borrower shall promptly pay when due the principal of and interat on the d~bt evid~nced by the Nott and any prepayment and late charges due under the Note. 2. I~nds tor Tua and Iasuraate. ' Subjoct to applicable law or to a writtrn waiver by L.ender. 8orrower shall pay ' to Lender on the day monthly paymtnts are due under the Note, until the IVote is paid in full, a sum ("Funds") equat to ' ono-twelfth of: (a) yearly taxes and assessments which rrwy attain priority over this Security Instrumrnt; (b) yearly j teasehotd payments or ground rcnts on the Properiy~ if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if sny. 'fhese items an callad "escrow items." l.ender may estimate the Funds due on the basis of current data and rrasonable estimates of futurc acrow items. The Funds shaU be held in an institution the deposits or accounts of which are insur..~ or guarantced by a federal or state agrncy (including L.ender if Lrnder is such an institution). Lendec shall apply the Funds to psy the escrow it~ms. Lender may not charge for hotding and applying the Funds, analyzing the axount or verifying the escrow items, unless Lender pays Borrower interat on the Funds and applicable law permits Lender to make such a charge. Borrower and I.endtr may agrcx in writing that interest shall be paid on the Funds. Unless an agrament is made or applicable law { . requira interest to be paid, I.ender shall not be requirod to pay 8ottower any interest or earnings on the Funds. Lender ' shali give to Borrower. without charge, an annual accounting of the Fur.ds showing credits and debits to tht Funds and the ~ purpose for which qch debit to the Funds was madt. T'he Funds are plodgod as addetional security for the sums secured by ~ this Socurity 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 excxed the amount required to pay the escrow items when due, the excess shal! be, at 8orrower's option. either promptly npaid to Borcower or creditai to Borrower on monthly payments of Funds. tf the amount of the Funds held by Lender is not suflicient to pay the escrow items when due, Borrower shall pay to Lcnder any amount necessary to make up the deficiency in one or mort paymenis as required by L.ender. Upon payment in full of all sums securod by this Security Instrument, I.ender shap promptly refund to Bottower . any Funds held by Lend~r. If under paragraph 19 the Property is sold or acquired by I.ender. I.ender shall apply, no later than immediately prior to the sale of tht Property or its acquisition ~y Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. ApplicaNon of Payments. Unless applicable law provides otherwise, aU payments received by Lx.nder 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. Charges; I.leaa. 8onower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority o~er this Security Instrument. and leasehold payments or ground renis, if any. Borrower shatt 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 Lender all notices of amounts to be paid under this paragraph. If Horrower makes these payments directiy. Borrower shall promptly furnish to Lender receipts evidencing the payments. - Borrower shall promptiy discharge any lien which has priority over this Security Instrument unless Bonower: (a) agrees in writing to the paymeni of the obtigation 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 Lender's opinion operate to ~ prevent the enforcement of the lien or forfeiture of any part of the Propeny; 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 shali satisfy the iien or take one or more otthe actions set forth above within 10 days of the giving of notice. S. 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 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 shati be chosen by Bocrawer subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals sha!! 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 sha11 give prompt notice to thP insurance carrier and Lender. L,ender may make proof of toss if not made promptly by Borrowcr. Untess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the resioration or repair is economically feasible and L.ender's security is not lessened. If the restoration or repair is not economicalfy 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 the Property, or dces not answer within 30 days a notice from L.ender that the insurance carrier has ofi'ered to settle a claim, thtn Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by ihis Security lnstrument, whether or not then due. The 30-day period will begin when the notice is giv~n. . Unless L.ender 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 I and 2 or change the amount of the payments. If under paragraph [9 the Property is acquired by Lender, Borrower's right to any iesurance policies and proceeds resulting from damage to the Property pr~or to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6• PTCSC~Y~t1011 ~ Mi111~d10CC Of PTO~[ty; I.easeholds. Boirower shall not destroy, damage or substantially change tht Property, alfow the Property to deteriorate or commit waste. If this Security Instrument is on a leaxhotd, Borrower shall comply with the provisions of the lease, and if Borrower acquira fee title to the Property, the leasehold and fee title shall not mtrge unless I,ender agreGS to the merger in writing. 7. Protection of Leader's Rig6ts in the Property; Mortggge Insurance. If Borrower fails to pcrform the covenants and agraments contained in this Security Instrument, or there is a legai proceeding that may significantly affect Lender's rights in th~ Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce taws or regutations), then I,ender may do and pay for whatever is necasary to protxt the vaiue of the Property and I.ender's rights in the Praperty. Lrnder's actions may include payittg any sutas secured by a lien which has ¢riority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property ta make repairs. Although Lender may take action under this paragraph 7~ Lender doa not have to do so. Any amounts disbursed by I,ender undar this paragraph 7 shall become additionaf debt of Borrawer secured by this Security Instrument. Unless Borrower and Lender agree to other terms of paymcnt, these amounts shall bear interest from tht date of disbursement at the IVot~ rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. gooK501 PA~E 936 ~ ~