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HomeMy WebLinkAbout0951 i 3 UN~FOttM CovEtvat~TS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Iaterest; Prepaymeni aad I.ate ChArges. Borrow~er shail promptly pay w~hen due the principal of and interest on the debt evide~ced by the Note and any prepayment and late charges due under the Note. ; 2. Fuads fo~ Taxes and Insusance. Sul;ject to applicabte law or to a written waivrr by Lender, Borrower shall pay " to Lender on the day monthiy payments are duc under the Note, unti! the Note is paid in full, a sum ("Funds") equal to ~ one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly ~ leasehold payments or graund rents on th~ Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the ~ basis of current 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 Pederal or ~ state agency (inclading L,entler 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 the Funds, analyzing the account or verifying the escrow items, untess I,ender pays 8orcower interest on the Funds and applicable la~w permits Ixnder to make such a charge. Borrower and I.ender may ag~ee in writing that interest shall be paid on the Funds. Unless an agreement is made or a~plicable law , requires interest to be paid, Lender shali not be required to pay Borrower any interest or earnings on the Funds. Lender ~ ~ sha11 give to Borrower, without chargr, an annual aecounting 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 additianal security for the sums secured by i tt?is Security lnstrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funcis pa~able prior to the due dates of the escrow items, shail exceed the amount required to pay the escrow items when due, the excess shall be, ' at Borcower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the ' amount of the Funds held by L,ender is not sufficient to pay the escrow items when due, Borrower shatl pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of a1l sums secured by this Security Instrument, Lender shail promptiy refund to Borrower any Funds held by Lender. If under paragraph 19 the Prvperty is sold or acquired by Lender, Lender shaU 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. Applieation of Paymeats. Unless appticable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the IYote; 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. Chsrges; Liens. Borrower shali 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, Borrower shall ~ pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all noUces of amounts ~ to be paid under this paragraph. [f Borrower makes these payments directly, Borrower shall promptly i'urnish to Lender receipts evidencing the payments. Borcower shal) promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) ~ i agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lefider, (b) contests in goocl 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 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, 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 Insurance. Borrower sl~all keep t6e improvements now existing or hereafter erected on the Property ?nsured against loss by fire, hazards included within the term "extended caverage" 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 Borrower subject to Lender's approval which shall nut be ~ unreasonably withhe~d. All insurance policies and renewals ~hall be acceptable to Lender and shalt include a standard mortgage clause. { I.ender shal! 6ave the right to hotd the policies and renewals. If Lender requires, Borrower shall promptly give to Lender ~ all receipts of paid premiums and renewa! notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made promptty by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair af the P~operty damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economicatiy feasible or Lender's security would be lesseneci, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, w~ith any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance cacrier has otTered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the prc~ceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period witl begin ~ ' when the notice is given. ~ - Unless Lender 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 l9 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resultin~ 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 Mnintenance of Property; Leaseholds. Borraw~er 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, Borrower shall comply with the provisions of the lease, and if Borroyver acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to pertorm the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afTect Lender's rights in the Property (svch as a proceeding ~n bankruptcy, probate, for condemnation or to enforce law~s or regulatians), then Lender may do 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 w~hich has priority over this Security Instrument, appearing in court, paying reasanable attorneys' fees and entering on the Property to make repairs. Atthough I.ender may take action under this paragraph 7, Lender dces not have to do so. Any amounts disbursed by Lender under ihis paragraph 7 shail 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, w~ith interest, upon notice from Lender to Borrower ` requesting payment. oox501 pa~~ 949 - - ~ _ - - _ - -