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HomeMy WebLinkAbout0982 UNIFORM CovEN~tm. Borrower and L.ender covenant and agree as follows: 1. Payment ot Priucipat aod Intera~ Prepayment and I.ate CUarges. Borcower shall promptly pay when due the principal of aad interest on the debt evidenced by the Note and any prepayment and late charges due undcr the Note. - 2. Funds for T~uca and Inauraace. Subject to applicable law or to a written waiver by Lender. Borcower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full. a sum ("Funds") equal to : one-twelftb of: (a) yeerly taues and assessrnents which may attain priority over this Sccurity Instrument; (b) yearly ~ leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly ~ moctgage insurance premiutns. if any. These items are ealled "escrow ittms." Lender may estimate the Funds due on the ~ basis of current dnta 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 tederal or ~ state agency (including I,endu if Lender is such an institution). I.ender shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funtls. analyzing the account or verifying the escrow items. unless ~ Lender psys Borrower interest on the Funds and applicable taw permits Lender to make such a charge. Borrower and ~ Lender may agrtc in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law . requir~s interest to be paid~ I.ender shall not be roquirad to pay Bonower any interest or earnings on the Funds. I.ender shatl give to Bonower, without charge, an annual accounting of the Funds showing credits and dtbits to the Funds and the purpose for which each debit to the Funds was made. The Funds are plodged as additional security for the sums secured by ~ this Security Instrument. If the amount of the Funds held by Lender. togeth~r with the future monthly payments of Funds payable prior to the due dates of the escrow items, shal! excxed the amount required to pay the escrow items when duq the excess shall be, at Borrower's option, either promptly repaid to Borrower or croditod to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lxnder. Upon payment in full of all sums securod by this Security Instrument. Lender shall promptly refund to Borrower any Funds held by Lender. If under paragraph -19 the Property is sold or acquirtd by Lender, Lender shall apply, no later titan immcdiately prior to th~ sale of th~ Ptoperty or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the sums secured by this Socurity Instrument. 3. Applieadon of Paymeats. Unless applicable law provides otherwise, all payments receivtd by I.ender under paragraphs 1 and 2 shall be appliod: 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. C6arges; Liens. Borrower shall pay all taues, as.Sessments, charges, 6nes 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 oblegations in the manner provided in paragraph 2, or if not paid in that manner, Borcower shall pay them on time directly to the person owod payment. Borcower shall promptly furnish to Le~der all notices of amounts 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 securod by the Gen in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against tnforcement of the litn 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) s~cures from the holder of the lien an agroernrnt 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, I.ender may give Borrower a notice identifying the lien. Borrower shall satisfy the licn or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Haurd Insuranee. 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. 'I'his insurance shall be maintained in the amounts and for the periods that L,ender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be ! unreasonably withheld. p All insurance policies and renewals shall be acceptable to L.ender and shall include a standard mortgage clause. i I.ender shall h~ve 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, Bonower shall give promPt natice to the insurance carrier and Lender. Lender may malce proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ~ ~ of the Property damaged, if the restoration or repair is economically feasible and Lencier's security is not lessened. If the restoration or repair is not economically feasible or Lender's socurity 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 does not answer within 30 days a notice from Lender that the insurance carrier has ~ offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair ar 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. . € Uniess Lender and Bonower othervaise agree in writing, any application of proceeds to principal shall not eztend or ~ postpone the due date of the monthly payments refenod to in paragraphs 1 and 2 or change the amoant of the payments. [f ~ under paragraph 19 the Property is acquirai by I.ender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secvred by this Security Instrument immodiately prior to the acquisition. 6. Preaenation aad Maintenance of Property; I.ease6olds. Borrower shall not datroy, 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 ottht lease. and if Honower acquires fee title to the Property, the l~asehold and fce title shall not merge unless Lender agrces to the merger in writing. ~ 7. Protectioa o! Lender's Righta in tl~e Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afFect E I.ender's rights in the Property (such as a procceding in bankruptcy, probate, for condemnation or to enforce laws or ~ regulations), 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 which has priority aver this Security ~ Instrument, appcaring 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 Borrower 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 L,ender to Borrower rcquesting payment. ' ~ ~R BOOK 501 PAGE 98~ • , BOOK PAGf ~7 ~ ~ r ~ - - ~ _ ._w~__ ~ _ ~ . ~