HomeMy WebLinkAbout0941 Urvt~vRt?t CovENANrs. Borrower and Lender covenant and ~gree as f~llows:
Ps~ymeat of Principal aad Interest; Prepaymeat sad L.xte Cliarges. Borrower shall promptiy pay when due
the principal of and interest un the debt evidenced by the Note and any prepaymeot and late charges due under the Note.
2, Funds for Taxes i?nd Insurance. Subject to applic$bfe law or to a written waiver by Lender, Borrawer shall pay
to Lender on the day monthly payments are due under the Note, until the Note is paid in fuil, a sum ("Funds"j equal to i
one-twelRh of: (a) yearly taxes and assessments which may attain priarity over this Security lnstrument; (b) yearly 6
lessehold payments or ground rents on the Propeny, if any; (c) yearly hazard insurance premiums; and (d) yearly ;
mortgage insurance premiums, iP any. These items are called "escrow items." I.ender may estimate the Funds due on the ~
basis oPcurrent data and reasonable estimates of future escrow items. #
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including L.ender if I.ender is such an institution). Lender shall apply the Fureds to pay the escrow items.
Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless ~
I.ender p$ys Borrower interest on the Funds and applicable law permits I.ender to make such a charge. [3orrower and
Lender may agr~e in writing that interest shall be paid on tht Funds. Untess an agreement is made or applicable law ,
requires interest to be paid, Lender shali not be required to pay Borrower any inte~est or earnings on the Funds. Lender
` shall give to Borrower, withoui charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purposg for which eacb debit to the Funds was made. "The Funds are pledged as additional security for the sums secured by :
this Se~urity Instrument. ,
If the amount of the Funds held by Lrnder, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall exceed the amaunt required to pay the escrow items when due, the excess shall be, '
at Borrower's option, either promptly repaid to Bc~nower or credited to Borrower on monthty payments of fiunds. If the
amo~nt of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender a~y ~
amount necessary to make up the deficiency in one or more payments as required by Lender. r
Upon payment in full of all sums secured b~ this Security Instrument, Lender shall promptly refund to Borrower j
any Funds held by Lender. If under paragraph l9 the Property is sotd or acquired by L.ender, Lender shal! apply, no jater
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, Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under ;
paragraphs 1 and 2 shall be apPlied: fi!st, to late charges due under the Note; second, to prepayment charges due under the I
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4, Charges; Liens. Horrower shall pay al! taaes, assessmer.ts, charges, fines and impositians attributable to the ~
Property which may attain priority over this Security Instrument, antl leasehoid payments or ground rents, if any. I
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in ihat manner. Borrower shall ~
pay them on time directly to the person owed payment. Borrower shali promptly furnish to Lender all notices of amounts
to be paid under this ~aragraph. tf Borrower makes these payments directly, Borrower shal) promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borro~•er: (al
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 Lender's opinion aperate to ~
prevent the enforcement of tt~e lien or forfeiture of any part of the Property; or (c) secures from Ehe holder of the lien an ,
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
ihe Property is subject to a lien which may aitain priority over this SecuritS~ Instrument, Lender may give Borrower a ~j
notice identifying the lien. Bc~rrower shall satisfy the lien or take one or more ~f the actions set forth above within 10 days ~
' of the giving of notice. ~
5, Hazard Insurance. Borrower shai! keep the improvements now ezisting or hereafter erected on the Properiy ~
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 camer providing the insurance sha31 be chosen by Borrower subject to Lender's approval which shall not be ~ ~
unreasonably withheld. _
All insurance policies and renewals shatt be acceptable [o Lender and shall include a star_dard mongage clause.
Lender shall have the right to hotd the policies and renewals. If Ixnder requires, Borrower shaU promptl~ give to Lender
a!! receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may maice proof of loss if not made prom~tly by Borrower_
Unle~,s Lender and Borrower otherwise agree in writing, insura~ce pnx:eeds shal( Fie applied to restoration or repair
of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. tf the I
restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be ~
applied to the surr~s srcured by this Security Instrument, whether or not then due, with any e:ccess paid to Borrower. If e
Borrower abandons the Property, or does not arswer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then Lender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore
the Property or to pay sums secured by ihis Security Instrument, whether or not then due. The 30-day period wil) begin
when the notice is given. ~ ~
, Unless Lender and Borrower otherwise agree in writing, ar,y application of proc:eeds to principal shall not extend or ~
postpone the due date of the monthly payments re~erred to in parag~aphs 1 and 2 or change the amount of the payments. If ~
under paragraph 19 the Property is acquirec: by Lender, Borrower't right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Secr~rity
Instrument immediately prior to the acquisition.
6, Preservation and Maintenance of Property; Leasebolds. Borrower shall not destroy, damage or substantially '
change the Praperty, allow the Property to deteriorate or commit waste. If this Security tnstrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower a:quires fee title to the Property, the leasehold and
fee title shall nat merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights in the Property; Mortgage Insur~tnce. If Borrower fails to perform the
coyenants and agreements contained in this Security Instrument, or there is a legal procreding that may signi5cantly affect
Lender's rights in the Prcperty (such as a proceeding in bankruptcy, ~robate, for condemnation or to ~nforce laws or
reg~lat'sons), then Lender may do and pay for whatever is necessary to protect the value of the Pro~rty and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a{ien which has priority over this Security
Instrument, appearing in court, paying reasonable attorneys' fees and entering ort the Froperty to make repairs. Although
Lender may take action under this paragraph 7, Lender does not have to do so.
Any am~unts disbursed by I,ender under this paragraph 7 shall become additional debt of Fiorrower secured by this
Security Instrument. Unless Borrow~er and Lender agree to other terms of payrnent, these amounts shall bear interest from
the date of disbursement at the Note rate and shali be payable, with interest, upon notice from L~nder to $orrower
requesting payment.
goo~503 940
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