HomeMy WebLinkAbout0999 UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Interest; Prepaym~nt and Late Char~es. Borrower shall promptly pay when due the .
principal of and interest on the debt evidenced by the Note and any prepayment and late charges ~ue under the Note.
2. Funds tor Taxes and Insurance. Subject to applicable law or to a w~itten waiver by Lender, Borrower shali pay
to lender on the day monthly payments are due under the Note, until the No~e is paid in full, a sum ("Funds") equal to
one-twelfth of: (a) yearly taxes and assessm~nts which may attain priority over th~s Security Instrument; (b) yearly
leasehold payments or ground rents on the Property, if any; (c) yeacly hazard insurance premiums; and (d) yea~l~
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on
the basis of current data and reasonabfe 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 Lender if Lender is such an institutionj. Lender shall apply the Funds to pay the escrow
items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow
items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge.
Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless gn agreemeni 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 Barrower, without charge, an annual accounting of the Funds showing credits and
debits to the Funds and the purposa for which each debit to the Funds was made. The Funds are pledged as additional
security for the sums secured by this Security Instrument.
If the amount of tt~e funds held by Lender, together with the future monthlv payments of Funds payable prio~ to
the due dates of the escrow items, shall exceed the art~ount required to pay the escrow items when due, the excess
shalt be, at 8orrower's opiion, either prorr~ptly repaid to Borrower or credit~d to Borrower on monthly payments of
Funds. tf 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 ~equired by Lender.
Upon payment in full of all sums secured by th~s Security Instrument, Lender shall promptly refund to Borrower
any Funds heid by Lender. If under paragraph 19 the Property is sold or acqu+red by Lender, Lender shail apply, no
later than immediately prior to the sale af 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 tnstrument.
3. Application of Payments. Unless ~pplicable law provides otherwise, all payments recEived by Lender under
paragraphs 1 and 2 shal! be applied: first, to amounts payable under paragraph 2; second, 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 leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner pravided in paragraph 2, or if not paid in that manner, Borrower
shatl 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 Borrower makes these payments directly, Borrower shall promptly furnish
to Lender receipts eviden~ing 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 faith the lien ~y, or defends against enforcement of the lien in, iegal proceedings which in the Lender's opinion
operate to preveni the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of
ihe lien an agreement satisfactory to Lender subord~nating the lien to this Security Instrument. If Lender determines
that any part of the Property is subject to a~ien which may attain priority over this Security Instrument, Lender may
give Borrower a notice identifying the lien. Borrower shall satisfy ihe lien or take one or more of the actions set forth
above within 10 days of the giving of notice.
' S. Hazard (nsuran~e. Borrower shall keep the impravements now existing or hereaftererectea 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 shail 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 nat•be unreasonably witnheld.
i All insurance policies and renewals shatl be acceptable to Lender and shall include a standard mortgage clause.
Lender shall have the right to hold the policies ard renewals. If Lender requires, Borrower shall promptly give to
Lender all receipts of paid premiums and renewal notices. I n t~e event of loss, ~orrower shali give prompt notice to the
insurance carrier and Lender. Lender may make proof of loss if not made promptly by 8or~ower.
Unless Lender and Borrower otherwise agree in writing, insurance pr~ceeds shatl be applied to restoration or
repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not
lessened. If :he restoration or repair is not economically feasible or ~ender's security would be lessened, the
~nsurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with
any excess paid to Bor~ower. 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 or restore the Property or te pay sums secured by this Security Instrument,
whether or not then due. The 30-day perio~ will begin when the no4ice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend
or postpone the due date ~f the mont~ly payments referred to in paragraphs 1 and 2 or change the amount of the
payments. If under paragraph 19 the Property is acquired by Lender, Borrow+er's right to any insurance policies an~
proceeds resulting from damage to the Property prior to the a~quisition shall pass to Lender t4 the extent of the sums
secured by this Security Instrument immediately prior to the acquisition.
6. Rreservation and Maintenance ot Prop~rty; Leasehotds. Borrower shall not destroy, damage or substartially
change the Praperty, allow the Property to deteriorate or commit waste. If this 5ecurity Instrument is on a leasehold,
Borrower shali comply with tfie provisions of the lease, and if Borrower 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 Rroperty; Mortgage Insurance. !f Borrower fails to perform the covenants
~ and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
~ Lender's r~ghts in the Prr~perty (such as a proceeding in ba~kruptcy, probate, for condemnation or to enforce laws or
~ reguiations), then Lender may do and pay for whatever is necessary to Grot~~t 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 overthis
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 additional debt of Borrower secured by
this Security Instrument. Unless Borrawer and Lencfer agree ta other terms of paytnent, ihese amounts shalt bear
interest from tne date of disbursement at the Note rate and shall be payable. v~ith interest, upon notice from Lender to
Borrower requesting payment. ~
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