HomeMy WebLinkAbout0932 UN~FORM CovExANTS. Borrawer and l.ender covenant and agree as foliow~s:
1. Ppyment of Principal and Interesh P~epayment stnd Late Charge~- Borrower shall promptly pay when due
the principal of and interest on the debt eviclenced by the Note and any prepayment and late charges due under the Note.
2. Funds tor Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shal! pa~•
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-twelfth of: (a) yearly taxes and assessments which may attain priority over this S~curity Instrument; (b) y~early
leasehold payments or ground rents on the 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 w~hich are insur.~ or gua~ anteed by a federal or
state agenc~ (including Lender if Lender is such an institution). Lender shall appty the Funds to pay the escrow items.
Lender may not charge for holding and applying the Funds, anatyzing 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 shal! be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid. Lender shall not be required to pay Borraw~e~ any interest or earni~:gs on the Funds. Lender
shall give to Borrower, without charge, an annual accounting 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 additional security for the sums secured by
this Security lnstrument.
Itthe amount of the Funds held by Lender, togeiher with the future monthly payments of Funds payable prior to
the due dates of the escrc~w items, shall exceed the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borro.ver or credited to Borrower on monthty payments of Funds. If the
amount of the fiunds held by Lender is not s c~ent to pay rhe escrow iterr~s when due. Borrower sha11 pay to Lender any
amount necessary to make up the deficiency i~i one or more payments as required by Lender.
Upon payment in full of al! sums securecl by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragrap~l9 the Property is sold or acquired by Lender, Lender shall apply, no [ater
than immediatety prior to the sa!e oP the Propet3y 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 appticabte law provides otherwise, all payments received by L~nder under
paragraphs t 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, io principal due.
4, Charges; Liens. Borrower shail pay all taxes, assessments, charges, fines and impositions attribuiat~le to the
Property which may attain priority over this Security Instrumen~, and teasehold payments or ground renis, if any.
Borrower shal! pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
~ay 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 BorroH~er makes these payments directly, Borrower shal! }~romptly furnish to Lender
receipts ev~dencinR the payments. ~
Borrower shall promptly discharge an~~ lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment 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 whict~ in the Lender's opinion operate to
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) srcures f'rom 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 lnstrument, Lender may give Borrower a
notice identifying the lien. Borrower shall satisfy the iien or take one or more of the actions set forth above within 10 days
of the giving ot'notice.
5. Hazard Insuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured againsi loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
reguires insutance. 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 Bo~row~er subject to Leader's approval w•hich shall not be
unreasonably withheld.
Ail insurance policies and renewals shall 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. [n the event of loss, Borrower shall give prompt notice to the insurance ~
carrier and Lender. Lender may make proof of loss if not made promptl~~ by Borrower_
Unless Lender and Borrower otherv?~ise agree in writing, insurance ~roceeds shall 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 the
restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be
applied ro 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 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 to pay sums secured by this Security Instrument, whether or not then due. The 30-day period wili begin
when the notice is given.
liniess Lender and Borrower otherwise agree in writing, any applicatian of proceeds to principal shall not extend or
postpone the due date of'the monthly 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, Borrower's righ: to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shal) pass to Lender to the extent of the sums secured by this Security
Instrument imme~iately prior to the acquisition.
6. Preservation and Maintenance of Property; Leaseholds. Borrower 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 w°ith the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall r~ot merge untess Lender agrees to the mcrger in wnting.
7. Protection of Lender's Rights in the Property; ~iortgage Insurance. If Borrow•er fails to perform the
eovenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Property (such as a proceeding 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 tne Property and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
Instrument, appearing in court, payi~g 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 additionai 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 Lender to Borrower
requesting payment.
tn~~x504 y~i2
~ ~
_ -
. . _ _ . _ _ . a -