HomeMy WebLinkAbout0946 UNIFC~RM CovENANTS. Eiorrower and Lencler covenant and agree as follows: •
1. Payment of Principstl and Interest; Prepayment and Late t'harges. Borrower shall promptly pay when due
the principai of and interest c~n the debt e~idenced by the Note and any prepayment and late charges dur u::der the tiote.
2. Funds for Taxes and Insurance. Subject to appli.able law or to a written waiver by Lender, Borrower shall pay
to Lender on the d~y monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to ;i
one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yrarly 7j
leasehold payments or graund rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are cailed "escrow iiems." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items. ;I
The Funds shali be held in an institution the deposits or accounts of which ~~P ~ncu~ed or guaranteed by a federal or °
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
Lcnder m?y not charge for holding and applying the Funds, analyzing the account or ~~erifying the escrow items, unless i.
Lender pays Borrower inrerest 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 Bc,~,~wer any interest or earnings on the Funds. Lender ~
shall give to Borrower. without charge, an annuai 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 Instrument.
lf the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due dates of the escrow 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 Borrower or credited to Borrower on month(y payments of Funds. If the
amount of the Funds held by Lender is not suflicient 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 Lender.
Upon payment in full of all sums secured by this Security Insirument, Lender shalf promptly refund to Borrower
an}~ Funds held by Lender. If under paragraph 19 the Property is sold or acquired b~~ Lender, Lender shall 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. Application of Payments. Unless applicablc law provides otherwise, all paymenis receives by Lendrr under
paragraphs 1 and 2 shal! be applied: 6rst, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts pa~~able under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. 8orrower shall pay all taxes, assessments, charges, fines and impositior.s attributable to the
Property w~hich may attain Priority over this Security Instrument, and ieasehotd payments or ground rents, if any.
Borrower shali 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 notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to I.ender
receipts evidencing the payments.
Borrower shall pr~~~ atly discharge any lien which has Rriority 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 gctiod
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 tien or take one or more ~F the actions set forth atr~ve within 10 days
of the giving of notice.
5. Hazard Insurance. Borrower shall keep the improvements n~w existir,g or hereafter erected on the Property
insured against loss by fire, hazards induded 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 carrier providing the insurance shatl be chosen by Bocrower subject to Lender's approval w~hich shall not be
unreasonably withheld. ~
All insurance policies and renewals shall be acceptable to Lender and shail include a standard mortgage ctause. ,
Lender shall ha~~e the right to hold the policies and renewals. If Lender requires, Borrow~er shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event of loss, Barrow~er shal( give prompt notice ro the insurance
carrier and Lender. Lender may make proof of loss if no[ made promptly by Borrower. _ ~
Untess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied ro 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 [.ender's security w•ould be lessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, ~vhether e: ?ot 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 set[ie a claim, then Lender may collect the insurance pra:eeds. I.ender may use the proceeds to repair or restore
the Pro~erty or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
w•hen the notice is given.
Unless Lender and Borrower othenvise agree in writing, any application of proce2ds to principat shalt 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 I9 the Property is ac:quired by'Lender, Borrou•er's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acq~isition shall ~ass to Lender to the extent of the sums secured by this Security
~ Instrument immediately prior to the acquisition.
; 6. Preservation and'~isintenance oi Property; Leaseholds. Borrow~er shall not destroy, damage or substantially
i change the Praperty, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
~ Borrow•er sha(1 comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall noi merge unless Lender agrees to the merger in writing.
7. Pr~tection of L.ender's Rights in the Property; :~lortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a Iegal proceeding that may significantly afTect
Lender's rg;;ts in the Property (such as a proceeding in bankruptcy, probate, for c~ndemnation or to enforce lau~s 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 priorit~• over this Security
Instrument, appearing in court, ~;a;ing 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 b~~ Lender under this paragraph 7 shalt become additional debt of Borroa~er secured by this
~ Security Instrument. Unless Borrow~er and Lender agree to other terms of payment, these amounts sha!! bear interes[ from
~ the date of disbursement at the Notc rate and shal) be payable, with interest, upon notice from Lender to Borrower
requesting pa}~ment.
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~o~K 5fl4 946
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