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HomeMy WebLinkAbout0961 U~IFORM CovENANTS. Borrower and Lender cuvenant and agree 3s iollows: 1. Payment ot Principal and [atereat; Prepayme^L 3!!~ IA~! CIISfQC~.. Borrower shall•promptly pay when du~ ~ ~ . the prirtcipal of and interesi u~i i~~~ .::denceti by the Note and any prepayment and late charges duc under t e, ote. 2. Fuads for Ta~ces and [nsunace. Subject to applicable law ur to a wntten warver by Lender, Borruwer shall pay to Lender on the day monthly payments are due under the Note. until the Nute is paid in full, a sum i"Funds") equal to one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security instrument; (b) yearly leasehold payments or ground rents on the Propeny. if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums. if any. These items are called "escrow items." Lende~ 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 ~~,:...:~~s or accounts of which are insured or guaranteed by a federa! or state agency (including Lender if Lender is such an institution). [.ender 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 Bonrower interest on the Fu~ds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interat shall be paid on the Funds. Uniess an agreement is made or applicable law requires interest to be paid, Lender shall not be rc~uircd to pay Borrower any interest or earnings on the Funds. Lender shail give to Borrower, without charge, an 3nnual accounting of the Funds showing credits and debits to the Funds and the purpox for which each debit to the Funds was made. The Funds are ple~ged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the dee data of tho escrow items, shall exceed the amou:.: : ~;~i--*! pay the escrow items when due, the excess shall be, at Bor*ower's option, either promptly repaid to Borrower or credited to Borrower on monthly payr.~ents of Funds. If the amount of the Funds held by Lender is not suR'icient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more F,ayments as required by Lender. Upon payment in full of a!I sums secured by this Security Instrument. Lender shail promptly refund to Borcower any Funds held by Lender. If under paragraph 19 the Property is sold or acqnired by Lender, Lender shall apply, no :ater 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 securod by this Security Instrument. 3. Applicatioa of Paymeeb. Unless applicable law provides oth~rwise, all payments rcceived by Lender under paragraphs 1 and 2 shall be applied: first, to late charges dua under the Note; s~cond, to prepayment charges due under the Note; third. to amounts payable under paragraph 2; fourth. to interest due; and last, to principal due. 4. Cbarges; Liens. Bonowcr shall pay all taxes, assessmen'.s, 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 provided in paragraph 2, or if not paid in that manner. Bonower shall pay them on time directly to th~ person owed payment. Borrower shall promptly furnish to Lender al~ notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Bonower shall promptly furnish to Lender receipts evidencing the payments. ~ Borcower shall prcmptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the pay ment of the obligation secured by the licn 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 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 L.ender subordinating the iien i~ ihis Security Instrument. If Lender determines that any part oi the Property is subject to a lien which may attain priority over this Security [nstrument, [.ender may give Borcower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. . !~azard insurance. Bonower shall keep the improvements now eaisting or hereafter erected on the Property insured against loss by fire, hazards included within the term "eatended 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 shall be chosen by Bonower subject to Lender's approval which shall not be ~ unreasonably withheld. All 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 Ltnder requira. Borrower ~h?I~ nromptiy give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. L,ender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower oiherwise agrce in wnting, insurance proceeds shall be applied to restoration or repair of the Property damagod, if the ratoration or repair is cconomically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasibie or Lender's security 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 Bonower. If Borrower abandons the Property. or does not answer within 30 days a notice from I.ender that the insurance carrier has offered to settie a claim. thrn Lender may collect the insurance proceeds. I.ender may use the proceeds to repai; or restore the Property or to pay sums secured by this Security Instrument. whether or not then due. The 30-day period wiil begin when the notice is given. Unless Lender and Borrower otherw+ise agree in writing, any application of proceeds to principal shali 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. [f under paragraph 19 the Property is acquirod by Lender, Borcower's right to any insurance policia and prcxeeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security (nstrument immodiately prior to the acquisition. 6. Preservation and Maintenance at Property; Leasehold~. Borrower shall not datroy, damage or substantially change the Property. allow the Property to dtt~riorate or commit waste. If this Security Instrument is on a leaxhold, Borrower shatl compiy with the provisions of the lease, and if Borrower acquires fce title to the Property, the leasehold and fee title shall not merge unless L.ender agrea to the merger in writing. 7. ProtecdoQ ot~Lender's Righb in tbe Property; Mortgage Insurance. tf Borrower fails to perform the covenants and agreements contained in this Security Instrument. or there is a legai proceeding that may significantly afTect Lender's rights in the P~operty (such as a proceeding in bankruptcy, probate, for condemnation or to enforce taws or rcgulations), 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 over this Security [nstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Atthough Lender may take action under this paragraph 7, Lcnder doa not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall btcomt additional debt of Borrower secvred by this Security [nstrument. LJnless Borrowet and Lender agret to other terms of payment, these amounts shall bear interat from tht date of disburxment at the Note rate and shall be payable, with interest, upon notice from Lender to Borrowe~ rcquesting payment. - ~ ~ ~ ~D ~ ~ ; ~ ~a ~ y , ',C j11 ~ ~~r1~~L ~ . _ ' - , _