HomeMy WebLinkAbout0953 UNIFORM COVENANTS. 8orrow~er and Lender covenant and agree as lollow~s:
l. P~yment of Principal and tnterest; Prepayment and Lnte Charges. 9orrowe~ shall promptly pap w~hen due
the principal of and interest on the debt evidenced b~r the Note and any prepay~ment and late charge~ due under the Note. ,
2. Fuads for Taxes and Insurance. Subject to applicable law or to a written w~aiver by Lender, Barrower shall pay '
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-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security [nstrument; (b) yearly
leasehold paymenis or ground rents on tht Property, if any; (c) yearly hazard insurance premiums; a~d (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 which are insur,.~ or guaranteed by a federal or '
, state agency (including l.ender if I,ender is such an institution). Lender shall apply the Funds to rsy the escrow items.
l,ender 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. Borrawer and i
Lender ma~ agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender shali not be required to pay Borrow~er any interest or earnings on the Funds. Lender
shall give ta 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 Instrument. ~
lf the amount of the Funds held by Lender, together with the future monthty 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 monthly payments of Funds. If the
amount of the Funds he;d by Lender is not sufi~icient to pay the escrow items when due, Borrow~er 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 Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph t9 the Property is sold or acquired b} Lender, Lender shall apply, no later
than immediatety prior to ihe sale of the Property or its acquisition by Lender, any Funds held by L.ender at the time of
application as a credit against the sums secured by this Security lnstrument.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shap 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, to principal due.
4. Charges; Liens. Borrow~er shall pay a!! taxes, assessments, charges, fines and impositions attributable to the
Properly 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, Borrower shatl
pay them on time directly to the person owed payment. Borrower shall promptly Curnish to Lender alt notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing th~ payments.
Borrower shal) promptly discharge an~~ lien w~hich has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation ~ecured 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 w•hich in the Lender's opinion operate to
prevent the enforcement of the tien 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 lien or take one or more of the actions set forth above within 10 days ~
of the giving of notice.
5, Hazard Insurance. Borrower shall keep the improvernents now• ecisting or hereaf'ter erected on the Property
insured against loss by fire, hazards included witt~in the term "extended coverage" and any other hazards for which Lender
requires insurar~ce. This insurance shall be maintained in ?he amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approval which shall not be
unreasonabiy withheld.
All insurance policies and renew•ats shall be acceptable to Lender and shall include a standard mortgage clause. ~
Lender shall have the right to hold the palicies and renewals. If Lender reyuires, Borrower shall promptly give to Lender I
alt receipts of paid premiums and renewa! notices. In the event of loss, Borrower shall give prompt notice to the insurance ,
carrier and Lender. Lender may make proof of loss if not madc promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shai! 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 u•ould be lessened, the insurance proceeds shall be
applied to the sums secured by this Security lnstrument, whether or not 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 ihe insurance carrier has
offered to settle a elaim, 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, wheiher or not then due. The 30-day period will begin ~
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
postpone the due date oFthe 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 right to any insurance policies and proceeds resulting
from damage tQ the Property prior to the acquisition shall pass to Lender to the extent oi'the sums secured by- this Security
Instrument immediately 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 shaU comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge unless L.ender agrees to the merger in writing.
7. Protection ot Lender's Rig6ts in the Property; Mortgage Insurance. If 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 rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then L.ender may do and pay for whatever is necessary to proiect 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
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 artsounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrawer 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 tfie Nate rate and shall be payable, wirh interest, upon notice from Lender to Borrower
requesting payment.
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