HomeMy WebLinkAbout0915 UNiFORM CovEN~tvTS. Borrower and Lendcr cnver~nt and agra as follows:
t. P~ya~eet of Priacipal and Iatsrat; Prep~ya~ent and Lte G1~sryta. Borrower shall promptly pay when due
the principal of and interat on the dtbt evidenced by the Note at~d any prepayment and late charga due under the Note.
2. Funds tor Tua aed lasunnee. ' Subject to applicable law or to a written waiver by L.ender. Borrower shait pay
to Lend~~ on the day monthly payments are due undet the Note~ untii the Note is paid in fall. a sum ("Funds") equal to
one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly
leasehold payments or ground rents on ihe Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insur~~ce premiums. if any. These items are callod "escrow it~ms." Lender may estimate the Funds due on the
5asis of current data and reasonable atimata of future acrow items.
The Funds shall be held in an iastitution the deposits or accounts of which are insur..~ or guaranteed by a federal or
state agency (including Lender if Lender is such an institution). I.ender shal) apply the Funds to psy the escrow items.
Lender may not chargt for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
Lender pays Borrower inttrest on the Funds and applicablt law permits Lender to make such a charge. Borrower and
Lender may agret in writing that interest shall be paid on the Funds. Unias an agreement is made or applicable law
requires interat to be paid, l.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shall give to Bonower, without charge. an annual accounting of tht 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 Instreament.
~ lf the amount of tht Funds held by Lendtr, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, shall eaceed th~ amount required to pay the escrow items when due, the excess shall be,
at Bonower's option, either promptly repaid to Bonower or credited to Borsower on monthly payments of Funds. If the
amount of the Funds h~id by Lender is not sufticient to pay ihe escrow items when due, Borrower shall pay to Lendcr any
amount necessary to make up the deficieney in one or more payments as required by Lender.
Upon payment in tull of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender. I.ender 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 Instreiment.
3. Apptication of Paymeets. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 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 tast, 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 Instrumeni. and teasehold payments or ground rents, if any. '
Borrower shail 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 Lender ~
receipts evidencing the payments. -
Borrower shall promptly discharge any iien which has priority over this Stcority lnstrument unless Borrower: (a)
agrees in writing to the payment of the obiigation 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 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 detecmines that any pari 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. Bonower shall satisfy the lien or take one or more of the actions set forth above within 10 days i
of the giving of notice. `
S. Hazard Insurance. $orrower shaU keep the improveme~ts now existing or hereafter erected on the Property ~
insured against loss by fire, hazards included within the term "eztended coverage" and any other hazards Far which Lender j
requires insurance. This insurance shall be maintained in the amounts and for the periods that I.ender requires. The ~
insurance carrier providing the insurance shalt be chosen by Bo~rower subject to Lender's approval which shall not be i
unreasonably withheld. i
Al) insurance policies and renewals shall t~e 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 ~
ail receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompi notice to the insurance ~
carrier and Lender. L,ender may make prootof loss if not made promptly by Borrower.
Untess C.ender and Borrower otherwise agree in writing, insurance proceeds 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 nat economical{y feasible or L.ender's security would be lessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, whether or nat then due, with any ezcess 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 settle a ciaim, then Lender may collect the insurance proceeds. I.ender 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 will begin
when the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eatend or
postpone the due date of the monthly payments refcrred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph !9 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security ~
Instrument immediately prior to the acquisition. ~
6. Preservation and Maintenance of Property; Leaseholds. Borrower shalf not destroy, damage or substantially '
change the Property, allow the Property to deteri~rate or commit waste. If this Security Instrument is on a leasehold, ~
Borrower shall comply with the provisions of the leax, and if Borrower acquires fee title to the Property, the leasehold and i
fee title shatl not merge unless I.ender agrees to the merger in writing. ~
7. Protectiun of Lender's Rig6ts in the Property; Mortgage Insuranee. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect ?
L.ender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnatian or to e~~force laws or
regulations), then L.ender may do and pay for whatever is nocessary to proitct the value of the Property and Lender's rights
in the Property. L.ender's actions may include paying any sums secured by a lien which has priority over this Security
Instrument, appearing in couri, paying reasonabie attorneys' fees and entering on the Property to make repairs. Although
Lender may take action under this paragraPh 7, Lender doa not have to do so.
Any amounts disbursed by L.ender under this paragraph 7 shall become additionat debt of Horrower secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interat from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
~o~K 506 910
~ ~ ~
_
ti .
~
_ ._.y__ . - - - - _ :
~