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HomeMy WebLinkAbout0927 ~ ,I', Y~~ . ~ ~ l; UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payma+nt ot Princlp~l and Inte~esh Prsp~yment and Lsie Cha~~es. Borrower shall promptly pay when due tha principal of and interest on ihe debt evidenced by the Note and any prsp~yment and late charges due uRder the Note. 2. ~'unds to~ T~xas and tnsu~e?nce. Subjsct to appHcable law or tn a wntten waiver by Lander, Borrower ~hall pay to Lender on the day rnonthly uayments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelfth of; (a) yesr!y taxes and assessments which may attain prio~ity over this Security instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage +nsurance prem~ums, it any. These items are called "escrow itoms." Lender may estim~te the Funds due on the basis of current data and reasanable estimates of future eSCrow items. The Funds shall ba helri in an institution the deposits or acco~nts of which are insured or guaranteed b a federal or state agency (including Lender if lender is such an instit~tion). Lender shall apply the Funds to pay tXe escrow ~ items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow i4~ms, unless lender pays Berrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shali be paid on the Funds. Untess an agreeme:~t is rrtade or appiicabte taw requtres tnterest to be ~aid, Lender shall not be required to pay B4rrower anv interest or earnings on the Funds. Lender shall give to 8orrower, without charge, an annuaf accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was mad~. The Funds are ptedged as additional s security for the sums secured by this Security Instrument. ~ N ihe amount of !he funds hetd by Lender, together with th~ future monthly payments of Funds payable prior to ; the cSue dates of the esc~pw items, shall exceed the amount required to pay the escrow items when due, the excess . shatl be, at Borrower's option, either prosnptly repaid to Borrower or cred~ted to Borrower on monthly paymer~is of ~ Funds. if the amount of the F'unds hEid by Lender is not sufficient !o pay the escruw items when due, Borrower shall ~ay to Lender any amount necessary to make up the deficiency in one or more payments as ~equired by Lender. Upon payment in fuil of all sums secured by this Security Instrument, lender shall promptiy refund to Borrower any F~nds held by Lender. tf und9r paragraph 19 thP Property is sold or acquired by lender, Lender shall apply, no ~ iaier than +mmediately prior to ihe sale af ihe Property or ;ts acquisiEion by lender, any Funds held by Lender at the time of application ~s a credit against the sums secu~ed by this Security Instrument. 3. Appllcatlan of Rayments. Unless ~pplicable law provides otherwise, ali payments received by L.ender urtder paragraphs 1 and 2 shall be appiied: iirst, to amounts payable under paragraph 2; second, to interest due; and last, to principal due. ' 4. Charges; Llens. Borrower shaii pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priarity over this Security Instrument, and teasehold payrnents ~r ground rents, if any. - BQrrower shalt pay these obligations in ihe manner provi~ed in paragraph 2, or if not paid in that manner, Bo~rower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices oi amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shail promptly furnish to Lender receipts evidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien m a manner acceptable to Lender, (b) contests in , gaod faith ihe lien by, o~ defends against enforcement of the lien in, iegal proceedings which in the Lender's opinion ' operate to prevent the enforcement of the lien er torfeiture of any part af 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 Inst~ument, Lender may give Borrower a notice identifying the lien. Borrower shalf satisfy the lien or take onp or more of the actions set forth above within 10 days of ihe giving of r~otice. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ;nsured against loss by fire, hazards includ~d within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintaine~ in the amounfs and for the periods that Ler~der . req~ires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval ' which shall not•be unreasonabty wathheid. a Alt insurance policies and renewals shall be~acceptable tfl Lender and shatl inctude a standard martgage clause. Ler~der shalt have the right to hold the policies anci renewals. If l.ender requires, Borrower shall promptly give to Lender al! receipis of paid premiums and renewal 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 made promptiy by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be apptied to restoration or repair of the Praperty damaged, if the restoration or repair is econo~nicalfy feasible and Lender's security is not lessened. !f the restoration or repair is not econamically feasible or LQnder's se~urity would be lessened, the insurance proceeds shall be applied to the sums secured by this Secu~ity Instrument, wheth~r or not then due, ~ith any excess paid to Borrower. ff Borrower abandons the Property, or daes not answer within 30 days a notice from Lender that the insurance carrier has offered to settte a claim. then Lender may collect the insurance proceeds. Lender may use the proceeds to repa9r or restore the Property or to pay sums secured by this Security Instrument, wnether or not then due. The 3d-day period will begin when the notice is given. Unless Lender and ~orrowerotherwise agree in wri2ing, any application of proceeds to principal shall not extend or postpone the due date of ihe monthly payments referred to in paragraphs 1 and 2 or cha~ge the amount of the payments. If under paragraph 19 tne Property is acquired by l.ender, Borr~wer's right to any ins~rance policies and proceeds resulting from damage to the Property prior io the acquisition shalt pass to Lender ta the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Presen?stion and Maintenance af Property; Leaseholds. Borrower shail nat destroy, damags or substantially change the Property, allow the Property to dsteriorate or commit waste. If tF~is Sacurity inst~ ument is on a teasehotd, 8orrower shal I comply with the provisions ot the lease, artd if Borrower acc~uires fee title to the Property, the leasehold ar~d fee title shaN not merge unless Lender agrees to the merger in writing. 7. Rrotectlon ot Lendar's Rlghb in the Property; Mortgsgr lnsu~ance. If Borrower fails to perform the coven~nts and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afiect Lender's rights in the Property (such as a proceeding in bankruptcy, p~ obate, for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the valu2 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. Aithough Lertder may take actian under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this parayraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shatl bear interest from the date of disbursement at the Note rate and shal! be payable, ~vith interest, upon noiice from lender to Borrawer request+ng payment. . - BOOIt ~ P~t~ ~ 2 _ . _ a - y._ _ . - i