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HomeMy WebLinkAbout0931 ~ . . •.r~.~ . ~ • ~ . , . UNIFORM COVENANTS. Borrower and lender covenant and agree as tollaws: 1. Paymw~t of P~Incipal end interest; P~epayment snd Late Ghar~es. Borrower shall promptly pay when due tha prineipal of and interest on the debt evidenced by th~ Note and any prepay:ner.t ar.d iate charges due undsr the Note. Z. Funds to~ T~xes and in:urance. Subject to appficable law or to a writien waive~ 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") equat to ane•twelfth of: (a) yearly taxes and assessments which may attain priurity over this Security lnstn~ment; (b) yearly teasehold payments or graund rents on the Property, if any; (c) yearly hazard insurance premiums; and (ci) yearly mortgage insurance premiums, if any_ T~ese 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 ofi which are i~sured or guaranteed by a federal ;~r state agency (+nclud+~g Lende~ i( Lender is such an inst~tution). Lender shall apply the Funds to pay the escrow +tems. Len~~-- may not charge for holding and appfying the Fu~ds, analyzin~ the account or verifyin~ the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. 8orro~ver and Lender may agree in writing that interest shatl be paid on the Funds_ U~tess an agreement is made or applicabte law requires interest to be paid, Lender shall not be required to pay Borfower any interest or earnings on the Funds. Lende~ shall give to 8orrower, without charg~, an annual accounting of the Funds showing crEdits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are ptedged as additional security for the sums secured by this Secu~ity tnstrument. If the amount of the funds held by Lender, ~ogaiher with thefuture monthly payments of ~u~ds payabte prior to the due dates of the escrow items, shaFl exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borro~ver or credited to 8orrower on monthty payments of Funds. If the amount of the Funds held by Lender is not suffic+ent to pay the esc~ow items when due, Borrower shalt pay ta Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in tull of all sums secu:ed by this Secu~ity Inst~ument, Lender shall promptly refund to Bor~ower any Funds held by ~ender. If under paragraph 19 the Property is sotd or acquired by Lender, Lender shall apply, no later than immediately prior to the sate 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 ot Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to amounts payable under paragraph 2; second, to in!erest due; and lasi, to principal due. 4. Charyes; liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Propeny which may attain ~riority over this Security fnstrument, and leasehold payments or ground rents, if any. Borrower shait pay these abtigations 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 shatl 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 Lende~ receipts evidencing the payments. Borrower shall promptly discharge any lien which has priorily over this Sec~rity I~strument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manr~er acceptable to ~ender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which ii~ the lender's opinicn operate to prevent the enforcement of the lien o~ forfeiture of any part of the Pr~perty; or (c) secures from ihe holder of the I+en an agreement satisfactory to Lender subordinating the lien to this Securiiy Instrur~~ent. If Lender ~Etermines 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 tien. Borrower shall satisfy the fien or take one or more of the actio~s set forth above within 10 days of the giving of notice. 5. Haza?d Insurance. Borrower shall keep the improvements now existing ~r hereatte~ erected on the Property insured against loss by fire, hazards included 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 ~~equires. The insurance carrier providing the irsurance shatl be chcsen by Borrower subject to Lender's approval which shall not•be unreasonably withheld. All insurance poticies and renewals shalf be acceptable to Lender and shall inctude a standard mortgage clause. Lender shall have the right to hold the policies and renewais. If Lender requires, Borrower shal! promptly give to Lender all receipts of paid premium~ and renev~al notices. ln the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shali be aR~lied to restaration or repair of the Property damaged, if the restoration or repa+r is economically feasible and Lender's security is not lessened. If the restoration or repair is not econcmically feasible or Lender's security wouid be lessened, the insurance proceeds shal{ be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to B~rrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to seitle a ctaim, then Lender may collect the insurance p~oceeds. ~ender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrurnent, whether or not then due. The 30-day period will begin when the notice is given. Unless Lendsr and Bor~ower otherwise agree in writing, any application of proceeds to principa! sha!! nat extend or postpone the due date of the monthly paymenis referred to in paragraphs 1 and 2 ar change the amount of the payments. If under paragraph 19 the Praperty is acquired by Lender, 8orrower's right to any insurance policies and proceeds resulting from damage to the Property prior to th~ acqui~ition shall pass to Lender to ihe extent of the sums secured by this Security Instrument immediate~y prior to the acquisition. 6. Preservatlon and Malntenance of Property: Leaaeholds. Bo?rower shatl not destroy, damage or substantiaily ~hange the Property, allow the Praperty to deteric:a4e or commit waste. If this Security tnstrument is on a teasehold, Borrower shall ~omply witt~ the provisions of the lease, and if Bo~rower acquires fee titte to the Property, the leasehoid and fee title shall nat merge unless Lender a~rees io the merger in writing. 7. Protection ~f Lendar's Rights In the Property; Mortgage In=urance. If 8orrower fails to pertorm the covenarts and agreements conta"sned in this Secur~ty instrurner±t, or there is a legal p~oceed~ng that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, prabate, for condemna!':on or to eniorce laws or regulat+onsj, then Lender may do and pay for whatever is necessary to protect the value of the Property ar~d Lender'; ~ ights in the Propsrty. Lender's actions may include paying any sums secured by a I+en which has priority over this Security Instrument, appearing in cour, paying reasonable attorneys' fees and entering on the P~oFerty to make repairs. Although Ler.dar may take action under this paragraph 7. Lender does n~i have to do so. Any amounts disbursed by Lender under ttiis paragraph 7 shail become additional debt of Borrower secured by this Security Instrument. Un!ess Borrower and Lender agree tn other terms of payment, these a~nounts shall bear in;erest from the date of disbursement at the Nate rate and shalf be payable, with interest, upon notice frorn Lenderto Borrower requesting payment. eo~ ~ g~p z _ - - - -