HomeMy WebLinkAbout0957 UNIFORM COVENANI'S. Borrower and Lender cover.ant anJ agree u follows:
1. Payebeat ot Priacipal and laterah, Pnpay~sent and Latt Char~es. Borrower shall pror~ptly ~oay v?~hen due
the principa) of and in~erest on the debt cvidenccd by the Note and ~ny prepayment and latt charga due under the Note.
2. Fw~ds for Taxa aed tat~ennee. ' Subject to applicable law or to a writtrn waiver by Lendcr, Borrower shall pay
to Lender on thr day rt~onthly payments are due under the Note, until the Note is pa~d in full, a sum ("Funds") equat to
one-twtlRh of: (a) yearly taxa and assessmen~s which may attain priority over this Security Instrument; (b) ycarly
leaxhold payments or ground rents on the Property, it any; (c) yearly hazard insurance premiums; and (d) yesrly
mortgage insuru.nce premiums, if anjr. These ittms are catled "escrow items." L.ender may atimate the Funds due on the
basis of currcnt data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits or accounts of which are insur.J or guaranteed by a kdera! or
state agency (including L.ender if Lender is such an institution). Lender shali appiy the Funds to piy the escrow items.
Lender may not charge for holding and applying the Funds, analyzing the account or vrrifying the escrow items, unless
Lenaer Fays 8onower interat on the Funds and applicabla law permits Lender to makt such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. Unlas an agreement is madt or applicable law
requires intersst to be paid, Lender shall not be required to pay Borrower any interat or carni~gs on the runds. Lender
sha11 give to 8otrc~wer, with.-r.?c cha,g~, an anr.ua! accounting of the Fur.ds showing cred~ts and clebits to the Funds and the
purpose for which each dehit to the Funds was made. The Fun~s an pladged as additional security for tha sums se~:ured by
~ this Security Instrument.
IC the amount o!'the Funds held by Lender. together with the future monthly payments ot Funds payable prior ta
thc due data of the escrow items, shall exceed the amount required to pay the escrow items when due. the excess shall be,
at Borrower's option, e~ther promptly repaid to Borcower or credited to B~rrower on mo~thly payments of Funds. lf the
amoui~t of the Funds held by Lender is not suflicient to pay the escrow items when due, Borrower shall pay to L.ender any
amount necessary to make up the deficiency in one or more payments as required by I.ender.
Upon payment in full of all sums secured by this Security lnstrument, Lender shall promptly refund to ~3orrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by L.ender, Lxnder shall apply, no later
than immediately prior to the sale of the Propeny or its acquisition by Lender, any Funds held by Lender at the time of
appiication as a credit against the sums secured by this Security Instrument.
3. Application ot Payments. U:~less applicable law provida otherwise. all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, io late charges due under the Note; second, to prepayment charges due uuder the
Note; third, to amounts payable under paragraph 2; fourth, to interat due; and last, 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 Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligati~ns in the manner providett in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person ~:wed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower rrtakes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments. ~ '
Borrower shall promptly discha~ge any lien which has priority over this Security Instrument unless Borrower. (a)
agrees in writing to the payment of the obligation secured by the lie~ in a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legal proceediregs which in the Lender's opinion operate to ;
prevent the enforcement of the lien or forfeiwre of any part of tht Property; or (c) secures from t~- F~~~'er of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument_ If Lender determin~s 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 shali satisfy the lien or take one or more of the actions set forth abc~ve within 10 days
of the giving of notice.
5. Hazard Insurar.ce. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against Ic~ss by fire, hazards included within the term "extended coverage" and any othes hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The
I insurance carrier providing the insurance shali be chosen by Bo~rower subject to Lender's approval which shall not be
~ unreasonably withheld.
All insurance policies and renewals chall be acceptabie to Lender and shall include a standard mortgage clause_
Lender shall have the right to hold the policies and renew-als. If Lender requires, Borrower shati promptly 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. Lender may make Proof of loss if not made prompily by Borrow~r.
Unless Lender and Borrower otherwise agree ir, writing, insurance proceeds shal{ be applied to restora:ion or repair
of the Property damaged. if the restoration or repair is economically feasible and Lend~r's security is not lessened. If the
restoration or repair is not economically feasible or Lendei s security vvould be lessened, the insurance proreeds shall be
applied to the sums secured by this Security Instrument, 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 Lenaer that the insurance carrier has
oRered to settle a claim, then L.ender may collect ;he insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not ti~en 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 eztend or
postpone the due date of the 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 L.ender, Borrower's right to any insurance policies and procceds raulting
from damage to the Property prior to the acquisition shall pass to L.ender to the eztent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Presenatioa and Mainteaance of Property; Lease6atds. Borrower shall not destroy, damage or substantially
change the Properiy, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrowtr acquires fee t~tle to the Property, the leasehold arid
fee title shall not merge unless L,endtr agrees to ihe merger in writing.
Protection of Lender's Rights in the Property; Mortgage Insurance. If' B:,rrnwer fails to p~rform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afTect
Lendcr's rights in the Property (such as a proceoding in bankruptcy, probate, for cande~nation or :o enforce laws or
?egulations), then [.ender may do and ~,ay for whate~~er is necessary to protect the value of the Property and Lender's righ!s
in th~ Property. Lender's actions may includt paying any sums secured by a lien which has priority over this Security
Instrument, appearing in court. paying rEasonablt attorneys' fees and entering on ihe Property to make repairs. Although
Lender may :ake action under this paragraph 7, Lender doa not ha~e to do so.
Any amounts disbursod by I.ender under this paragraph 7 shall become additiona! debt of Borrower secured by this
Security Instrument. Unless Borrower and Lcnder ~gree !o othfr tcrms of payment, these amounts shall bear interat from
the dat~ of disbursement at the Note rate and shall tx payable, with interest, upon notice from Lendcr to Borrow•er
roquestirtg payment.
- . aoo~ 511 FA~f 956
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