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Home My WebLink About0924 UN~FORM CovENANTS. Borrower and Lender covenant and agree as follows: 1. Paymeat of Priacipal and [aleres~ Prsparmeat aad [.ate Chuga. Borrower shall promptly pay when due the principal of and interat on the debt evidenced by the Not~ and any prepayment and late charges due under the Note. 2. Fundi tor Tua and Iasurance. Subjcct to applicable law or to a written waiver by Lender. Borrowar 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 !o ; one-twelfth of: (a) yeatly taaes and assessments which may attain priority over this Security Inst~ument; (b) yearly ~ leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly murtgage insurance premiums. if any. These items are called "acrow it~ms." Lender may estimate the Funds due un the bssis of current data and reasonabie estimata of futute escrow items. The Funds shall be held in an institutibn the deposits or accounts of which are insured or guaranteed by a federal or state agency (including [,ender if Lender is such an institution). Lender shall apply the Funds to Pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unlcss Lender pays Borrowet interest on the Funds and applicable law permits Lcnder to make such a charge. Borrower and Lender may agree in writing that intercst shall be paid on tht Funds. Unless an agreement is made or applicable law requires interest to be paid. Lender shall not be required to pay Borrower any interat or earnings on the Funds. Lender shall give to Borcower. without charge, 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. 'i'he Funds are pledged as additianal security for the sums secured by this Security Instrument. 1 If the amount of the Funds held by I.ender. together with the future monthly payments of Funds payabie prior to ~ the due dates of the escrow items, shall eaceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or croditod to Borcower on monthty payments of Funds. If the ' amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount nece.ssary to make up the de6ciency in one or more payments as required by Lender. Upon payment in full of all sums secural by this Sacurity Instrument. L.cnder shall promptly refund to Borrower any Funds held by L.ender. If under paragraph 19 the Property is sold or acquired by Lend=r, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Ltnder at the time of application as a credit against the sums secured by this Security [nstrument. 3. Appllcadon ot Psyments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: 6rst, to Iate charges due under the NotC second. to prcpayment charges due under the Note; third. to amounts payabte under paragraph 2; fourth. to interest due; and last, to principal due. 4. CUarge~ Liens. Borrower shall pay all taxes, assessments, charges. fincs and impositions attributable to the Propet~ty which may attain priority over this Security Instrument. and Icasehold 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, Borrowtr shall pay them on time directly to the person owod payment. 8onower shall promptly furnish to Lender aU notices of amounts to be paid under this paragraph. If 8onower ma6ces these payments direcdy, Borrower shall prompNy furnish to Lender receipts evidencing the payments. Bonower shall promptly discharge any lien which has priority over this Socurity Instrument unless Borrower: (a) agrees in writing to the payment of the obligation socurad by the Gen in a manner acceptabl~ to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lirn in. legal proceodings 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 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 sei forth above within 10 days of the giving of notice. S. Haurd Insurance. Borrower shall keep the improvements now eaisting or hereafter erected on the Property insured against loss by firc, hazards included within the term "eatended coverage" and any other hazards for which Lender ~ requires insurance. 'This insurance shall be maintain~d in the amounts and for the periods that L.ender res~uira. The insurance carrier providing the ins~rance shall be chosen by Bonower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall hav~ the right to hold the policies and renewals. If Lender requires, Borcower shall 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 promptly by Borrower. , Unless Lender and Borrower otherwise agree in writing. insurantx proce~ds shall be applied to restoration or repair ~ of the Property damagcd. if the ratoration or repair is a;onomically feasible and I.ender's security is not lessened. If the ~ restoration or repair is not oconomically feasible or Lender's security would be lessened. the insurance proceeds shai! be ~ applied to the sums secured by this SecuritY Instrumrnt, whether or not thtn due, with any =xcas paid to Borrowa. If ~ Borcower abandons ihe Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ~ offered to xttle a claim. then Lender may collect the insuranc~ proceais. Lender may use the proceeds to repair or ratore the Property or to pay sums secuted by th~s Security Instrument, whether or not then due. The 30-day period will bcgin when the notice is given. _ Unkss Lender and Borrower othmvise agra in writing, any appGcation of proceeds to principal shali not,extend or postpone the du~ 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 Lender. Borrowar's right to any insurance pol:cies and proceeds resulting ~ from damage to the Property prior to ttu acquisition shali pass to Lender to the extent af the sums secured by this Security ~ Instrument immediately prior to the acquisition. ~ 6. Presenadon and Mdeteoance ot Property; I.es~cho{ds. Borrower shall not datroy, damage or substantially ~ change the Property~ allow the Property to deteriorate or commit waste. 1f this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lesse, and if Borrower acquires fee title to the Property. the lessehold and F fee title shall not merge unless Lrnder agrea to the merger in writing. ~ 7. Protection at I.ende~': Rlghb is the Propert~, Mort~e Inwru~ce. If Borrower fails to perform the ~ covenants and agreements contained in this Security Instrumrnt. or there is a legal procceding that may significantly affxt ~ Lender's rights in the Property (such as a proceeding in ban~ruptcy. probate, for condemnation or to enforce laws or ' regulations), tt~en Lender may do and pay for whatever is necessary to protxt the value oithe Property and Lender's rights ~ in the Property. Ltnder's actions may include paying any sums secured by a lien which has priority over this Security [nstrument, appearing in court. paying reasonabk attorneys' fas and entering on the Property to make r~pairs. Although ~ L.ender may take action under this paragraph 7. Lender doa not have to do so. Any amaunts disbursed by Lender under this paragraph 7 shali bocome additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms af payment, these amounts shall bear interest from the date of disbursemtnt at the Note rate and shafl be payable, with interest, upon notice from Lender to Borrowet ~ requesting paymcnt. ~ ° R 512 PAGE 924 BOOK ~ ' , ~ ~ - _ , , ,.~r . :a~ ,F:.~~y~. ~ . . . - _ Y.._.._ _ ~ _