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HomeMy WebLinkAbout0980 UN1FORM CovEtvANTS. 8orrower and Lender covenant and agree as follows: 1. Psymeat ot Prieclpal aed Iatera~ Pr~meat asd Lte G3u~es. 8orrower shal! promptly pay when due the principnl of and interest on the debt evidenctd by the Note and any prepayment and late charges due under the Note. 2. ~ for Ta~css aNd Iewrasce. Subject to applicabk law or to a written waiver by Lender, Borrower shall pay . to L.ender on the day monthly payments are due under che Note, until the Note is paid in full, a sum ("Funds") oqua! to one-twelfth of (a) yearly wc~.s and essessrtients Mhich may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents oa the Property. if any; (c) Yearly haurd insurance premiums; and (d) yearly mostgage insurance premiums. if any. '1'hese items are called "escrow items." L,~nder may estimate the Funds due on the basis of canent data and nssonable estimates of futun escrow items. The Funds shall be held in an institution the deposits or acoounts of which ase insurod or guarantoed by a foderal or state agcncy (inclnding Lender if Lendu is such an institution). Ltinder shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Ftwds, analyzing tht account or verifying the escrow items, unless Lender pays Borrower interest oq the Funds and app6cable law permits Lender to make such a charge. Bonower and L~nder may agree in writing that interest shall be paid on the Funds. Unless an agrament is made or applicable !aw reqe?ires interest to be paid, Lender shall not be roquired to pay Bonower any interest or earnings on tht Funds. L.ender shall give to Borcower, without charge. an annual aooounting of the Funds showing crodits and debits to the Funds and the purpose for which each debit to the Funds was made. 'Tht Funds are plodged as additional socurity for thc sum~ socured by this Security Instrumrnt. If the amount of the Funds held by Lender. together with the futun monthly payments of Funds payable prior to the due dates of the escmw items. shall exoeed the amount required ta pay the escrow items when du., the excess shall b~. at Borrower's option, eitha promptly repaid to Borrower or creditai to Borrower on monthly payments of Funds. If the smount of the Funds held by Lender is not su~cient to pay the escrow items when due, Borcower shall pay to Lender any amount no~ssary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrummt, Lender shall promptly refund to 8orrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquirod by Lender, I.ender shall apply, no later than immodiately prior to the sale of the Properiy or its acquisition by Lender. any Funds held by Lender at the time of ~ application as a credit against the sums securod by this Socurity Instrument. 3. Appikxdoe of Pay~eab. Unless appGcable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be appliod: 6rst, to late charges due under the Note; socond. to prepayment charges due under the Notr, third. to amounts payable under paragraph 2; fourth~ to interest due; and last, to principal due. 4. C~arges; Ilees. Borrower shall pay all taxes, assessments, charges, 6nes and impositions attributable to the I Property which may attain priority over this Security Instrument, and leasehald paymrnts or ground rents, if any. ~ ~orrower shall pay these obligations in the manner provided in par~agraph 2, or if not paid in that manner, Borrower shall pay them on time direcdy to the person owed payment. Borrower shall promptly furnish to I.ender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing ihe paymtnts. Borrower shall prompily discharge any Gen which has priority over this Socurity Instrume:~t unless Honower. (a) agrees in writing to the payment of the obligation secured by tho Urn 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 prevrnt the enforcement of the Gen or forfciture of any part of the Property; or (c) stcures from tht holder of the lien an agroement satisfactory to Lender subordinadng the lien to this Socurity Inswmtnt. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, I.ender may give Bonower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth abo~e within 10 days of the giving of noticx. 5. Ha~rd Iffinrance. Borrowrer shall keep t6e improvements now existing or hereafter erected on the Property insured against toss by Hre, hazards included within the term "extendod coverage" and any other hazards for which Lender . requires insurancx. This insurance shall be maintainai in the amounts and for the periods that Lender roquires. The i insuranct carrier providing the insurance shaU be chosen by Bonower subject to Ixnder's approval which shall not be ! unreasonably withheld. ~ All insuranct policies and renewals shall be 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 F all rxeipts of paid premiums and renewal noticac. 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 Bonower. r Unless Lender and Borrower otherwise agee in writing. insurance procads shal! be applied to restoration or repair ~ of the Property damaged, if the restoration or repair is oconomically feasible and Lender's security is not lessened. If the ~ resioration or repair is not a:onomically feasible or Lender's sccurity would be lessened, the insurance procads shall be ~ applied to the sums secured by this Security Instrument, whether or not thrn due, with any eaccess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from I.ender that the insuranoe carrier has offered to settle a claim, then Lender cnay collxt the insurance procoeds. I.ender may use the proceeds to repair or restore the Proptrty or to pay sums securod by this Security Instrumrnt, whethtr or not thcn due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any applieation of procceds to principal shall not eatend or ~ postpone tha due date of the monthly paymeats referred to in paragraphs 1 and 2 or change the amount of the payments. If ~ under paragraph 19 the Property is acquirai by I.ender. Borrower's right to any insurance policies and procaeds resulting ~ from damage to the Property prior to the acquisition shall p~ss to Lender to the extent of the sums secured by this Security Instrument imme~iately prior to the acq~isitian. 6. Praer~stion ~sd Maintenance oI Property; Lea~ehofds. Borrower shall not destroy, damage or substantially change the Property, aUow the Property to deteriorate or commit waste. If this Security Insirument is on a lea~ehold, Borrower shall comply with the provisions af the lease, and if Borrower acquires fee titie to the Property, the le~sebold and ~ foe title shal! not merge unless Lender agrees to the merger in writing. ~ 7. Protection oi I.endtr's Righta in the Propeety; Mortg~ge Insnrance. If Borrower fails to perform the . " covenants and agr~ements contauned in this Security Instrument, or there is a legal proceeding that may significantly atfect Lenda`s rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to rnforce laws or ~ regulations), then Lender may do and pay for whatever is necessary W protect the value of the Property and Lender's rights ~ in the Property. Lender's acticsns may include paying any sums securod bp a lirn which has prioriry over this Socurity ~ Instrumcnt, appearing in court. paying reasonable attorneys' fas and enteting on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, I,ender does not have to do so. Any amounts disbursod by Ltnder under this paragraph 7 shall bocome additional debt of Borrower socurod by this Security Instrument. Linless Borrower and Ler~dtr agra to other terms of payment. these amounts shall bear interest from the date of disburxment at the Note rate and shall bt payable, with interest, upon notice from Lender to Borrower ~ requesting payment. ~ ~ R ~ 12 PRGE 979 ~ ~ao~5 ~ _ . _ - - ~~:-=:o ~ ~ ° - ~ L r . _ . - - . - _ _ ; _ ~ . 1 - -