HomeMy WebLinkAbout0987 UNIFORM CovENAtvTS. Borrower and Lender covenant and agree as follow~:
1. Paya~ent of Princtpal aad Inltrest; Prepayment aod I.ste Cbuges. Borrower shall promptly pay when due
the principal otsnd int~rest on the debt evidenced by th~ Note and any prepayment and late charges due under the Note. ,
2. fi~n~ tor Tiuces and Iasuraaee. Subj~et to applicable law or to a written waiver by Lender. Borrower shail pay
to Lender on the day monthly payments a~e due under the Note, until the Note u paid in full, a sum ("Funds") equal to `
one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly ;
teasehold payments or ground rents on the Pro~erty~ if any; (c) yearly hazard insurance prrmiums; and (d) yearly ~
mortgage insurance premiums, if any. These items are callod "escrow items." Len~er may estimate th~ 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 of which are insured or guacanteod by a federal or !
state agency (inctuding Lender it Lender is such an institution). Lender shall apply the Funds to pay the escrow items. i
Lender may not charge for holding and applying the Funds. analyzing the account or verifying the escrow items, untess
Lender pays Borrower intertst on tho Funds and applicable law permits Lender to make such a charge. Borrower and ;
L.ender may agra in writing that interest shall be paid on the Funds. Unlas an agrecmrnt is made or applicable law '
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requires interest to be paid. Lender shall not be requirod to pay Borrower any interest or earnings an the Funds. Lender
shall give to Borrower, without chargt, 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 pledged as additional socurity for the sums secured by
this Security Instrument. ~
If the amount of the Funds held by Lender. together with the future monthly payments of Funds payable prior to `
the due dates of the escmw items. shall exceed the amount required to pay the escrow items when due, the ezcess shall be,
at Barrower's option, either promptiy repaid to Bonower or credited to Borrower on monthly payments of Funds. If the !
amount of tht Funds held by Lender is not suificient to pay the escrow items when due, Borrower shall pay to Lender any
amount nocessary to make up the deficiency in one or more payments as required by L~mder. j
Upon paym~nt in full of all sums socurod by this Security lnstrument. L.ender shall promptly refund to Borrower !
any Funds held by Lxndcr. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately prior to the sate of the Properiy or its acquisition by Lender, any Funds held by Lender at the time of
` application as a crodit against the sums socurai by this Stcurity Instrument.
3. Appllcstion of Paymcnts. Unless applicable law provides otherwise, a!1 payments received by I.ender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the ~
Note; third. to amounts payable under paragraph 2; fourth. to interest due; and Iast, to principal due.
4. C1?argea; Liens. Bonower shall pay all taa~es, assessments, charges, fines and impositions attributable to the t
Property which may attain priority ovcr this Socurity Instrument, and leasehold payments or ground rents, if any. ;
Borrower shal! pay these obligations in the manner provided in paragraQh 2, or if not paid in that manner. Borrower shall ~
pay them on time directly to the person owed paym~nt. Borcower shatl promptly furnish to Lender all noticcs of amounts ~
to be paid under this paragraph. If Borrow~r makes these payments directly, Borrower shall promptly turnish to Lender ~
receipts evidencing the payments. ~
Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrces in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good ~
Faith the lien by, or defends against enforcement of the lien in, lcgal proceedings which in the I.ender'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 subjcet to a tien which may attain priority over this Security Instrument, I.ender may give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one ar more of the actions set forth above within 10 days
of the giving of notice. '
S. Hazard Insuraace. Borrower shal! keep the improvements now existing or hereafter erected o~ the Property
insured against loss by 6re, hazards included within the term "extended coverage" and any other hazards for which Lender -
requires insurance. This insurance shal! be maintaineci in the amounts and for the periods that Lender requires. The
insurance camer providing the insurance shall be chosen by Borrower sub}ect to Lender's approval which shall not be
unreasonably withhtld. i
Ail insurance policies and renewals shall be accepta~le to Lender and shall include a standard mortgage clause.
Lender shall have the right to hold the policies and renewais. If Lender requires, Borrower shall promptly give to Ixndrr
alI receipts of paid premiums and renewal notices. In the eveni of toss. Borrower shall give prompt noiice to the insurance
carrier and Ltnder. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Bottower otherwise agree in writing, insurance proceeds shail be applia3 to restoration or repair
of the Property damaged, if the restoration or repair is economically feasible and L.ender's security is not lessened. If the
restoration or repair is not oconomically feasible or Lrnd~r's security would be iessened, the insurance proceods shall be
applied to the sums secured by this Socurity Instrument. whether or noi ihen ~ue, with any eacess paid to Borrower. If
Borrower abandons the Property, or does r~ot answer within 30 days a notice from Lender that the insurance carrier has
oSered to settle a claim, then Lender may collect the insurance proceeds. I.ender may use the praceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period wiU begin
when the notice is given.
Untess Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
postpone the due date of the monthly payments referrdd to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph l9 the Property is acquired by Lender, Borrow+er's right to any insurance policies and proceeds resutting
from damage ta the Property prior to the acquisition shall pass to I.ender to the eatent of the sums seeured by this Security
Instrument immediately prior to th~ acquisition.
6. Preaenatioee swd Mainteaaace ot Property; I,easehotds. Borrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorait or cummit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fa title to the Property, the leasrhold and
fee title shall not merge unless Lender agrces to the merger in writing.
7. Protectioe o! I.tnder's Rig6ts in the Property; Mortgage Insurance. If Borrower fails to perform fhe
cevenants and agreements contained in this Security Instrument, or thtre is a legal proczeding that may significanily af~eci
Lender's rights in the Prvperty (suct? as a proceeding in banicruptcy, probat~, for condemnation or to enforce laws or
regulations). then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums securod by a lien which has priority over this Security
Instrument, appearing in court, paying reasonable atturneys' tas and entering ~n the Property to make repairs. Although
Lender may take action under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by I.ender under this paragraph 7 sha!! bocome additional debt of Borrower secured by this
Socar~ty Instrument. Unless Borrower and Lender agree to other terms of payment, thae amounts shall besr interat from
the date of disburxment at the Note rate and shall be payable, with interest, ~pon notice from L.ender to Borrower
r~Guesting payment.
sao~512 PAGE 986
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