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HomeMy WebLinkAbout0981 UNIFORM COvENANTS. Borrower and Lender covenant and agree as follows: l. Payrnent o! Prtnetpal and Iaterest; Prep~ymeat and I.~te Charges. Borrower shall promptly pay when due the principsl of and inte~est on the debt evidenced by the Note and any prepayment and late charga due undcr the Note. 2. Fuada for TAxes ~nd Insur~nce. ' Subject to applicable law or to a written waiver by Lender, Borrower shaU pay to Lender on the day monthly payments are due under the Note, untii the Nate is paid in full, a sum ("Funds") equal to one-twctRh of: (a) yearly tazes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property. if any; (c) y~arly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are cailed "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 inatitution the deposits or accounts of which are insur.,~ or guarant~cd b~~ a Federa! or ; state agency (including Lender if Lender is such an institution). Lender shal! apply the Funds to pay the escrow items. ~ I.ender may not charge for holding and applying the Funds, analyzing the account or veriPying the escrow items, unlas i I.ender pays Horrower interest on the Funds and applicable law permits ~,ender to make such a charge. Borrower and ~ Lender may agreE in writing that interest shall be psid on the Funds. Unless an agreement is made or applicable law ~ requires interest to be paid, Lender shall not be required to pay Bottower any interest or earnings on the Funds. I.ender ~ shall give to Borrower, without charge, an annual accountir~g of the Fur.ds showing cr~dits and debits to tht Funds and the ~ purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by ` this Security Instrument. 3 If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to i the due dates of the escrow items, shall exceed the amount required to pay the escrow items when dae, the excess shall be, ; at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the $ amount of ihe Funds held by Ixnder is not sufl5cient to pay the escrow items when due. Borrower shall pay to Lender any ~ amount nece~sary 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 Instrume~t, Lender shail promptly refund to Borrower ' any Funds held by Lender. It under paragraph 19 the Property is sold or acquired by Lender. Lender shall apply, no later than immediately 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 secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender 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 last, ro 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 leasehnld 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, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts ~ to be paid under this paragraph. If Borrower makes these payments directly, $orrower shall promptly furnish to I,ender g receipts evidencing the payments. ~ ~r Dorrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a) ~ agrees in writing to the payment of the obligation secured by the lien in a manner acceptabte to Lender; (b) contests in good s faith the lien by, or defends against enforcement of the lien in, legal praceedi~gs w6ich in the Lender's opinion aperate to prevent the enfarcement 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 lnstrument. If Lender determines that any part of f the Property is subject to a lien 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 or more of the actions set forth above within t0 days i of the giving of notice. ` 5. Hazard Insurance. Borrower shall keep the improvements now exisiing or hereafier erected on the Property i insured against toss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. 'This insurance shall be mainlained in the amounts and for the periods that I.ender requires. The insurance carrier providing the insurance shall be chosen by B~*rower subject to Lender's approval which shall not be unreasonably withheld. ~ j All insurance policies and renewals shatl be acceptable to Lender and shal! include a standard mortgage clause. ~ ! Lendcr shall have the right to hold the policies and renewals. If I,ender requires, Borrower shall promptly give to Ipnder ; all receipts of paid premiums and renev~al 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, insurance proceeds shalt be applied to restoratiort or repair ~ ~ oi'the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the = ~ restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be f ~ applied to the sums secured by this Security Instrument, whether or not then due. with any excess paid to Borrower. If ~ Borrower aband~ns the Property, or dces not answer within 30 days a notice from Lender ihat the insurance carrier has ~ ~ ofi'ered to settle a claim, then Lender may collect the insurance proceeds. Lender may.use the proceeds to reQair or restore = ~ the Property or to pay sums secured by this Security Instrument, whether or ~ot then due. The 30-day period wi)1 begin ~ ` when the notice is given. ~ Unless 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 referred to in paragraphs 1 and 2 or change the amount of the payments. If ` under paragraph 19 the Property is acquired by I.ender, Borrower's right to any insurance poticies and proceeds resulting ~ from damage to the Property prior to the acquisition shal! pass to Lender to the eatent of the sums secured by this Security ~ Instrument immediately prior to the acquisitian. ~ 6. Preservation and Maintenance of Property; I.easeholds. Borrower shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. [f this Security Instrument is on a leasehold, Borrower shall comply with the peovisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and ~ fee title shall not merge unless Lender agrees to the merger in writing. ' 7. Protection of I.ende:'s Rights in the Property; Mortgsge Insurance. If Borrower fails to perf'orm the ~ covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afiect = Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ regulations), then I,ender may do and pay for whatever is necessary to protect the vaiue of the Property and L,ender's rights in the Property. Lender's actions may include paying any sums secared by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and enterin~ on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, Lender dces na¢ have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this ~ Security Instrument. Unlcss Borrower and Lender agree to other terms of payment, these amounts shalt bear inter~st Prom ~ the date of disbursement at the Note rate and shalt be payable, with interest, upon notice trom Lender to Borrower ~ requesting payment. ~ ~ ~ ~ ~ BooK 5~3 PACf 974 : ~ ~ ~ ~ ~