HomeMy WebLinkAbout0930 UNIFORM CovGNANTS Iloffo~l'CI' 1ItCI LCt1tICf COVenant ~ind agree as folla~ti~s:
1. Payment af Principa) and Interest; Prepayment and I.ate Charges. I~nrrotis~cr shall promptl~• pa~~ ~~~hrn due
the principa) of and interest on the debi e~~idenced by ihe Nate and any prepayment and 1~?te charges due under the Notc.
2. Funds for Taxes and Insurance. Subject to applic~ble law or to a written waiver by Lender, I3orro~~~er shall pay
to Lender on the day rnanthly paymems are due under the Nate, until the Note is paid in full, a sum ("Funds") equal to
one-twelfth of: (a} yearly taxes and assessments which may att~in priority aver this Security Insirume~~t; (b) yearly
leasehotd payrnents or ground rents an the Yroperiy, if any; (c) yearly har.ard insurance premiums; and (d) yc~trly
mortgage insurancc premiums, if any. These items are called "escrow itcros." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of future escro~v items.
The Funds shall be held in an institution the deposits or accow~ts of ~vhich are insur..:i or gt~a~ anteed by a federat c~r
state a~ency (including Lender if Lender is such an institutian). Lender shall apply the Funds to ray the escro~v items.
' Lender may not cha~ge for holding and applying the Funds, analyzing the account ar verifying the cscro~~~ items, unless
Lender pays I3orro~ver interest on the Funds and applieable law pecmits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shail be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid, Lender shall not be required to pay Borro«•er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annu~~l accounting of the Fur.ds showiag credits and debits tc~ the Funds and thc
purpose for which each debit to the Funds was made. 'The Funds are pledged as additicmal security for the sums secured by
this Security lnstrument.
If the amount of the Funds held by Lender, together N~ith the future monthly paymer.ts of Funds payable prior to
the due dates of the escrow items, shall exceed the amount reyuired to pay the escro~v items when due, the excess shall be,
at Borrower's option, either. promptly repaid to Borrower or creditec~ to Borrower on monthly payments of Funds. If the
amount of the Funds hetd by Lender is not sutficient to pay the escrow items when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon payment in full ot all sums secured by Ihis Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under ~aragraph 19 the Property is sold or acquired by Lender, Lender shall appty, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held b~~ I.ender at the tinte of
. appGcation as a credit against the sums secured by this Security lnstrument.
3. Applieation of PAyments. Unless applicable law provides other~aise, all payments recei~~ed by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under tt~e Note; second, to prepayment rharges due under tite
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrower shall pay all taxes, assessmenis, charges, fines and impnsitions attributable to the
Property which may attain priority over this Security Instrument, anc~ leasehold payments or ground rents, if any.
I3orrower shai! 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 ~x:rson o«~ed pa}~ment. Borro«~er sha11 promptly furnish to Lender all notices oTamounts
to be paid under this paragraph. If Borro~~~er makes these payments directly, Borrower shall promptly furnish to Ler~der
j receipts evidencing the payments. _ .
I3orrower shall promptly discharge any lien «~hich has priorit}~ over this Security Instrument unless $orrower: (a)
agrees in writing to the payment oFthe obligation secured by the lien in a manner acceptable to Lender, (U) 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
prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the (ien an
agreement satisfact~ry to Lender subordinating the lien to this Security Instrumcnt. If Lender determines that any part of
the Property is subject to a lien which may attain priority o~~er this Security Instrun~ent, Lender may give Borro~~~er a
notice identifying the lien. Borrower shall satisf~~ the lien or take one or more of the actians set forth above within 10 ciays
of the giving of notice.
S. Nazard Insurance. Borrow•er shall keep the improvements no~v existing or hereaRer erected on the Yroperty
insured against loss by fire, hazards included ~vithin the term "extended cc~verage" and any other hazards for ~ti~hich Lender
requires insurance. This insurance shall be maintained in the antounts and for the ~,eriods t}~at Lender reyuires. The
insurance carrier providing the insurance shal! be chosen by I3o!-row~er subjert to Lender's appro~~al ~rhich shall not be .
unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage ciause.
; Lender shall have the right ro hold the policics and rene~~~als. If Lender reyuires, I3orrower shall promptly gi~~e to Lender
ali receipts of paid premiums and renewal notices. In the event of loss, Borrott~er shall gn~e prompt notice to the insurance
. carrier and Lender. Lender may make proof of loss if not made promptlp by Borrow~r.
Unless Lender and E3orrower other~;~ise agree in ~vriting, insurance proceeds shall be applied to restoration or repair
of the Property damaged, ii'the resroration 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 shatt be
applied to the sums secured by this Security Instrument, e~•hether or not then due, with any excess paid to Borro~~?•er. If
Borrower abandons the Property, or does not answer within 30 days a notire from Lender that the insurance carrier has
ofl~ered to settfe a claim, then Lender may collect the 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 then due. The 30-day period will begin
when the notice is given.
Untess Lender and Borro~ver otherwise agree in ~vriting, any application c~f prnceeds to principa) shall not exte~~d or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change Ihe amount of the payments. If
_ under paragraph 19 the Property is acquired by Lender, Borrow~er's right to any insurance policies and prcceeds resulting
from damage to the Property prior to the acquisition st~all pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preservation and Maintenance of Property; Leasehotds. T3orrower shalt not destroy, damage or substantiall~~
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
'~g; Borrower shaU comply with the provisions of the lease, and if Borrower acyuires fee title to the Property, the leasehold and
. fee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights in the Property; Mortgage Insurance. If f3arrow•er fails to perform the
covenants and agreements eontained in this Security Instrument, or there is a legat proceeding that rnay significar~tly af~'ect
~ Lender's ri hts in the Pro eri
g p y(such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
' regulations), then Lender may do and pay for whatever is necessary to protect the ~~alue of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a lien w•hich has priority over this Security
- Instrument, appearing in court, paying reasonable attorneys' fees and entering on 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 Lender under this paragraph 7 shall become additional debt of Borrawer secured by this ~
Seciuity Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
~ requesting payment.
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