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HomeMy WebLinkAbout0916 % UN1FORM CovENANrs. Borrower and Lender covenant and agree as follows: , 1. Payment of Prtncipal and Interest; pcepayment and I.ate Gfiarges. IIorrower shalt pramptly pay when due th~ Frincipal oP~nd interest on the debt evidenced by the~Note and any prepayment and late charges due under Ihe Note. 2. ~nds for Taxes and Insurance. Subject to a~plicable iaw ar to a writtr~~ waiver by Lcnd~r, Barra~Yer shall ~,ay to Lender on the day monthly payrnents are due under the Note, ur~til the Note is paid in full, ~ sum ("Funds") equal to one•twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Propeety, if any; (c) yea.rly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any.1'hese items aee called "escrow items." Lender may estin~ate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the depasits or accounts of which are insured or guaranteed by a federal or state agency (including Lender 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 Fuads, analyzing the zccount or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits I.endet to make such a charge. I3orrower and Lender may agree in writing ttiat interest shall be paid on ihe Funds. Unless an agreement is made or applicable law requires interest t~ be paid, L~nder shall not be r~quired to pay Borrower any interest or earnings on the Funds. Lender . shail give to Borrower, without eharge, an annual accounting of the Funds showing credits and debits to the Funds and the ' purpose~ for which eaeh debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds hetd by L,ender, together with the future monthly payments of Funds payable prior to ' tt~e due dates of the escrow items, shall exceed the amount required to pay the escro~v items when due, 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 the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or mare paynienis as required by I.ender. Upon payment in full of a1t sums secnred by this Seeurity Instrument, Lender shall promptly refund io Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held ny Lender at the time oF application as a credit against the sums secured by this Sc-curity Instrument. 3. Appllcation of Payments. Unless upplicabtc law provides otherwise, all payments received by Lender under . paragraphs 1 and 2 shall be appl(ed: 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 tast, to principal due. 4. Charg~es; Liens. Borrower ~hall pay all taxes, assessments, charges, flnes and impositions attributable to the Property which may attain priority over this Security Instrument, and teasehold payments or ground renis, 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 payrnent. Borrower shall proii~ptly furnish to Lcnder att notices of amounts to be paid under this paragraph. IP Borrower makes these payments directly, Borrower shall promptly Purnish to Lendzr i receipts evidencing the payments. E Borrawer shall promptly discharge any lien which has priority over this Security Instrument unless I3orro~ver: (a) agrees in writing to the payment of the obligation secured by the lien in a manner accepiable 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 prevent the enforcement of the lien or forfeiture of any part of the Yroperty; 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 Yroperty is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shalt satisfy the tien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shali be chosen by Borrower subject to Lender's approval which shall not be unreasonably withlsetd. Ap in~urance policies and renewals shall be acceptable to Lend~r and shall include a standard mortgage clause. L'ender shall have the right to hold the policies and renewals. If Lender requires, $orrower shalt promptty 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 toss itnot made promptly by Borrower. Unless Lender and Barrower otherwise agree in writing, ins~srance proceeds shall t~ applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restorattion or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shail be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borro~ver. If Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has ofFered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sams secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. - Unless Lender and Borrower otherwise agree in writing, any application of praceeds to principal shall nc~t extend or postpone the due date of the monthly payments referred to in paragraphs l and 2 or chaage the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's rigt?t to any insurance poli~ies and proceeds resulting from damage to the Property prior to the acquisition shalt 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; Leaseholds. Borrc~wer shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Aorrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee tiile shal! not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform ihe covenants and agreements contained in this Security Instrument, or there is a legai proceeding thai may significantly a~'ect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations}, then Lencicr 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 secured by a lien which has priority over this Security Insirument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Len~er dces not have to do so. Any amounts disbursed by Lender under this paragraph 7 shail b~come additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to oiher terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, witi~ ir~terest, upon not'sce from Lender t~ Borrower requcsting payment. ~ ~ 0 R . aooK 67;~ P~c;~2~.11 . . B00x5~O PACE~.5E'~ ~ . , • ~ BOOK PAGE