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HomeMy WebLinkAbout0921 UNIFORla9 CovENAN'TS. Borrower ~nd L.ender covensnt and agree as foUows: ~ 1. Payment of Prtncipal And ~nterest; E'repayment and Late (~fiarges. Borrower shalt promptly pay when due ~ the principal of and inter~.ct on the debt cvidenced by the Note and any prepayment and late charges due Under the Note. ~ 2. Fund3 far Texes and Insursnce. Subjeat to appficable !aw or to a written waiver by Le~~der, ~3orrower shall pa~~ j to Lender on the day monthly payments are duc uncier the Note, until the Note is paid in full, a sum ("Funds") equui to ~ one•twelRh of: (a) yearly taxes and assessments which may attain priarity over this Security Instrument; (b) yearly leasehold payments or ground rents on the Propcrty, if any; (c) yearly huzard insurance premiu?~r~s; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." I.ender may estimate the Funds due on the . basis ofcurrent data and ceasonable estimat~ of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insu~ed or guaranteed by a federal or ~ state agenay (including Lender if I.ender is such an institution). I,ender 5ha11 apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing ihe account or ver+fying the escrow items, unless ~ ~ Lender pays Borrower interest on the Funds and applicable taw permits I.ender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law ~ ~ requires interest to be paid, I,ender sha11 not b~ required to pay Horrower any interest or earnings on the Funds. Lender ~ > shall give to Borrower~ without charge, 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 adrlitiona~ security 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 escrow items, shall exceed the amount required to pay ~the escrow items when due, the excess shaU be, ~ ~ ai Borrower's option, either promptly repaid to Bonower or credited to Borrower on monthly payments of Funds. It' the ~ amount of the Funcis held by Lender is not sufficient 4o pay the escrow items when due, Borrower shall pay to Lender any amo~unt necessary to make up the deficiency in one or more payments as required by I,cnder. Upon payment in full of all sums securecl by this Seeurity Instrument, Lender shall promptly refund to Borrower . ~ any Funds held by I.ender. If under paragraph 19 the Propcrty is sold or acquired by Lender, Lender shall ~pply, no later than immediately prior to the sale of the Property or its acquisition by L,ender, any Funds ~eld by Lender at the time of application as a credit against !he sums secured by this Security Instrument. 3. Application of Payments. Unless ~pplicahle law provides otherwise. all payments received by I,ender under ! paragraphs 1 and 2 shali be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payabte under paragraph 2; fourth, to intere~t due; and last, to principal due. 4. Charqes; Liens. Borrower shall pay all taxes, assessments, charges. fines and impositions attributable to the ~ Property which may attain priority over this Security Instrument, and leasehold 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 sj~all promptly furnish to Lender all notices of amounts , to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall prompt(y furnish~to Lender ~ receipts evidencing the payme~ts. ~ Borrower shall promptty discharge any lien which has priority over this Security Instrument unless Borrower: (a) ~ agrees in writing to the payment of the obiigatian secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enfc,rcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcemenz of tiie lien or forfeiture of any part of the Property; or (c) secures Prom the holder of the lien an ~ agreement satisfactory to Lender subordiriating the lien to this Security Instrument. If Lender determines that any part of t ~ the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borr~wer a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Haz~rd Insurance. Borrower shall keep the improvements now existing or heeeafter erected on the Property insured against loss by fire, hazards included within the term "extencied 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 shall be chosen by Borrower subjeet to Lender's approval which shall not be ; unreasonably withheld. ' A!1 insurance policies and renewals shall Ue acceptable to Lender and shall include a standard mortgage clause. ~ Lender shall have tl~e right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewat notices. In ttie event of loss, Borrower shall give prompt «otice to the insurance carrier and Lender. Lender may make proof of toss if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ~ 1 of 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 eeonomically feasible or Lender's security would be lessened, the insurance proceeds shalt be i applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. 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 sums secured by this Security Instrument, whether or not then due. The 3Q-day period will begin ; when the notice is given. ~ ~ Unless Lender and Borrower otherwise agree in tvriting, any application of proceeds to principal shall not extend or a postpone the due date of the monthiy payments referred to in paragraphs 1 and 2 or change th~ amount of the payments. If ` under paragraph 19 the Property is acq~~ired by Lender, Borrower's rig}it to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrurnent immediately prior to the acquisition. ~ ~ ` 6. Preservation and Malntenance of Progerty; Leaseholcls. Borrower shalt not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of the lease, and if Barrower acquires fee title to the Property, the leasehold and fee titte shall not merge unless I.ender agrees to the merger in writing. ~ 7. Protection of Ixnder's Rights in the Property; Mortgage InSUrance. If Borrower fails to perform the c~venants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afl'ect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regutations), 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 secured by a lien which has priority or•er this Security ' Instrument, ap~+earing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, Lender dces not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower se~;ureci by this Security Tnstrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from ~ tt~e date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower a requesting payment. ~ t ~ f ~ goo~ ~15 PA~E 9~.9 f; .