HomeMy WebLinkAbout0936 UNIFO[2R4 COVENANTS. Borrower and l.ender covenant and agree as folic~ws:
1. Payment of Principal and Interest; Prepay~ent and l.ate Char~es. Borrower shail prompdy pay when due thc principal
of and interes~ an the debt evidenced by the Nete anci any prepaym~nt and la~c charges due_uMler thc Notc.
2. E~'unds for Taxes and lnsurance. Subject ta applicable luw or to~i wFitteKwaiver 6y L'et~tter, Borrower.shall pay to l.ender
on the day manthly payments are due under the Natc, unli~ Ihe No1e is pai~l in full, H aum ("FunJs") ~qual to anc-tw•clRh of: (a)
yearly taxes s~nd assessmcnts which may attain priority over this Security tnstrument; (b) y~arly Icaseholci payments or ground rents
on the Propeny, it' any; (c) yearly l~azard insuranc~ premiums; and (d) yeArly mortgage insurance premiums, if any. These items
ar~ calied '•escrow items." I.ender may estimate the Funds due on the basis of current data and reasonablc estimates of future escrow
items. '
The Funds shail be held in an institution the deposits or accounts af ~vhich are insured or guaranteed by a federal or state agency
(including Lender if l.ender is such an institution). Lender shall apply the Funds to pay ttic escrow items. Lender may not charge
for hoiding and applying the Funds, analyzing th~e account or verifying the escrow items, unless l.ender pays Borrower interest on
the Funds and applicable law permits L.ender to make such a charge. Borrower and l.ender may agree, in writing that ~nterest sha{I
be paid on the Funds. Unless an agreement is made or appiicable Iaw requires interest to be paid, Lcn~ier shall not be required to
pay Borrower any interest or earnings on the Funds. l,ender shall give to Borrower, without charge, an annual accounting of the
Fun~is 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 security for the sums secured by this Security Instrument.
If the amount of the Funds held by l.ender, together with the futurc monthly paym~nts of Funds payable prior to the duz dates
, ot'the escrow items, shall exceed the amaunt required to pay the escrow items when due, the excess shall be, at Borrower's option,
either prompdy repaid ta Barrower or credited to Borrower on monthly payrnents of Funds. If the amount of the Funds hctd by Lender
is not sufficient to pay the escrow items when due, Borrower shatl pay to l.ender any amount necess~ry to make up the deficiency
in one or mare payments as required by I.ender.
Upon.payment in full of all sums secured by this Security Instrument, L.ender shall promptly refund to 6orrower any Funds
held by Lender. If under paragraph t9 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately
prior to the sale of the Property o~ 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 applicablc law provides otherwise, all payments reccived by Lender under paragraphs
I and 2 should be applied: first to amounts payable under paragraph 2; second to interest; and last to principal.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to tlie Property ~vhich
may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shal! pay these obligations
in the manner provided in paragraph 2, or if not paid in that manner, Borrower sfiall 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 Sorrower makes these
payments direcdy, Borrower shall promptly furnish to Lender receipts evidencing the payments.
Borrower shalf promptly discharge any lien which has pciority over this Serurity Instrument unless Borrower: (a) agrees in
writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) cQntests in good faith the licn
~ by, or defends against enforcement of the lien in, legat proceedings which in the I.endcr's opinion operate ro prevent the enforcement
~ of the lien or forfeiture of any part of the Properiy; or (c) secures from the holder of the lien an agreement satisfactory to Lender
° subordinating the lien to this Security Instrum~nt. If Lender determines that any part of the Property is subject to a lien which may ~
attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy thc lien ~
~ or take one or rrtore of the actions set forth above within 10 days of the giving of notice.
€ 5. Hazard Insurante. Borrower shall keep the improvements now existing or hereafter crected on the Property insured against
loss by fire, hazards included within the term "extended coverage" and any other hazards for which I.,~nder requires insurance. This
~ insurance shafl be maintained in the amounts and for the periods that I.ender requires. The insurance carrier providir~g the insurance
~ shall be chosen by Borrower subject to Lender's approval which shall nQt be unreasonably withheld. „
t All insurance policies an~ renewals shal{ be acceptable to Lender and shall include a standard mortgage clause. Lender shail
; have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums
; and renewa! notices. In the event of loss, Borrower shal) give prompt nolice Co 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 shall be applied to restoration or repair of the Pro-
perty damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. [f the restoration or repair
~ is not economically feasible or Lender's security would be lessened, the insurance proceeds shalt be applied to the sums secured by
this Security Instrument; whether or not then due, with any excess paid to Borrower. If Boreower abandons the Propeny, or dces
not answeravithin 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then L,ender may collect the
insurance proceeds. Lender may use the procePds 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. ~
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 I and 2 or change the amount of the payments. If under paragraph
19 the Property is acquired by I.ensier, Borrower's right to any ir~surance 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 Instrument immediately prior to the
acquisition.
6. Preservation and Maintenanc~ of Property; Leaseholds. Barrower shall not destroy, damage or substantially change the
Property, allow the Property to deteriorate or commit waste. [f this Security instrument is on a leasehofd, Borrower shall comply
with the provisions of the lease, and if Borrower acquires fee title to the Property, the Ieasehold and fee title shall not merge unless
[.ender agrees to the merger in writing. ~
7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and
agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect L,ender's rights in the
Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws ar 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 actiuns may
include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable
attorneys' fees and entering on the Property to make repairs. Althaugh Lender may take action under this paragraph 7, l,ender dces
not have to do so.
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