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HomeMy WebLinkAbout0974 . ~ UNIfiORM COYENANTS. Borrower and Lendcr covenant and agree as follows: ; 1. Paymsnt of Prlncipai and Interest; Prepaymen: and Late Char~ges. Borrower shall pramptly pay when due the principa! of and interest on the debt evidcnced by the Idotc and any prepayment and late charges due undcr the Note. 2. Funds for Taxea ~nd Insurance. ' Subject to applicable law or to a written waiver by Lender~ Borrower shaii pay to Lender on the day monthiy payments are duc under the Note~ untit the Note is paid in full, a 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 thc Propcrty, if any; (c) yrarly hazard insurance premiums; an~i (d) yearly morigage insurancc premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of currcnt data and re~sonable estimates ot'future e~scrow items. The Funds shall be held in an instttution the deposits or accour,ts of which are insur.d or guaranteed by a federat or state agency (including I.ender if L,ender is such an institution). Lender shall apply the Funds to p:+y ihe escrow items. Lender may not charge for holding and appl~+ing ihc Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applieable law permits Lender to make such a charge. Borrower and ~ Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is madc or applicable law requires interest to be paid, Lender shall not bc required to pay Borrower any interest ar earnings on the Funds. Lender shall give ta Borrower, without charge, an annual accountin~ of the Fur.ds showing credits and debits to the Funds and the , purpose for which each debit to the Funds was macle. The Funds are pledged as additional security for the sums secured by ihis Security Instrument. ~ ' IC the amount of the Funds held by I.ender, 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 shail be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly paymcnts of Fands. If the amount of the Funds he~d by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amour~t necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of alt sums secured by this Security Instrument, I.ender shal! promptly refund to Borrower any Funds held by Lender. IP under paragraph 19 the Property is sold or acquired by Lender, Lender sf?all apply, no later ~ than immediately prior to the sale of the Property or its acquisition by Lender, a~iy Funds held by Lender at the time of application as a creciit against the sums secured by this Security Instrument. 3. Application of PaymenEs. 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, ta prepayment chacges due under the Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shal! pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehotd 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 persnn owed payment. Borrower shall prompily furnish to Lender ail notices of amounts a~ to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to I.ender receipts evidencing the payments. . ' Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) ~ agr~es in writing to the payment of the obligation secured by the lien in a manner acceptable 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 Property; 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 Property is subject to a lien which may attain priority over this Security Instrument, Lender may give $orrower a notice identifying the iien. Borrower shall satisfy the lien or take one or more of the actions set forth above ~vithin 10 days ~ of the giving of notice. 5. Hazard Insarance. Borrower shall keep the improvements now existing or hereafter erected on the Property ~ insured against loss by fire, hazards included within the term "extend~d 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 insuranee carrier providing the insuranee shall be chosen by BorroH~er subject to Lender's approval which shall not be unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptiy give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shalt 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 shall be applied to restoration or repair oP the Property damaged, if the restorati~n or repai~ is economically feasible and Lender's security is not lessened. If the restoratiron or repair is not economically feasible or~J~ender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instru~ent, whether or not then due, with any excess paid to Borrocver. If Borrower abandons the Property, or does not answPr within 30 days a notiee from I.er~der 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 Aroperty or to pay sums secured b~• this Security Instrument, evhether or not then due. The 30-day period will begin when the notice is given. , Unless Lender and Borrower otherwise agree in writing, any appfication of pra;eeds 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 acquirec} by L,ender, Borrower's right to any insurance policies and proceeds resufting from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and 1Naintenance of Property; I:Paseholds. Borrower shall not destroy, damage or ~ubstantially changQ 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 Horrower acquires fee title to the Property, the leasehold and fee title shall not rnerge unless Lender agrees to the merger in writing. . 7. Protection of Lender's Rights i~r the Propeety; Mortgage Insurance, If Borrower fails to perform the covenants and agreements contained in ihis Security Instrument, or there is a legal proceeding that may significantly aff'ect Lender's rights in the Properiy (sueh as a proceeding in bankruptcy, probate, for condemnaCion or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to proteci the value of the Praperty and 1.ender's rlghts in the Property. I,ender's actions may include payin~ any sums secureci by a lien which has priority over this Security Instrument, 3ppearing in coi~~t, 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 shait becume additional debt of Borrower secured by this ~ Security Instrument. Unle3s 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 i'rom Lender to Borrower requesting payment. d' ~ 400K PItGE . ~