HomeMy WebLinkAbout0986 UNIFURM CoVENANTS. IIorrower and Len~er covenant and agree as follows:
l, Payment of Principal and Interesh Prepayment and Late Charges. Borrower shall promptly pay when due
the principal of and intcrest on the debt cvidence~d by the Note and any prepayment and late charges due under the Note.
2, ~nds for Taxe~ and Insurance. Subject to applicable law or to A written waiver by Lender, Dorrower st~all pay
to Lender on the day monthiy paymcnts are due under the Note, until the Note is paid in fulf, a sum ("Funds") equal to
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrurnent; (b) yearly
leasehold payments or ground rents on thc Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premi~ms, if any. These items are called "escrow items." Lender may estimate the Funds due on the
basis of current data and reasonable estimates of Puture escrow items.
The Funds shall be held in an institution the iiepasits 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 Funds, analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits I.ender to make such n 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, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
shal! give to Borrower~ without chaege. 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 additional security for the sums secured by
this Security Instrument.
If the amount of the Funds held by L.~nder, together with the future monthly payments of Funds payable prior to
the due dates of the eserow items, shall exceed the amount required to pay the escrow items when due, the excess s}~all be,
at Borrower's option~ either promptly repaid to Borrower or credited to Barrower on monthly p~yments 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 more payments as required by Lender.
Upr~n payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by I,cnder. If under paragraph 19 the Property is sold or acquired by Lender, L,ender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by I.~nder at the time of
application as a credit against the sums secured by this Security Instrument.
3, Apptication of P~yments. Unless applicable law provides othenvise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: flrst, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payable un~er paragraph 2; fourth, to interest due; and last, to principa) due.
4. Charges; Liens. Horrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and 1Pasehold payments or ground rents, if any.
Borrower shall pay these obligations in thc manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Bonower shall promptly furnish to Lender all notices of amounts
E to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
f receipts evidencing the payments.
f Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
; agrees in writing to the payment of the obligation secured by the lien in a manner accept2~Ule to L,ender; (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 Borrower a
notice identifying the lien. Borrower shall satisfy the lien or tak~ one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hazard Insurante. Aorrower shall keep the improvements now~ existing or hereafter erected on the Property
insured against loss by fire, t~azards 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 shall be chosen by Borrower subject to Lender's approval which shall not be
unreasonably withheld. -
All insurance policies and renewats shall be acceptable to L.ender and shall include a standard mortgage clause.
{ Lender shall have tha right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
~ all receipts of paid premitims and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and L.ender. 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 Property damaged, if the restaration or repair is economically feasible and Lender's security is not lessened. If the
restoratian or repair is not economically feasible or I.ender's security would be lessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, whether or not then dae, with any excess paid to Borrower. If
Borrower abandons the Property, or da,s 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 30•day period will be~in
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shail not extend or
postpone the due date ofthe monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies a~id pra:eeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secur~d by this Security
Instrument immediately prior to the acquisition.
. 6. Preserration and Maintenance of Property; I.easehoids. Borrower shall not destroy, damage or substantially
clhange the Property, allow the Property to deteriorate or commit ~aste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions o1'the lease, and if Borrower acquires fee title to the Property, the leasehold and
fce title shall not merge unless Lender agrees to the merger in writing.
7. Protectiaa of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform tt~e
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
I.~nder's rights in the Property (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 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
Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
T xnciPr may take action under this nara¢raah 7, Lender does not have to do so.
Any amounts disbursed~by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
Security 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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