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HomeMy WebLinkAbout0994 UNIFORM CovsNANTS. Borrower and I.encter covenant and agree as follows: 1, Payment of Princlpal and Interest; Prep~yment and Late Cherges. IIorrower shall promptly pay when due . the principal of and interest on the debt evidenced by the TVot~ and ony prepayment and late charges due under the Note. . i 2, ~nds for Taxes and InsurAnc~. Subject to ap~licable law or to a written waivcr by Lender, Borrower shall pay ! to Lender on the day monthly payments are due undcr the IVote, untii the ivote is paid ir~ iuii, u sw~~ ~"su~~~S~'j Cyua~ t~ one-twelith of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leaschold payments or ground rents on the Property, if any; (c) yeariy hazard insurance premiums; and (d) y~arly mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on thc basis of current data and reasonable estimntes of future escrow items. The ~unds shall be held in an institution the deposits or accaunts of ~vhich are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). I,ender 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 taw permits Lender to make such a charge. Borrowes 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 shall not be required to pay Borrower 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 aee pledged as additional security for the sums secured by this Security I~strument. - ~ If the amount of the Funds held by Lender~ tagether 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 shall be, at Borrower's option, either promptly repald 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 more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, Lender shail pramptly refund to Borrower any Funds hetd by Lender. If under paragraph 19 the Property is sold or acquired by Lender, I,ender shall apply, no later than immediately prior to the sale of the Property or 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 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, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; fourth~ to interest due; and last, to principal due. 4, Charges; Liens. Banower shall pay all taxes, assessments, charges, fines and impositions attributable to the ~ Property whicti may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shail pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borro~ver shall ~ pay them on time directly to the person owed payment. Borrower shall promptly furnish to I,ender all notices of amounts to be paid under this paragraph. If Borrower makes these ~ayments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrow~r shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) j agrees in writing to the payment of ths obligation secured by the lien in a manner acceptable to Lender; (b) contests in good j faith the tien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to ~ ~ pre~ent 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 Secnrity Instrument. If Lender determines that any part of ~ the Property is subject to a tien which may attain priority over this Security Instrumens, Lender may give Borrower a notice identifying the lien. Horrower shall satisfy the lien 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 t'or the periods that Lender requires. The insura~~ce carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. _ All insurance policies and renewals shall be acceptable to I,ender 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 renewal notices. In the event of loss, ~orrower shall give prompt notice to the insurance carrier and Lender. I.ender 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 restoration or repair is economically f~asible and Lender's security is not lessened. If the restoration or repaie is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Eorrower. If Borrower abandons the Property, or does not answer within 30 days a notice fcom Lender that the insurance carrier has oft'ered 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 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 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by I.ender, Borrower's right to any insurance policies and proceeds resulting Prom 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 MaIntenance of Property; Leaseholds. Borrower 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, Borrower shall comply with the provisions of the lease. and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless I,endcr agrees to the merger in writing. 7. Protection of Lendee's Rights in the Property; Mortgage Insurance. If Borrower fails to perferm the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significant{y affect Lender'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 eepairs. 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 secured by this Security Instrument. Unl~ess Borrower and Lender agree to other terms of payment, thes~ amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Ler?der to Borrower requesting payment. • ' BOOK~~~ PAGE 9~71G Y