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HomeMy WebLinkAbout0940 ! t i UNIt~oRM COVENANTS. IIorrower and Lender covenant and agree as follo~vs: 1. Payment of PrincipAl and Interest; Prepayment and I.~te Charges. I3orrowcr shall promptly pay H~hen due the principal oPand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. : 2. Funds for Taxes and Insurance. Subject to applicable law or to a wriiten waiver by Lender, Borro~ver shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in fu11, a sum ("Funds") equal to ; one-twelf'th oP: (a) yearly taxes and assessmenls which may attain priority over this Security lnstrument; (b) yearly ~ leasehold payments or ground rents on the Prop~rty, if any; (c) yea~ly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escraw items." Lender may estimate the Funds due on the f basis of current data and reasonable esti?nutes of future escrow items. ~ The T'unds shail be held ~n an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if L,ender 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 law permits Lender to make such a charge. Borro~ver and ~ , Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable la~v requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender ~ shall give to Borr~wer, without charge, an annuat accounting of the Funds stiowing 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. f • If the amount of the Funds hefd by Lender, together with the future monthly ~ayments of I'unds 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, ~ ~t Borrower's option, either promptly repaid to Borrower or credited to Borrower 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 shall promptly rePund to Borrower any Funds held by I_ender. 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. Applieation 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. 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 o~eed payment. Borro~ver shall promptly furnish to Lender all notices of amounts s to be paid under this paragraph. If Borrower makes these payments directly, Borrower stiall promptly furnish to Lender ; receipts evidencing the payments. ; Borrower shall promptly discharge any lien which has priority over this Security Instrument uniess Borro~ver: (a) 1 agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good j . faith the li~n 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 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 hereai'ter 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. 7'his insurance shall be maintained in the amounts and for the periods that Lender requires. The i insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approvai 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 reqaires, Borrower shall promptly gi:~~ Lender ~ ~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall 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 ~ , of the Property damaged, if the restoration or repair is economically fea~:ble and Lender s security is not lessened. If the Y ~ restoration or repair is not economically feasible or Lender's security wou(d 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 Borrower. If ~ Borrower abandons the Property, or does 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. I.ender 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 paragraph~ 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 and proceeds resulting ~ from darnage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Secority 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, ~m 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 Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Propetty; Mortgage In~urance. If Borrower fails to perform the ~ covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect ~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or 0 regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ~ in the Pro rt Lender's actions ma include a in an sums secured b a lien which has riorit ~ver this Securit Pe Y• Y P Y b Y Y P Y Y Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although L.ender may take action under this paragraph 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 c~? Security Instrument. Unless I3orrower and Lender agree to other terms of payment, these amounts shall bear interest from J7 the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower C~ ~ F^ requesting payment. ~