HomeMy WebLinkAbout0968 Uy~rottM CovFNnNTS. Borrower and Lender covenant und agree as fo!lows: ~
1, Payment of Principal and Interest; Prcpayment and I.ate Charges. IIorrawer shall promptly pay when duc ~
the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. }
Z. Funds for Taxes and Insurance. Subject to applicabie law~ or ro a written w~+iver by L.ender, Rorrower shall pay j
to I.ender on the day ntonthly puyments are due under the Note, until the Note is paid in full, a sum ("Funds") cqufll to ;
one-twelRh of: (a} yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly f
leasehold payments or ground rents an the Prope~ty, if any; (c) yearly hazArd insura~ice premiums; and (d) yearly ~
mortgage insurance premiums, if any. These items Are called "escrow items." Lender may estimate the Funds due on the ;
basis of current data and reasonable estimates of Cuture escrow items. ~
The Funds shali be held in an 9nstitution the deposits or accounts of which ~re insured or guaranteed by a federa! or _
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay ihe escrow items.
' Lender may not charge for holding and applying the Funds, analyzing !he account or veriPying the escro~v items, unless
Lender pays 8orrower interest on the Funds and applicable law permits Lencier to make sucl~ a charge. Borrower and
, Lender may agree in writing that interest shall be paid on the Funds. Untess an agreernent is made ar applicable law =
requires interest to be pnid, Lender shall not be required to pay Borro~ver any interest or earnings on the Funds. Lender '
shall give to Borrower, without charge, an annua! ~ccounting of the Funds showing crediis and debits to the Funds and the .
purpose for which each debit to the Funds was made. 'I'he Funds are pledged as additional security i'or the sums secured by
this Security Instrument.
If the amount of the Funds hetd by Lender, together with the future monthly payments of Funds payable prior to
the diie 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 repaid to Boreower or crediteci to Borrower on monthly payments of Funds. If the
amount oP the Funds held by Lender is not suflicient to pay the escrow items when due, B~rrower 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 refund to Borrower
any Funds heid by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately pri~r to the sale of the Property or its acquisition by Lender, any Funds held by I.ender at the time of ~
application as a credit Against the sums secured by this Security Instrument. ~
3. Appllcatton 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; Llens. Borrower shall pay a!1 taxes, assessments, charges, fines and impositions attributable to the ~
Property which may attain priority aver this Security Instrum~nt, 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 owed payment. Borrower shalt p:omptly furnish to Lender all nutices of amounts ~
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shal! promptly furnish to Lender ;
receipts evidencing the payments. ;
Borrower shall promptly discharge any lien which t~as priority over this Security Instrument unless Borrower: (a) s
agrees in writing to the payment of the obligation secured b}r the lien in a manner acceptable to Lender; (b) contests in good ;
faith ihe 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 forf'eiture of any part of the Property; or (c) secures Prom the h~lder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part ~f +
the Property is subject to a(ien 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 morc of the actions set forth above within 10 days 3
of the giving of notice. '
5. Nazard Insurance. Borruwer shall keep the improvements now existing or hereafter erected on the Property ;
insured against loss by fire, hazards included within the term "extended covera~e" and any other hazards for which Lender ~
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. T'he ~
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be 4
unreasonably withheld. `
A11 insurance policies and renewals shall t~e acceptable to L.ender and s}~all include a standard mortgage claase. i
Lenrler shall have the right to hold the policies and renewals. If Lender requires, Borrower shatl promptly give to Lender
all receipts of paid premiums and renewat notices. In the event of lass, Borrower shall give prompt notice to the insurance ~
carrier and Lender. L,ender may make proof of toss if not made prompily by Sorrower.
Uniess 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 feasible and Lender's security is not lessened. If the ~
restoration or repair 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 Borrower. If
Borrower abandons the Prc~rty, or does not answer within 30 days a noiice from Lender that the insurance carrier has
oftered to set~le a elaim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
ihe Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
~vhen the notice is given.
Unless Lender and Borrower otherwise agree in writing, any apptication of proceeds to principal shall not extend or
postpone the due date of the monthiy payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
under paragraph i9 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting ~
fram damage to the Property prior to the acquisition shall pass to Lender to the eatent of the sums secured by this Security
Instrument immediately prior to the acquisition. , ~
6. Preservation and Mlalntenance of Property; Leaseholds. $arrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate ar commit waste. If this Security Instrument is on a leasehold,
Borrower shali comply with the provisions o!'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. Protecteon of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perfarm the jj~j
covenants and agreements contained in this Security instrument, or there is a legal proceeding that may significantly afTect 4p ;
Lender's rights in the Property (such as a proceeding in bankniptcy, probate, for condemnation or to enforce laws or p-~
regu(ations), then Lender may do and pay for whatever is necessary to protect the value of'the Property and Lender's rights p ~
in the Property. Lender's actions may include paying a~y 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. Atthough
I.ender may take action under this paragraph 7, Lender does not have to do so. ~
Any amounts disbursed by I.ender under this paragraph 7 shall become additiona) debt of Borrower secured by this N
Security Instrument. Unless Borrawer and Lender agr.:e 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 ~
reqaesting paymeni, oxro
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