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HomeMy WebLinkAbout0974 UNIF~RM COVENANTS. f3orrower and Lendcr cavenAnt and agree as fbllows: 1. Payment of Principal and Interest; Prep~yment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Fund~ fo~ Taxes and Iasuranee. Subject to applicable law or to a written waiver by Lender, I3or~awer shull pay to Lender on the day monthly payments are due under the Note, until the Note is puid in full, a sum ("Funds") equal ta one-twelRh oF. (a) yearly taxes and assessments which may sttain priority over this Security Instrument; (b) yearly ; leasehotd payments or ground rerts on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly ~ mortgage insurunce premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the ~ ' basis of current data and reasonablc estimates of future escrow items. The Funds shall be held in an institution the depasits or accounts of which are insured or guarantee~i by a federal or state agency (inciuding L.ender if Lender is such an institution). Lcnder shall apply the Funds to pay th~ escrow items. ~ Lender may not charge for hotding and applyiog the Funds, analyzing the account or veriPying the escrow items, unless Lender pays Dorrower interest on the Funds and applicable law permits Lender to make such a charge. Borro~ver and z Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law i 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 charge, an annual accounting of the Funds showing credits and debits to the Funds and tt?e ~ purpose for which each debit to the Funds was made. The Funds ~re pledged as additional security for the sums secured by this Security Instrument. ~ If the amount of the Funds held by Lender, together with the f~ture monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed th~ amount required to pay the escrow items when due, ihe excess shall be, ' at Dorrower's option, either promptly repaid to Borrower or credited to Borrowcr on monthly payments of Funds. If the ; amount of the Funds hetd by Lender is not suflicient to pay the escrow items when due, Borrower shall pay to Lender any ` amount necessary to make up ihe deficiency in one or more payments as required by Lender. : Upon payment in full oP all sums securecl by this Security Instrument, Lender shall promptiy refund to ~orrower ~ any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately pr.~.,r to the sale of the Property or its acquisition by Lender, any Funds hcld by Lender at the time of ~i application as a eredit against the sums secured by ihis Security Instrument. ~ 3. Applicatton of Payments. U~less applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be apptied: 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. Charge.s; Llens. Borrower shalt pay all taxes, assessments, charges, fines and impositions attributable to the ' Property ~vhich may attain priority aver this Security Instrument, and leasehold payments or g:ound rents, if any. Borrower shal! 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 ~rson owed payment. Borro~ver shall promptly furnish to Lender all notices of amounts ; to be paid under this paragraph. If Borrower makes these payments directly, Borrower shatl promptly furnish to Lender ; receipts evidencing the payments. - , ; . _ . Borrower shatl promptly discharge any lien which hus priority over this Security Instrument unless Borrower: (a) n a ce table to Lender• b contests in ood agrees in wnting to the payment of'the obbgaUon secured by the Iten ~n a man er c p ,O 8 faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enfarcement ot' the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an = agreement satisfactory to I.ender subordinating the lien to this S~curity Instrument. If Lender determines that any part of ~ the Pro~rty is subject to a tien which may attain priority over this Security Instrument, Lender.may give Sorrower a , notic~ identifying the lien. Borrower shal! 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 hereaCter erected on the Froperty ; insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender ~ requires insurance. This insurance shalt be maintained in ihe amounts and for the periods that I,ender requires. The ~ insurance carrier providing the insurance shall be ehosen by Borrower subject to Lender's approval whicli shall not be ; anreasonably withheld. ' All insurance polieies and renewals shall be aceeptable to Lender and shall inciude a standard mortgage clause. Lend~r shall have the right to hold the policies and renevvals. If Lxnder requires, Borrower shall promptly give to Lender , all receipts of paid premiums and renewai notices. In the event of loss, Borrower shall give pcompt notice to the insurance ~ carrier and i.ender. L.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 4 of the Property damaged, if the restoration or repair is economically Feasible and Lender's security is not iessened. If ihe ~ restoration 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 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 settte a claim, then Lender may collect th~ insurance proceeds. Lender may use the proceeds to repaii or restore ~ the Pr~perty or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period witl 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 dat~e 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 ~ from 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 ot Property; Lea~ehotds. 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 oP the lease, and if Borrower acquires fee title to the Property, the leasehold and fee ti~te shall not merge unless I,ender agrees to the merger in writing. . 7. Protection of Lender's Rights in the Property; Mortgage Insurance. if Borrower faifs to perform the covenants and agreemenis contained in this Security Instrument, or there is a legal proceeding that may significantly afi'ect Lender's rights in the Property (such as a proc~eding iR bankruptcy, probate, for condemnation or to enforce la~vs or regulations), then I.ender may do and pay for whatever is necessary to pratect the value of the Property and I.ender'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 p I.ender may take action under this paragraph 7, I.ender daes not have to do so. - r~ny amounts disbursed by Lender under this paragraph 7 shall become additional debt of` Borrower secu~ed by this o'~~- f 5ecurity Instrument. Untess Borrower and Lender agrce to other terms of payment, these amounts shall bear interest from ~ the date of disbursemeni at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ~ requesting payment. ~ ' s ! • ~ ~ O~ 3 _ ~ ~ ~ a . . . . . _ _.:y..~