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Home My WebLink About0980 i ~ UNiFORM COVENANTS. Ilorrower and Lender covenant and agree as fallows: , # 1. Payment of Principal and Interest; Prepayment and I.ate Cherges. Fiorrowcr shall promptly pay wh~n due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges ciue under thc N~~te. 2, Funds for Taxes and lnsurance. Subject to applicable law or to a wrilten waiver by Lender, Iiorrower shall pay to I.cnder on the day monthly payments are due under th~ Note, until the Note is paid in full, a sum ("Funds") eyual to one•twell~h of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) ycarly leasehold payments or g~ound rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) xearly mortgage insurance premiums, if any. These items aee called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable eslimates of i'uture escro~v items. ' The Funds sha11 be held in an institution the deposits ar accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). L.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 suGh a charge. Borrower and ; I.ender may ag~ee 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 carnings 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 are pledged as additional security for the sums secured by $ this Security lnstrument. ' If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to i the due dates of the escrow items, shaU exceed the amount required to pay the escrow items when due, the excess shall be, j at Borrower's option, either promptly repaid 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 shall promptly refund to Borrower ~ any Funds held by I.ender. If under paragraph t9 tht Property is sold or acquired by Lender, Lender shall apply, no later than immediately pri.,r to the sale of the Pro}serty or its acquisition by Lender, any Funds held by Lender at the time of ~ application as a credit against the sums securee! by this Security Instrument. ~ 3. Appiication of Payments. Unless applicable law provides oth~rwise, all payments received by Lender under paragraphs 1 and 2 shal! be applied: first, to late charges due under the Note; seconci, to prepayrnent charges due under the ~ Note; third, to amounts payabte under paragraph 2; fourth, to interest due; and last, to principal due. j 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 an time directEy to the person o«~ec~ payment. Borrower shal! promptly iurnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these pay~nents directly, Borrower shall promptly furnish to Lender ! receipts evidencing the payments. ~ ~ 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 acceptable to Lender; (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 foti'eiture of any part of the Property; or (c) secures from the holder of the lien an i 1 agreement satisfactory to Lender subordinating the lien to this Securiiy Instrument. If Lender determines that any part of j; the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a j~ notice identifying the lien. Borrow+er shall satisfy the lien or take one or more of the actions set forth above within 10 days _ ~ of the giving of notice. s S. Hazard Insurance. Borrower shall kecp the improvements now existing or hereafter erected on the Property j insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. 'I'his insurance shall be maintained in the amounts and for the periods that Lender requires. The ~ insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not be f unreasonably withheld. s All insurance poticies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ~ ~ Lender shall have the right to hold the policies and renewais. If Lender requires, Borrower shall promptly give to 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 1he Property damaged, if the restoration ar repair is economically feasible and Lender's security is not lessened. If the ; restoration or repair is not economically feasible or L.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 dces not answer within 30 days a notice from Len~er that the insurance carrier has ~ offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proeeeds 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 ~ayments referred to in paragraphs 1 and 2 or change the amount of the payments. If = under paragraph 19 the Property is acquired by Lendee, 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 immediaiely prior to the aequisition. 6, Preservation and hieintenance 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 complv with the provisions of the lease, and if Borrawer acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the m~rger in writing. . 7. Pratection of Lender's Rtghts in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afTect ~ I,ender's rights in the Property (sach as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ regulations), then Lender may do and pay for whatever is necessary io 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. Althou~h 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 Security Instrument. Unless Borrower 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 ` requesting payment. ~ ~ . ~ ~ 0~0522 ~~SE0.977 -