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HomeMy WebLinkAbout0999 Y , UNIFORM COYENANTS. Borrower and Lender covenant and a+gree as I~ullaws: 1. Payment of Principal and Interest; PrepAyment and Late Charges. Borrower shail promptly ~s<<y when due the principal of and interest on tha debt evidenced by the Note and any prepayment and J~~le charges due under the Note. : 2, F'unds tor Taxes and Insurance. Subject to applicuble law or to a~+~ritten ~vaiver by Lender, Borrower shall pray ~ to Lender on the day monthly payinents are due under thc Note, until the Note is p:~id in lull, u sum ("Funds") equal to ~ one-twelfth oi': (a) yearly taxes and assessments which may attain priarity over this Security Instrument; (b) yearly ~ leasehold payments or ground rents on the Property, if any; (c) yearly huzard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Lender m~iy eslim~~te the runds due on the ~ basis ot' current data and reasonabl~ estimates of future escrow items. ~ The Funds st~all be held in an institution the deposits or accounts of which ure insured or ~u~iranteed by a federal ~ or state agency (including Lender if Lende~ is such an instiwtion). Lender shall upply the }=unds lo pay the escrow items. Lender may not charge far holding and applying the Funds, analyzing the account ar verifying the escrow ite,ms, unless = l.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a ch~rge. IIorrower and Lender ~nay agree in writing that interest shall be paid on the Funds. Unless an agreement is made or upplicable law re- quires interest to be paid, Lender shall not be required Io pay Borrower any interest or earnings on the Funds. Lender shal! give to Borrower, without charge, an annual accounting of the Funds sho~~~ing credits and debits to thc Funds and ~ the pu~pose for which each debit lo the Funds ~vas made. The Funds are pledged as additional security for the sums secured by this Security Instrument. tf the amount of the Funds held by L~nder, together Fvith the future monthly pa~~ments of Funds payable prior to ~ the due dates oP the escrow items, shal) exceed the amount required to pay the escrow items when due, the excess shall be, ~ at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly puyments of Funds. If the ~ amount of the Funds hcld by Lender is not sufficient to pay thc escrow items when due, Borrower shall puy to l.ender any ~ ~ amount necessary to make up the de~ciency in one or more payments as required by Lender. ~ Upon payment in fult of all sums secured by this Security lnstrument, Lender shall promptly rePund to Borrower any Funds held by Lender. ]f under paragraph 19 the Property is sold or acquired by Lender, Lender shall xpply, no later than immediately prior to the sale of the property or its acquisition by Lender, an}~ Funds held by Lender at the time of application as a credit against the sums secured by this Security instrumer~t. ; 3. Application of Payments. Unless applicable law provides othenvise, all pc;~~n~ents received by Lender under paragraphs t 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 a11 taxes, assessmenls, charges, I`ines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehotd puyments nr ground rents, if any. i Borrower shall 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 Lender ~?11 nutices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrow-er shull promptly fu~nish to Lender ; reseipts evidencing the payments. . ~ Borrower shall promptly discharge any lien which has priority over this Security tnstrument uniess Borrower: (a) ~ agrees in writing to the payment of the obligation secured by the lien in a manner accept:~ble to Lender; (b) contests in - good i'aith the lien by, or defends against enforcement oF the lien in, lega! proceedings which in the Lender's opinion # i: operate ta prevent the enforcement of the lien or farfeiture of any part oP the Property; or (c) secures from the holder of ` i:' ihe lien an agreement satisfactory to.Lender subordinating the lien to this Security Instrument. If Lender determines that i~ any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give j~: Borrower a notice identifying the lien. Borrower shall satisfy the tien or take orte or more of the actions set forth above evithin 10 da~~s of the giving of noticc. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- 3 sured against loss by Gre, hazards included within the term "extended coverage" and any other hazards Por which Lender l: requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The in- I:, surance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be un- reasonably witheld. A11 insurance polic'tes and renewals shall be acceptable to Lender and shall include a stand~rd mortgage clause. Lender shall have the right to hold the policies and tenewals. If Lender requires, Borro~ver shall promptly give to Lender all receipts oT paid premiums and renewal notices. In the event of loss, Borrower shafl give prorrapt notice to the insurance carrier and Lender. Lender may make proof af 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 feasible and Lender's security is not lessened. i; (f the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds i, shall be applied to the sums secured by this Security tnstrument, whether ar 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 c(aim, the 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, wfielher or not then due. The 30-day period i; will begin when the notic~ is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend j or postpone the due date of thc monthly payments ret'erred to in paragraphs I and 2 or change the amount of the pay- . ments. If Under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proce~ds resutting from damage to tt~e 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. ~ b. Preservation and Maintenance ot PropPrty; Leasehol~s. Borrower shall not destroy, damage or substantiaify 4- change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, r Borrower shall camply with the provisions of the fease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to ihe merger in writing. ~ . 7. Protect~on ot Lender's Rights in the Property; Mortgage Insurance. If 8orrower 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 1he Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce iaws or regutationsl, ~ ` ~ ihen Lender may do and pay for whatever is necessary to protect the vatue 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 Instru- ~ ment, appearing in court, paying reasonable attorneys' fees and entering on the Properly to make repairs. Although Len-' i~ der may take action under this paragraph 7, Lender does not have to do so. = Any amounts disburscd by I.ender under this paragraph 7 shall become additional debt of Borruwer secured by : this Security lnstrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear inierest from the date of disbursement at the Note rate attd shall be payable, with interest, upon notice from Lender to Borrower requesting payment. ~ L ~ ~ ~ ; ~ Page2of4 $~0522 ~49g5 ~ .