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HomeMy WebLinkAbout0992 _ _ __r__. ~ _ - ~ UNIFOttM CovEN~NTS. Bor~ower and I.ende~ covenant and agree as follows: l. Paymeat o[ Prin~ipal iund Iatenat; Prtpay~aeat and I.ate CU~rges. Sorrower shall promptly pay when due ? the principal of and interat oo the debt evidenced by the Note and any prcpayment and late chargcs due under the Nate. i 2. Fl~nds for Taxa aad Iasuraace. Subjoct to applicable law or to a written waiver by Lender, Borrower shall pay ~ to Lender on the day monthly payments are due und~r the Notc, u~til ths Note is paid in full~ a sum ("Funds") cqual to } ono-twelf~h of: (a) yearly taxes and assessments which may attsin priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearfy mortgage insurance premiums. if any. 'Q'hese items are catled "escrow items." Lender msy estimate the Funds due on the basis ofcurrent data and reasonable estimates otfuturr escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a tederal or state agency (including I.ender if Lender is such an institution). l.ender shall apply the Funds to pay the escrow item~. Lender may not charge for holding and applyin~ the Fu~ds, analyzing the account or veritying the ~crow items, untess Lendcr pays Borrower interest on the l~unds and appticable faw permits Ler~der to make such a charge. Borrowcr and ~ I.ender may a~ree in writing that interest shall be paid on !he Funds. Unless an agreement is made or applicable law ~ rcquira intcrest to be paid. l.ender shall not b~ required to pay Borrower any i~lerest or earnings on the Funds. Lender shall give to Borrower. without charge. an annual accounting of the Fur.ds showing credits and debits to the Funds a;id 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 Instrament. If the amount of the Funds held by Lender, together with the tuture monthly payments of Funds payable prior to the due dates of the ~scrow items. shall excecd the amount required to pay the escrow items when due, the excess shall be, at Borrower's option. either promptly repaid to Borrowtr or crMited to Borrower on monthly payments of Funds. If the amount of the Funds held by Ltnder is not suflicient to pay the escrow items when due, Borrower sha11 pay to Lender any ~ amount necessary tt~ make up the deficiency in one or more payments as required by l.ender. Upon payment in ful! of all sums xcuted by this Security lnstrument, I.ender shall promptly refund to Borrower any Funds held by I.ender. If under paragraph 19 the Property is sold or acquired by I.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Len~er, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Appltcatio~ of Paymentt. Unless applicable laar provides otherwise, al! paymer.ts received b~ 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 unde~ paragraph 2; fourth. to interest due; and last, to principal due. 4. Charges; Llens. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the Propeny which may atlain priority over this Security lnstrument, 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 shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to l.ender receipts evidencing the payments. Burrower shall promptly discharge any lien which haz 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 forfeiture of any part of the Prapeny; or (c) secures from the holder of the lien an agreement satisfactory to I.ender subordinating the lien to this Security Instrument. If Lender determines that any part af ihe Property is subject to a tien which may atta;n priority over this Security Instrument. Lender may give Borrower a notice identifying the lien. 8orrower shall saiisfy the lien or take one or more of the actions set torth ahove within 10 days of the giving cf notice. S. Hazard Insurs~nce. Borrower shaU keep the improvements now eaisting or hereatter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards tor which Lender requires insurance. This insurance shaii be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurancc shall be chosen by Borrower sub}~ct to Lender's approval which shaU not be unreasonably withheld. ~ Al! irsurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shaU h~ve the right to hotd the policies and renewsls. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In che event of 1oss, Borrower sha11 give prompt notice to the insurance carrier and Lender. I.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 of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. I: the restoration or repair is not economically fea~ible or I,ender's security would be tessened, the insurance proceeds shati be applied to the sums secured by this Security Instrument, whether or not then due, with any ezcess paid to Borrower. If Borrower abandons the P~operty, or does noi answer within 30 days a notice from Lender that the insurance carrier has oflered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceecis 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 iv principa! sha1) not exter,d or postpone the dae date of the manthly payments reterred to in paragraphs 1 and 2 or change the amount otthe payments. If under paragraph 19 the Property is acquired by L.ender, Borrower s right to any insurancP policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance af Property; I,easeholds. Borrower shall not destroy, damage or snbstantial)y change the Property. ~llow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shali 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 L.ender agrees to the mer~er in writing. 7. Protection of Lender's Rights in the Praperty; Mortgage Insurance. lf Borrower faits to perform the covenants and agreemer~ts contained in this Security Instrument. or there is a lega! proceeding that may significantly aff'ect Lender's righss in the Property (such as a proceeding in bankruptcy. orobate, for condemnation or to enforce laws or regulations), then Ixnder may do and pay for whatever is necessary to protect the value of the Yroperty and Lender's rights in the Property. L.ender'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 entecing on the Property to make repairs. Although Lender may taice action under this paragraph 7, Lender does not have to do sa. Any amounts disbarsed by Lender under this paragraph 7 shall become additional debt of Borr~~er secured by this Security Instrument. Unless Borrower and I.ender agrte to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be pay9ble, v~ith interest, upon notice from Lender to Borrower requesting payment. ~Q~24 ~098~ - . _ - _ _ _ _ _ _ _