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HomeMy WebLinkAbout0963 . • UNIFORM COVENANTS. Borrower and I.ender covenant and agree as follaws: 1. Payment ot Princtpal and Interest; Prepayment and Late Charges. Borrower shalt promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under tt~e Note. ~ 2. ~nds for Taxes and Insurance. Subject to applicable law or to a written waiver .by L.ender, Borrower shall pay to Lender on the day monttily payments are due under the Note. until the Note is paid in ~full, a sum ("Funds") equal to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly martgage insurance premiums, if any. These items are calleci "escrow items." L.ender may estimate the Funds due on the basis of current data and reasonabie estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including L.ender if I,ender is such an institution), I.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 l.ender pays Borcower interest on the Funds and applicable law permits Lender to make such a charge. Borcower and Lender may ~gree 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 earnings on the Funds. I.ender shall give to Bonow- er, without chazge, 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 securod by this Security Inswment. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shal! be, at Borrower's option, either prompdy r~paid to Borrower or credited to Borrower or~ monthly payments of Funds. If the amount of the Funds held by Lender is rtot sufficient to pay the escrow items when due, Bonower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as r~quired by I.ender. Upon payment in full of all sums secured by this Security Instrument, L.ender shall promptty refund to Bonower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by l.ender, Lender shall apply, no later than immediatety prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, alt payments received by Lender under para- graphs 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 tast, to principal due. 4. Charges; Liens. Bonower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and teasehold 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 ; direcdy to ihe person owecl payment. Banower shall prompdy furnish to Lender all notices of amounts to be paid under ~ this paragraph. If Borrower makes these payments direcdy, Borrower shall promptty turnish to [,~nder receipts ev~dencing ~ the payments. - Borrower shall promptiy discharge any iien which has prioriry over this Securiry Instrument unless Bonower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to I.ender; (b) contests in gooci 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 Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. [f Lender determines that any part of the Property is subject to a lien 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 more of the actions set forth above within 10 days of the giviog of notice. 5. Hazard Insurance. Borrower shall keep the impravements now existing or hereafter erected on the Property in- sured against loss by fire, hazards included within the term "extendecl coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonabty withheld. All insurance polieies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall prompdy give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice to the insuranee carrier and Lender. Lender may make proof of lass if not make promptly by Bonower. 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. 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 Borrowe~. If ~ Borcower abandons the Property, or dces not answer within 30 days a notice from L.endec that the insurance carrier has offered to settle a claim, then Lender may collect the insurance praceeds. Lender may use the proceeds to repair or restore the Property ar to pay sums securect by this Security Instrument, whether or not then due. The 30-day period will begin when the aotice is given. Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shal( not extend or ~ postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 d~e Property is acquired by I.ender, Borrower's right to any insurance policies and procecds 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. f~- 6, Preservation and Maintenance of Property; Leaseholds. Barrower shall not destroy, damage or sunstantially change ~ the Property, allow the Properry to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower ~ shall comply with the provisions of the lease, and if Borrower acquires fee tide to the Property, the leasehold and fee title Q shall not merge unless Lender agrees to the merger in writing. ~ 7. Protection of Lender's Rights in the Property; Mortgage Insorance. If Borrower fails to perform the covenants and agreemenis contained in this Security Instrument, or there is a legal proceeding that may significandy affect L.ender's ~ rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulatians), N then Lender may do and pay for whatever is necessary to protect the vatue of the Property and Lertder's rights in the Property. t17 Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing p ~ in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action om under this paragraph 7, Lender does not have to do so. Any amounts disbursed by L.ender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Bonower and Lender agree to other terms of payment, these amounts shall bear inrerest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. If Lender required mortgage i~surance as a condition of making the loan secured by this Security Instrument, Borrower - shall pay ttte premivms required to maintain the insurance in effect until suc~ time as the requirement for the insurance ter- ~ minates in accordance with Borrower'C Q~~+' ~nder's written a~treemeat or savlicable law. : - _ - - ___1