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HomeMy WebLinkAbout0993 : ~ _ ' _ _ _ UwtFORM CovEN~Nts. Borrower and Lender covcnant and agree as follows: 1. PAyment of Principal And Interest; Prepayment and I.~te Ch~rges. Borrower shall promptly pay when due the principal of and interest on Ihe debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for TAxes and Insur~?nce. ' Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lendzr on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelRh of: (a) yearly taxes and assessments which rnay attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yea~ly hazard insurance premiums; and (d) yeariy morigage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insur.~ or guarante~.d ~y a federal or state agency (including Le~der if [,ender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may nat charge for holding and applying the Funds, analyzing the account or veritying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shail n~t be required to pay Borrow~er any interest 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 and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by thisSecurity Instrument. ~ If the amount of the Funds held by Lender, together with the fut~re monthl}• 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 shaU be, 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, $orrower shall pay to Lender any amount necessary to make up the deficiency in one or mare payments as required by Lender. - U~on payment in full oP all sums secured by this Security Instrument, Lender sha!) promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prior to lhe 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 lnstrument. 3. Application of Payments. Unless applicable law provides atherwise, aI1 payments received by 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 under paragraph 2; fourth, to interest due; and last, to principal due. 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 on time directly to the person ow~ed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If 3orrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien w•hich has priority over this Security lnstrument untess Borrower. (a) agrees in writing to the payment of the obligation secured by the I~en 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 ot the lien or Forfeiture of any part of the Property; or (c) secures f'rom the hotder of the lien an agreement satisFactory to Lender subordinating the lien ta this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain prioritp over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisf}~ 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 hereafrer erected on the Property insured against loss by fire, hazards included K•ithin the term "extended 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 pro~•iding the insurance shall be chosen b}• Ba~row~er subject to Lender's approval which shall not be ~ unreasonably withhefd. All insurance poticies and renece~als shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the pc~licies and renewals. If Lender requires. Borrower shall pramPtly give to Lender all receipts of paid premiums and rene~val 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, insuranre proceeds shal) be applied to restoration or repair of the Prc~perty 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 Horrower. If Borrower abandons the Property, ~r dces not answer within 30 days a notice from Lender that the insurance carrier has ofTered to settle a claim, then Lender ma}~ coltect the insurance proceeds. Lender rr~ay use the proceeds to repair or restore the Property or to pay sums secared by this Security Instrument, whether or not then due. The 30•day period will begin when tt~e notice is given. ' Unless Lender and Borrower otherw~ise agree in writing, any application af proceeds ro principal shafl 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 i under paragraph 19 the Property is acquired by Lender, Borroa~er's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shal! pass to Lender to the extent of the sums secured by this Security i Instrument immediately prior to the acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, aamage or substantially change the Praperty, allow the Pr~perty 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 title to the Property, the leasehold and fee titie shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Righls in the Property; rlortgage Insurance. If Borrower 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 the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or - regulations), then Lender may do and pay for whatever is necessary to protect the value of tne Property and Lender's rights in the Property. Lender's aetions may include paying any sums secured by a lien which has p~iority over this Security Instrument, appearing in court, paying reasonable attorney.s' fees and entering on the Property to make repairs. Although • Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shal) become additional debt of Borrower secured by this ~ ~ ` Security Instrument. Unless Borrower and Lender agree 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 paymeni. ~ .d a - C~ N _ ' . ~ O „i~ om