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HomeMy WebLinkAbout0972 . . ~ . : . . : _ ~ - - _ - . . UNIFORM CoVENANTS. Borrower and Lender covenant and agre~ as foliows: 2. Payment ot Priaclpal and Iater~st; Prepsyraent u~d Late Charges, Borrowcr shall promptly pay when due j the principal of and interest on the debt evidenced by the Note and any prepaymont and late charges due under the Note. ~ 2. Fuada for Taxea aad Inauraaee. Subjoct to applicable law or to a written waiver by Lender, Borrower shall pay ~ to Lender on the day monthly F+ayments are due under thc Note~ until the Note is paid in full, a sum ("Funds") cqual to onatwelRh of: (aj yearty taxcs and assessments which may attain priority over this Security lnstrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazatd insurance premiums; and (d) yearly mortgage insurance premiums~ iPany. These items an called "esc~ow items." I,ender 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 insured or guarantead by a foderal or ' state agency (including Ltnder if I.ender is such an institution). I.ereder 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 : I.ender pays Borrower interest on the Funds and applicable law p~rmits I.ender to make such a charge. Borrower and I.ender may agree in writing that interest shall be paid on the Funds. Unless an agrament is made or applicabte law requires interest to be paid, I.cnder shall not be required to pay Borrower any interest or earnings on the Funds. Lender sha11 give to Borrower, without charge~ ar~ 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 Instrument. ~ If the amount of th~ Funds held by I,ender, together with the future monthly payments of Funds payable prior to ~ the due dates of the escrow items, shall excee~ the amount required to pay the escrow items when due. th~ excess shall be, at Borrower's option. either promptly repaid to Bonower or credited to Borrower on monthly payments of Funds. If the ; amount of the Funds held by I.ender is not sutficient to pay the escrow items when due~ Borrower shall pay to Lender any ~ amount necessary to make up the deficiency in one or morc payments as required by Lender. Upon payment in full of all sums socured by this Security Instrument, L.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, I,ender shal! apply. no later than immediately pri,,r to the sale of tht Pro~erty 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. ApplicaNon of Paymeats. Unless applicable law provides otherwise, all 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, Ch~rges; Liens. Bonower shall pay all taaes, assassments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument~ and leasehold payments or ground rents, if any. Bonower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrawer shall pay them on time directly to the person owed payment. Bonower shall promptly furnish to Lender alt notices of amounts to be paid under this paragraph. If Bonower makes these paymenis directly. Horrower sha!! 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 L.ender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legat proceedings which in the I.ender's apinion 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 satisfaciory ta Lender subordinating thc lien to this Security Instrument. If 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 giving of notice. . 5, Hazard Insurnnce. Borrower shall keep the ymprovements now existing or hereafter erected on the Property insured against loss by hre, hazards included within 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 I,ender requires. The insurance carrier providing the insurance shall be chostn by Bonower subject to Lender's appraval which shai( not be unreasonably withheld. All insurance potic~es and renewals shatl 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 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. I.ender may make proof of loss if not made promptly by Borcower. Unless Lender and Sorrower otherwise agree in writing, insurance proceeds shall be appiied 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 I.ender's security would be lessened, the insurance proceeds shall be ~ applied to the sums secured by this Security Instrument. vKhether or not then due, with any excess paid to Borrower. If i Bonower abandons the Property~ or does not answer within 30 days a notice from Lender that the insurance carrier has oRered to settle a claim, then Lender may coltect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due.1'he 30-day period will begin when the notice is given. Unless Lender and Bonower otherwise agree in writing, any application of proceeds to principal shall 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 the Propsrty is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shai) pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservatioe and Maieienance of Property; Leaaeholds. Borrower shall not destroy, damage or substantially change the Property, aliow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comply with the provisions of t6e lease, and if Bonower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. , 7. Protectioa of Lepder's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the p covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aflect 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 the Property and L.end r~s~ights o in the Property. Ixnder'~ actions may include paying any sums se~ured by a lien which has priority over thi S'ei~itity ~ Instrument, appearing in court, paying reasonable attorneys' fas and entering on the Property to make repairs. A~though a Lender may take action under this paragraph 7, Lender dces not have to do so. ~ Any amounts disbursed by I.ender undsr this paragraph 7 shall become additional debt of Borrower secured by this N Security Instrument. [inless Borrower and Lender agr~:e to other terms of payment, these amounts shall bear interest from the date of disbursement at the Nate rate and shall be payable, with interest. upon notice from Lender to Borrower ~ roquesting payment. ~ gm ~ . ~ ~ • ~ , - ~ ,