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HomeMy WebLinkAbout0982 U!~IFQRM COvENANTS. Borrower and Lendcr covenant and agrcr:~s folluw~.: 1. Payment ot Principal and lnteresh Prepayment And [.atc Charges. Borrower ~hail promptly pay ~~'hen du~ the principa! of and interest on Ihe debt eviden~ed by the Note and uny prepa~~ment and late rhargc~ due under the Notc. 2. Funds for Taxes and lnsurance. Subject ta applicable law or to a w~itten ~vaiver by Lcnder, I3orroH•er ~hall pay to Lende~ on the day manthly payment~ are due under the Note, until the Note is paid in full, a sum ("Funds") equal tu one-twelflh of: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) ycarly leasehold paymeiUs or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) ~•early mortgage insurance premiums, if any. These items are calied "escrow items." Lendc~ may estimate the Funds due on the basis of current data and reasonable estimates af Puture escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured ar guaranteed by a federal or ' state agency (including Lender if Lender is such an institution). Lender shali 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 ~ 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 shaU 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 Borro~~•er any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting af 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 far the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates oPthe escrow items, shall exceed the amount required to pay the escrow items when due, the excess shat! be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. lF the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, Lender shall 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 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 Insirument. 3. Application of Payments. 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 dae. 4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impasitions attributable to the Property which may attain priority o~~er 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 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 Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has prioriiy 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 Property; or (c) secures from the holder of the lien an ` agreement satisfactory to Lender subordinating the 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 Insuran~e. Borrower shall keep th~ improvements now~ existing or hereafter erected on the Property , ~nsured against loss by fire, hazards included within the term "exrended 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 I insurance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approval which shall not be ' unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ~ Lender shall have the right to hold [he 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. Lender may make proof of loss if not made promptly by Borrower. ~ Unless Lender and Barrower atherwise agree in writing, insurance proceeds shall be applied to restoration or repair ~ of the Property damaged, if'the restoration or repair is econamically 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 Borroa~er. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ofTered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Securit}• [nstrument, w~hether 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 to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 ~r change the amount af the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance ~wlicies and prciceeds 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. 6. Preservation and hlaintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantiall}• change the Property, allow the Property 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 title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Ixnder's Rights in the Property; 1lortgage Insurance. If B~xro~ti•er tails to perform the covenants and agreements contained in this Security Instrument, or there is a legal prciceeding that ma~~ significantly afTect Lender's rights in the Property (such as a prcx:eeding in bankruptcy, probate, for condemnation or to enforce law•s or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Propert~~ and Lender's rights in the Property. Lender's actions ma~~ include paying any sums secured b}• a lien ~~hirh has priority o~~er this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property tc? make repairs. Although L,ender may take action under this paragraph 7, Lender does not ha~•e to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additi~,nal debt uf Rorro~~~er secured b~~ this Security Instrument. Unless Borro~~•er and Lender agree to other term~ ~f ~a~~ment, thr~ti amounts tihall bear interest from the date of disbursement at the Note rate and shall br pa~•ablc. «•ith interest, upc~n notire fmm Lender to Borrower requesting payment. . ~ ~ ~S~OS27 PA6~0980 _ . _ _ . . _ -