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HomeMy WebLinkAbout0941 ~ UN~FORM CovFtvANTS. Bor~ower and Lender cavenant and agrcc as follows: l. Ppyment of P~incipal and Intereah Prepayment and I.ate Charges. Borrower shall promptly pay when due . the principa! of and interest on the debt evidenced by the Note and any prepayment and late charges duc under the Note. 2. Funds tor Tax~s ant! Insurance. Subject to applicable law or to a written waiver by l.ender; Bo~rower shall p~y - to Lender on the day monthly 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 ~ mortgage insurance premiums, if any. These items are called "escrow items." Lende~ 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 guaranteed by a federal or ~ , state agency (including Lender if Lender is such an institution). Lender 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 Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and , ~ Lender may agree in writin~lhat interest shall be paid on the Funds. Unless an agreement is made or applicable law ; requires interest to be paid, Ltnder shall not be required to pay Bonower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, 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 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 of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Bonower on monthly payments of Funds. If the ~ amount of the Funds held by I.ender is not sufl5cient to pay the escrow items when due, Borrower shall pay to I.ender any ~ amount necessary to make up the deficiency in one or more payments as required by Lender. i Upon payment in fuii of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower ; any Funds held by I.ender. If under paragraph 19 the Property is sold or acquired by I.ender, L.ender shall apply. no luter i than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by I,ender at the time of ~ application as a credit against the sums secure~ by this Security Instrument. ~ 3. Applieatton of Payments. Unless applicable law provides otherwise. all payments received by I,ender 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. t 4. Charges; Liens. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the f Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. ' Sorrower 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. Borcower shall promptly furnish to L.ender 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. ; 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 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 F 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 I.ender determines that any part of ~ the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borcower a notice identifying the lien. Borcower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ~ insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts a~id for the periods that I.ender requires. 'The ~ insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not be unreasonably withheld. ~ ! All insurance policies and renewals shall be acceptable to I.ender and shall include a standard mortgage clause. ~ e..ae. ~ I.ende~ shall have the right to hold the policies and renewals. If I.ender requires, Borrow~; ~uni~ Y~v~u~uJ ~ ~ all receipts of paid premiums and renewal notices. In the event of loss, Bonower shall give prompt notice to the insurance ` carrier and L,ender. Lender may make proof of loss if not made promptly by Bonower. Unless Ixnder 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 L.ender's security is not lessened. If the ~ restoration or repair is not economically feasible or L.ender'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 eacess paid to Borrower. If ~ E Borrower abandons the Property, or does not answer within 30 days a notice from I.ender that the insurance carrier has } offered to settte 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 Security Instrument, whether or not then due. The 30-day period will begin i` when the notice is given. 4 Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eatend or = postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the pa~ments. If ~ ~ under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the eztent of the sums secured by this Security ~ Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; *~..,°~..sehold4. Borrower shall ~ot destroy, damage or substantially ~ 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 shali not merge unless Lender agrces to the merger in writing. . M ~ 7. Protection of Lender's Rights in the Property; Mortgage 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 ar to enforce laws or ~ r regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and I.ender's rights a ~ 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 entering on the Property to make repairs. Although ~ ~ Lender may take action under this paragraph 7, Lender dces not have to do so. M Any amounts disbursed by I.ender under this paragraph 7 shall become additional debt of Borrovver 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 shali be payable, with interest, upon notice from Lender to Borrower o~ ; requesting payment. ; i_ i ~ E: ~ _ . _ . _ . ------'.~.`-z ~__~_._~1...__ _ .