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HomeMy WebLinkAbout0950 UN~FORM CovEN~N1'S. Borrower and I.tnder covenant and agra as follows: • 1. Payaaeat ot P~tnctpal and Iaterest; PrtpRyment and Lte Chuge~. Borrower'sha!( promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. ~nds to~ Tuea and Idaurance. Subjoct to applicable law or to a written waiver by l.ender~ Borrower shall pay to Lender on the day monthly payments are due under the Note~ unti! the Note is paid in fuil. a sum ("Funds") equai to one•twelRh of: (a) yearly taxes and assessmcnts which may attain priority ovcr this Security Instrument; (b) yearly ' leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly ` ; mortgsge insursnce premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the i basis orcurrent 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 (iacluding Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow itcros. ~ Lender may not charge for holding and applying th~ Funds~ analyzing the account or verifying the escrow items, unless ~ I.~nder pays Borrower interest on the Funds and applicable law permits I.ender to make such a charge. Borrower and Lcnder may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires intertst to be paid~ Lender sha11 not be required to pay Borrower 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 tho sums s,.-cured 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 excoed the amount required to pay the escrow items when due. the excess shal! be, ~ at Bonower's option. either promptly repaid to 8orrower or credited to Bocrower on monthly payments of Funds. lf the a:naunt of the Funds hald by Ltndar is not suflicitnt to psy the escrow items whtn due. Fionower snaii pay ~o Lender a;,y amount necessary to make up the deficiency in one or more payments as required by I.ender. ; 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 Froperty is sold or acquired by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrurnent. 3. Applicatton of Payments. Unless applicable law provides otherwise. all payments received by Lender under paragraphs 1 and 2 shal! 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. G3arges; Liens. Bonower shall pay all taxts. assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehald paymertts or ground rents, if any. Borrovvec shall pay these obligations in the manner provided in paragraph 2~ or if noi paid in that manner, Borrower shall ~ pay them on time directly to the person owed payment. Bonower shall promptly Purnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrow~er shall 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 secuced 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 enforc~ment 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 tnstrument. If Lender determines that any part ot the Property is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a notice identifying the licn. 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 Insurance. Borcower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended coverage" and any other hazards for which Lender ~ requires insurance. This insurance shatl be maintained in the amounts and for the periods that I.ender requires. The insurance carrier providing the insurance shal! be chosen by Borrower 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. I.ender shall have the right to hold the policies and renewals. If I.ender requires, Borrower shall promptly give to Lender ~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shaii give prompt notice to the insurance carrier and L.ender. I.ender may make proof of loss if not made promptly by Borrower. ~ Unless I.ender and Borrower otherwise agree in writing~ insurance proceeds shall be applied to restoration or repair ~ of the Pro}~erty damaged, if the restoration or repair is economically feasible and I,ende~'s security is not lessened. If the , restoration or repair is not econornieally feasible or Lender's security would be lessened, the insurance proceeds shall be ~ applied jo the sums secured by this Security Instrument. whether or not then due. with any excess paid to Borrower. IF ' Bonower abandons the Property. or does not answer within 30 days a notice from I.ender that the insurance carrier has offerod to settle a claim, then I.ender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Froperty or to pay sums secured by this Security Instrument, whether 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 shail not extend or postpone the due date of the monthty payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insuranee policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to I.ender to the eatent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Presenatloa and Mslntenance af Property; Lesseholds. Borrower shall not destroy, damage or substantially change the Property. allow the Property to deteriorate or commit waste. If this Security Instniment is on a Itasehold, Borrower shafl camply with the provisions of the lease, and if Borrower acquires fee title to the Property. the leasehold and fee title shall not merge unless I,ender agras to thc mergcr in writing. 7. Protection of Lender'a Righta in the Property; Mortgage Insurn~ce. If Borrower fails to perform the covenants and agreements contained in this Seeurity Instrument, or there is a legal proceeding that may significantly affect ~ Lender's rights in the Propetty (such as a proceeding in bankruptcy, probate, for condemnation or to enfurce laws or regutations). then I.ender rr~ay ao and pay for whatever is necessary to protect the value of the Pro}xrty and Lender's rights ~ in ihe Property. I,ender's actions may include paying any sums secured by a lien which has priority over this Security p Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~ L.ender may take action under this paragraph 7~ I,ender does not have to do so. ~ ~ Any amounts disbursed by L.cnder under this paragraph 7 shall become additional debt of Borrower secured by this Socurity Instrument. Unless Borrower and Lender agree to othet terrrts of payment. thest 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 M requesting payment. ~ O [r Y OOo . 4 Pa~~ 1451 . : . , :~50 . ~ . - - __.~....s,..~- :~~=~c:_~_- - _ , : p.-