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HomeMy WebLinkAbout0974 UN~FOttM CovEtv~tv'rs. Bor~owe~ and Lender covenant and agree as follows: l. Payment of Principal and laterest; Prep~ymeat and I.ate Charges. Borrower shall promptly pay when due the principal of and i~terest on the debt evidenced by the Note and any prepayment and late charges due under the Nate. 2. Funds for Tstxes aad Insurance. Subject to applicable law or !o a written waiver by Lender, Borrower shall pay to Lende~ on the day monthly ~yments arc dae under the Note, until the Note is paid in full. a sum ("Funds") equal to one-twelRh of: (a) yesrly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly leasehold payments or ground rents on the Propeny. if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums~ if any. These items are called "escrow items." Lender may estimate the Funds due on the ~ basis otcurcent data and reasonable estimates oFfuture escrow items. The Funds shall b~ held in an institution the deposits or accounts atwhich are insured or guaranteed by a Federal or state agency (including I.ender if Lender is such an institution). L.ender shall apply the Funds to pay the escrow items. ' l.ender 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 applicabte taw permits Lender to make such a charge. Horrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable !aw requires interest to be paid, Lender sha1) not b:, required to pay BorroW~er any interest or earnings on the Funds. Lender ? shall give to Borrower, without charge, an annua! 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 tor the sums secured by . ~ this Securiiy Instrument. : ~ If the amount of the Funds hetd by Lender~ together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shal! exceed the amount required to pay the escrow items when due, the excess shall be, . r at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the t-- 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 I.ender. ~ Upon payment in tuil of alt sums secured by this Security Instrumeni, Lender shall promptly refund to Borrower ~ an Funds held b Lender. If nnder ra ra h 19 the Fro rt ~s soid or ac uired b Lender, Lender shall a 1, no later ' ~ Y Y Pa 8 P Pe Y~ 9 Y PP Y ~ ~ 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 Instrument. - 0 3. Application of Payments. Unless applicable law provides otherwise, ail payments received by Lender uRder ; ¢ paragraphs I and 2 shatl be appiied: 6rst, to late charges due under the Note; second, !o prepayment charges due under the ~ Note; third, to amounis payable under ~aragraph 2; f~urth. to interest due; and last, to principal due. 4. Charges; i,iens. Bonower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehotd payments or ground rents, if any. Dorrower shall pay lhese obligations in the manner provided in paragraph 2. or if not paid in that manner, 8orrower shall pay them on time directty to the person owed payrrient. Borrower shal! promptty 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 lier~ 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 iien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or torfeiture of any part of the Propeny; 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 oC the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a ~ notice identifying the lien. $orrower shall satisfy the lien or take one or more of the actions set torth above within 10 days of the giving of notice. ` 5. NaTard Insurance. Borrower shall keep the improvements now eaisting or hereafter erected on the Pro}~erty < 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 and for the periods that Lender requires. The ~ insurance carrier providing the insurance shall be chosen by Borrowee subject to Lender's approvai which shail not be : unreasonably withheld. ~ Alt insurance policies and renewals shall be acceptable to Lender and shall include a standard martgage clause. ' Lender shal) 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. Lender may make proof of loss if not made promptly by Borrower. Unless Lender 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 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 [o the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If : Borrower abandons the Property. or does not answer within 30 days a notice from Lender that the insurance carrier has ; oti'ered to settle a claim, then Lender may colleet the insurance proceeds. Lender may use the proceeds to repair or restore ' the Property or to pay sums secured by this Securiry 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 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 Property is acquired by I.ender, Borrower's right to any insurance policies and proceeds resulting from damage to the Praperty prior to the acquisition shall pass to Lender to the eztent of the sums secured by this Security Instrument immediately prior io the acquisition. ~ 6. Preservation and Maintenance ot Property; Lease6olds. Borrower shall not destroy, damage or substantially ~ change the Property, allow the Property to deteriorate ar commit waste. It 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 Leader's Rights in the Property; Mortgage Insursnce. If Borrower fails to perform the covenants and agreements eonlained in this Security Instrument, or there is a legal proceeding that may significantly afi'ect ~ Lendei s rights in the Property (such as a proceeding in bankruptcy, probate. for condemnation or to enforce laws or 0 ~ regulations), then Lender may do and pay for whatever is n~cessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may inctude 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 does not have tQdo so. Any amounts disbursed by Lender under this paragraph 7 shall 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 Borrow~er 0 ~ requesting payment. o~ ~ _ _ .