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HomeMy WebLinkAbout0914 t , . . . , UNIFORM CovENANI'S. Borrower and Lende~ cove~ant and agree as follows: 1. P~yment ai Pirinripal and Intereat; P~epayment and I.ate Charges. Borrowcr shall promptly pay N~hen duc tha principal of und interest on the debt evidenced by the Nott and any pre;>ayment and late charges due under the Nc~tr. F~unds tor Taxes tad I~~sunmce. Subject to applica~lc law or to a writtrn waiver by Lender~ Borrow•er shall pay ~ to L.ende~ on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") cqual to ~ one-twelRh of: (a) ycarly Iaxa and assessments which may attain priority over this Sccurity Inst~umznt; (b) yrarly leasehold payments or ground rents on the Propehy~ if any; (c) yearly hazard insurance premiums; and (d) yearly~ ; morigage insurance premiums. if any. These items are called "escrow items." Lende~ may estimate the Funds due on the : basis otcurrent data and reasonable estimates of future esc~ow items. The Funds shalt be held in an institution the deposits or accounts of which are insUred or guaranteed by a federal or ~ state agency (including I.endtr it i.ender is such an institution). Lendcr shall apply the Funds to pay the escrow items. ~ Lender may not charge for hoiding and applying the Funds, analyzing the account or vcrifying the escrow items, unless I.ende~ pays 8orrower interest on the Funds and applicable law p~rmits L.ender to make such a charge. Borrower and i.rnder msy agree in writing that interesl 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 Borrov?•er any interest or earnings on the Funds. I.ender j shail give to Borrower. without charge. an annual accounting of the Fur.ds showing credits and debits to the Funds and the i purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by ; this Sccurity 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 tt~e escrow items, shali exceed the amount required to pay the escrow items when due, the excess shall be, ~ at Borrower's option. either promptly repaid to Borr~wer or credited to Borrower on monthly payments of Funds. lf the ~ amoant oPthe Funds held hy I.ender 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 Pull of all sums secured by this Security Instrument, L.ender shail promptly refund to Borrower _ any Funds held by Lendtr. If under paragraph 19 the Property is sold or acquired by i.ender. 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 crcdit against the sums secured by this Security instrument. ~ 3. ApptieaNon of Payments. Unless applicable law provides otherwise. all pa~~ments received by Lender under ~ paragraphs 1 and 2 shall be aoplied: first, to late charges due undec 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. Charges; Liens. Berrower shall pay aU taxes, assessments. charges. fines and impositions attributable to the ~ Propeny which may attain priority over this Security lnsirument, 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 I receipts evidencing the payments. ~ Borr~wer shsll promptly diseharge 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 j prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures Gam the holder of the lien an ~ agreement satisfactory to Lender subordinating the lien to this Security lnstrument. If Lender determines that any part ot 3 , the Property is subject to a lien which may attain priority over this Security Instrument, L.ender 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 } ~ t. of the giving ef 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 "eztended coverage" and any other hazards for which Lender : f requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The ~ irsurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shali not be ~ unrea~onably withheld. j All insurance policies and renew~ts shall be acceptable to Lender and shall include a standard mortgage clause. _ Lender shall have t6e right to ho~d the policies and renewals. If Lender requires. Borrower shall promptly give to Lender 1 all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall gi;+e prompt notice to the insurance ~ ~ carrier and i.ender. Lende* 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 i 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 Instn~ment, 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 ? oflered to settle a claim, then Lender may collect the insurance Yroceeds. I.ender may use the proceeds to repair or restore ? ihe Property or to pay sums secure~ by this Security Instrument, whethe: or not Lhen due. The 30-day period will begin ; ; when the notice is given. Unless I,ender and Horrower otherwise agree in writing, any applicatian 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 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 extent of the sums s~cured by this Securi~y [nstrument immediately prior to the acquisition. ~ 6. Preservation and iblaintenance of Property; Leaseholds. Borrower shall not destn~y, damage or substantiallp _ change the Property. allow the Propeny to deteriorate or commit waste. If this Security Instrument is on a leasehold, - Borrower shall ~omply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and N : fee title shall not merge unless Lender agrees to the merger in ~~vriting. z 7. Protection of Lender•s Righis in t6e Property; Mortgage Insurance. If Borrower fails to perform the ~ - covenants ::nd agreements contained in this Security Instrument, or there is a legai proceeding s6at may significantly aff'ect 0 Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ regulations), then I.ender ma}- do and Fay for whatever is necessary to protect the value of the Property and Lender's rights - in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security ~ c Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Pmperty to make repairs. Although f~ ~ Lender may take action under ihis paragraph 7, Lender dues not have to do so. ~ Any amovnts disbursed by L.ender under this paragraph 7 shall become additional debt of Borrower secured by this L[~ 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 ro Borrow•er requesting payment. = - - - _ _ - ,...x.