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HomeMy WebLinkAbout0986 UNIFORM COVBNANTS. 8orrower and Let?de~ oovenanl and agra as foUows: 1. Ptyroeat ot Priac[pal aed Iateresh, Prepayokat and I.ate C1ur~a. Borcower shall promptly p~y when due the principal of and interest on the debt evidenced by the Note anc~ any prepayment and lste charges due under the Note. 2. i~nds tor Taxa aed Iawra~. Subject to applicable lsw or to a written waiver by I.endcr~ 8orrowcr shall pay to Lender on the day monthly psymcnts sre due und~r the Notc, untii the Note is paid in full~ a sum ("Funds") equal to one-tweltlh of: (a) yearly tuxes and assessments which may at;.ain priority over this Security Instrument; (b) y~arly leasehold paiyments or ground nnts on the Property~ iP any; (c) yearly hazard i~surance premiums; and (d) yearly mortgage insuranoe premiums~ if any. These items an callod "escrow items." Lender may estimate the Funds due on the basis of current data and rea,sonable estimates of future escrow items. The Funds shali 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). I.ender shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds~ analyzing tht account or verifying the escrow items. unless Lender pays Bonower interest on the Funds and applicable !aw permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicabte law requires interest to be paid~ Lender shall not be required to pay Borrower any interest or earnings on the Funds. I.ender shall givt to Bonower, 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 Securiry lnstrument. ' 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 shall be, at Bonower's option~ eithcr promptly repaid to ~orrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due~ Borrower shall pay to Lxnder any amount nxessary to malce up the deficiency in ons or more payments as required by Lender. Upon payment in fi+ll of all sums securod by this Security Instrument. I.ender shall promptly refund to Borrower any Funds hetd by Lendar. If under paragraph 19 the Property is sold or acquired by I.ender~ I.ender 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 Instrument. 3. Application of PaYmenta Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shali 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. Gliuges; LIeru. Bonower shall pay all taxes, assessments, charges~ fines and impositeons attributable to the Property which may attain priority over 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 paymtnt. Horrower shal) promptly furnish to Lender all notices of amounts to be paid under this patagraph. If Bonower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shaU promptly discharge any lien which has priority over this Security Insirument 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 cnforcement of the lien or forfeiture of any part of the Property; or (c) secures trom the holder of the lien an ' agreement satisfactory to Lender subordinating the lien to this Securiry Instrument. If I,ender determines that any part of E 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. S. Hazard Iosurance. Bonower shall keep the improvements now existing or hereafter erected on the Property . insured against loss by fire, hazards included within the term "extendod coverage" and any other hazards for which Lender ~ requires insurance. This insurance shall be maintained in the amounts and for the periods that Ixnder requires. The j insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be ~ i 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 the policies and rtnewals. If Lender requires. Borrower shail 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 t ; carrier and I.ender. Lender may make proof of loss if not made promptly by Borrower. j ; Unless Lender and Bonower otherwise agree in writing, insurance proceeds shal! 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 ceonomically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instcument, 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 L.ender that the insurance carrier has offered to settle a claim, then L,ender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore - the Property or b pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Uniess I.ender and Bonower 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 L.ender, Horrower's right to any insurance policies and proceeds resulting from ~amage to the Property prior to the acyuisition shali pass to Lender to the extent of the sums secured by ihis Security Instrument irnmediately prior to the acquisition. ~ 6. Preservation and Mainteuance ot Property; Lease6olds. Borrower shall not 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 Honower acquires fee title to the Property, the leasehold and fee title shal) not merge unless Lender agrees to the merger in writing. 7. Protectian of Lender's Rights in tbe Property; Mortgage Insurance. If Borrower fails to perform the covenants and agraments contained in this Security Instrument, or there is a legal procceding that may significantly affect i.ender's rights in the Praperty (such as a procading in bankruptcy~ probatr. for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is nxessary to protect the value of the Property and Lender's rights in the Froperty. Lender's actions may include paying any sums securod by u lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fas and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender dces not have to do so. Any amounts disbursed by L.ender under this paragraph 7 shall btcome additional debt of Borrower securcd by this Sxurity 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 L.ender to Borrower requesting payment. 600K ~YU PAGE s70~ . --i .