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HomeMy WebLinkAbout0991 c I UNIFORM COVENANis. Borrowcr and I.tnder covenant and agra as follows: 1. Payment of Prlnclpal ~d Intereah Prepayment ~nd I.nte CUargea. Borrowe~ shail promptly pay whcn due the principal af ~nd interest on the debt evidenced by the Notc and any prepayment and late charges due unde~ the Nate. 2. Funds fo~ Taxes and Iasurance. Subject to applicable law or to a written waiver by Lender~ Borrowe~ shaU pay to Lende~ on the day monthly payments are due under the Note, until the Note is paid in i'uil, a sum ("Funds") equal to ~ one-twelRh of (a) yearly taxes and assessments which may attain priority over this Security Inst~ument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance p~emiums; and (d) yearly ~ mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the ~ basis of current data and reasonable estimates of future escrow items. ~ The Funds shall be hefd in an institution the deposits or accounts of wt~ich are insured or guaranteed by a federal or state agency (including Lender if Lender is such aR institution). Lender shall apply the Funds to pay the escrow items. l,ender may not charge for holding and applying the Funds, analyzing the account or verii'ying the escrow items, unless - Lender pays Borrower interest on the Funds and appiicable taw permits I.ender 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 applicable law ~ requires interest to be paid, Lender shali not be required to pay Borrower any interest or earnings on the Funds. Lender ~ shall give to Horrower, 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 sha!! be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount ot'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 i~ one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, I.ender shall promptly refund to Borrower any Funds held by Lender. IP under paragraph 19 the Property is sold or acquired by Lender, Lender shal) apply, no lat~r 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 agair~st the sums secured by this Se~urity Instrument. 3. Appllattion of Payments. Unless applicable lav~r provides otherwise. all payments received by Lender 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, tu interest due; and last. to principat due. 4. Charges; Liens. Borrower shall pay all taxes. assessments~ charges, fines and impositions attribtitable to the Property which may attain priority over this Security Instrument. and leasehold payments or ground rents, if any. Borrower shall pay these oblig~tions 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. Horcower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly turnish to Lender receipts evidencing the payments. Borrower shal) 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 taith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to 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 salisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrawer a notice identifying the lien. Borrower shaU 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 hereaRer 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 and for the periods that Lender requires. 7he insurance carrier providing the insuranee shall be chosen by Bonower subjeci to Lender's approval which shall not be 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 renewals. If I.cnder requires. Borrower shall promptly give to Lender ali 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 Bonower 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 I.ender's sr_curity would be tessened, the insurance prceeeds shall be applied to 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 offered to settle a claim. then I.ender may colleet the insurance proceeds. I.ender may use the proceeds to repair or restore the Pro.perty or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period wili begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or i 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~ Borrower's right to any insurance policies and pra:eeds resulting ' from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums s'ecured by this Security ; Instrument immediately prior to the acquisition. ` 6. Preservation and Maintenance of Property; Lease6otds. Sorrower shall not destroy, damage or substantialiy ~ 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 shall not merge unless Lender agrces to the merger in writing. , 7. Protection of Lender's Rights in t6e Property; Mortgage Insurance. If Bdrrower faits 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 or to enforce laws or ; regulations), then Lender may do and pay 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 ` Instrument, appearing in court. paying reasonable attorneys' fces and entering on the Propeny to make repairs. Although - Lender may take action under this paragraph 7. Lender dces not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this E ; 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, ugon notice from Lendec to Borrower requesting payment. ; ~ ~ ~ v E . BOOK J4O PAGE ~SJ ~ _ _ ~s---f-_ -~•r~-~•-- _