HomeMy WebLinkAbout0918 UNIFORM COVENAN`i'S. Horrower and Lender covenant and 8gree as follows:
l. Paymeat ot Prin~ipR! and Iatereat; PrepaymeAt and I.ate Chwgea. Bonower shall prumptly pay when due
the principal ofand intarest on thc debt evidenced by the Note and any prepayment and latc charges duc unde~ thc Note. 4
2. ~nds tor Tsucea and Iaaurance. Subject to applicable law or to a written waiver by [.onder, 8or~ower shail pay ;
to Lender on the day monthly payments are due undcr tht Note, until the Notc is paid in full, a sum ("Funds") equal to ~
one•twelflh of: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly ~
leasehold payments or ground rents on tht Property~ if any; (c) yearly hazard insurancc premiums; and (d) yearly
mortgage insu~ance premiums. if any. These items are called "escrow items." Lender may essimate the Funds due on the ~
• ~ basis of current data and reasonabl~ estimates of futurc escrow items. ;
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or ;
stlte agency (including I.eader. if I.ender is such an institution). I.ender shaN apply the Funds to pay thc escrow items.
L.ender may not charge for holding and applying !ht Funds, analyzing the account or verifying the escrow items~ unless `
Lender pays Horrower intersst on the Funds and applicable law permits Lender to make such a charge. Borrower and `
Lhnder may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable iaw '
requires interest to bc paid. Lender shall not bc required to pay Bonower any interest or earnings on the Fueds. 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 the sums secured by ~
this Security Instrurnent. ~
IP the amount of the Funds held by Lender~ together with thc future monthly payments of Funds payabte prior to
the due dates of the escrow items~ shall exceed the amount required to pay the escrow items when due, the excess shall be, ~
at Borrower's option~ either promptly repaid to Borrower or credited to Bonower on monthly payments of Funds. lf the
amount of the Funds held by L,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 L.ender. ~
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any F'unds held by I.ender. 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 Praperty 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.
3. Appllcsttioa of Payments. Unless applicable law provides otherwise, all payments received by Lender under i
paragraphs 1 and 2 shall be applied: first, to tate 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 tast, to principal due.
4. Charges; Ltens. Borrower shall pay all taxes, assessments, charges, fines and impositions 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 pecson owed payment. Borrower shal! 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
receipts evidencing the payments.
Borrower shail 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
faith the lien by. or defends against enforcement of the lien in. legal proceedings which in the Lender's opinion operate to
prevent the ent'orcement 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 Instrument. If Lender determines that any part of
the Property is subject to a iien 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.
5. Hazard Insurance. Borrower shall keep the improvements now ezisting or hereaRer erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for whieh I.ender
requires insurance. This insurance shall be maintained in the amounis and for the periods that L.ender requires. The
insurance camer providing the insurance shall 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.
L.ender shall have the right to hold the policies and renewals. If L.ender requires, Borrower shall promptly give to I.ender
~ all receipts of paid premiums and renewal notices. In the event of loss, Horrower shall give prompt notice to the insurance
carrier and L.ender. Lender may make proofofloss 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 PrQperty damaged, if the restoration or repair is economically feasible and I.ender's security is not lessened. [f the
restoration or repair is not economical~y feasible or I,ender's security would be lessened, the insurance proceeds shaU be
applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrawer. If
Borrower abandons the Property, or does not answer within 30 days a noiice from I.ender that the insurance carrier has
offered to seitle a claim, then Lender may callect the insurance proceeds. i..ender may use the proceeds to repair or restore
the Property ar to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
when the notice is geven. -
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 Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preservation and Malatenance of Property; Leaseholds. Borrower shaH 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 Borrower acquires fee title to the Property, the leasehold and
fee litle shali not merge unless I.ender agrees to the mergtr in writing. .
7. Protection of I.ender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aRect
L.ender'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 I.ender's rights
in the Property. I.ender's actions may include 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 Lender dces not have to do so.
Any amounts disbursed by i,ender under this paragraph 7 shap become additiona! debt of Borrower secured by thi~
Security instrument. Uniess 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 Bc~rrower
requesting payment.
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BoQK54~. ~AGE 918
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