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HomeMy WebLinkAbout0941 ~ . • . UNIFORM COVENANTS. Borrowei and L.ender covenant and agree as follows: 1. Paymea~ of Princip•! •ad ta~e~ar Preoaymeat and Lte Chu~ea. 8orrower shall promptly pay when due the principal of and i~te~est on ihe debt cvidenced by the Note and any prepayment snd latt charges due undcr thc Note. 2. ~ad~ for T~uca and lasur~nce. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lende~ on the day monthly paym~nts are duc under the Note, until the Notc is paid in full, a sum ("Funds") equsl to one-twelfth of: (a) ycarly taxes and assessments which may attain priority over this Security Instrument; (b) yeariy leasehold payments or ground rents on the Propeny. if any; (c) yearly haza~d insurance premiums; and (d) yearly mortgage insurana prcmiums, if any. These items are called "escrow items." l.ender may estimate the Funds due on the ¢asis oPcurnnt data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insurai or guarantced by a foderal or 3tate agency (including Lender if L.ender is such an institution). Lender shall apply the Funds to pay thc escrow items. ,Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless Lendtr pays Borrower interest on the Funds and applicabla !aw permits Lender to make such a charge. Borrower and I,ender may agrce in writing that interest shall be paid on the Funds. Unless an agroement is made or applicable law requires interest to be paid~ L.ender shall not be roquirod to pay Bonower any interest or earnings on the Funds. L.ender shall give to Bonower, wilhout 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 pl~dged as additional ~ecurity for the sums secured by this Socurity Instrument. If the amount of the Funds held by L.ender~ together with the futurc 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 shall be. at Borrower's option~ either promptly repaid to Bonower 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 I.ender any amount necessary to mak~ up the deficiency in one or more payments as required by Lender. ~ Upon payment in full of all sums secured by this Security tnstrument, I,ender shall promptly refund to Borrower any Funds held by I.ender. If under p~aragraph 19 the Property is sold or acquired by Lender. 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 ot application as a credit against the sums secured by this Security Instrument. 3. AppiicnHon oi Payments. Unless applicable law provides otharwise, all payments received by L.ender under paragraphs 1 and 2 shall be applied: Rrst, to late chargts due under the Note; sa:ond. to prepayment charges due under the Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. Gbarges; Ideas. Bonower shall pay all taaes, assessments~ charges, fines and impositions attributable to the Property which may attain priority ovtr this Security Instrument. and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner providod in paragraph 2~ or if not paid in that manner. Borrower shall pay them on time directly to the person owod payment. Borrower shall promptly furnish to I.ender 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 dischargo any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation securod 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 enforcement of the lien or forfeiture of any part of the Property; ar (c) secures trom the holder of the lien an agreement satisfactory to L.ender 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, 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 of the giving of notice. S. Hazard Insurance. Bonower shall keep the improvements now existing or hereaRer erected on the Property . insured against loss by fire, hazards included within the term "eatended coverage" and any other hazards for which I.ender 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 Borrower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to L,ender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If I.ender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss. Bonower shaU give prompt notice to the insurance carrier and Lender. I,ender may make proof of loss if not made promptfy by Borrower. Unless I.ender 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 I,ender's security is not tessened. If the restoration or repair is not economically feasible or I.ender's socurity would be lessened. the insurance proceeds shall be applied to the sums secured by this Security Instrument. whether or not then due, with any excess paid to Borcower. If Borrower abandons the Property~ or does not answer within 30 days a notice from L.ender that the insurance carrier has offered to settte a claim. then I.Ender may collect the insurance procceds. I.tnder may use the proceeds to repair or restore the Property or to pay sums stcurod by this Security 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. lf under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance poli~ies 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. Presenatioa aud Malntenance of Property; Leaaeholds. 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 8orrower acquires fee title to the Property, the leasehold and fce title shall not merge unless Lender agrces to the merger in writing. 7. Protection of Leader's Rtghts in the Property; Mortgsge Insurance. If Borrower fails to p~rform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly atfect Lender's rights in the Property (such as a proceeding in bankruptcy~ probate, for condemnation or to enforce laws or tegulations). 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 sccured by a lien which has priority over this Security Instrument, appearing in court, paying re~sonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7. Lender daes not have to do so. i Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and L.ender 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. BooK 541 ~~E 941 ~~`^t* - _ _ _ . . . . ~ . .