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HomeMy WebLinkAbout0960 UNIFORM COVENANTS. Bonower and Lender covtnant and agree as follows; 1. Payment oi Princip~l and Interest; Prepsymeat and Y.nte C1~argea, 8orrower shall promptly pay when due the principal of and interat on the debt evidenccd by the Note and any prepayment and (ate cha~ges due under the Note. 2, Ftinds tor Taxes and Insurance. ' Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lende~ on thc day monthly payments are due under the Note~ until the Note is paid in full, a sum ("Funds") equal to one•twelRh of: (A) yearly taxes and assecsments which may attain priority ove~ this Security Inst~ument; (b) yearly leasehold payments or ground rents on the P~openy~ if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance preroiums, if any. These items are called "~scrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insur..d or guaranteed by a fcderal or state agency (including Lender if I.ender is such an institution). Lender shall apply the Funds to p~y the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits L,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 shall not be required to pay $or~ower any interest or earnings on the Funds. Lender shall give to Borrower, without charge. an annua) accounting of ihe Fur.ds 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 lhis Security lnstrument. lf the amount oPthe Funds hetd by Lender. together with the futuce monthly p~yments of Funds payable prior to the due dates ot the escrow items, shall exceed the amount required to pay the escrow items when dut, tht excess shall be, at Borrawer's option, either promptly repaid to Borrower or credited to 8orrower on monthly payments of Funds. If the amaunt of the Funds held by L.ender is not sufticient 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 full of all sums secured by this Security Instrument, Lender shall promptly ret'und to Borrower any Funds held by Lender. If under paragraph 19 the Property is sotd or acquired by Lender, Lender shal) apply, no later than immediately prior to the sate of the Property 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. Application of P9yments. Unless applicable !aw provides otherwise, all payments received by Lender under ~ paragraphs I and 2 shall be applied: first, to late charges due under the Note; second, to ~repayment charges due under the Note; third, to amounts payabte under paragraph 2; fourth, to interest due; and iast, to principal due. . s 4. Charges; Liens, Borrow•er shali pay ail 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. F Aorrower shall pay lhese 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 Barrower makcs these payments directly, Borrower shall promptly furnish to l.ender receipts evidencing the payments. I3orrower shall promptly discharge any~ lien w•hich 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 enforcement of'the lien or farfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to ~ender subordinating the (ien to this Security Instrument. If Lender determines that any part of i the Property is subject to a tien which may attain priority over this Security Instrument, Lender may give Borrower a 4 notice identifying the lien. Borrower shall satisfy ~he lien or take one or more of the actions set forth above within 10 days ~ of the giving of notice. S i 5. Hazard Insurance. E3orrower shall keep the improvements noa• existing or hereafter erected on the Property ~ insured against Mss by fire, hazards included a~ithin the term "extended coverage" and any other hatards for which Lender t reyuires 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 Bo~rower subject to Lender's approval which shall not be anreasonably withheld_ All insurance ~licies and renewals chall be acceptable to Lender and shall include a standard mortgage clause. ' Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shal! promptly give to Lender all receipts of paid premiums and renew~ai notices. !n 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 Borrower otherw~ise agree in writing, insurance proceeds shall be applied to restoration or repair ~ of the Praperty 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 Lender's security would be lessened, the insurance proceeds shal! be ~ applied to the sums secured by this Security (nstrument, 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 Lender may collect the insurance proceeds. Lender may use the proceeds to repair or resrore ~ the Yroperty or ro pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin ~ when the notice is given. r Unless Lender and Borrower otherwise agree in writing, any apptication oFproceeds to principa! shall not extend or ; ° postpone the due date otthe monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If E 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 secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or sabstantially change t6e Property, atlow the Property to deteriorate or commit waste. It this Security lnstrument is on a leasehold, _ Sorrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the ProFerty, tht leasehold and fee litle shal! not merge unless Lender agrees to the merger in writing. ~ 7. Protection of Lender•s Rights in the Property; Mortgage Insurance. If Borrower fails to perform the co~~enants and agreements contained in this Security Instrument, or there is a(egal 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 ~he Properly. Ltnder's actions may include paying any sums secured by a lien which has priority over this.Security 4 Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, Lender does not have to do so. ? Any amounts disbursed by Lender under this paragraph 7 shal! become additional debt of Borrower secured by this ~ Security Instrument. Unless Barrower and [.ender agree to other terms of payment, these amounts shall bear interest from ` the date vf disburxment at thc Note rate and shalf be payable, with interest, upon notice from Lender to Borrower " requesting payment. r r < ~ • BQGI! 544 ~A ~ ~F ~59 ~ ~ ~ : . . _ ~1~!"