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HomeMy WebLinkAbout0929 ' + I ' i i ~ UNIFORM ~OVENANI'S. 8orrower and Lender covenant and agree as follows: ' l. P~ymeat of Principa! aad Interest; Prepaymeat aad I.~te Charges. 8orrower shall promptly pay when due thc principal of and interest on the debt evidenced by the Note and any pr~payment and late charges due unde~ thc Note. 2. Furda fo~ Taxes ~nd tnsuninee. Subject to applicable law or lo a written waiver by Lender~ Horrower shal! pay to L.ender on the day monthly payments are due under the Note, until thc Note is paid in full. a sum ("Funds") equal to one-twelRh ofc (a) yearly taxes and assessmcnts which may attain priority over this Security Instrument; (b) yearly ieasehotd payments or ground rents on the Property. if any; (c) yea~ly hazard insurance premiums; and (d) yearly mongage insurance premiums, if any. These items are called "escrow items." Lerder may estimate the Funds due on the . ,basis of cutrent data and reasonable estimates of future escrow items. ~ Th~ Funds shall be held in an institution the deposits or accounts of which are insared or guarant~ed by a federal or state agency (including Lender if L.ender is such an institution). l,ender shall apply the Funds to pay the escrow items. ~ Lender may not charge for holding and applying the Funds, analyaing the account or verifying the escrow items, unless I.ender pays Borrower interest on the Funds and applicable law permits I,ender to make such a charge. Borrower and L.ender may agree in writing that interest shall be paid on the Funds. Unless an agrecment is made or applicable law requires interest to be.paid, l.ender shall not be roquired to pay Borrower any interest or earnings on the Funds. l.ender 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 tht Funds was made. Tha Funds a~e pledged as additional security Por the sums secured by this Secarity Instrument. lf the amount of the Funds held by Lender; together with the future monthly payments of Funds payable prior to the due dates of the escruw items, shall exceed the amount required to pay the escrow items when due, the excess shall be. at Borrower's option~ either promptiy repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of'the Funds held by I,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 Lender. Upon payment in full of alt sums secured by this Security Instrument~ i.ender shall promptly refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later than immediately prior to the salc of the Property or its acquisition by Lender. any Funds held by Lender at ~he time of application as a credit against the sums secured by this Security Instrument. 3. ApplIeation of Payments. Unless applicable iaw 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; foucth. to interest due; and last. to principal due. 4. Charges; Liens. Bonower shali pay ali taxes. ass~ssments. charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Bonower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borcower shall pay them on time directly to the person owed payment. Borcower shall promptly furnish to Lender aU notices of amounts ` to be paid under this paragraph. If Bonower makes these payments directly, Borrower shall promptly furnish to Lender ~ receipts evidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument uniess 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 io. 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 satisfactory to Lender subordinating the (ien to this Security Instrument. If Lender determines that any part of ~ t6e Property is subject to a lien which may attain priority over this Security Instrument, I.ender may give Dorrower a ; notice identifying ihe lien. Barrower 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. Borrower shall keep the improvements now existing or hereafter erected on ihe Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender ' requires insurance. This insurance shatl be maintained in the amounts and fpr the periods that L,ender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to L,ender's approval which shall not be unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to I.ender and sha1l inctude a standard mortgage clause. ' Lender shall have the right to hold the policies and renewals. lf L.ender requires, Borrower shall promptly give to Lender ~ all receipts of paid premiums and renewal notices. In the event of loss, Bcrrower shalf give prompt notice to the insurance carrier anQ Lender. I.ender may make proof of loss 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 Property damaged, if the restoration ar repair is economically feasible and Lender's security is not tessened. If the ~ restoratian or repair is not economically feasible or I.ender's security 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 Borrower. If ' ; Borrower abartdons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ~ otfered to settle a claim. then L.ender may coliect the insurance proseeds. Lender may use the proceeds to repair or restore ~ the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day pericxi will begin ~ when the notice is given. Unless Lender and Borrower otherwise agree in writing, any apnlication of proceeds to principal shap 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 Lender, Borrower's right to any insurance ~iolicies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b} this Security Instrument immediately prior to the acquisition. ~ 6. Pr rvation and Maint nance ot Pro rt• Leaseholds. Borrower sha!! n~t destro , dama e or substantiall ese e Pe r, Y 8 Y ~ change the Property, altow 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 agrees to the merger in writing. 7. Protection of Lender•s Rights in the Property; Mortgage Insurance. if Borrower fails to perform the covenants and agreements contained in this Security lnstrument, or there is a iegal proreeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regu)ations), 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' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do sa. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrow~er secured by this Security Instrumeni. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest fram the date of disbursement at the Notc rate and shall be payable, with interest, upon notire from Lender to Borrower reyuesting payment. , gooK 545 PACE 928 --y- - . _ . _ ~ _