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HomeMy WebLinkAbout0994 x UNIFOttM CovsN~t~t1's. Borrower and Lender covenent and agra as tollows: l. PAymeat o[ Prtaclpal and Iatereat; Prepa,yanent aad Late Cbsr~et. ~ Borrower shall promptly pay when due i ~ the principal of and interest on the debl cvidenced by the Note and any preps~9nent and lat~ ebarges due undc~ the Note. ; I Z. Ruads for Tazes aad Iasuranee. Subject to applicable Isw or to a written waiver by Lender~ Barrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fu~ds") cquai to ~ ~ one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leaschold payme~ts or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) ycarly i mortgage insurance premiums, if any. These items an caltal "escrow items." I.ender may estimate the Funds due on the ~ basis of cunent data and reasonabte estimates of future escrow itcros. ~ I The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a f~deral or i state agency (including I.ender if I.ender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account ar verifying the escrow items~ unless ~ I.gnder pays Bonower interest on the Funds and applicable law permits I.ender to make such a charge. Borrower and Ilender may agree in writing that interest shall be paid on the Funds. Unless an agrecmcnt is made or applicable law rcquires interest to be paid, Lender shall not be re~uircd to pay Borrower any interest or earnings on the Funds. Lender ~~~all 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 lnstrument. 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 duo, the excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sut~'icient to pay the escrow items when due, Bvnower shall pay to Lender any ~ amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in fu11 of atl sums secured by this Security Instrument, I.ender shall promptly rePund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by i.ender, I.ender shall apply. no tater than immediately prior to the sale of the Property or its acquisition by I,ender. any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Applicatioa of Payments. Unless appticabie law 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, to interest due; and last. to principal due. 4. Charges; Liens. Bonower shall pay all taxes, as.sessments, charges, fines and impositions attributable to the Propeny which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner pr9vided in paragraph 2, or if aot paid in ihat manner. Borrower shall pay them on time directly to the person owed payment. Bonower shall promptly furnish to L.ender al! 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. Borcower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secure~ 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 Properiy; 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 lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfjr the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. HAZard Iosurance. Borrower shall keep the impravements 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 L.ender 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 Lender and shall include a standard mortgage clause. Lender shall have the right to hald the policies and renewals. If Lender requires, Borrower shall promptly give to L.ender all receipts of paid premiums and renewal notices. In the event of loss. Bonower shall give prompt notice to the insurance ~ carrier and L,ender. Lender may make proof of loss if not made promptty by Bonower. ~ Unless L.ender and Borrower 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 Lender's security would be lessened. ihe 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 s Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ' oftered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security ]nstrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwisc agree in writing, any appiication 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 otthe payments. If under paragraph 19 the Property ~s acquired by L,ender. Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior ta the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to tht acquisition. 6, Preserration xnd Maintenance of Property; Leaseholds. Bonower 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 otthe Iease. 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 Pmperty; Mortgsg~ Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aflect 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 inciude paying any sums secured by a lien which has priority over this Security Instrument. appearing in court, paying reasonabl~ attorneys' fecs and entering on the Property to make repairs. Although Lender may take action under this paragraph 7. Lender dces not have to do so. Any amounts disbursed by I.ender under this paragraph 7 shall becomt additional debt of Borcower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from - the date of disbursement at the IYote rate and shalt be payable, with interest. upon notice from I.ender to Borrower = requesting payment. - ~ ~ooK 545 PA~E 993