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HomeMy WebLinkAbout0940 UNIFORM COV~NANT'S. Bonower and Lende~ covenant and agra as foltowr. ; 1. Payment oi Principal and Iate~at; Prepaymeat aad Lte Ghargea. 8orrower shs!! promptly pay when due ~ thc principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. ~ 2. Flends tor Tsxa and lasurance. ' Subject to applicable law or to a written waiver by l.ender. Borrower shail pay to Lende~ on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equai to ! one•tweltlh of: (a) yearly taxes a~d assessments which may attain priority over this Security lnstrument; (b) yearly ~ leasehold payments or ground rents on the Property, if any; (c) yearly hazard insu~ancc premiums; and (d) yearly ; mortgage insurance premiums. if any. These items are called "escrow items." Lender may estimate the Funds due on the } basis of current data and rcasonable estimates of future escrow items. ~ ~ ' ~ 'The Funds shall be held in an institution the depcuits or accounts of which are i~sur..d or guaranteed by a federal or state agency (including Lende~ if Lender is such an institution). I.ender shall apply the Funds to pay the tscrow items. I.ender_may not charge for holding and applying the Funds~ anaiyzing the accaunt or verifying the escrow items, unless ~ Lender pays Borrower interest on the Funds and applicable law permits Leader to make such a charge. Borrower and Lcnder may agra in writing that interest sha!! be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not bc requircd to pay Borirower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the 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 ' this Security Instrument. ~ If the amount of the Funds held by L.ender. 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 escraw items when due, the excess shall be, # at Borrower's option, either promptly repaid to Borrower or credited to Bo~rower 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 shal) pay to Lender any t amount necessary to make up the deficiency in one or more payments as required by Lender. ~ Upon payment in ful! of al) sums secured by this Security Instrument, Lender shall promptly refund to Borrower ~ any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, I.ender 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 of application as a credit against the sums secured by this Security Instrument. 3, Applicatton of Payments. Unless appticabte law provides otherwise, ali payments received by Lender under paragraphs 1 and 2 shall be applied: fitst, 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. j 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the j Propehy which may attain priority over this Security Instrument, and leasehold payments or ground rents, ii any. ~ Borrower shall pay these obligations in the manne~ provided in paragraph 2, ar if not paid in that manner, Borrower shal! ~ 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. IP Borrower makes these payments directly, Borrower shall promptly furnish to Lender , receipts evidencing the payments_ ~ - Borrawer shall 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 iien 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 Porfeiture oF any part of the Property; or (c) secures from the holder of' the lien an agreement satisfaetory to Lender subordinating the iien 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 satisfy the lien or take one or more ol the actions set fortb above within 10 days of the giving of notice. 5. Nazard Insuranee. Borrower shall keep the improvements now existing or hereaRer erected on the Property insured against ioss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shal) 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 unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lendcr shall ha~•e thc right to hold ihe policies and renewals. If Lender requires, Borrower shall promptly give to Lender • all receipts of paid premiums and renewal notices. In the event ot loss, Borrower shall give prompt notice to the insurance o - carrier and Lender. Lender 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 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 shall be applied to the sums secured by this Secwrity Instrument, whether or not then due, with any excess paid to Borrower. If = Borrower abandons the Property, or dces not answer within 30 days a notice from L.ender that the insurance carrier ~as offered 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 Instrument, whether or not lhen due. 'The 30-day period wil! begin = when the notice is given. ~ Unless Lender and Borrower otherwise agree in writing, any application of ~roceeds 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 Lender, Borrower's right to any insurance policies and proceecls resulting from damage to the Property prior to the acquisition shall pass to L,ender to ihe extent of the sums s~cured by this Security ~r Instrument immediately prior to the acquisition. 6. Preservs~tion ~nd Malntenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially _ change the Property, allow the Property to deteriorate or commit waste. lf this Security Instrument is on a leasehold, - Borrower shall comply with the provisions of the lease, and if Borrower acquires tee title to the Property, the leasehold and fee title shall not merge unless [,ender agrees to the merger in writing. - '1. Protection of I.ender's Rigbis 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 ati'ect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforee taws or regulations), then L,ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights x in the Property. Lender's actions may include paying any sums secured by a lien which has prioriry over this Securiry s [nstrument, appearing in court, paying reasonable attorntys' fees and entering on the Property to make repairs. Although ~ Lender may take action under this paragraph Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower 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 Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting paym~nt. BOGK 5~H pAGE 9~O ~ . . ~ ' ~ ~