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HomeMy WebLinkAbout0927 ~ e UNIFORM COVENANTS. Bo~rower and Lender covenant and agree as follows: ' ~ l. Paymeat of PrtaMp~! and Iatere~t; Prepaymeat and I.~te Chsrgea. Horrower shall promptly pay when duc a thc principal of and interest on the dcbt cvidencod by thc Note and any prepayment and latc charges duc under the Note. Z. Fbads for T~xee and Insur,~n~e. Subject to applicable !aw or to a writtcn waiver by Lender, Bo~mwer shall pay . to Lende~ on the day monthly payments are due under the Note, until thc Note is paid in Puli~ a sum ("Funds") equal to one-twelfth of: (a) yeariy taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Propeny~ if any; (c) yearly hazard insurance premiur?ts; and (d) yearly mortgage insurance premiums~ if sny. These items are ca~led "escrow items." Lender may estimate the Funds due on the basis of currrnt data and reasonable tstimates otfuture escrow items. The Funds shall be held in an institution the depc~sits or accounts of which are insured or guaranteed by a fodera! or state agency (including Lende~ if Lender is such an institution). I.ender shall apply the Funds to pay the escrow items. I.ender may not eharge for holding and applying the Funds~ analyzing the account or ve~ifying the tscrow items~ unless Ifender pays Borrower iaterest on the Funds and applicable !aw permits Lender to make such a charge. Borrower and Lender may agree in writing that int~rest shall be paid on the Funds. Unless an agrecment is made or applicable law requires interost to be paid~ Lender shall no1 be required to pay Borrower any interest or earnings on the Funds. Lender ;hall 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 ptedged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by I,ender, together with the future monthly payments oP Funds payable prior to the due dates of the escrow items~ sball exceod the amount required to pay the escrow items when due~ the excess shall be, at Bonower's option, either promptly repaid to Horrower or credited to Bonowe~ on monthly payments of Funds. If the amount of the Funds held by I.ender is aot suf~'icient to pay the escrow items when due~ Borrower shall pay to Lender any amount necessary ta make up the deficiency in one or more payments as required by I.ender. Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower any Funds hetd by Lender. If under paragraph 19 the Property is soid or acquired by I.ender, l.ender shaU apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hetd by I,ender at the time of application as a credit against the sums secured by this 5ecurity Instcument. 3. Applicatton of PAymeats. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be appliod: 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. C6srges; LIens. Borrower shall pay all taxes, assessments~ charges. fines and impositions attributable to the Property which may attain priority over this Security Instcument, and leasehold payments or ground rents, if any. Bonower shali pay these obtigations 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. Bonower shall promplly furnish to L.ender all notices of amounts ~ to be paid under this paragraph. If 8onower makes these payments directly, Borcower shall promptly furnish to Lender ~ receipts evidencing the payments. _ Borcower sha~ll promptly discharge any lien which has priority over this Security Instrument unfess Borrower: (a) ~ agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in gaod ' Paith the lien by~ or defends against enforcement of the lien in, legal prceeedings which in the Lender's opinion operate to prevent the enforcetnent 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 lien to this Security Instrument. If I.ender determines that any patt of the Property is subject to a lien which may attain priority ovcr this Security Instrument, Lender may give Borrower a notice identifying the tien. Bonower shalt satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall•keep the improvements now existing or hereafter erected on the Property j insured against loss by fire. hazards included within the term "extended coverage" and any other hazards for which Lender j requires insurance. This insurance shall be maintained in the amounts and for the periods that I.ender requires. The ~ j insurance carrier providing the insurance shatt be chosen by Borrower subject to Lender's approval which shall not be ~ f 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 hold the policies and renewals. If Lender requires, Borrower shall promptly give to I.ender ! all receipts of paid premiums and renewal notices. ln the event of loss. Borrower shall give prompt notice to the insurance carrier and Lxnder. Lender may malce praofof loss ifnot made promptly by Borrower. ~ Unless L.ender and Borrower otherwise agree in writing, insurance proceeds shali 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 E 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 Security 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 I.ender tbat the insurance carrier has f offered to settle a claim. then Lender may collect the insurance proceeds. I.ender 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 period will begin ; when the notice is given. ~ Unless I.ender and Horrower otherwise agree in writing, any application of proceeds to principal shali 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 Properiy is acquired by L.ender~ Borrower's righi to any insurance policies and proceeds resulting from dama&e to the Property prior to ihe 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 sfia11 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 iiBorrower acquires fee title to the Property. the leasehold and fee title shall not merge unless I,ender agrees to the merger in writing. 7. Protection of Lender's Rig6ts in the Property; Mortgage Insurance. If Borrower fails to perform the ~ covenants and agreements contained in this Sccurity Instrument. or there is a lega) proceeding that may significantly affect ~ I.ender's rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or to enforce laws or ~ reguiations), then Lender may do and pay for whatever is necessary to proteci 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 lnstrument, 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 dces not have to do so. ~ • Any amounts disbursed by I,ender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instriiment. Unless Borrower and I.ender agree to other terms of payment, these amounts shall bear interest from the date oi disburserr~eret at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower ~ , requesting payment. ~ + ~ ~ gQ~K 554 PACE 925 _ . . _ _ .,,,_.~Mw_. . : ~ - -