HomeMy WebLinkAbout0970 UNIFORM C~vFN~NTS. Horrower and Lender covenant and agree as folloH•x:
l. Payme~t of P~incip~l ~nd I~terest; Prepaymeat and I.~te Cha~ges. Borrower shall pramplly pay K~hcn due
ine principa! af and inte~cst on the debt evidenced by the Notc and any prepayment and late charges due under the Note.
2. Funds tor Tnxes and InsurAnce. Subject to applicable law or to a written waiver by Lender, Bar~awer shall pay
to Lender on the day monthly payments are due under the Note~ until the Note is paid in full, s sum ("Funds") equal to
one-twelRh oP: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly
leasehold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are called "escrow itams." I.ender may estimate the Funds due on the ~
basis of current data and reasonable estimates of future ~scrow items.
The Funds shall be held in an institutian the deposits or accounts otwhich are insured or guaranteed by a federai or i
state agency (including Lender if Lender is such an institution). L.ender shali appty the Funds to pay the escrow items.
Lender may not charge for hotding and applying the Funds~ analyzing the account or verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits I.ender to make such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. Unless an ag~eement is made or applicable law
requires interest to be paid, L.ende~ shall not be required to pay 8orrower 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 the Funds was made. The Funds are pledged as additiona! security for the sums secured by s
this Security Instrument. t
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. shafl exceed the amount required to pay the escrow items when due. the excess shall be,
at Borrower's option. either promptly repaid ta Borrower or credited to Borrower on monthiy payments of Funds. If the ~
amount of the Funds held by Lender 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 ful! of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. lf under paragraph 19 the Property is sold or acquired by I.ender, Lender shall apply, no later ~
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds heid by Lender at tt~e time of ~
application as a credit against the sums secured by this Security Instrument: ~
3, Apptication of Payments. Unless applicable law provides otherwise. all payments received by L.ender under
paragraphs 1 and 2 shail beapplied: flrst, to late charges due under the Note; second. to prepayment charges due under the i
Note; third. to amounts payable under paragraph 2; fourth, to interest due; and last. to principa) due. ~
4. Charges; Liens. Borrower shall pay all taxes, assessments. charges, fines and impositions attributable to the
Properiy which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
Borrower shatl pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on tirne directly to the person owed payment. Bonower shall promptly furnish to Lender all notices of amounts ~
to be paid under this paragraph. If Borrawer 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 Instrumeni 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 forfeiture of any part of the Property; or (c) secures from the holdet of the lien an
agreement satisfactory to Lender subord'enating 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 identifj+ing the lien. Borrower shall satisfy the lien or take one or more of the actions set fonh above within 10 days ±
of the giving of notice. }
5. Hazard Insurance. Borrower shall keep the improvements 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 Lender requires. The
insurance carrier providing the insurance shalt be chosen by Borrower subject to Lender's approval which shall not be
unreasonably withheld.
All insurance policies and renewals shall be acceptable to I.ender and shall include a standard mortgage clause.
Lender shall have the right to hold the policies and renewals. If I,ender requires, Borrower shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prampt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. i
Unless Lender and Horrower otherwise agree in writing, insurance proc~eds shall be applied to restoration or repair
ot the Property damaged, if the restoration or repair is economically feasible and I..ender's security is not lessened. If the
restoration or repair is not economically feasible or i,ender's security would be lessened, the insurance proceeds shali 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 frorn Lender thal the insurance carrier has
~ offered to settte 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 then due. The 30-day period will begin ;
~ when the notice is given. ~ ;
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eztend or
postpone the due date of the monthly payments refer~ed to in paragraphs l and 2 or change the amount of the payments. If
under paragraph 19 the Property is acquired by I,ender, Borrower's right to any insurance policies and proceeds resulting '
~ from damage to ihe 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; Lease6olds. Borrower shall not destroy, damage or substantiaUy
~ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
{ Borrower shall compiy with the provisions of the lease, and if Borrower arquires fee tiqe to the Property, the leasehold and
fee title shal! not merge unless Lender agrees to the merger in writing. ,
3 7. Protection of Lender's Rights in t6e 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 significantty affect
; I.ender's rights in the Property (such as a proceeding in bankruptcy, probate, foe condemnation or to enforce law~s or
s regulations), then L.ender 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 reasor.able 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 Lender under this paragraph 7 shalt 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
M the date oF disbursement at the Note rate and shal) be payable, w•ith interest, upon notice from Lender to Borrower
e requesting payment.
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