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HomeMy WebLinkAbout0922 ~ . ~ UI~}IFORM COVENANTS. Borrower and Lender covenant and agree as follows: ~ i ? 1. Payment oi Principal and Iaterest; Prepayment and Late Chargee. Borrower shall promptly pey E when due the principal of and intereat on the debt evidenced by the Note and any prepaymer.t and tate chargea due i under the Note. 2. Fttnde for Taxee and Insurance. Subject to applicable lew or to a written waiver by Lender, Borrower shall pay to Gender on the day monthly pe~yments are due under the Note, until the Note is paid in full, a sum ("Funda") equal to one•twelfth of: (a) yearly taxea and assesaments which may attain priority over this Security Instrument; (b) yearly leasehold paymenta or ground rents on the Pmperty, if any; (c) yearly hazard insurance premiuras; and (d) yearly mortgage insurance premiume~ if any. Theae items are called "escrow items: ' Lender may estimate the Funds due on the basis of cunent dete and reasonable eatimates of future eacmw items. The Funds ahall be held in an institution the deposits or accounta of which are insured or guaranteed by a federal or state agency ('including Lender if Lender is such an insfitution). Lender ahall apply the Funda to pay the escrow items. Lender may not charge for holding and applying the Funds. enalyzing the account or verifying the eacrow itema, unless Lender pays Borrower interest on the Funda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that intereat ahall be paid on the Funds. Unless an agreement is made or applicable law requirea intereat to be paid. Lender ahall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge~ an annual accounting of the Funds ahowing credits and debits to the Funds and the purpose for which each debit to the Funda was made. The Funds are piedged as additional security for the sums secured by this Security Instrument. 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 e:ceed the amount required to pay the escrow items when due,the exceas shall ~ be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on nionthty payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower ahall pay to Lender any amount necessary to make up the de~ciency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, Lender ahall 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 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. Appllention of I'~yments. Unless applicable law provides othenvis~ all payments received by Lender under paragraphs 1 and 2 shall be applied: ~rst, 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. Borrower shall pay aU tazes, assessments, charges, fines and impositions attributable to the Property which may attain priority aver this Sec~rity Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligationa in the manner provided in paragraph 2, or if not paid in that manner, Borrower sttall 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. If Borrower raakes these payments directly, Borrower shali promptly furnish to Lender receipts evidencing the payments. Borrower shaq 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 op:nion 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 subordenating 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 indentifying the lien. Borrower shall 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 insured ageinst 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 shal! be chosen by Boriawer subject to Lender's approval : wbich shall not be unreasonably withhetd. All insurance policies a~d renewals shall be acceptable to Lender and shall incidde a standard mortgage clause. Lender shall have the right to hold the policies anil renewals. It' Lender requires, Borrawer shall promptly give to Lender all receipts of paid premiums and renewal notices. In the_ event of loss, Bonower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptIy by Bonower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be appiied 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 and Lender's security would be lessened, the • insurance proceeds shall be applied to the surns secured by this Security Instrument, whether or not. then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from ~ Lender that the insurance carrier has offered to settle a claim, then Lender mey collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay any sums secured by this Security Instrument, whether or not then due. The 30-day period witl begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application 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 of the ~ payments. If under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting [rom damage to the 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. 8. Preservation an~ Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the Property, 8llow the Property to deteriorate or commit waste. If this Security Instruraent 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 ahall not merge unless Lender agrees to the merger in writing. Protection of Lender's Righte in the Property; Mortgage Ineurance. If Borrower fails to perform the covenants and ag~eements contained in this Security Instrument, or there is a tegal proceeding that may signireantly affect Lender's rights i~ the Property (such as a proceeding in bankre~ptcy, probate, for condemnation or to enforce lews or regutations), then Lender may ao and pay for whatever ia necessary to protect the value of the Property and ` . I:ender's rights in the Property. Lender's actions may include paying any suma secured by ~ lien which haa priority ~ over this Security Inatrument, appearing in court, paying reasonable attorneys' feea and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender dces not have to do so. ' ~ aQOK ~~s ~ sz~ _