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HomeMy WebLinkAbout0931 UNtFORht Cov~tv~NTS. Borrower and Lender covenant and agrec as follows: l. Payment of Princtpi! and Interest; Prep~?yment and l.ate Cha~ges. Borrawer shall promptly pay H•hen due the princ~pal oi and inter~.ct on ihc debi ~vide~ic~i ~,y ihe ~ate snd wnp prepayrriPnt ~+act late charges due undcr the Note. 2. Funds for Taxes ~uid Insurstnce. Subject to applicable law or to a written waiver by Lender, Bor~ower shal! pay to Lender on the day monthly payments are due unde~ the Note, until the Note is paid in fu!!, a sum ("Funds") eyual to one-twelilh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property. iP any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escraw items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (inctuding I.ender if Lender is such an institution). L.ender shall apply the Funds to pay the escrow items_ `Lender may not charge for holding and applying the Funds, analyzing the account or veriPying the escrow items. unless l.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and ~Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest ta be paid. Lender shall not be required to pay Borrawer any interest or earnings an the Funds. Lender shall give to Borrower. without charge, an annual accoanting of the Funds showing credits and debits to the Funds and the purpose For which each debit to ihe Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. 1Pthe 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 iterns when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthfy payments of Funds. If the amount of the Funds held by I.ender is not sufTicient 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 full of all sums secured by this Security Instrument, Lender shali promptiy refund to Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender sha11 apply, no later than immediately prior to the sale of the Property or its acqu+sition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Sccurity Instrument. 3, Ap~lication of Payments. Unless applicable 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 parag~apn iouriii, iu ~i~ie~~. u:;:;; ar.d :~st. ,^.ry.^._iY~l 4, Charges; Giens. Borrower shall pay al1 taxes. assessments, charges, fines and impositions attributable to the I Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shal) pay these obligations 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. Borrower shall promptly furnish to Lender alt notices af amounts to be paid under this paragraph. lf Borrower makes these payments directly, Borrower shall promptly furnish to Lender ' receipts evidencing the payments. Borrower shall promptly discharge any lien which has prioriry over this Security Instrument unless Barrower: (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 Pro}~erty; or (c) secures from the holder of the lien an agreement satisfactory to Lender suhordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain ~riority over this Security Instrument, Lender may give Borrower a notice ideniifying the lien. Borrower shall satisfy the lien or tal:e one or more of the actions set forth above within 10 days of the giving oFnotice. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ererted 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 shal! be maintained in the amounts and for the periods that L.ender requires. The insurance carrier providing the insurance shall be chosen by Qorrower subject to Lender's approval which shall not be ~ unreasonably withheld. All insurance policies and renewals shall be acceptable to I.ender and shal) include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. !f Lender requires, Borrower shal! promptly give to Lender all receipts of paid premiums and renewa! notices. In the event of loss. Borrower shal! give prompt notice to tt~e insurance carrier artd Lender. Lender may make proof of loss if not made promptly by Borrower. Unless l.ender and Borrower otherwise agre~ 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 economicalty feasibte or L,ender's security wouid be lesser~ed, the insurance proceeds shall be ; applieci to the sums s~cured by this Security Instrument, whether or not then due, with any excess paid to Borrower. if i'-: Borrower abandons ihe Yroperty, or dces not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore i, the Property or to pay sums secured by this Securiry Instrument, whether or not then due. The 30-day period wil! begin ~ when the notice is given. ~ Unless Lender and $orrower otherwise agree in writing, any application of' proceeds to principal shall not extend or r postpone the due date of the monthly payments reFerred to in paragraphs 1 and 2 or change the amount of the pay~ments. If I' under paragraph 19 the Property is acquired by Lender. Borrower's right to any insurance policies and proceeds resuiting ; from damage to the Property prior to the acquisition sha~ll pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation snd Maintenance of Property; I.easehalds. Borrower shall not destroy, damage or substantially cha:~ge the Property, allow the Property to deterivrate or commit ~•aste. If this Security Instrument is on a leasehold, . Borrower shall comply with the provisions otthe lease, and if Borrower acquires fee title to the Property, the leasehold and ~ j fee title shall not merge unless Lender agrees to the merger in writing. i; 7. Protection of Lender's Rights in the Property; Mortgnge Insurance. If Borrower fails to perform the covenants and agreernents contained in this Security lnstrument, or there is a legal proceeding that may significantly affect : Lender's rights in the Property (such as a proceeding in bankruptcy, prohate, tor condemnation or to enforce laws or ' regulations), then Lender may do and pay for whatever is necessary to protect the value of the Propeny and Lender's rights s 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 reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. - Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower securcd 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 payment. ~ ~ - RaoK 558 ~A~E 929 ~ . - . . . . ~ . - - _ ~ . ~ -