Loading...
HomeMy WebLinkAbout0960 UNIfoRM Cov[:NAN"fs. f3orrower and Lender covenant and agree as follpws: 1. Payment o! Prinripal and lnterest; PrepAyment and I.stte Charges. Borrow~er shall pr~~mptly pay ~rhen due the principal of and interert on the debt evidenceci by the Note and any prepayment and late cha~ges due under the Nate. 2, k~nds for Taxes and lnsurance. Se?bject to applicable law or to a written waiver by Lender, Borrowcr shall pay to Lender on the day monlhly payments are due under the Note~ until the Note is paid in Pull. a sum ("Funds") eyual Io one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or groa~d rents on the Property, if any; (c) yearly hazard insurance premiurns: and (d) yearly ~ mortgage insurance premiums, if any. These items are called "escrow items." l,ender may estimate the Funds due on the hasis of current data and reasonable estimates of future c:scrow items. The Funds shall be held in an institution the deposits or accounts of which are insu~ed or guarante~d by a federa) or state agency (including Lender if Lender is such an ihstitution). Lender shall apply the Funds to pay the escrow items. Lender may not c~arge for holding and applying the Funds, analyzing the account or veriPying the escrow items, unless Lender pays Borrower interest on the Funds and applicable !aw permits Lender to make such a charge. Borrower and _ Lende: may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicabte !aw requires interest to be paid, Lender shall not be required to pay Borrower any interest ar earnings on the Funds. L.ender 5iiaiS ~,ti'~ i~1 ~3~c~~~i, ~it~.^,~t _!~u~ba, ~n ~r.m~~1 Acco~~ntinQ of the Fur.ds showinR credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are piedged as additional security for the sums secured by this Security Instrument. It the amount of the Funds hetd by Lender, tagcther with the future monthly paymentc of Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Barrower's option, either promptty repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by I.ender 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 full 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 Lender, Lender shal! 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to tate 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. Borrov?er shail pay ali taxes, assessments, charges, fines and impositions attributable to the Property ~vhich may attain priority over this Security Instrument, and leasehold payments or ground rents, it any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly t~ the person owed payment. Borrower shall promptly furnish to I.ender 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. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) _ agrees in writing to the payment of the obligation secnreci 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 oP 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 Lender determines that any part of the Property is subjest to a iien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisty the lien or take one or more of the actions set forth above within 10 days of the giving of noiice. S. Hazard Insu~ance. 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 I.ender requires. The insurance earrier providing the inse~rance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. A!1 insurance policies and renewals shall be acceptabie to Lender and shait inciude a standard mortgage :,'ut~~.~. ' Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shal! promptly give to Lender all receipts of paid premiums and renewal n~tices. In the event oiloss, Borrower shall give prompt noti~e to the insurance carrier and Lender. Lender may make proofof loss if not made promptly by Borrawer. ' Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restocation or repair ~ of the Property damaged, if the restoration or repair is ecoaomically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or l.ender's security ~~ould be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any eacess paid to Borrower. IP Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has otTered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proc~eds to repair or restore the Propeny 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 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, ~orrower's right to any insurance policies and proceeds resulting ' from damage to the Property prior to the acquisition shall pass to Lender to the eatent of the sums secured bS~ this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Lease6olds. Borrower shall not destroy, damage or substantially change the Property, altow the Property to deteriorate or commit waste_ 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 ' fee title shall not merge unless Lender agrees to the merger in writing. . i 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to p~rform the covenants and agreements contained in this Security Instrumeni, or there is a legal proceeding that may significantly affect , Lender's rights in the Property (such as a proeeedi?~g in bankruptcy, probai for condemnation or to enforce laws or regulations), then Lender 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 reasonable attorneys' fees and entering on the Property tb make repairs. Although i Lender may take action under this paragraph 7, Lender does nat have to do so. Any amounts disbursed by Lender under this paragraPh 7 shall berome additiaial 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 payment. f . BOOK 5~0 PAGE 9~Q ; ~ ' ~ . -