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HomeMy WebLinkAbout0987 ~ 7 UNtFORM COVENANTS. 8ocrower end Lender covenant and agra as foltows: ` 1. P~yraeat o[ Prtnc~p~i uid Int~rat; Pt+e~yment sad I.ate Glurga. Bornower shall promptly pay when due = the principa! otand interat on thc debt aridenad by the Note and sny prepaymcnt and late charges due under the Note. ~ Z. F~ds toe T~xa antl Iawrance. Subjoct to applicable law or to a wriiten waiver by Ixnder, Bonower shall pay = to I.ender on the day monthly psyments are due under the Note~ until the Note is paid in full, a sum (•'Funds") equal to one-twelfth of (a) yearly t~es and assassments which may attain priority over this Socurity Instrument; (b) yearly leasehold payr~:;s ~rz~d rents on tht Property~ if any; (c) yearly hazard insurance premiums; and (d) yearly mortgnge insurancx premiums, if any. These items are called "escrow items." L.ender may estimate the Funds due on thc ~ basis of current data and reasonable es!~mates of future cscrow items. ; The FLnds shall be htld in an institutio~ the deposits or accounts of which are insured or guaranteed by a federat or ~ state agency (including I.cnder if Ltnder is such an institution). Lender shall apply the Funds to pay the escrow items. ~ Lender may not charge for holding and apptying the Funds. analyzing the account or verifying the escrow items, unless ~ Lender pays Borrower intecest on the Funds and applicable laa petmits Lender to make such a charge. Borrower and i Lcnder may agra in writing that interest shall be paid on the Funds. Unless an agrament is made or applicable law ' requires interest to be paid~ Lender ~hall not be roquirai to pay Bonower any interest or earnings on the Funds. Lender ~ shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and !he ~ purpose for which each debit to the Funds was made. The Funds are plodgod as additional security for the sums socured by this Security Instrument. ~ If the ainount of the Funds held by I.cnder~ togcthcr with th~ futurc monthly paymcnts of Funds payable prior to the du~ dates of the escrow itcros~ shall eacxod the amount requirod to pay the escrow items when dua, the exccss shall be. ~ at Bonower's option, either promptly repaid to Borrower or crodited to Bonower on monthly pa=~ments of Funds. If tht amount of the Funds hetd by Lender is not sufl~cient to pay the escrow items when due. Borrower shall pay to L.ender any amount necessary to make up the deficeency 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 I.ender. If under paragraph 19 the Property is sold or acquired by Lender.l.ender shall apply~ no later than immediately prior to the sale of the Property or its acquisition by L,ender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrum~nt. 3. AppliraHon of PAymenta. Unless appiicable law provides otherwise. all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; socond, to prepayment charges due under the Note; third~ to amounts payable under paragraph 2; fourth~ to interest due; and last, to principal due. ~ 4. G'darges; Liens. Bonower shall pay all taxes~ assessments, charges. fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manaer provided 'en paragraph 2, or if not paid in that manner~ Bonower shall ~ pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts ~ io be paid under this paragraph. If Borcower makes these payments dir~tly, Bonower shall promptly furnish to I.ender t : receipts evidencing the payments. _ ~ ; Bonower shall promptly discharge any lien which has priority over this Security Iostrument unless ~orrower: (a) ~ t agrees in writing to the pay+m~nt of the obligation seeured by the lien in a manner acceptable to Lender; (b) contests in good ~ Faiih 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 leen or forfeiture of any part of the Property; or (c) secures from the holder of the tien an # agreement satisfactory to Lender subordinating the lien to this Socurity Instniment. If I.ender determines that any part of ; ~ the Property is subject to a lien which may attain priority over this Security Instrumeni, Lender may give Bonower a f ~ notice identifying the lien. Bonower shal! satisfy the lien or take one or more of the actions set forth above within 10 days ~ ~ of the giving of notice. ; S. Hazard Insurance. Borrower shall keep the improvements now existing or hereaRer erectal on the Property ; ~ insurod against loss by fire, hazards included within the term "eatendod coverage" and any other hazards for which I.ender ~ , requires insurance. This insurance shall be maintainod in the amounts and for the periods that Lender requires. 'The ~ insurance carrier providing the insuranct shall be chosen by Borrower subjoct to I.ender's approval which shall not be unreasonably withheld. All insurana policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ' I.ender shall havt the right to hold the policies and renewals. If I.ender requires, Borrower shall promptly give to Lender ! all rcceipts of paid premiums and rrnewal notices. [n the event of toss, Bonower shal! give prompt notice to the insurance F i carrier and I.ender. Lender may make proof of loss if not made promptly by Borrower. ~ Unless Lender and Bonower otherwise agree in writing, insurance procads shall be applied to restoration or repair of the Property damagod, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or L.ender's security would be lessened, the insurance proceods shali be appliod to the sums secured by this Socurity Instrument. whether or not then due, with any excess paid to Borrower. If Bonower abandons the Property~ or does not answer within 30 days a notice from I.ender that the insurance carrier has offered to settle a claim, then I.ender may collect the insurance procexds. Lender may uss the proceeds io repair or restore the Property or to pay sums securad by this Socurity Instrument. whether or not then due. 'I'he 30-day period will begin when the notice is given. ~ Unless Lender and Bonower otherwise agra in writing, any apptication of proceeds to principal shall not eatend or 1 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 acqvired by Lender, Borrower's right to any insuranct poficies and proceods resulting ~ from damag~ to the Property prior to the acquisition shall pass to Lender to the eatent of the sums secured by this Security - , Instrument immediatefy prior to the acquisition. 6. Presenatian and Mainteasnce oi Property; I.easebolds. Bonower shall not d~troy, damage or substantially change the Property~ aUow the Property to.deteriorate or commit waste. If this Security Instrument is on a leasehotd, ~ Borcower shall comply with the provisions of the leas~ and if Borrower acquires fee title ta the Froperty, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. T. Protection of Lender's ~tlg6ta ia t6e Property; Mortg~nge Iasurance. If Bonower fails to perfonn the cavenants and agrcements containod in this Socurity Instrument. or there is a tegal proceeding that may significantly affoct Lcnder's rights in the Property (such as a proceoding in banicruptcy, prabate~ for condemnation or to enforce laws or ~ regulations), then Lender may do and pay for whatever is necrssary to protect ths value of the Property and I.ender's rights in the Proporty. Lender's actions may include paying any sums s~cured by a lien which has priority over this Socurity Instrumrnt, appearing in court~ paying reasonable attorneys' fas and entering on the Property to ma~e repairs. Although Lender may take actioa under this paragraph 7~ Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shali bxome additional debt of Borrower secured by this Socurity Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursemrnt at the Note ratc and shall be payable, with interest. upon notice from Lender to Borrower roqutsting payment. SOOK 5~~ FAUE 9~~ - - - _ . .