HomeMy WebLinkAbout0920 UNiFORM CovEN~?NTS. liorrower and Lender covenant and agree as follows:
1. Paymeat of Principal u~d Iatt[~sh Prepaymeat and I.ate Chugea. Aorrnwer shall promptly pay when due
the principal of and interat on thc debt evidencYd by the Note and any p~epayment and late charges due under the Notc.
2. ~ads foe Tiuca ~ad Iasunace. Subject to applicable law or to a wrltten wai~er by Lendcr~ Borrowcr shall pay ~
to Lender on the day monthly payments are due under thc Note~ until the Note is paid in Pull, a sum ("Funds") equal to
onrtwclflh of (a) yearly taxcs and assessments which may attain priority ovcr 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 prcmiums~ if any. Thesc-items are callod "escrow items." Lcnder may estimatc the Fur~is due on the
basis of current data and reasonable estimates of firture escrow items.
The Funds shall be hcld in an jnstitution thc dcposits or accaunts of which are insured or guaranteed by a federal or
state agency (including Lender iP I.ender is such an institution). I.ender shall apply the Funds to pay the escrow items.
I.ender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items~ unless
I,ender pays Borcowe~ intcrest on the Funds and applicable law permits I.ender to make such a charge. Bonower and
Lender may agree in writing that intcrest shall be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid~ Lender shall not be required to pay Borrower any interest or earnings on the Funds. L,ender ,
shall give to Bonower. without charge~ an annual accounting of the Funds sho~e::~g credits and debits to the Funds and the i
purpose tor which each debit to the Funds wss made. The Funds arc pledged 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 exceed the amount required to pay the escrow items when due, the excess shall be,
at Bonower's option, either promplly repaid to Bonower or credited to Borrowtr on manthly payments of Funds. If the
amount of the Funds held by Lender is not suflicient 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 Ixnder.
Upon payment in full of sll sums secured by this Security Instrument, I.ender shall promptly retund to Bonower
any Funds held by I.ender. If 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 held by Lender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Applteadon of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shali be appliod: first~ to late charges due under the Note; second, to prepayment charges due under the
Note; third. to amounis payable under paragraph 2; fourih. to interest due; and Iast, to principal due.
4. C6uges; Ltens. Borrower shall pay all taxes, assessmrnts~ charges, 8nes and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents~ if any.
Borrctwer shafl pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shaU
pay them on time directly to ihe person owed payment. Horrower shall promptly furnish to Lender aU notices of amounts
to be paid under this paragraph. If Bonower makes these payments directly, Borrower shall promptly furnish to I,ender
receipts evidencing the payments.
_ Bonower shall promptly discharge any lien which has priority over this Security Instrument unless Bonower: (a)
agrces in writing to the payment of the obligation secured by the lien in E manner acceptable to I.ender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legat 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 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 subject to a lien which may attain priority over this Security Instrument, Lender may give Bonower a
notice identifying the tien. Borcower shall satisfy the lien or take one or mora of the actions set forth above within 10 days
of the giving of notice.
5. Hnutrd Insurance. Borrovrrer shall keep the improvements now existing or hereaRer erected on the Property
~ insured against loss by fire. hazards included within the term "extende~ covera$e" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that L.ender requires. The
insurance carrier providing the insurance shall be chosen by Bonower subject to Lender's approval which shall not be -
unreasonably withheld.
Atl insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
I, Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall prornptly give to Lender
all receipts of paid premiums and renewal noiices. In the event of loss, Bonower shall give prompt notice to the insurance
carrier and I.ender. I.ender may make proof of loss if not made promptly by Borrower. -
~ ~ Unless Lender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair
i of t6e 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 or Lender's security would 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 Bonower. If
Bonowet 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 i.ender may collect the insurance proceeds. I.ender may use the proceeds to repair or restore
the Property of to pay sums secured by this Securiry Instrument, whether or not then due. The 30-day period will begin ;
when the notice is given.
Unless I.ender and Bonower 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 °
from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secured by this Securiry
Instrument immediately prior to the acquisition. k'
6. Presenation snd Maintenance o! Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease. and if Bonower acquires fee title to the Property, the leasehold and
fee title shall not merge unless I.ender agrees to the merger in writing. .
7. Protection of Leader's Rights [n the 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 significantly aRect
i.ender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
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. [.ender's actions may include paying any sums secured by a lien which has priority aver this Security
Instrument, appearing in court, paying reawnable attorneys' fees and entering on the Property to make repairs. Although
• I.ender may take action under this paragraph 7~ Lender does not have to do so.
Any amounts disbursed by Lender under this"paragraph 7 shali become additiona! debt of Borrower secured by this j
. Security Instrument. Unless Aorrower 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 inierest, upon notice from I.ender to Borrower ~
requesting payment. -
. ~ ~o~K 564 P~~~ ~19
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