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HomeMy WebLinkAbout0981 UNIFORM COVENAMS. 8orrower and Lcnder covenarit and agra as foUows: i. Paymeat ot Prtacipsl and Iatera~ Pr~y~ent ~nd I.~te C~arBa. 8orrower shall promptiy pay when due the princip~?11 af and intereat on the debt evidenood by the Note and any prepnyment and lnte charg~.s due under the Nota ~ 2. F'asd~ for Taxea ~ad Inwr~uce. Subjoct to appllcabk 1~?w or to e written w~iver by I.cndc~, Ho~rower shall pay . to I.ertder on the day monthly payments sre due under the Note, until ~he Note is pald in fuil~ a aum ("~nds") equal to one-tweltth oii (a) yeuly_ ta~ces and a.gsessments which may att~?in priority over this Security lnstrumtnt; (b) yearly leasehold payments or ground rents on the Propeny, ~if any; .(c) ya~rly hazard insurance premiums; and (d) yearly mortgage inauranoe premiums, if ~ny. Y'hese items ar~ catled "escrow items." Lender may estimate the Funds due on the basis otcurrent dAta and reaaonabk estim~tea of tiituro escrow items. Th~ Funds shaq b~ hel~i in an inatitution the deposits or aooounts of which are insured or guararteod by a federal or state agency (includis~g Lender if I.ender is auch an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charga for holding and applying th~ Funda, analyzing the account or veritying the escrow items, unless Lendar paya Horrower intenst on the Funds aad sppUcable luw permits Lender to make such a charge. Bonower and Lender may sgra in writing that interest shalt be p~id on the Funds. Unless an sgrament is made or applicable law roquires intereat to be paid, LcAder shell not be requited to psy Borrower any interest or earnings on the Funds. Lender shall giva to Horrower, without clietge, an annual accauating of tha Funds ahowing credits and debits to the Funds and the purpose for which each debit to thc Funds waa made. The Funds are plcdged as additional security for the sums securod by this Security Instrument. if the amouat of the Funds held by Lendtr, togethcr with the futun monthly puyments of Funds payable prior to the dut dates of the escrow items, shsll eacGOed the amount required to pay the escrow items whtn due, the exceu shall be, at Borrower's option, either promptly repaid to Horrower ot crodited to 8onower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufticient to pay the escrow items w~en du~. Bomower shall pay to I.ender any . ~ amount necessary ta make up the de8ciency in one or more payments As roquire~ by I.ender. Upon payment in_ full of ali sums socured by this Securiry Instrumcnt~ Let~der shall promptly nfund to 8orrower . any Funds held by Lender. If under parsgraph 19 the Property is sold or acquirod by L,ender, Lender shatl apply, no later - than immodiately prior to the sale of the Property or its acquisition by Lender~ any Funds held by Lender at the time of ~ application as a crodit against the sums secured by this Socurity Instrument. 3. Appliadon of Pay~tnts. Unleas applicable law provides otherwis~, all payments receivod by Lender under paragraphs 1 and 2 shall be applied: flrst, to late charges due under the Note; second. to prepayment charges due under thc Note; third, to amounta payable under paragraph 2; fourth~ to interest due; and last, to principal due. 4. C7~rge~ I,i~as. Borrower shall pay alt taues, assessmtnts, charges. fines and impositions attributable to the ~ Property which may attain priority ovet this Securiry Instrument, ~u?d teasehold payments or ground rents. if any. Horrower shall pay these obligations in the manner providod in paragraph 2~ or if not paid in that manner, Borrower shall pay them on Nme diroctly to the person owed payment. Borrower shall promptly furnish to Lender aJl notices of amounts to be paid under this paragraph. If Borrower makes these payments diroctly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Ho~rower shall promptly discharge any lien which bas priority over this Security Instrument unkss Borrower: (a) agras in writing to the paymeat of the obligation secured by the lien in a manner aocepiable to I.endor, (b) contests in good faith the lien by, or defrnds against enforoement of the lirn in, legal proceedings which in the Lender's opinion operate to - prevent the enforocrnent of the lien or forfeiture of any pert of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Socurity Instra~ent. If Lenciec determines that any part of . the Pmperty is subject to a lien which may attain priority over this Socarity Instrummt. Lender may give Burrower a notice identifying the lirn. Borrowcr shall satisfy th~ lien or take one or mon of the actions set forth above within 10 days af the giviag af notice. ~ 5. Ha~ard Is~nwce. Barrower shaU koep the improvementa now ~xisting or herc~er erected on the Property insurod against l~s by fire, hazards includod within the t~rm "extendod ooverage" and any other hazards for which I,ender requires insurance. This insurance shall be maintained in the amounts and for the periods thas I.ender roquires. The insurance carrier providing the insurance shall be cho~tn by Bonower subj~ct to Lendec's approval which shall not be unreasonably withheld. . ' All insurancx policies and renewals~shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the poGcies and renew~ls. If I,ender requiros, BorrAwer shall prompily give to I.cnder all raxipts of paid premiums and renewal notices. In the event of loss, Botcower shall give prompt notice to the insuranct - carrier and La~der. Lenda may make proof of IoBS if not made promptly by Borrower. - Unless Lender and Borrower otherwiae agra in ariting, insurance procads sl~all be applied to restoration or rcpair 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 a;onomically.feasible or Lender's socurity would be lesscned~ the.insurance procecda shall be applied to the sums secured by this Security Instrument, whetHer or not then due, with any excess paid to Borrower. If Bonower abandons ihe Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may oollxt the insurance proceeds. Lendec may use the procaeds to repair or restore the Pruperty or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is givrn. - Unless Lender and Borrower otherwise agree in writing. any application of procoods to principal shall not extend or postpone the dut 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 procads resulting . fmm damage to the Property prior to the acquiaition shall pass to Lrnda to ihe extent of the sums securod by this Security Instrument immediately prior to the scquisition. 6. Pnsenadoa and Maintenance of Property; Le~uelwlds. Borrower shall not destroy, damage or substantiaUy change the Property. allow the Property to deteriorate or~commit waste. If this Security Instrument is on a lease}iold. Borrower shall comply with the provisions otthe lease, and if Borrower acquires fa title to the Property, the Icasehold and _ fa title shall not merge unless Lender agras to the merga in writing. 7. Protecdon ot I.ender's Righb in t!k Property; Mort~ Iasurance. If Borrower fails to perform the . covsnants and agrcements contained in this Security Instrument. or there is a lcgal procooding that may significantly aflcct Lender's rights in the Property (auch as a procoeding in bankroptcy, probate~ for condemnation or to enforce laws or ~ regulations)~ then Lender may do and pay for whateva is necessary to protoct the value of the Property and Lender's rights in the Property. Lender's actions may include paying nny aums securod by a lien which has priority over this Security Instrument. appearing in vourt, paying reasonable attorneys' fas aad entering on the Property to make repairs. Although Lrnder may take action under this paragtaph 7~ Lender dces not have to do so. Any amounts disbursed by I.ender under this paragraph 7 shall become additional debt of Borrower securod by this ' Scc~rity Instrument. Unless Sonower and Lender agra to othu terms of paymrnt, these amounts shall bear interest from th! date of disbursement at the Note rate and shall be payable~ with interat, upon notice from Lender to Bonower requeating payment. , 600K 56~ PAGE 9i5 s=~- ~ - _ _ . t .