HomeMy WebLinkAbout0998 UNIF'ORM COVENAM'S. Borrower and I,ender coveaant and agra as follows:
1. Pynaeat o! IMncipal and Intera~ ~epsyaaeat aad Late ChsrgES. Hc~rrower shal) promptly pay when due
the principal of snd iaterest on the debt evidenced by the Note And any prep~eymenf and late charges due under the Note.
2. Fhnds Tues and I~suraace, Subjcct ta applicable law or to ~ written waiver by I.ender, 8orrower shall pay
to I,ender on the day monthly payments are duc under the Note, until the Note is paid in Pull, a sum ("Funds") oquai ta '
one•twelRh oP: (a) yearly taaes and assessmenis which may attsin priority over t6is Security Instrument; (b) yearly
leaschold payments or ground rents on the Pmperty, if any; (c) yearly hazard insurance premiums; and (d) yesrly
mortgage insurance premiums, if any. These items are callod ~`escrow items." Lender may estimate the Funds du~ on the
basis ofcurrent data an~ crasonabte estimates of futurc escmw items.
The Funds shall be hcld in ar~ institution the deposits or accounts of which are insured or guarantecd by a foderal or
state agency (including Lendar if Lender is such an institution). I.ender sha11 apply the Funds to pay the escrow items.
I.ender may not charge for holding and applying the Funds, analyzing the accaunt or veriCying the eserow items, unless
I.ender pays Borrower interest on the Funds and appticable law pcrmits Lender to make such a charge. Borrower and
Lender may agree in writing that inierest shall be paid on tbe Funds. Unless an agreement is made or applicable law
requires intcrest to be paid, I.ender shall not be requirod to pay Bonower any interest or earnings on the Funds. Lender
shall give to Borrower. without chargc, an annual acxounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. 'I'he Fu~ds are pledged as add~tional security fot the sums secured by
this Security Instrument.
If the amount of the Funds held by Lcnder~ together with the future monthly payments of Funds payablc prior to
the due daics of the escrow items. shall excced the amount roquired to pay thc escrow items when due~ the exc~ss shall be.
at Borrower's option, either promptly rcpaid to Borrower or creditod to Horrower ort monthly payments of Funds. If the
amount of the Funds held by Lender is not sutficient ta pay the escrow items when due, Borcower shall pay to Lender any
amount necessary to make up the deficiency in one or more paymtnts as roquired by Lender.
Upon payment in full of atl sums securod by this Security Instrument, Lender shall promptty refund to Borrower .
any Funds held by Lender. If ~nder paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immodiately prior to the sale of the Properiy or its acquisition by Ltnder~ any Funds held by Lender at the time of
application as a credit against the sums secwod by this Socurity Instrument.
3. AppUcation ot Paymeats. Unless appiicable law provides otherwise, all payments received by Lender under _
paragraphs 1 and 2 shalt be appliod: first, to late charges due under the Note; second, to prepayment ~harges due under the
Note; third, to amounts payable under paragraph 2; fourth, to inter~st due; and last, to principal due.
4, C~nrgea; Liens. Horrower shall pay all taaes, assessments. charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument~ and le~sehold payments or ground rents~ if any. _
. Borrower shall pay these obligations in the manner provid~d in paragraph 2~ or if nof paid in that manner, Borrowe~ shall
pay them on time dircctly ta thc person owed payment. Bonower shaA promptly furnish to i,ender all notices of amounts
to be ~aid under this paragraph. If Horrower makes these payments diroctty, Borrower shall promptly furnish to Lender
raxipts evidencing the payments.
Bonower shal! promptly discharge any lien which has priority over this Socurity Instrument unless Borrower: (a)
agroes in writing to the payment of the obligation secured by the tien in a manner acceptable to I.ender; (b) contests in good
faith the lien by. or defends against enforcement of the lien in, lega! proceodings which in the Lender's opinion operate to
prevent the enforcement of the litn or forfeiture of any part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Gender subordinating the lion to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Socurity Instrument~ Lender may give Borrower a
notice identifying the lien. Bonower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hnzard Insurance. Borrower shall keep the improvements now existing or hereaRer erected on the Property
insured against loss by fire, hazards included within the term "eatendod coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance earrier providing the insurance shall be chosen by Bonower subjoct to Lender's approval which shall not be
unreasonably withheld.
I Ait insurance policies and renewals shall be acccptable to Lender and shall include a standard mortgage clause.
~ I.ender shall have the right to hold the policies and renewals. If I.er?der roquires. Bonower shall promptly give to Lender
~ all receipts of paid premiums and renewal notices. In the evrnt of loss, Bonower shal{ give prompt notice to the insurance
i carrier and Lender. Lender may make proof of loss if
not made promptly by Borrower. " .
Unless Lender and Bonower otherwise agree in writing, insurance procads shall be applicd to restoration or repair a
; 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 economically feasible or I,~nder's sxurity would be lessened, the insurance procads shalt be
applied to the sums secura! by this Security Instrument, whether ar not then due, with any excess paid to Borrower. It'
~ Bonower abandons the Property, or does not answer within 30 days a notice from I.ender that the insurance carrier has
~ oRered to settle a claim, then L.ender may collcct the insurancc pracecds. Lender may use the proceods to repair or restore
thc Property or to pay sums socured by this Security Instrument, whethes or not then due. The 30-day period will begin
when the notice is given.
Unless Lender and Bonower otherwise agrce in writing, any application of proceeds to principal shaJi not extend or
postpone the due date of the mont6ly payments refencd to in paragraphs t and 2 or change the amount of the payments.lf
under paragraph 19 the Property is ac~uired by I.end~r, Bonower's right to any insurance policies and procads resulting
from damage to the Property prior to the scqnisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preaer~ation aad Maintenance of Property; I.easeholds. Bonower shall not destroy, damage or substantially ,
change the Property, allow the Property to deteriorate or commii waste. If this Security Instrumeni is on a leauhold.
Borrower shall comply with the provisions otthe lease, and i}'Borrower acquires fce title to the Property, the l~asehold and
. fce title shall not merge unless Lendcr agrees to tht merger in writing.
9.- ProterNon of I.ender's Rlghts in t6e Property; Mortg~ge Insuranee. If Bonower fails to perform the
covenants and agraments contained in this Sccurity Instrument~ or there is a legat proceeding that may significantty aftect
I.ender's rights in the PropeRy (such as a proceedir?g in bankruptcy~ probate~ for condemnation or to enforce laws or
regulations), then Lender may do and pay for whattver is necessary to pratxt the value of the Ptoperty and Lender's rights
in the Property. Lender's actions may include paying any sums securod by a lien which has priority over ihis Security
Instrument~ appearing in court, paying ressonable attorneys' fas 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.
My amounts disbursed by Lender under this paragraph 7 shall become additional debt of Bonowa socura! by this
Socurity Instrument. Unless Borrawer and Lender agra to othtr terms of payment, these amounts shall besr interest trom
~ the date of disbursemrnt at the Note rate and sha11 be payabie~ :vith interest, upon notice from Lender to Borzower
roquesting payment. .
BooK 5 `O PAGf 998
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