HomeMy WebLinkAbout0981 UNIFORM COVENANTS. Borrower and l.ender covenant and agree as follows:
1. Payment of PrincipAl and Interest; Prepayment and I.ate Chstrges. Borrower shall promptly pay w~he~ due
the principal of and interest on the debt evidenced by the Note and a~y prcpayment and late charges due under the Nate.
2, Funds for Taxes And Insu~ance. Subject to applicable !aw ar to a written waiver by Lender. Borrower shall pay
to Lender on the day manthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelfth oP: (a) yEarly taxes and assessments which may attain priorily over this Security [nstrument; (b) yearly
leasehold payments or ground rents on the Propehy, if any; (c) yearly hazard i~surance premiums; and {d) yearly
mortgage insur~nce premiums, ef
any. These items are called "escrow items." Lender may estirnate the F°unds due on the
basis oPcurren~ data and reasonable estimates af future escrow items.
The Funds shatl be held in an institution the deposits or accounts of which are insured or guaranteed by a Pederal or
state agenry (including Lender if Lender is such an institution). Lender shall apply the Funds io pay the esc~aw items.
Lender may not charge for hoiding and applying the Funds, analyzing the account or verifying the escr~w items, unless -
i~nder pays Borrawer interest on the Funds and applicable taw permits Lender to make such a charge. Borrower and ~
l.ender may agree in writing that interest shali be paid on the Funds. Unless an agrcement is made or applicable law
requires interest ta be paid, Lender shall not be required to pay Qorrower any i~terest or earnings on the Funds. I_ender
shall give to Borrower, without charge, an annual accounting af the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security far the sums secured b}•
this Security Instrument. ~
If the amount of the Funds hetd by Lender, together with the future monthly payments of Funds payable prior to
the due date~ of the escrow iten~s, shall exceed the amount required to pay the escrc~H^ items when due, the excess sh~ll be,
at 8orrower's option, either promptly repaid to Borrower or creclited to Borroa~er on monthly payments ot Funds. If the
amount of the Funds hetd by Lender is not sufficient ta pay the escrow items when due, Borrawer shal! pay ro l.cnder any i
amount necessary to make up the deficiency in one or more payments as required by Lender.
U~n payment in full of all sums secured by this Security Instrument, Le~~der shall promptly refund to E3orroH~er
any Funds hetd by Lender. If under paragraph ;9 the Yroperty is sold or acquired by Lender, l.ender shall apply, no later
than immediately prior ta the sale of the Property or its acquisition by Lender, any Funds held by Lcnder at the time of
application as a credit against the sums secured by this Security Inslrument. #
3, Application o: Payments. Unless applicable taw ptovides atherwise, a!1 payments received by~ l.ender ~nder ~
paragraphs ! and 2 shall be applied: ~irst, to late charges due under the Nole; second, tc~ prepayment charges due under the i
Note; third, to amaunts papable under paragraph 2; fourth, to interc~st due; and last, to principa! due. ~
4. Charges; I.iens. i3orrow~er shall pa}•~all taaes, assessments, charges, fines and im~sitions attributable to the ~
Propert~• which may attain priority over this Security Instrument, and leasehoid payments or ground rents, if any. f
Borrower shall pay these obligations in the manner provided in paragraph 2, ~r if noi paid in that manner. Borrower shall ~
pay therrt on time direcUy to the person awed payment. Borr~wer sha!! promptly furnish to Lender all notices af amounts
to be paid under this paragraph. If E3orrower makes these payments directly, Borrower shatl promptlp furnish to Lender '
receipts e~•idencing the payments. y
13orrower shall promptly discharge an~• lien which has priority over this S~curity Instrument unless Aorrow•er: (a) j
agrees in writing ta the payment otthe obligation secured by the lien in a manner acceptable to L,ender, (b) contests in gond '
faith the lien by, or defends against enfarcement of the lien in, legal proreedings which in the Lender's upinion operate to ~
prevent the entorcement of the lien or forfeiture of any part ~f the Yroperty; or (c) secures from the holder vf the lien an
agreement satisfactory to Lender sutx~rdinating the lien to this Security Instrument. If Le~~der determines that any part of
the Yropert}• is subject to a lien which may attain priority ~ver this Sccurity lnstrument, Lender ma~~ give Borrow•er a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of t~e actior~s sei forth abo~~e H~ithin 10 days
of the giving of natice.
5. Hazard [nsurance. Borrow~er shal! keep the improvements noa~ ~xisting or hereafter erected on the Property
insured against lass by fire, hazards included within the term "extended co~~erage" and any other hazards for which Lender
reyuires insurance. This insurance shalt be maintaiRed in the amounts and for the periods that Lender requires. The
insurance carrier pr~viding the insurance shall be chosen by Borrower subject to Lender's approval u•hich shall not be
unreasanably withheld.
AI! insurance poiicies and renewals chal! be aeceptable 1~ Lender and shall include~ a standard r?iortgage clause_
Lender shall have the right to hold the ~licies and renewals. If Lender requires, Dorrower sha!! pmmptly give to Lender ~
al! receipts of paid premiums and renewal notices. ln the event osloss, Borrower shall give prompt notice to the insurance ~
carrier and Lender. Lender may make proof of loss if not made promptiy by Borrower. ~
Untess Lender and Borrower otherwise agree in writing, insurance proceeds ~hall be applied to resioration or repair
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 econamically feasible or tender's securit}• w•outd be lessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, whether or not then due, with an}• excess paid to Borrower_ If
~rrower abandons the Property, or does no[ answer within 30 days a notice trom Lender that the insurance earrier has
offered to seitle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property 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 prc~ceeds to principal shalt not e!ctend or
post~ne the due date of the monthly paymer~ts referred to in paragraphs 1 and 2 or change the amount of the papments. tf
under paragraph i9 the Pr~perty 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 Lender M Ihe extent of the sums secured by this Securit~•
Instrument immediately prior to the acquisilion.
6. Preservation and 1~faintenance of Property; I.easeholds. Horroa~er shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. If this Security lnstrument is on a leasehold,
Bc~rrower shall comply with the provisions of the iease, and if Borrower acquires fee tit~e to the Property, the lease6old and
fee title shall not merge unless Lender agrees to the merger in a~riting.
'I. Protection of Ixnder's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
eovenants and agreements contained in this Seeurit~~ Instrument, or there is a legal prcxeeding that ma~~ significantly aflect
Lender's rights in the Yroperty (such as a proceeding in bankrupicy, probate, 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 Propert}•. Lender's actions may include paying any sums sec~~red by a lien which has priority over this Security
[nstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
Lender may take action undrr this paragraph 7, Lender docs not have to do so.
Any amounts disbursed by Lender under this paragraph 7 sha!! brcame additional debt of Borrower secured by this
Security Instrument. Urtless 8orrower 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.
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