HomeMy WebLinkAbout0992 UNlFORM COVE`:ix rs Borrow~er and l.ender covenant and agree as R~Ilow~:
1, Payment of Princips?1 and lnterest; Prepayment and I.ate Charges. Borrow~er shall prc~mptly pay when due
the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. Funds for Taxes and Insurance. Subject to applicable taw or to a writ ten waiver by~ I_ender, B~rrower shall pay
to I..ender on the day monthly payments are due under the i~ote, unti! the Note is paid in Pull, a sum ("Funds") eyual to
ono-tweiRh oE (a) yearly taxes and assessments which may attain priarity c~ver this Security Inurument; (b) yearly
Itasehald payments or grc~und rents on the Praperty, if any; (c) yearly harard insurance premiums; and (d) yearly
mortgage insurance premiums, if any. These items are called "escrow~ items." Lender rnay estimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits vr aceounts of which are insured or guaranteed by a federal or
state agency (inctuding l.ender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
I.ender may not charge for holding and applying the Funds, analyzing the account or verify~ing the escrow items, unless
L,ender pays Borrower interest on the Funds and applicabte law permits Lender to make such a charge. Borrower and
Lender may agrez in writing that interest shall be paid on the Funds. Untess an agreement is made or applicable law
rtquires interest to be paid, Lender shali not be required to pay Borroa~er any intcrest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annuai accounting of the Funds shawing credits and debits to the Funds nnd the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sumt secured by
this Security Instrument.
If the amount of the runds 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 shaU be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amaunt of the Funds heid by L.ender is not sufficient to pay the escrow items when due, Borrawer shal! pay to Lender any
amount necessary to make up the deficiency 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 Borrowet
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, l.ender shall apply, no later
than immediately prior to ti~e sale of the Yroperty or its acquisition by Lender, any Funds hetd by Lender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Application of Payments, Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principa! dae.
4. Charges; Liens. Borrov~er 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.
Bonower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shatl
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender ali notices of amounis
to be paid under this paragraph. If Borrower makes these payments directiy, Borr~wer shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptiy discharge any lien which hes prjoe~ty over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
faith 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 lien or forfeiture of an~~ part of the Properly; or (c) secures from the holder aF the lien an
agreement satisfactor}° to Lender subordinating the iien to this Security (nstr~iment. If Lender determines that any part of
the Property is subject tc~ a lien which may attain priority over this Security Instrument, Lender ma} give Borrower a
notice identifying the lien. Borrower shall 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 hereafter erected on ihe Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and ~or the periods that Lender requires. 'The
insurance carrier providing the insurance shall be chosen by Borrower subject ta l.ender's approval which shall not be
unreasonably withheld.
All insurance F?olicies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
L.ender shall have the right ro hold the policies and renewals. If I:endrr requires, Horrower shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event oi loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrow~er.
Unltss Lender and Borrower otherwise agree in writing, insurance prcxeeds shall be applied to restoration or repair
of the Property damaged, if the restoration or repair is economically (easibie 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 Instniment, w~hether or not then due, with any excess paid to Borrower. If
8orrower abandons the Property, or does noi ansa•er within 30 days a notice from Lender that the insurance carrier has
offered to settle a ciaim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
tht Property or to pa}~ sums secured by this Securit~~ Instrument, whether or not then due. The 30-day period will begin
when the notice is given.
Unless Lender and Borrower otherw ise agree in writing, any ap{~lication of proceeds to principal shall not extend or
postpone the due date of the monthly paymentt rcferred to in paragraphs 1 and 2br change the amount of the payments. If
under paragraph 19 the Property is acqu~red b}~ l.ender, Borrower's right to any~ insurance ~licies and proceeds resulting
from damage to the Property prior to the acyu~siti~m shall pass to Lender to the extent af the sums secured by this Security
Instrument immediately prior to the acywti~tu~n.
6. Preservation and `laintenance of Propert~; Leaseholds. Borrow~er shall not destro~•, damage or substantially
change thc Property, allow the Propert}• t~ dcteriorate or commit w•aste. If this Security Instrument is on a leasehold,
Borrower shall comply witt~ the pm~~i~i~ns of the lease, and if I3~r~ower acquires fee title to the Property, the leasehold and
fee title shal! not merge unless I_ender agrees tc~ the merger in writing.
7. Protection of I,ender's RiRhts in the Property; ~tortRage Insurance. tf Borrower fails to pertorm the
eovenants and agreementc contained in this Serucity Instrument, or there i~ a leg~il prck:eeding that ma}• sigmficantly afi'ect
I,ender's rights in the Property (such as a proceeciing in bank:ru~tcy, probate, for cc~ndemnation ~r to enfarce laws or
regulations), then Lender may do and pay for whate.~er is necessary to protect the ~•.~tue af the Yrcipert}• and Lender's rights
in the Property. Lender's actions may include paying any sums .ecured b}' a lien tichich has priorit}• o~~er this Security
Instrument, appearing in court. pa}~ing reas~nahlc attorne~•s' feet and entering ~n the Pro~ert~~ t~ make re~airs. Although
I,ender may take action unc~er this ~aragraph 7. Lender does not ha~~e to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become addiUOnal deht ~f Horrow~er secured by this
Security Instrument. Unle~t R<~rmw-cr and I.ender agrec to other tcrms of pa~~ment. these am~unts sha!! bear interest from
the date of disbur~ement at thc ~<,te rate and shall he pa~~able. u•ith ~nteretit, u~cm n~~tire frc~m Lender to Borrower
requesting pa~~ment.
4t85 3 785 ~ooK ~so PAGE sso
~ -