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HomeMy WebLinkAbout0454 ! ~ • Uti1FORH CovE~vnNTS Borrower and Lender covenant and agrec as Collow~s: 1. Payment of Principal and Interest; Prepayment and late Charges. Borrow~er shall promptl~• pa~~ when due the principal of and interest on the debt evidenced by the Note and any prepay~ment and late charges due under the Note. Z. Funds for Texes and Insurs~nce. Subject to applicable law or to a written w•aiver by Lender, Borrower shali pa}~ to I.ender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelRh of: (a) yearly taxes and assessments which may attain priority o~~er this Securiry Instrument; (b) yearly leasehold payments or ground rents un the Property, if any; (c) yearly hazard insurance premiums; and (d) yearl}• mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data a~d reasonable estimates oC future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender iE Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may nat charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower artd Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made ar applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings an the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the F unds and the purpose for which each debit to the Funds was made. The Funds are 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, shatt exceed the amount required to pay the escrow items when due, the excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufl'icient to pay the escrow items when due, Borrow~er shall 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 Borrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, 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. Applieation 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 pay~able under paragraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shall pay all tazes, assessments, charges, fines and impositions attributable to the Property w•hich may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts ~i to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender ~ ' receipts evidencing the payments. ~ i Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrow•er: (a) i 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 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 I ' the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a ~ j 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. ; 5. Ha~ard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property i ~ insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender ; i requires insurance. Z'his insurance shall be maintained in ihe amounts and for the periods that Lender requires. The j ~ insurance carrier prov:ding the insurance shall be chosen by Borrower subject to Lender's approval w~hich shal! not be ~ f unreasonably withheld. , All insurance policies and renewals shall be accepiable to Lender and shall include a standard mortgage clause. ~ Lender shall have the right to hold the policies and renewals. If L.ender requires, Borrower shall promptly give to Lender ' f all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice ro the insurance ' ~ ~arrier and Lender. L,ender may make proof of loss if not made promptly by Borrower. Unless I.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration 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 economically feasible or L.ender's security wou(d be lessened, the insurance proceeds shall be ~ applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower 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 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 Borrow•er 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 I,ender, Borrower's right to any insurance policies and proceeds resulting ~ from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b}~ this Security t Instrument immediately prior to the acquisition. ~ 6. Preservation and Maintenance of 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 Borrower acquires fee title to the Property, the IeasChold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrow•er faiis to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, 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 Property. Lender's actions may include paying any sums secured by a lien which has priority o~~er this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, I_ender does noi have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this ` Security instrument. Unless Borrower and Lender agree to other terms of payment, these amounts sh~ll bear interest from ~ the date of disbursement at the Iv`ote rate and shall be payable, with interest, upon notice from Len~er to Borrower $ requesting payment. goo~ 674 ~ 45~ ~ ~ - - _ ~ - r~~~~ ~ _ - - ~ ~