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HomeMy WebLinkAbout0537 UNIFOR~t COYENANTS. Burrower and l.ender co~enant and agree as foll~~.~ 1. Pa~mrot ot Priacipa! rnd Inleresl: PrepayareNt =nd l.rt! C6arges,~ ower shaU promptly pay when due ihe principal of and interest un the debt evidenced by the Note and any prepayment and [ate charges due undrr the Note. ' 2. F'unds tor l axes and lasurance. Subjc~t to applicable ?aw or to a written W ai~~er by Lender, Borrower shall pay to Lender on the day monthiy paymtnts ar~ due under the Note, until the Note is paid in full, a s~m ("Funds") equal to one-twelfth of: (a) yearl}~ taxes and assessments which may attain priority over this S~curiry Instrument; (b) yearly leasehold payments or ground - rents on the Propert~•, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the F~nds due on the basis of current data and reasonable estimates of 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 if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge far holding and applying the Funds, analyzing the account or verifying the escrow items, unlsss Lender pays Borrower interest on the Funds and applicable law permits l.ender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Uniess an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of 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 additionai security for the sums secured by this Security Instrument. !f the amount of the Funds held by Lender, together with the future monthiy 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 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 sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required b}~ Leoder. Upon payment in fuli of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held b}~ Lender. !f 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 b}~ this Security Instrument. 3. Applicatioa of Payments. Unless applicable law provides othera-ise, all payments received bp Lender under paragraphs 1 and 2 should be applied: first to amounts payable under paragraph 2; second to interest; and last to principal. 4. Charges; Liens. Borrow~er shall pay aU 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. Borrower shall pay these obliga- tions in the manner pro~~ided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person oH•ed payment. Borrow•er shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien w~hich has priority over this Secutity thstrumenl unless Borrower: (a) agrees in w~riting to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests'in good ~'aitl~ the lien ~ b~~, or defends against enforcement of the lien in, legal proceeciings which in che Lender's opidion operate to prevent the enforce- ment of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfectory to Lender subordinating the lien to this Security Instrument. IC Lender determines that any part of the Property is subject to a lie~ which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the litn..~orrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hs~zard Insurance. Borrov?•er shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included w•ithin the term "extended 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 carrier providing the i insurance shalt be chosen by Borruw•er subject to Lender's approval which shatl not be unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mongage clause. Lender shall ~ ha~•e the right to hold the policies and renewals. If Lender requires. Borrower shall promptly give to Lender all receipts of paid ~ premiums and renew~al notices. In the e~•ent of loss, Borrower shall gi~~e prompt notice to the insurance carrier and Lender. Lender E may make proof of loss if not made promptly b~~ Borrower. ; Unless Lender and Borrower otherwise agree in w~riting, insurance proceeds shall be applied to restoration or repair of the , Propert}• damaged, if the're~toration or repair is economically feasible and Lender's security is not lessened. If the ratoration or repair is not economically feasible or Lender's securitr would be lessened, the insurance proceeds shall be applied to the sums secured by this Securitp Instrument, w•hether or not then due, with any excess paid to Borrower. If Borrower abandons the Proper- ' t~•, or does not answer w•ithin 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 ~ Securit~• lnstrument, 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 proceeds to principal shall not extend or postpone ' the due date of the monthly payments referred to in pa~agraphs 1 and 2 or change the amount of the payments. If under paragraph e 19 the Property~ is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Pro- ~ ; perty prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Insuument immediately prior to the acquisition. s ~ 6. Presen•ntion and Maintenance ot Propert~•; Lexseholds. Borrower shall not destroy, damage or substantialty change the ~ Property, allow• the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall comply ~ «ith the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge untess € ~ Lender agrees to the merger in writing. ' 7. Protection of Lender's Rights in the Property; Mortgage Iasurance. If Borrow~er fails to perform the covenants and agreements contained in this Securit}~ Instrument, or there is a legal proceeding that may significantl}• affect Lender's rights in the Propertp (such as a proceeding in bankruptcy, probate, for condemnation or to enforce law•s or regulations), then Lender may do and pay for ~hate~•er is necessary to protect the value of the Property and Lender's rights in the Property. l.ender's actions may include paying any~ sums secured b}~ a lien w~hich has priority oti•er this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property io make repairs. Although Lender may take action under this paragraph 7, Lender does not ha~~e to do so. ~ ~ ~ R BOOK 659 PAGE 6001( V7~ PACE • . ` . - ; - ~ ~ ~ ~ ~ -w - ,~y.~;',c c~a~, ~-~,~a„`z .aw~..