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Home My WebLink About0786 • . , ` UNIFORM COVENANTS Ciorrower and Lendei covenant and agree as follows: 1. Payment ot Princlpal and Interost; Prepaymant and l.ate Charges. Bo~ rower shali prom~tly pay when due the pr~nc~pal of and ~nierest on the debt ev~denced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Sub~ect to applicable law or to a wntten waiver by lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid ~n full, a sum ("Funds") equal to one•twelith of: (a) yearly taxes and assessments which may atta~n priority over th~s Security Instrument; (b) yearly leasehold payrnents or grour,d rents on the Property, d any; (c} yearly hazard msurance premiums; and (d) yeariy mortgage ~nsurance premiums, ~f any. These ~tems are cailed "escrow ~tems." Lender may est~mate the Funds due on the bas,s of current data and reasonable estimates ot (uture escrow ~tems. The Funds shall be held ~n an mst~tut,on the depo~ts or accounts of which are insured or guaranteed by a federal or state agency (~nclud~ng Lender ~f Lender is such an inst~tution). Lender shall apply the Funds to pay the escrow items_ lender may not charge tor holding and apply~ng the Funds, analyz~ng 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. A charge assessed by Lender in connection ~nnth Borrower's enter~ng into this Security Instrument to pay the cost of an independent tax reporting service shall not be a charge for the purposes ot the preced~ng sentence. Borrower and Lender may agree in wriUng that mterest shall be paid on the Funds. UNess an agreement ~s made or appl~cable law requires ~nterest to be paid, Lender shall not be required to pay Borrower any mterest or earnings on the Funds_ ~ender shall g~ve to Borrower, wRhout charge, an annual accounting of the Funds shawing credits and debits to the Funds and the purpose for which each deb~t to the Funds was made. The Funds are pledged as add~tional security for the sums secured by this Secunty 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, 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 cred~ted to Borrower on monthly payments o( funds. If the amount oi the Funds held by Lender ~s not sufficient to pay the escrow ~tems when due, Borrower shali pay to Lender any amount necessary to make up the def~ciency ~n one o! more payments as required by lender. Upon payment m fuil 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 acqwred by Lender, Lender shal! apply, no later than immediately prior to the sale ot the Property or ~ts acqu~s~tion by Lender, any Funds held by Lender at the time ot applicat~on as a credit against ihe sums secured by this Secunty Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: f~rst to amounts payable under paragraph 2; second, to interest due; and last, to pnnc~pal due. 4. Changes, Liens. Borrower shatl pay all taxes, assessments, charges, fines and impos~tions attributable to the Property whicn may attam priority over this Security Instrument, and leasehoi~ payments or ground rents, if arry. Borrower shall pay these obligations ~n the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on t~me directly to the person owed payment. Borrov~~er shall promptly furnish to Lender all not~ces of amounts to be paid under this paragraph. If Borrcwer makes these payments d~rectly, 8orrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment o( the obligation secured by the lien in a manner acceptable to Lender: (b) contests in good faith the I~en, by or defends against enforcement of the lien in, legat proceedings which in the Lender's opinion operate to prevent the enforcement o( the I~en or forfe~ture of any part oi the Property: or (c) secures from the holder of the lien an agreement satisiacrory to Lender subordmat~ng the lien to this Secunty Instrument. If Lender de:ermines that any part of the Property is subject to a lien which may attain pnority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrovrer shall satisfy the lien ' or take one or more of the actions set forth above wrthin 10 days of the giving of notice. ~ 5. Hazard Insurance. Borrower shall keep?he improvements now existing or hereafter erected on the Property insured aga~nst loss by hre. hazards ~ncluded within the term "extended coverage" and any other hazards for which Lender requires ~nsurance i ~ Th~s insurance shal! be maintained ~n the amounts and for the ceriods that Lender reqwres. The insurance carrier prov~ding the i ~nsurance shall be chosen by Borro~nrer subject to Lender's approval which shall not be unreasonably withheld. ~ All msurance pol~cies and renewafs shall be acceptable to Lender and sha!! include a standard mortgage clause. Lender shall E nave the right to hold the pol~cies and rene~nrals. If l.~ender requires. Borra~rer shall promptly give t~ Lender all receipts of pa~d prerr~iums and renewal notices. In the event ot loss, Borrower shall give prompt notice to the insurance carrier and Lendec Lender may make ~ proof of loss rf not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in wriUng, insurance proceeds shall be applied to restoration or repair of the ~ Property damaged, rf the restaration or repa~r ~s economically feas~ble and Lender's security is not lessened. If the restoration or ~ repair ~s not economicalty feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Secur~ty Instrument, whether or not then due, with arry excess paid to Borrower. If Borrewer abandons the Property, ~ or does not answer ~nnth~n 30 days a notice from Lender that the insurance carrier has offered to seti~e a ctaim, then Lender may ' coilect the +nsurance 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 penod w~ll begin when the notice is given. ~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to pnncipal shall not extend or postpone ~ the due date oi the monthly payments referred to in paragraphs t and 2 or change the amount of the payments. If under paragraph 19 the Property is acqu.red tr,r Lender, 3orrower's right to arry msurance pol~cies and proceeds result+ng from damage to the Property pnor to the acquisition shall pass !o lender to the extent of the sums secured by this Security Instrument immed~atefy prior to the acquis~tion. 6. Preservation and Maintenance of Property; l.easeholds. Borrower shal! not destroy. damage or substant~atly change the Property, allovr the Property to deter~orate or commit waste. If the Security Instr~ment +s on a leasehold. Borrower shall compfy ~ w~th the provisions o! the lease. and rf Borrower acquires fee tit!e to the Property, the leasehold and (ee title sha~l not merge unless Lender agrees to the merger in wnting. g 7. Protection of Lender's rights in ihe Property; Mortgage Insurance. If Borrower fa!Is to perform the covenants and ; agreements conta~ned in this Security Instrument, or there is a legal proceed~ng that may sign~ficantly a~fect Lender's rights m the ~ Property (such as a proceeding in bankruptcy, probate, for condemnat~on or to enforce laws ~r regulations), then Lender may do ~ and pay for whatever is necsssary to protect the value of the Property and Lender's rights in ihe Property. Lender's actions may ~ ~nclude paymg any sums secured by a(~en wh~ch has priority over this Security Instrument, appeari~g in couR, pay~ng reasonable ~ attomey's fees and entenng on the Property to make repa~rs. Although Lender may take action undsr this paragraph 7. Lender ~ dces not have to do so. ~ Any amounts d~sbursed by Lender under this paragraph 7 shall become ad~itional debt of Borrower secured by this Security ~ Insirument. Unless Borrower and Lender agree to othe: terms of payment, these amounts shall bear interest from the date of ~ disbursement at the Note rate and shall be payab!e, w~th interest, upon notice from l.ender to Borrower reques!ing paymeni. ' aes~ a~, ,u~ • ee neoz~ Pc ' - ' • sOCII V7~ PASE 78~ ~ ~ ~ - ~ ~a:_.,~~-~~ ~ ~