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HomeMy WebLinkAbout0921 UNIFORM COYENANTS Borrower and Lender covenant and agre~ as follows: I. Payment ot Principal and Iateresh Prepaymeat and Late Chuges. Borrawer shalt nromptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment an~ late chargts due under the Note. 2. Fuads tor Tuea and Iasurance, Subjoct to applicabl~ law or to a written waiver by Lender, Borrower shall ~+ay to Lender on the day monthly paynients are dut under the Note. u~til the Nott is paid in full, a sum ("Funds") equal to one-twelRh vf: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Prope~-t~r, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." L,ender may estimate the Funds due on the basis of curront data and reasonable estimates of futur~ 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 I.ender is such an institutiun). Lender shal! apply the F~nds to pay the escrow items. I.ender may not charge for holding and applying the Funds, analyzing the account or veriCying th~ escr~y~ ~tems, unless Lertder pays Bonower interest on the Funds and applicable law permits Lender to make such a charge.'~Orrowc~ and ~ L.~nder may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, [.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shatl give to Borrower, without charge, an annual acc~unting of the Funds showing credits and debits to the Funds and thr purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by ~ this Security lnstrument. lf the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the eserow items, shalt excced the amount required to pay the escrow items when due, the excess shal! be, at Borrower's option, either pmmptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If ihe 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 by Lender. Upon payment in full of all sums secured by this Security Instrument, I.ender shatl promptly refund to Borrower any Funds held by I,ender. If under paragraph 19 the Property is sold or acquired by i.ender, Lender shaU apply, no later than immediatety prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a cretlit against the sums secured by this Security lnstrument. ~ 3. Application of Paymeats. Unless applicable law provides otherwise, ali payments received by Lerder 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 principal due. 4. Charges; Lieos. Bonower shail pay all taxes, 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 to be paid under this paragraph. If Borrower makes these payments directly, Borrower shali promptly furnish to Lender receipts evidencing the payments. Borrower shal! promptly discharge any lien which has priority over this Security Instn~ment uniess Borrower. (a) agrees in writing to the payment of the obligation seeured 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 p~event the enforcement of the lien or forfeiture of any part of the Propeny; or (c) secures from the holder of the tien an agreement satisfactory to Lender subordinating the tien to this Security Instrumeni. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may 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. 5. Hazard Insurance. Borrower shal! keep the improvements now ezisting or hereafter erected on the Property ~ insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. T'his insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to ~.ender's approval which sha11 not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mongage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shati promptly give to Lender alt receipts of paid premiums and renewal notices. In the event of loss, Borrower shal) give prompt notice to the insurance carrier and [,ender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender 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 (essened. IF the restoration or repair is not economicaqy feasible or Lender's security would 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 Borrower otherwise agree in writing, any application of proceeds to principal sha11 not eatend or postpcine the due date of the monthly paymenis referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property 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 to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage vr substantially change the Praperty, allow the Property to deteriorate or commii waste. If this Serurity Instrument is on a leasehold, Borrower shal) comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lendet's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legaf 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 ~nay do and pay for whatever is necessary Yo protect the value of the Property and L.ender's rights in the Propeny. Lender's actions may include paying any sums secured by a lien which has prioriiy over 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, Lender dces not have to do so. Any amounts disbursed by Lender under this paragraph ~ shall become additiona) debt of Borrower secured by this Security tnstrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of~ ciisbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. **A r,~ia.rge assessed by Lender in carinection with Borrawer's entering into this Security Instnment to pay the oost of an ' t tax rting service shall not be a cha.rge for purposes of the preceding sentenoe. ~ ~ BORK ~74 PACE 7~1 - - - - - ~ a=~ ~