HomeMy WebLinkAbout1436 UNIFORM COYENA'`TS Borrow~r and Lrnder covenant and ~grrr a~ folluN+:
l. Payment o! Principal snd Interesh Prepayme»t and l.nte Charges. Borrower tihall ,~romp~ly pa~ when due
the principal of and interest on the debt evidenced by the Note and any prepa~ mrnt and late charge~ due under the Note.
2. Funds for Taxes a~d Insurance. Subject to applicable law or to a w~r~tten waiver b~~ Lender, Borraw~er shali pay
to Lender on the day monthly payments are due unde~ the Note, until the Note is pa~d in full, a surn ("Funds") equal ta
one-tweltth of: (a) yeariy taxes and assessments which may attain priority over this Securit}• I~strument; (b) yearly
leasehotd payments or ground rents on the P~operty, 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 Funds due on the s
basis of cunent data and reasonable estimates of future escrow items.
The Funds shall be held in an insutution the deposits or accounts of which are insured or guaranteed by a federai or
state agency (including L.ender if l.ender is such an institution). [xnder shali appl~~ the Funds to pay theescrow items. l~nder
may not charge for halding and applyi~g the Funds, analy7ing the account or v~rifying the escrow items, unless lxnder pays
f3orrow^er interest an the Funds and appiicable law permits Lender to make such a rharge. A charge assessed by Lender in
connection with Borrou~ers' entering into this Security Instrument to pay the cost of an independem tax reporting service '
shali not be a charge for purposes af the preceding sentencz. Borrower and Lender may agree in writing that interest shall b~:
paid on the Funds. Unless an agreement is made or applicable law reyuires interest to be paid, [_ender shali not be required to
pa}• Borrow~er any interest or earnings on the Funds. Lender shall give to I~rrawer, without charge, an annual accounting of `
the Funds showing credits and debits to the Funds and the purpase for which each debit to the Funds w~as made. lhe Funds ~
are pledged as additional securiry for the sums secured by this SecuritS~ 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 d~e, 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 by I.ender.
Upon payment in ful! 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 L.ender, 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. Application of Payments. Unless appticable law provides otherwise, all payments received by Lender under
paragraphs l 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; Liens. Borrower 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.
Barrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall
pay them on time directiy to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid u~der this paragraph. If Borrower makes these payments directly, Borrower shatl promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any iien which has priority over this Security Instrument unless Borrovrer: (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 entorcement of the tien in, legal proceedings which in the I.ender's opinion operate to
prevent the enforcement of the lien or forfeitare 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
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 satisPy the lien or take one or more of the actions set forth above within t0 days
of thc giving of notice.
5. Nazard Insurance. Borrower shafl keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "eztended coverage" and any other hazards for which L.ender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approval which shall not be
unreasonably withheld.
All insurance policies and renewats shall be acceptabte to Lender and sha!! include a standard mortgage clause.
L.ender shall have the righi to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
a!I receipts of paid premiums and renewal notices_ In the event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of los~ if not made promptly by Bc~rrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be appiied to restoration or repair
of the Property damaged, if the restoration or repair is economicalty feasible 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 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 ma~ 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 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
undcr paragraph 19 the Property is acquired by L.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 by this Security
Instrument immediately prior to the acquisition.
6. Preserration and Mtintenance of Property; Leasehotds. 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,
Borrawer shall comply with the provisions of the lease, and if Borrower acquires fee title to ihe Property, the leasehold and
fce title shall not merge unless Lender agrees to the m~rger in writing.
Protectioe ot Lender's Rights in the Property; Mortg,age insurance. If Borrower fails to perforrn 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 eondemnation or to enforce laws or
regulations), then i.ender may do and pay for whatever is necessary to protect the value of the Property and L.ender's rights
in the Property. Lender's actions may include paying any sums secured by a lien which has priority 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 does not 6ave to do so.
Any amounts disbursed by L.ender under this paragraph 7 shall becomP additional debt of Borrower secured by this
Security Instrument. Unlas Borrower and Lender agree to other terms of payment, these amounts shal! bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
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