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HomeMy WebLinkAbout1474 • UNIFORM COVetiA~TS Borrower and Lender co~•enant and agrre a. fullo~ti: . 1. Payment of Principal and Interesh, Prepayment and t.ate Ch~rges. Borruw~rr ~hall prompU~• ray w hen dur the principal of and interest on the debt evidenced by the Note and any prepapment and la~e charge+ due under the No~e. 2. Funds for Taxes and Insurance. Sub~ect to applicable law or to a written w~ai~er by Lender, Borrow~er shal! pay to Lender on the day monthly paym~nts are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-tweltth of: (a) yearly taxes and assessments which may attain priority over this Secunly Instrument; (b) yearly leasehold payments or graund rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Lr~der may estimate the Funds 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 txnder if Lender is such an institution). lxnder shall apply the Funds to pay the escrow items. l~nder may not charge for holding and appl~~ng the Funds, analyzing the account or ~~erifying the escrow~ items, unless lxnder pa}~s Borrow^er interest on thr Funds and applicable law permits Lender to make such a charge. A charge assessed by l.ender in connection w~th Borrowers' entering into this Security Instrument to pay the cost of an independent tax reporting sen~ice shall not be a charge for purposes of the preceding sentence. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law reyuires interest to be paid, l.ender shall not be reyuired to pa~~ Borrow~er anp interest or earnings on the Funds. Ixnder shall give to Borrow•er, without charge, an annual accounting of the Funds show~ing credits and debits to the Funds and ihe purpose for which each debit to the Funds was made. The Funds are pledged as additional securit}~ for the sums secured b~~ this Security lnstrument. If'the amount of the Funds held by Lender, together with the Cuture 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 of Funds. If the amount of the Funds held by Lender is not suff'icient 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. Upo~ 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 L.ender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Psyments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs I and 2 shal! 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. Borrower shatl pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shaU 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. lf Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security lnstrument unless Borrower: (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 enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien or forteiture 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 t:~is 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. S. Hazard Insurance. Borrower shall keep the improvements now existing 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. This insurance shall be maintained in the amounts and for the periods that Lender requires. The ~ insurance carrier providing the insurance shal) be chosen by Bo~rower subject to Lender's approval which shall not be ~ unreasonably withheld. ~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hotd the policies and renewals. If Lender requires, Borrower shaU promptly give to Lender all 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 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 lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shali be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Bonower. 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-da~~ period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eztend 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 Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to I.ender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Preservation sted Maintenance of Property; I.easeholds. Borrower shall not destroy, damage or substantially change the Property, allow the Propeny 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 leasehold and 4~ ~ fee titie shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender'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 legal proceeding that may significantly affect I,ender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then L.ender may do and pay for svhatever is necessary to protect the value of the Propeny 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, L,ender dces not have to do so. Any amounts disbursed by I,ender 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 shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, u~n notice from Lender to Borrower requesting payment. ~ ~ BOUK ~ i ~ FAGE1~7~ _ . ~ - - ~ ~--~w~