HomeMy WebLinkAbout1500 UNlFORM COVEtiANTS Borrower and Lender co~~enant and agree as follows: ~
1, Payment of Priacipal and Interest; Prepayment and I.ate Charges. Borrower shall promptl~ pay ~tihrn dur
the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due undrr the Ne~tr.
2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by l.ender, Borrower ~hall ~ay
to Lender on the day monthiy payments are due under the Note, until the Note is paid in full, a sum ("Funds") eyual to -
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) y~e:~rly
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yeart}~
mortgage insurance premiums, if any. These items are calied "escrow items." Lender may estimate the Funds due on the ;
hasis ofcurrent data and reasonable estimates of future esc.row 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. i
I,ender may nut charge for holding and applying the ~nds, analyzing the account or verifying the escrow items, unless 1
Lender pays Bomower interest on the ~Lnds and applicable Iaw permits Lender to make such a charge. A charge assessed j
by l,ender in connection with Borrower's entering into this Security Instrument to pay the cost of an independent tax ~
reporting service shall not be a charge for purposes of the preceding sentence. Borrower and Lender may agree in writing j
that interest shall be paid on the Funds. L nless an ageement is made or applicable law requires interest to be paid, Lender ~
shall not be required to pay Borrower any interest or earnings on the Ftinds. Lender shall give to Borrower, without charge, ~
an annual accounting of the Funds showing crediss and debits to the Funds and the piirpose for which each debit to the 1
Funds was made. The ~Lnds are pledged as additional security for the sums secured by this Security Instrument. ;
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payabte 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 oP 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, 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 Lender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Uniess appiicable law provides otherwise, all payments received by Lender 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; Liens. Borrower shaq 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 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 shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless 8orrow•er: (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 forfeiture 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 satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
5. Nazard Insurance. Borrower shalt 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
k insucance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approval which shall not be
s unreasonably withheld.
i All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
~ Lender shall have the right to hold the policies and renewals. If Lender requites, Borrower shall promptly give to Lender
! all receipts of paid premiums and renewal notices. In the event of loss, Borrower sha11 give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrow•er.
{ Unless I.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
E 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 shall be
g 2ppiied to the sums secured by this Security InstNment, 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
w•hen 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
under paragraph 19 the Property is acquired by L,ender, Borrower's right to any insurance policies and proceeds resulting
irom damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums s~cured by this Security
~ Instrument immediately prior to the acquisition.
6. Preservation and Maintenance of Property; Leaseh~lds. 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,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee titte to the Property, the leasehold and
fee title shall not merge unless L.ender agrees to the merger in writing.
1. Protection of Lender's Rig6ts in the Property; Mortgage Insarance. If Borrower fails to perform the
covenants and agreements contained in this Security ~nstrument, or there is a legal 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 may do and pay for whatever is necessary to protect the value of the Property and Lender'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 a~d 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 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, upon notice from Lender to Borrower
~ requesting payment. • ~ ~
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