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HomeMy WebLinkAbout1814 UNtFORM COVENANTS. Borrower and Lender covenant and agree as follo~~•s: ~ 1. Paymenl ot Princip~tl And Inttrcst; Prepayment and l.ate Chae~ts. Borrower shall promptly pay w~hen due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. FUIIdS IO~ TYXlS alld IIlSU~fl11Ct. Subject to applicable law or to a writte~ waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in fuil, a sum ("Funds") equal to one-twelfth of: (a) yearly talces and assessments which may attain priority over this Security Instr~ment; (b) yearly leasehold payments or ground 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." Lender 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 w~hich 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. Lender may not charge for holding and applying the Funds, analyzing the account or verii'ying the acrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that ~ interest shall be paid on the Funds. Unless an agreement is made or appficable law requires interat to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the 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. 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, shalt 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 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 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 seld or acquired by Lender, Lender shall 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 credit against the sums secured by this Security Instrument. 3. Appiication of Payments. Unless applicable law provides otherw~ise, all payments received by Lender under paragraphs I and 2 shouid be applied: first to amounts payable under paragraph 2; second to interest; and last to principal. 4. Charges; Lieas. Borrower shall pay all tares, assessments, charges, fines and impositions attributablt to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obliga- tions 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 evidenting the payments. Borrower shall promptty discharge any lien which has priority over this Security lnstrument unless Borrower: (a) agrees in v+•riting to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien b}~, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforce- ment of the fien or forfeiture uf 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. Hazard Insurance. Borrow•er shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, haaards included within the term "extended coverage" and any other hazards for which L~nder 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 Borrower 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 hold the policies and renew~als. If Lender requires, Borrow~er shall 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 shafl 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 t 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 Proper- ~ ty, or dces 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 I 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 under paragraph ~ 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Pra ~ perty prior to the acyuisition shall pass to Lender ro the extent of the sums secured by this Security Instrument immediately prior k to the acquisition. ~ 6. Presenation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the ~ Property, allow the Property to deteriorate or commit waste. [f this Security Instrument is on a leasehold, Borrower shali comply F with the provisions of the lease, and if Borrower acquires fee title to the Property, tfie leasehold and fee tide shall not merge unless Lender agrees to the merger in writing. 7. Protectioo of Lender's Rlghts in the Property; Mortgage Insurxnce. lf Borrower fails to ~rform the covenants and agreements ~ contained in this Security Instrument. or there is a legal proceeding that may signiticandy 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 w~hatever 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 and entering on the Property to make repairs. Although Lender may take action under tfiis paragraph 7, Lender does not have to do so. ~ ~ ~ ~ ~ . ~ so~ 674 ~1$i4 ~ p _ - _ _ a - - - - - . ~ . . -