HomeMy WebLinkAbout1859 UNIFORM COVEtiAtiTS Borrower and Lender rovenant and agrce as foUoH~: '
1. Payment of Principal and tnterest; Prep~yment and I.ate Charges. Borrower tihall prumptl~ pay when dur
the principal of and interest on the debt ev~denced by the Note and any prepa} ment and laie chargeti due under thr Nc~te.
2, Funds for Taxes and Insuranee. Sub~ect to appGcable law ur to a w~ntten wai~er by Lender, BorroN~er Shall pa}
to Lender on the day monthly payments are due under the Note, until the Note i~ paid in full, a sum ("Funds") eyual to
o~e-tweltlh of: (a) yeariy taxes aod assessments which may attain priority over this Security Instrumenr, (b) yearl~•
leasehold payments or ground rents on the Property, if a~y; (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 oi ~4~hich are insured or guaranteed by a federal ar
state agenc}• (including Lender if Lender is such an institution). Lender shall apply the F=unds to pay the escrow items. l.ender
ma~• not charge for holding and appiying the Funds, analyzing the account or verifying the escrow items, unle~.s I~nder pa~s
f3orrower inrerest on the Funds and applicable law permits Ixnder to make such a charge. A charge assessed bp l.ender in
connection with 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. Barrow~er and l.ender 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, Lender shall not be reyuired to
pa~~ Borrow~er any interest or earnings on the Funds. l~nder shall give to f3orrower, N~ithout charge, an annual accounting of ;
the Funds sf~ow~ing credits and debits to lhe Funds and the purpose for w°hich each debit to the Funds was made. ~lhe Funds
are pledged as additional securit~~ for the sums secured by this Securit~~ 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 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 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 setured by this Security lnstrument.
3. Application of Payments. Unless applicable 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 shall pay all taxes, assessments, charges, fines and impositions attributable to the
Propeny which may attain priority over this Security lnstrument, 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 tne person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower mak~ these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien w~hich has priority over this Security Instrument 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, iegal 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 Propeny is subject to a lien which may attain priority ove- thi~ 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 torth above within 10 days
of the giving of notice.
5. Hazard Insu~ance. Borrower shal! keep the improvements now existing or hereaRer erected on the Property
insured against loss by fire, hazards included within the term "extended 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
I~ insurance carrier providing the insurance shail be chosen by Bo~rower subject to Lender's approval which shall not be
i unreasonably withheld.
' All insurance policies and renew~als shall be acceptable to Lerider and shal) include a standard mortgage clause.
; Lender shall have the right to hold the policies and renew•als. If Lender requires, Borrower shall promptly give to Lender
i all receipts of paid premiums and renewal notices. In the event of loss, Borrower shafl give prompt notice to the insurance
E 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 shall be
applied to the sums secured by this Security Ir~strument, w•hether 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 othenvise agree in writing, any application of proceeds to principal shall not extend or
B postpone the due date of the monthly payments referred to in paragraphs 1 and Z 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 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 title to the Property, the leasehold and
~ fce title shall not merge unless Lender agrees to the merger in writing.
~ 7. Protection of Lender's Rig6ts in the Property; 1~lortgage Insurance. If Borrower fails to perform the
~ covenanis and agrcements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
~ Ltnder's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforct laws or
~ regulations), ihen L.ender 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
[nstrument, appearing in court, paying reasonable attorneys' tees and entering on the Property to make repairs. Although
~ Lender may take action under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by L.ender under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unlas 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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~ ~ Hoo~ 674 FA~E i859
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