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HomeMy WebLinkAbout1884 . UNIFORM COVFNANTS. Borr~wer and l.ender covenant and agree as follows: 1. Peyment of P~incipAl and Interest; Propayment and Lats Charyes. Borrower shall promptly pay when due the pnnc~pal oi and ~nterest on the debt ev~denced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Sub~ect to applicable law or to a wntten wa~ver by Lender, Borrov~~er shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one•twelfth of: (a) yearly taxes and assessments wh~ch may attain priority over this Security instrument; (b) yearly leasehold payrnents or ground rents on the Property, rf any; (c) yearly hazard insurance prem~ums; and (d) yearly mortgage insurance premiums, ~t any. These items are ca~led "escrow ~tems." Lender may estimate the Funds due on the basis of current data and reasonable est~mates ef future escrow Rems. , The Funds shall be hetd in an inst~tution the deposits or accounts of which are insured or guaranteed by a tederal or state agency (including Lender ii Lender ~s 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 verify~ng the escrow items. unless Lender pays Borrower interest on the Funds and applicaWe law permits L.ender to make such a charge. A charge assessed by Lender in connection ~nnth Borrower's entenng ~nto this Security Instrument to pay ihe cost of an independent tax reporting service shall not be a charge for the purposes , oi the preced~ng sentence. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement . ~s made or applicable law requ~res interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shaU g~ve to Borrower, w~thout charge, an annual accounting of the Funcis showing cred~ts and debits to the Funds and the purpose for wh;ch each debit fo the Funds was made. The Funds are pledged as additional security for the sums , secured by this Security Instrument. If the amount of the Funds held by Lender, together w~th the tuture monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow ~tems when due, the excess shatl be, at Borrower's option, e~ther promptly repaid to Borrower or cred~ted to Borrower on monthly payments of funds. If the amount of the Funds hel~ by Lender ~s not suff~cient to pay the escrow items when due, Borrower shall pay to Lender any amount necessary to make up the deticiency ~n 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 pr+or to the sale ot the PropeRy or its acquisition by Lender, any Funds held by Lender at the time of application as a credit aga~nst the sums secured by this Security Instrument. 3. Appllcation of Paymants. Unless applicab!e law provides otherwise, all payments rece~ved by Lender under paragraphs 1 and 2 shall be applied: first to amounts payable under paragraph 2: second, to interest due; and last, to principal due. 4. Chargea, Lfena. Borrow~er shall pay alt taxes, assessments, charges, fines and impositions attributable to the Property wh~ch may attain prioniy over this Secu~ity (nsfrumer~, at~d leasehdd payments or ground rents, if any. Borrower shali pay these obl~gations ~n the manner provided inparagraptt2; fl~if;nbt'paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shafl prompNy ft~~isF}to l~f~ie~. atl ~qtip~pf amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender rece~pts evidenc~ng the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower (a) agrees in wnting 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 aga~~st enforcement of the lien in, legai p~oceedings which in the Lender's opinion operate to prevent the enforcement of the lien or torfeiture ot any part of the Property; or (c) secures from the hdder d the lien an agreement satisfactory to Lender subcrd~naUng the 6en to th~s Security Instrument. If Lender determines that any part of the Property is subject to a I~en which may attain priority over this Security Instrume~t, Lender may g~ve Borrower a notice identifying the lien. Borrower shall saUsfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall keep the ~mprovements now existing or hereafter erected on the ProFerty insured against i loss by f~re, hazards ir.cluded w~thin the term "extended coverage" and arry other hazards ior whsch Lender reqwres insurance. This insurance shall be ma~nta,ned ~n the amounts and tor the periods that Lender requires. The insurance carrier prov~d~ng the i ~nsurance sha~l be chosen by Borrower subject to Lender's approval which sha11 not be unreasonably wi:hheld. ~ A11 ~nsurance polic~es and re~ewals shall be accepsabte to Lender and shall incfude a standard mortgage clause, Lender shali ~ have the nght te hdd the polic~es and renewals. If Lender requires, Borrawer shall promptiy give to L,ender all rece~pts d pa~d premiums ~ and renewal notices. In the event of loss, Borrouver shall give prompt notice to the insurance carrier and Lender. Lender may make ' proof oi loss if not made prompdy by Borrower. Unl2ss Lender and Borrower otherwise agree in wnting, insurance proceeds shall be applied to restoration or repair of the Property damaged, ii the restoration or repair is economically feasible and l.ender's security is not lessened. If the restoration or repair is not econom~cally feasible or Lender's secunty 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 Borrovti~er. If Borrow2r abandons the Pro~erty, or dces not ansvrer w~thm 30 days 3 notice from Lender that the insurance carrier has offered to settie a claim, then Lender may collect the ~nsurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Securiry Instrument, whether or not then due. The 30-day period will begin when the notice ~s given. Unless Lender and Borrawer othen~vise agree in writing, any application of proceeds to principaf shall not e~end or postpone the due date of the monthly payments referred to ~n 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 arry insurance policies and proceeds resulting from darnage to the Property prior to the acquisition shall pass to Lender to the exteni of the sums secured by this Security Instrument immediately prior to the acqws~t~on. ~ 6. Preservation and Maintenance of ProQerty; Leaseholds. Borrower shall not destroy, damage or substantially change ~ the Property, aliow the Property to detenorate or commit waste. If the Secunty Instrument ~s on a leasehold. Borrower shall comply ~ w~th the prov~sions of the lease, and if Borro;+~~er acquires fee title to the Property, the leasehold and fee t~tle shall not merge unless ~ Lender agrees to the merger m wnt~~g. 7. Protection of Lender's rights in the Property; Mortgage lnsurance. If Borrower fa~ls to perform the covenants and agreements contained in ?his Security Instrument, or there is a legal proceed~ng that may signrf~cantly affect lender's rights in the Property (such as a proceeding m bankruptcy, probate, for condernnation or to e~force laws ~r regulat~ons), th~n 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 mciude paying any sums secured by a lien wh~ch has priority over this Secunty Instrument, appeanng ~n court, paying reasonable attorney's fees ar.d entenng on the Property to make repairs. Although Lender may take action under th~s paragraph 7. Lender dces not have to do so. Arry amounts disbursed by Lender under this paragrap!~ 7 shatf become additionaf 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 - disbursernent at the Note rate and shall be payable, with inierest, upon notice from Lender to Borrower requesting payment. ~ . 4 ~i .s ~ .u~ • ee t,so~i pc ~ ~ ~ ~ ~ 600~674 ~GE188~ r - - - - ~=`.~-"~~'-~~s. s~~'~~~s~:.°m:~°.-~.-~~~'~~~