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HomeMy WebLinkAbout1975 UNIFORM COYE\.4\TS Borro~er and Lender covenant ~nd agrr~ a~ fallowti: ~ 1. Payment of Principal and lnteresh, Prepayment and l.ate Charges. Bormwrr tihali prumptl~ ~ay whcn dur the principal of and interest on the debt evidenced by the Note and any prrpa~ ment and late rh:~rges due under the Note. 2, Funds for Taxes and Insurance. Sub~ect to applicable law or to a wnuen w a~~er by Lender, Rorruv?~rr ShaU pa~ to Lender on the day monthly payments are due under the Note, until the Note i~ paid in full, a sum ("Funds") equal to ~ one-twelfth of: (a) yearfy taxes and assessments which may attain priority over this Secunt~~ Instrument; (b) yearly ; ieasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) ~~early ~ 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 ot which are insured or guaranteed by a fede:al or ; ,tate agency (including lxnder if Ixnder is suLh an institution). l.ender shall appty the Funds to pa~~ thee~crow items. Lender ~ may not charge far holding and apply~ng the Funds, analyi~ng the account or ~~erifying the escrow~ items, unless l.ender pays ~ Burrow~er interest on the Funds and appiicable law~ permits Ixnder to make such a charge. A charge assessed by Lender in ~ ronnection with BorroH~ers' enrering into this Security Instrument to pay the cost of an independent tax reporting sen•ice + ,hall not be a charge for purposes of the preceding sentence. Borrower and l.ender may agree in writing that interest shall be ~ paid on the Funds. Unless an agrecment is made or applicable law reyuires interest to be paid, l.ender shall not be reyuired to pa~~ &~rroH~er an~• intercst or earnings on the Funds. l.ender shall gi~~e to E3orrow•er, without charge, an annual accounting of the Funds shaw•ing credits and debits to the Funds and the purpose for which each debit ta the 1=unds was made. The Funds ! are piedged as additional securit~~ for the surns secumd by this Security 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 item~, 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. lf 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 ~ecessary 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 shali apply, no later than immediately prior to the sale of the Propeny 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 lnstrument. 3. Applieation of Payments. Unless applicable law provides otherwise, aU payments received by Lender under paragraphs 1 and 2 shall be applied: firsi, 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 fast, 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 teasehold payments or ground rents, if any. Borrower shaU 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 ~wed 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 Borrower: (a) agrees in writ~ng to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in gaod 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 wfiich 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. Borrower shall keep the improvements now ezisting or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendeci 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 shall be chosen by Bo*row~er 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 renewals. If Lender requires, Borrower 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 los~ if not made promptiy 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 E 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 Instrument, 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 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 otherwise agree in writing, any application of proceeds to principal shall not extend or s 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 Lender to the extent of the sums secured by this Security g 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 lnstrument 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 ` fee title 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 s covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly aflect i Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or E regulations), then I.ender may do and pay for whatever is necessary ro protect the value of the Propeny and Lender's rights s 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 ro make repairs. Although ~ Lender may take action under this paragraph 7, L,ender 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. 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 shal! be payable, with interest, upon notice from Lender to Borrower ~ rcqursting payment. ~ ~ ~ ; BOOM O PAGE~9 ~ - ~ - - _ - ~ -