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HomeMy WebLinkAbout2030 UN~FORM CovEx~NTS. Borrower and Lender covenant and agree as follows: 1. P~yment oI Principal and Intereat; Prepayment aad Late CharQes. Borrower shall promptly pay when due the principal of and interat on the debt evidencod by the Note and any prepayment and latc cbarges due under the Note. 2. Funds [or Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly paymcnts are due undet the Note. until tho Note is paid in full, a sum ("Funds") equal to one-twelPth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasthold payments or ground rents on the Property. if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance gremiums, if any. "These ittms are called "escrow items." Lender may estimate the Funds duc on the basis of currcnt data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guarantced by a federal or state agency (including L.ender if I.ender 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 thc account or veriPying ~he escrow items, unless Lender pays Borrower interest on tfie Funds and applicabie law permits Lender to make such a charge. I3orrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicabte law requires interest to be paid, Lender shall not be required to pay Borrower any intcrat or earnings on the Funds. Lender shall give to Borrower~ without charge, an annual accounting of the Funds showing crtdits and debits to the Funds and thc purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums sccurc~ci by this Security Instrument. • If the amount of the Funds held by I.ender~ together with thc future month{y payments of Funds payabfe prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excas shalt be, at Borrower's option, either promptly repaid to Borrower or credited to Botrower on monthly paymtnts of Funds. If the amount af the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shali pay to Lender any amount necessary to make up the deficiency in one or more pdyments 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 Qaragraph 19 the Property is sold or acquired by l.ender. Lender shall app{y, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lcnder at the time of application as a credit against the sums secured by this Security Instrument. 3. Appiication ot Payments. Unless applicable law provides otherwise, all payments received by Lender under paragcaphs 1 and 2 shall be appli~d: first. to latt charges dut 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 c~ue. 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 leasehold payments or ground rents, if any. Borrowec shali pay these obligations in the manner providtd in paragraph 2. or if not paid in that manner. $orrower shall pay them on time directly to the person owed payment. Borrower shall prompily furnish to L.~nder all notices of amounts to be paid under this paragraph. If Borrower makes these paymenes direct{y. 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 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 I.ender's opinion operate to prevent the enforcement of the Iien or forfeiture of any part of the Property; or (c) secures trom the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Iastrument. [f Lender determines that any past of the Property is subjtct to a lien which may attain priority over this Security Instrument, LenCer 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 existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other F azards for which Lender I requires insurance. This insurance shall be maintained in the amounts and for the periods tt.at Lender requires. The ~ insurance carrier providing the insurance shal) be ehosen by Borrower subject to Lender's approval which shall not be ~ unreasonably withheld. E E All insurance policies and renewals shalt be acceptable to Lender and shall include a standard mortgage clause. i Lender shalt have the right to hold the policies and renewals. If Lender requires, Borrower shal! promptly give to Lender f` all receipts of paid premiums and renewal notices. In the event of loss, Borcower shall give prompt notice to the insurance i carrier and L,ender. 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 ec.onomically feasible and Lender's sec~~r~ty is not lessened. [f the ~ restoration or repair is not economicaUy feasible or L.ender s security would be lessened, the in~urance proceeds shall be ~ applied to the sums secured by this Security Instrument, whether or not then due. with any exc~s 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 L.ender may collect the insurance proceeds. Lender may use the pr~xeds to repair or restore ~ the Property or to pay sums secured by this Security Instrumcnt. wheth~r or not then due. 'The ~0-day period will begin ~ when the notice is given. ~ Unless Lender and Borrower otherwise agrec 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 a~~~ount of the payments. If under paragraph 19 the Property is acquired by I.ender, Borrower's right to any insurance polic:~s and proceeds resulting from damage to the Property prior to the acquisition shall pass to L.ender to the extent of the sums secured by this Security ~ Instrument immediately prior to the acquisition. ~ 6. Preservation and MaiAtenance of Property; I.esisseholds. Borrower shali not destroy, damage or substantially ~ change th~ Praperty, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehotd, ~ Borrower shall comply with the provisiorts of the lease. and if Borrower acquires fee titlc to the Propcrty. the leas~chold and ~ fee title shall not merge unless Lender agreas to the merger in writing. 7. Protection of Lender's Ri~hts in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect L.eader's rights in the Property (such as a procading in bankruptcy, probate. for condemnation or to enforce laws or ' regulations), then Lertder may do and pay for whatever is necessary to protect the valu~ of tfie Property and Lender's rigfits E in the Property. L.ender's actions may include paying any sums secured by a lien which has p.-iority ova this Security Instrument. appearing in court, paying reasonable attorneys' fees and entering on the Property to make repaics. Although Lender may take action under this paragraph 7. Lender doa not have to do so. ; Any amounts disburxd by Lender under this paragraph 7 shal) become additional dcbt of 8orrower secured by this : Security Instrument. Unless Borrowtr and L,ender agre~ to other terms of payment, thcsc amoun's shail bear interat from ~ the date of disbursement at the Note rate and shall be payable, with interest, upon notice ts~m Lender to Borrowtr ~ rcquesting payment. ~ : t g~RK~74 ,~M~Eza3o ~ , ~ ,.,:..~:r;: ~