HomeMy WebLinkAbout2218 UNIFORM COVk'vA'~TS Borrower and Lender covenant ~nd agrrr ~s follo~ti:
1. Payment of Principyl and Interesh, Prepayment and l.ate Charges. BOffON'ef SIli1~I ~f(1fT1(11I)' ~1i1) uI1C11 (~UC
the pnncipal of and interest on the debt ev~denred by the Nate and an~- prrpa~ mrnt and la~e rh;~rges due under the Note.
2. Funds for Taxes and Insursnce. Sub~ect to applicable law• or to a wntten wai~er by Lender, Borrov?~rr shail pa~
to Lender on the day monthly payments are due under the Note, until the Note ~s paid in full, a~um ("Funds") equal to
one-twelfth of: (a) yearly taxes and assessments which may attain prionty over this Security Instrument; (b) ~~early
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. ~
l~e Funds shall be held in an institution the deposits or accounts oi H•hich are insured or guaranteed by a federal or :
~tate agency (including l~ender if t.ender is such an instiwtion). t.ender shall appl~~ the Funds to pay theeurow~ items. Lender ~
ma~• not rhar e for holdin and a h~in the Funds, anal ~7~n the account or verif •in the escrow items, unless lxnder ~
8 R PP 8 5 B ) 8 I~>'s ~
~rroH~r interest on the Funds and applicable law permits l.ender to make such a charge. A charge assessed b~• Lrnder in :
ronnection ~~ith Borrow~ers' entering into this Security Instrument to pay the cost of an independent tax reponing service
shall not be a charge for purposes of the preceding sc:ntence. &~rrower and Lender may agree in ~vriting that interest shall he '
paid on the Funds. Unless an agreement is made or applicable law reyuirc~s interest to be paid, Lender shall not tx: reyuired tu
pa~~ BorroN~er any interest or earnings on the F~unds. l~ender shall gi~•e ta f3orrower, w~ithout charge, an annual acrounting of
the Funds show~ing credits and debits to the Funds and the purpose for which each debit to the t=unds was made. lhe Funds .
are pledged as additional securit}~ for the sums secured by thi~ Secunt~~ 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 shal) 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 sufi~icient 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 tater
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. 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 Instrument, 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 t4 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, Borrow~er 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 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 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. 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 hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the riods that Lender re uires_ The
Pe 9
insurance carrier providing the insurance shal) be chosen by Borrow~er subject to Lender's approval which shall not be
unreasonabl wi
y thheld.
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 re~ewals. If Lender requires, Borrower shall promptly ive to Lender .
, . 8
~ aU receipts of paid prem~ums 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 L.ender 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 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-da}~ 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 d~e 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 L,ender, Borrower's right to any insurance policies and prc+c~eds 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.
b. Preservation and Maintenance of Property; Leaseholds. Borrower shalt 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 a~quires 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
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect -
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then L.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Property. I.ender'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 this paragraph 7, L,ender does not have to do so.
, Any amounts disburstd by Lender 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 shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
~ 600K PACf ~~Q
~4~~
E, ~ ~ ~ ~
~ ~~~s~_-~