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HomeMy WebLinkAbout2225 UNIFORl~1 COVENANTS. Borrower and Lender covenant and agree as follow~s: 1. Ppyment of Prinrips~l and Interest; Prepayment ~nd Late Ch~rges. Borroµ•er shal! promptly pay when due the principal of and interest on the debt cvidenced by the Note and any prepayment and lat~ charges due under the Note. , 2. Funds [ar Ts~xes and Insuraace. Subject to applicable law~ or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note. until the Nute is paid in full, a sum ("Funds") equal to one-tH~elfth of: (a) yearly taxes and assessments which may attain priority over this Securiry lnstrument; (b) ~ yearly leasehold pay~ments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) y~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 estimstes of future escrow items. " The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Ltnder shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. E3orrower and Lender may agree in w; iting that interest shall be paid on the Funds. Unless an agreement is made or ap- plicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing cred'?ts and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional se- curity for the sums secured by this Security Instrument. !f 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 shali be, at Borrower's option. either promptly repaid to Borrow~er or credited to Borrower on monthly payments of Funds. tf the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pa~~ 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 Let~dtr; any Funds held by Lender at the time of application as a credit against the sums secured by this Security ]nstrument. 3. Applicatioa of Payments. t;nless applicable law provides otherwise, alt payments.jeceived by Lender under paragraphs 1 and 2 shall be applied: ~rst, 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 i~~positions attributable to the Property 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 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, Borrower shall promptly fur- nish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has pr'sority over this Security Instrument unless Borrower: (a) agrees in wri*.ing to the payment of the obligation seeured 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 deter- mines 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. Hazxrd Insurance. Borrower shall keep t~e 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 periods that Lender re- ; quires. The insurance carrier providing the insurance shall be chosen by Borrower 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 loss 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 less- ~ ened. 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 w•ithin 30 days a natice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may 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 shali not extend r or 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, Borrow•er'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 MAintenunce 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 shalt 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 Leader's Rights io t6e 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 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 include paying any sums secured by a lien which has priority ~ over this Security lnstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this pazagraph Lender dces not have to do so. ? ~ ~w . • ~ Y . ¦ na/R~~~ ~ ~ VVVM1 V • ~ ~lili~ ~t'. {-~•-.~y" ~ 2i{ .vn' ~ ~ trvi.~',~"'~ ~ ~3 ~ _ ~s . . ~