HomeMy WebLinkAbout2263 UNiFORtN CovEN~NTS. Borrow~r and Lender covenant and agrce as follows:
1. Paymeat of Priaclpal and Interes~ Prepaymeat aad Lte Chuges. Borrawer shall promptly pay when due
the principal of and intertst on the debt evidenced by the Note and any prepayment and late charga due under the Note.
2. Funds for Tuca and Insurance. Sub}ect 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 Note is paid in full, a sum ("Funds") equal to ~
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Socurity Instrument; (b) yearly
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.
The Funds shall be held in an institution the deposits or accounts of which are insured o* guaranteed by a kderal or
state agency (including Lender if Lender is such an institution). I.ender shall apply the Funds to pay the escrow items. :
I.ender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless
I.ender pays Borrower interest on the Funds and applicable law permits I,ender to make such a charge. Borrower and
L,ender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
rcquires interest to be paid, l.tnder shall not be requirod to pay Borrower any interest or earnings on the Funds. L.~nder
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by ~
this Security Instrument.
If the amount of the Fuads held by Lender, together with the future monthly payments of Funds payable prior to ~
the due dates oP the escrow items, 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. If the
amount of the Funds held by I.ender is not sufficient to pay the escrow items when duc, Borrowcr shall pay to Lender any
amount necessary to make up the deficiency in one or more peyments as required by I.ender.
Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borcower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by I,ender. Lender shaU apply. no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of
appl~cation as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicablt law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be applied: first, to Iate 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, Ch~rges; Liens. Borrower shall pay all ta~ces, assessments, charges, fines and impositions attributabie to the
Property 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 to the person owed payment. Bonower shall promptly furnish to Lender all notices of amounts
to be paid under ihis paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to L;ender •
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security lnstn~ment unless Borrower: (a)
agrees in writing to the payment of the obtigation 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
p.-event 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 atiain priority over this Security Instrument, Lender may give Borrower a
n~tice identifying the lien. Bonower shall satisfy the lien or take one or more of the actions set forth above within 10 days
of the giving of notice.
S. HaT$rd 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 sha11 be maintained in the amounts and for the periods that Lender requires. 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 t~ hold the policies and renewals. If L.ender 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 promptly by Borrower. ~
Unless [.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 f
' restoration or repair is not economically feasible or I.ender's security would be lessened, the insurance proceeds shall be ~
€ applied to the sums secured by this Securiry Instrument, whether or not th~n due, with any ezcess paid to Borrower. If ,
~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ~
oti'ered 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 lnstrument, 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 ~
~ postpone the due date of the monthly payments referred to in paragraphs ! and 2 or chat~ge 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
~ Instrument immediately prior to the acquisition.
~ 6. Preservation and Maintenance of Property; LeaSeholds. Borrower shall not destroy, damage or substantiaUy
~ change the Property, allow the Propeny to deteriorate or commit waste. If this Security Instrument is on a leasehold,
- Borrower shali 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; Morigage Insurance. If Borrower fails to perform the '
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covenants and agreements contained in this Security Instrument, or there is a lega) 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
regulatians), then Lender may do and pay for whateves 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
` Instrument, appearing in rourt, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~
~ Lender may take action under this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed 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.
~ *"A charge assessed by Lender in connection with the Borrower's entering into th'
~ Security Instru~ent to pay the cost of an independent tax reporting service
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shall not be a charge for the preceding sentence."
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gQOK 674 ~~E 2263 ~
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