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HomeMy WebLinkAbout2559 UNlFURM CovEN~NTS. Borrower and I.ander covenant and agree as follows: l. Paymeat of Principal and Iaterest; Prepaymeet and Late Chuges. Borrower shall promptly pay when due the principai of and interest on the debs evidencod by tht Note and any prepayment and late charges due under the Note. 2. Funds for Tues and Iasuraace. Svbjoct to applicable law or to a written waiver by Lender, Borrower shall pay to Lcnder on the day monthly payments are due under the Note, until the Note is paid in tull, a sum ("Funds") cqual to ono-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security lristrument; (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 reaconable estimates of future escrow items. The Funds shal! be held in an institution the deposits or accaunts of which are insured or guarantced by a tederai or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. L.ender may not charge for holding and applying the Funds, analyzing the account or v~rifying the escro~v~items, unless Lender pays Borrower interest on the Funds and applicable law permits L.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, I.ender shall not be required to pay Borrower any interest or earnings on the Funds. L,ender shall give to Borrower, without charge, an annuat 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 az additional security for the sums secured 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 items, shall exceed the amaunt required to pay the escrow items when due, the cxcess shall be, at Borrower's option. either promptly repaid to Bonower or creditrd to Bonower on monthly payments of Funds. If the amount of the Funds held by L.ender is not sufficient 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 Se~urity Instrument, Lender shall promptly refund to Borrower any Funds held by I.ender. 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 Lendtr, any Funds held by Lender at the time of - application as a credit against the sums secured by this Security lnstrument. ~ 3. Application of Paymeats. 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. f 4. Charges; Lieas. 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 shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shali pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all natices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender E receipts evidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instn~ment 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 p.-event the enforcement of the lien or forfeiture of any part of the Property; or (c) secGres from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. [f Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, I.ender 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. Halard Insurance. . Borrower shall keep the imProvements now existing or hereafter erected on the Property insured against loss by fire, ha2ards included within the terrr? "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 requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approva) which shall not be ~ unreasonabiy withheld. ; A{1 insurance policies and renewals shall be acceptable to Lend~r and shall include a standard mortgage clause. ~ ' Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shal! 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 I.ender. Lender may make proof of loss if not made promptly by Borrower. e Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal! 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 i restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be ~ t 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 may use the proceeds to repair or restore ~ ~ the Property or to pay sums secured by this Security Insirument, whether or not then d~e. The 30-day period will begin ~ ~ when the notice is gaven. i ~ 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 1 and 2 or change the amount of the payments. If ~ under paragraph 19 the Property is acquired by Lender, 8orrower's right to any insurance policies and proceeds resulting ~ ~ from damage to the Property prior to the acquisition shaU pass to Lender to the extent of the sums secured by this Security , Instrument immediately prior to the acquisition. ~ 6. Preservation and Maintenance oi Property; Lesseholds. Borrower shall not destroy, damage or substantially ~ change the Property, allow the Property to deteriorate or commit waste. if this Security [nstrument is on a leaseh~ld, ~ Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasrhold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Iruurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect I,ender'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 ~ [nstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make rcpairs. Although ~ Lender may take action under this paragraph 7, L.ender does not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Sorrower secured by this ~ Security Instrument. Unless Borrower and L,ender agree to other terms of payment, these amounts shall bear interest from ~ tht date of disbursement at the Note rate and shall be payable, with interest, upon notice from L.ender to Borrower ~ requesting payment. ~ charge assessed b~~ Lender in oonnect~,Qn htith Borrower' s entrerir~g into this Security ; nstnment to pay the oost of an inc~ependent tax r~ortin9 service shall not be a charge for purposes of the preoeding senter~oe. s 600K ~74 PAGE2559 ; x.'..~~:~ 7 p- ~;,-'~y sy~~.~_,°..~~X _