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HomeMy WebLinkAbout1009 UNIFOR;~1 COVENANTS. Borrower and Lender covenant and agree as follow•s: 1. Payment uf Principal and Interest; PrepAyment and l.ale Charges. Bc~rrower shall promptly pay ~h~n due the principal of and interest on the debt rvidenced by the Note and any prepayment and late charges due uncler the Note. 2. Punds for Ta~ces and Insurance. Subject to applicable taw or to a written waiver by Lender, Sorrower shalf 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-twelith of: (a) yearly taxes and assessments which may attain priority over this Sc~.urity lnstrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly ha~ard 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 shail be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agen~y (i~cluding Lender if Lender is such an ins,itution). Lznd2r shaft appiy 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 un the Funds and applicable law permits Lender to make such a charge. E3orrower and Lender rr.ay agree in w~riting that interest shall be paid on the Funds. Unless an agreem~nt 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 credits 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 shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrow~er on monthly payments of Funds. If the amoun~ of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrow~er sha{1 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 lnstrument, [.ender 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 lat~r than immediately 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 Pa3•ments. Unless applicable law pruvides c~therwise, 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 amaunts 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 irnpositions attributable to the ` Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. ~ Borrower shall pay these abligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow•er shall pay them on t~me direc~ly to the ~rson ou•e~ Y~y:nent. Bors~~s~er shal! grc^:Y,:y fu::.:s:: cc ~~:,.a.e; uI~ ro~~ces oF i 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 shal( prompHy discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in wri~ing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in i good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion j operate to pre~•ent 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- E mines that any part of the Property is subject to a tien 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 E 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 f Lender requires insurance. `fhis insurance shall be maintained in the amounts and for the periods that Lender re- c 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. ln 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 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 fessible and Lender's security is not less- ; ened. If the restc~ration or repair is not economically feasible or Lender's security would be lessened, the insurance ~ proceeds shalf 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 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 apptication of proceeds to principal shall not extend or Fostpone the due date of the monthly payments referred ta in paragraphs 1 and 2 or change 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 substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, Borrower shall compiy 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 ro the merger in writing. ~ 7. Protection oi Lender's Rights in the Property; Mortgage ~nsurance. If Borrower fails to perform the ' covenants and agreements contained in this Security lnstrument, or there is a legal prb~et'ding tFi~a~ay sig~~ly . K affect Lender's rights in the Pr~perty (such as a proceeding in bankruptcy, probate, for condemnation or tb"enforce ~ laws or regulations), then Lender may do and pay for whatever is necessary tq~protect the value of the Prop~rty and Lender's rights in the Property. Lender's actions may include paying any sunps secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorney ',fees and entering on the PropertS to make repairs. Although Lender may take action under this paragraph 7, Len~ea does not hsve to do so. . ~ ~oK6?5 t~~E1009 ~ ~ .~F_:~-~~~~~~~~.~~~:$~