HomeMy WebLinkAbout1264 UNIFORM COV6NANTS B~rrower and Lender covenant and agrce as follows:
1. Payment of Priacipal and Interest; Prepayment aad Lte Chuges. Borr~wer shall promptly pay when due
the principaf of and interest on the debt evidenced bY the Note and any prepayment and late charges due ur~der tht Note.
2. Funds for Tuces and Insuranee. Subject to applicable law or to a wriucn waiver by l.ender, Borrower shall pay
to Lendcr on the day monthiy payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelRh of: (a) ytarly taaa and assessm~nts which may attain priority over this Security Instrument; (b) yearl~~
leasehold payments or ground rents on th~ Property, if any; (c) yearly hazard insurance premiums; and (d) yearl}~
mortgage insurance premiums, if any. These items are called "escrow +tems." i.ender may estimate the Funds due on the
basis oCcurrent data and reasonable estimates of future escrow items.
The Funds shaU be held in an institution the deposits or accounts of which are insured or guaranteed by a fedrral or
state agency (inciuding I.ender iP I,ender is such an institution). L.ender shall apply the Funds to pay the escrow items.
Lender may not charge for hold~ng and applying the Funds, analyzing the account or verifying the escr~,w items, unless
Lender pays Borrower interest on the Furtds and aPplicable law permits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shall bt ~id on the Funds. Unless an agrcement is made or applicable law
requires interest to be paid, Lender shal) not b~e required to pay Borrower any interest or earnings on the Funds. Lender
shai} give to Borrower, without charge, an annual acc~unting of the Funds showing credits and debiis to the Funds and the
pucpase [or 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 Funds held by Lender, together with the tuture monthly Qaymeats of Funds payable prior to
the due dates of the escrow items, shall excted the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borcower or credited to Borrower on monthly payments of Funds. If the
amount oFshe Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
amount necessary to make uQ the deficiency in one or more pdyments as required by Lender.
Upon payment in full of all sums secured by this Security Instrument, Lender shait Qromptly 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 immediateiy prior to the sale of the Property or its acquisition by L.ender, any Funds held by L,ender at the time of
applicat+on as a credit against the sums secured by this Security ]nstrument.
3. Applicition 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
Nate; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. ~harges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions 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 t}sat manner, Borrower shall
pay them on time directly to the person owed payment_ Borrower shall promptly furnish to L,ender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to L.ender
rec:eipts evidencing the payments.
Borrower shaN promptly disc.harge any lien which has priority over this Security Instrument unless Borrower. (a)
~gr~c in ~,n~;Ro r.. rtin m~~~i v~iiiL~ C~~.iga?'sar~ ~,,ur~ by tne tien in a manner acceptabie to I.ender: (b) contests in good
faith the lien by, or defends against enforcement of the tien in, lega! 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 (ien 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. Ha7ard Insurance. Borrower shall keep the improvements now• existing or hereafter erected on the Property
I', insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lende:
I requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
~ insurance carrier pr~viding the insu*ance shail be chosen by Borrow•er subject to Lender's approval which shall not be
I, unreasonably withheld.
~ All insurance policies and renewals shall be acceptabte to Lender and shall include a standard mortgage clause.
Lender shall have the right to hold the policies and renewals. If Lender cequires, 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 I.ender and Borrower otherwise agree in wnting, insurance proceeds shali be applied to restoration or repair
of the Property damaged, if the restoration or repair is economically feasible and Lender's se~:urity is not lessened. If the
~ restoration or repair is not economically feasible or Lender's security would be lessened, the insurance praceeds 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 dces not answer within 30 days a notice from Lender that the insurance carrier has
~ offered to settte a claim, then Lender may co{I:et 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 wiU begi?
E a~hen the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eatend or
~ postpone the due date of the monthly payments : eferre.~i to in paragraphs 1 and 2 or change the amount of the payments. If
~ under paragraph 19 the Psoperty is acquired by Lender, Borrower's right to any insurance policies and proceeds resulti~ig
~ 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 Maintenanc~ of Property; Leaseholds. Borrower shal) not destroy, damage or substantially
~ change the Property, allow the Property to deteriorate or commit waste. If this Securit}• Instrument is on a leasehold,
~ &~rrower shail comply witfi 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. Protectiun of Lender's Rights in the Property; Mortgage Insuraace. [f Bofrower fails ro perform the
covenants and agreements contained in this Security lnstrument, or there is a legal proceeding that may significantiy 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 vaiue of the Froperty and Lender's rights
in the Property. Lende~'s actions may inc{ude 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
E Lendet 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
this Security Instrument to pay the cost ef an independent tax reporting
, service sha21 not be a charge for the preceding sentence."
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