HomeMy WebLinkAbout1360 UN1f=0Ri~9 COVENANT'S. Borrower and Lender covenant and agree as follows:
1. Payment of Principal and Inlerest; Preps~ymeni and l.aie Chargrs. &~rrowzr shall promptty pay w•h:n due the principa!
of and interest un the debt evidenced by the Note and any prepayment and late charges due under the Note.
2. Funds for Taxes and tnsurance. Subject to applicable taw 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-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security 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. Borrower shall not be obligated to make
such payments of funds to Lender io the extent that Borrower makes such payments to the holder of a prior Mortgage
or Deed of Trust if such holder is an institutional lender. If Borrower pays funds to lender, the Fur,ds shall be held
in an institution the deposits or accounts of which are insured or guaranteed by a federal or state age~cy (including
Lender if Lender is such an institution). Lender 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. Borrower and Lender may agree
in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable 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 p(edged as additionat security for the sums secured
by this Security [nstrument.
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 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 monthty payments
of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower
shall pay to Lender any amount necessary to make up the de~ciency 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~T..en~er.~if under paragraph 19 the Property is sold or acquired hy Lender, Lender shalt 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 appiication as a credit against the sums secured by this Security Instrument.
3. Application of Paymeats. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs l and 2 shall be applied; first, to ]ate 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. Prior Mort~ages and Deeds of Trust; Charges; Liens. Borrower shall perform all of Borrowers obligations under
any mortgage, deed of trust or other security agreement with a lien which has priority over this mortgage, inciuding
Borrower's covenants to make payments when due. Borrower shall pay all taxes, assessments, charges, fines and
impositions attributabie to the Property which may attain priority over this Security Instrument, and teasehoid payments
or ground rents, if any. Borrower shalt 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
shail promptly furnish to Lender receipts evidencing the payments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument 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 prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the hotder
of the lien an agreement satisfactory to Lender subordinating the lien ta this Security Irtstrument. 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 indentifying ihe 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. Hazard Ins~rance. 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. 7'his insurance shafl 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 approvat which shalt not
be unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard morigage clause.
Lender shali have the right to hotd the policies and renewals. If Lender requires, Borrorver 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 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 lessened.
If the restoration or repair is not economically feasible and 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 dces not answer within 30 days a notice from L,ender 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 any 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
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 Faragraph 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 ~nd MaintenAnee of Property; Les~sehoids; Pl~nned Unit Developments; Condomiaiums. Borrower
shali not destroy, damage or substantially change the Property* al!ow the Property to deteriorate or commit waste.
If this Security Instrnment is on a leasehofd, Borrower shall comply with tl~e provisions of the lease, and if Borrower
acquires fee title to the Property, ihe leasehold and fee title shall not merge unless Lender agrees to the merger in
writing. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all
of Borrower's obligations under the declaration or covenants creating or governing the condominium or planned unit
development, the by-laws and regulations of the condominium or planned ur~it development, and constituent documents.
aooK 6?5 F~~F136Q
~ _u.,. ~ K~w._,. _ ~