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HomeMy WebLinkAbout1523 UrviFORM CovEN~tvrs. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and I.ate Chuges. Borrower shall promptly pay when due the principal of and interest on the dcbt evidenccd by the Notc and any prepayment and late charges duc under the Note. 2. Funds f~r Taxes and lasurance. Subject to ~ppliwble iaw or to a written waiver by Lender, Borr~u~er shall pay to Lcnder on the day monthly paymcnts are due under the Note, untit 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 Security Iastrument; (b) yearly leasehold paymtnts or ground rents on the Property, if any; (c) yearly hazard insurance prtmiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." L.ender 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 or guaranteed by a federal or state agency (including L.ender if Lender is such an institution). L.ender shali apply the Funds to pay the escrow items. I.ender may not charge tor holding and applying the Funds, analyzing the aGCOUnt or verifying the escrow items, unless Lender pays Borr~ower interest on the Funds and applicablt law permits Lender to make such a charge*Borrower and Lender may agret in writing that interest shall be paid on tht Funds. Unless an agreement is made or applicable law~ requires interest to be paid. Lender shall not be required to F+ay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting otthe 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~urity for the sums secured by this Security Instrument. If the amount of the Funds hcld by L.ender. together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall excetd th~ amount required to pay the escrow items when du~, the excess shall be, at Borrower's optien, either promptly repaid to Borcower or credited to Borrower on monthly 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 de6ciency 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 Lender. 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 ay L.ender, any Funds held by L.ender at the time of application as a credit against the sums secured by this Security Instrument. 3. Applieation 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 Note; third, to amounts 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 impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if anp. 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. Borrower shall promptly furnish to Lender all notices of amoants to be paid under this paragraph. If Borrower makes these paymenis directly, Borrower shall promptly furnish to l.ender receipts evidencing the payments. Borcower shall promptty discha~ge any tien 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 apinion operate to prevent 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 L.ender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, L.ender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take ane or more of the actions set forth above within 10 days of the giving af notice. 5. Hazard Insurance. Borrower shaq keep the improvements now existing or hereafter erected on the Property ~ insured against loss by fire, hazards included within the term "eztended coverage" and any other hazards for which Lender i requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The I insurance carrier providing the insurance shall be chosen b~• Borrower subject to Lender's approval which shall not be ~ unreasonably withheld. " All insurance policies and renewals shall be acceptable to L.ender and shall include a standard mortgage clause. ~ Lender shail have the right to hold the policies and renewats. If Lender 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 z carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ` Unless I,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 ` restoration or repair is not economically Ceasible or Ixnder's security would be fessened, 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 ~ 8orrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has ~ offered to settle a claim, then I,ender 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 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 o~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 an~d 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 comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee titie shali not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rjghts in the Property; Morigage Insurance. [f Borrower fails to perform the covenants and agreements contained in this SPcurity Instrument, or there is a legal proceeding that may significantiy afTect 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 value of the Property and I.ender'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 court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, Lender dces 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 shalf be payable, w:th interest, upon notice from Lender to Borrower ~ requesting payment. U R ~ 600~675 PAGE1523 ~ € ~ "A charge assessed by Lender in connection with I3orrower's entering into this ~ Security Instrrment to pay the cost of an independent tax reporting service shall not be a charge for purposes of the preceding sentence." _ _ _ . . t ~ ~ z;i.~ - _ ~ ~ ,~,;,;.k:.s ' c: _ ;y