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HomeMy WebLinkAbout2397 • • - UNIFORM COVENANTS Borrow~ei and Lender covenant and agree as foliows. 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrovrer shall pro~nptly pay when due the ~rnc~~ai of and ~nterest ~n the debt ev~denced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Sub~ect to appi~cable law or to a wr~t!en wa~ver by Lender, Borrower sha11 pay to Lender on the day monthiy payments are due under the Note, unt~l the Note ~s paid in fuli. a sum ("Funds") equal to one-twelfth of !a) yearly taxes and assessments wh~ch may attain pnority over th~s Secunty instrument; (bj yearly leaseho!d payments or ground rents on the FropeRy, rf any; (c) yearly hazard ~nsurance prem~ums: and (d) yearty mortgage ~nsurance premwms, ~t any These ~tems are called "escrarv ~tems" Lender may est~mate the Funds due on the bas~s of current data and reasonabie es;imates of future escrow Rems The Funds shall be held in an insLtubon the deposRs or accounts of wh~Gh are insured or guaranteed by a federal or state agency (inciud~ng Lender rf Lender ~s such an mst~tuUOn). Lender shall apply ~he Funds to pay the escrow ~tems. Lender may not charge for hold~ng and applying the Funds, anatyzing the account or verffying the escrow ~tems, un!ess Lender pays Borr~nre: interest on the Funds and appl~cable law perm~ts lender to make such a charge. A charge assessed by Lender in connect~on w~th Borrower's entenng mto th~s Secunty Instrument to pay the cost of an ~ndependent tax reporting serv~ce shall not be a charge for the purposes of the preced~ng sentence. Borrower and Lender may agree ~n wnt~ng that ~nterest shall be paid on !he Funds. Unless an agreement ~s made or appi~cab~e iaw reywres m,erest to be pa~tl, Lender shau not be reqwred to pay Borrower any ~nterest or eam~ngs on !he Funds. Lender shall give to Borrower, w~thout charge, an annual account~ng of the Funds show~ng credi!s and deb~ts to the Funds and the purpose for wh~ch each deb~t to the Funds ~vas made. The Funds are pledged as addit~onal security for the sums secured by th~s Secunty Instrument. if the amount of the Funds held by Lender, together w~th the future monthiy payments of Funds payable pr~or to the due dates of ~he escrew items, shait exceed the amount reqw~ed to pay the escrow ~tems when due, the excess shall be, at Borrawer's opt~on, e~ther promptly repa~d to Borrower or cred~ted to Borrower on monthly payments of funds. If the amount of the Funds held by Lender ~s not suff~c~ent to pay the escrow ~tems when due, Borrov~~er shall pay to Lender any amount necessary to make up the def~c+ency ~n one or more paymen?s as reqwred by Lender. Upon payment in full of all sums secured by this Secunty instrument, Lender shall promptly refund to Botrower any Funds held by Lender. If under paragraph 19 the Property ~s sold or acqwred by lender, ~ender shall apply, no later than ~mmed~ately pnor to the s~fe of the Property or its acquisrt~on by LendEr. any Funds held by Lender at the time of appl~cat~on as a cred;t agamst the sums secured by th~s SecurRy Instrumern. 3. Application of Payments. Unless appl~cab~e law pro~~des ot~erw~se, all payments received by Lender under paragraphs t and 2 shall be appi~ed: f~rst to amounts payabie under paraqraph 2; second, to interest due: and last. to orir.cipal due. Charges, Liens. Borrc,rver shall pay all taxes, assessments, charges. t~nes and ~m~os~tions attributable to the Property wh~ch ~ may attam priority over th~s Secunty Instrument, and Ieasehold payments or ground rents, ~f any. Borrower shall pay these ob,~gatiors ! m the manner prowded ,n paragraph 2, or rf not pa;d in that manner, Borrower shall pay them on t~me directly to the p2rson owed payment. Borrower shall promptly furn~sh to Lender all not~ces of amounts to be pa~d under this paragraFh. Ii Borrower makes these payments d~rectly. Borrower shall promptiy furn~sh to Lender rece~pts evidenc~ng the payments. Borrower shall promptly d~scharge any I~en wh~ch has pnonty over this Secunty Instrument unless Borrower. (a) agrees in writmg to the payment ot the obhgat~on secured by the I~en ~n a manner acceptable to Lender, (b) contests ~n good fa~th the I~en, by or de!ends aga~nst enforcemeni of the lien ~n, legal proceed~ngs which in the Lender's op~nion operate to prevent the enforcement of the I~en or f~rfe~ture of any part of the Property: or (c) secures from !he holder of the lien an agreement sat~sfar_tory to Lender i suburd~naUng the I~en ro th~s Secunty Instrument. If Len~er determines that any pari of the Prop2Ry is subject to a I~sn which may f atta~n pnonty over th~s Secunty lnstrument, Lender may qrve Borrower a notice identrfy~ng ;he hen. Borrewer shall sat~sfy tne hen • or take one or more of the actians set forth above wrth~n 10 days of the giv~ng of notice. ~ 5. Hazarci Insurance. Borrower shall keep the ~mprovements now ex~st~ng or hereafter erected on the Property ~nsured aga~nst ; loss by t~re. hazards ~ncluded w~th~n the term "extended coverage" and any other hazards for which Lender rer~u~res ~nsurance. : Th~s ~n;urance shall be ma~ntained m the amounts and for the periods that Lerder reqwres The ~nsurance carner prov~d~ng the i msurance shall be chosen by Borrcwer sub~ect to lender's approval which shall noi be unreasonably w~thheld ; AII ~nsurance pohc~es and renewals shall be acceptable to Lender and shall ~nclude a standard mortgage clause. Lender shall i have the rght to hold the pol~c~es and renewals. If Lender requ~res. Borrovsrer shall promptiy g~ve to Lender all rece~pts of pa~d prem~ums and renewal no',~ces. In the event of loss. Borrower shall g~ve prompt noUce to the ;nsurance carner and Lender. Lender may make E proof of loss rf noi made promptly by Borrower. ~ Uniess Lender and Borrower otherwise agree m wnt~ng. ~nsurance proceeds shall be appi,ed to restorat~on or repa~r of the ~ Property damaged. rf the restoration or repa~r ~s econom~calfy feas~ble and Lender's se-curity is not fessened. If the restoraUOn ar # repa~r ~s not econom~cally feas,b'e or Lender's security would be lessened. the insurance proceeds shali be applied to the sums E secured by th~s Secunty instrument. whether or not then due, with any excess paid to Borrower If Borrower abandons the Property, t or does not answer w~th~n 30 days a noUce from Lender that the msurance carrier has a~fered to settle a claim, then Lender may ~ ' coilect the ~nsurance proceeds. l.snder may use the proceeds to repair or restore the Propeny or to pay sums secured by th~s Securrty ~ tnstrument. whether or not then due. The 30-day period will begin when the rotice is given. ~ Unless Lender and Borrower otherwise agree in wnting, any appt~cation of proceeds to prin~~pal shall not extend or postpone ~ the due date o` the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph : t9 the Propery ~s acqwred by Lendec Borrewer's r~ght to any insurance po!~c~es ar,d proceeds resuit~ng i,om damage to the Property ~ pr~or to the acqws~t~on shall pass to Lender fo the extent of the sums se.;ured by this Secunty Ir.strument immed~ately pr~or to the g acqws~t~on. 6. Preservatfon and Maintenance of Property; Leaseholds. Borrowe! shall not destroy. damage cr substant~ally change ,he Property. allow the ?roperty to cletenorate or comm~t waste. If the Secur~ty Ir:strument ~s on a leasehold. Borrower shali comply .v~th the prov~sror.s of the lease. and rf Borrower a~qu~res fee t~tle to ?he Propery the ieasehold and fee t~tle sha!I not merge ur~iess Lender agrees to the merger in wntmg 7. Protection of Lender's rights in the Property; Mortgage lnsurance. It Borrower fa~ls to per!orm the covenants and agreements co~tamed in this Secunty Instrument, or there ~s a legat proceed~ng that may si^ynrf~cantly a!fect Lender's r;ghts ~n the ; Property (such as a proceed~ng ~n bankruptcy, probate, for condemnation or to enforce laws ~r regulat~ons}, then l_ender may do ~ and pay for whatever ~s necessary to protect the value of the PropeRy and Lender's nghts ~n the Property. Lender's act~ons may ~nclude pay~ng any sums secured by a I~en wh~ch has pr,ority over this Security Instr~ment, appeanng ~n court, paymg reasonabie ~ ~ attorney's fees and enten~g on the Property to make repars. Although Lender may take act~on under th~s paragraph 7. Lender ~ does not have to do so. ~ Any amounts d~sbursed by Lerder under th~s paragraph 7 shali become add~t~onal debt of Borrower secured by this ~ecur~ty ; Instrument. Urless Borrower and Lender agree to other terms of payment, these amounts shali bear ~nterest fram the date of ~ disbursement at the Note rate and shail be payable, w~th m;erest. upon notice from Lender to Borrower r uestin eq g payment. ~9B2a9 Re~+ ,An • 88 1?bC~ PC ~ &~RK675 ~;~F2397 ~ ~ ~-A-~ ~ n~ ~ ~ :h..~ .-r~.:.