HomeMy WebLinkAbout2962 UnIFORM COVf VANTS Borrower and Lender covenant and agree as foliows:
1. Payment of Priecipal and Interest; Prepayment and Late Charges. Borrower sh311 pramptly pay when due
the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the lrbte.
2, Funds for Taxes and Insurance. Subject to applicabk law or to a written w~aiver by Lender, BorroN~er shall ~ay
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-twelf~h of: (a) yearly taxes and assessments which may attain priority o~~er this Security Instrument; (b) yearly
leasehold payments or ground rents on the Pmperty, if any; (c) yearly hazard insurance premiums; and (d) yrarl~
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimatr the Funds due on the
basis ~f current data and reasonable estimates of future escrow items.
The Funds shaU be held in an institution the deposits or accounts of which are in~ured or guaranteed by a federal or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow ~tems.
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 2gree 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 char~e, 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 security for the sums secured by~ ;
this Security Instrument.
If the amount of the Funds heid 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 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 neti:essary 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 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 late~
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the timr of
application as a credit against the sums secured by this Security lnstrument.
3. Application of Psyments. Unless appiicable law provides o~herwise, all payments receive.~ 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
1Vote; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
4. Charges; Liens. Borrower shall pay ail taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Insirument, 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 that manner, Sorrower 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 Borrow~er makes these payments directly, Borrower shal) promptly furnish to Lender
rec;eipts evidencing the payments.
f Borrower shall promptly discharge any lien which has priority over this Security lnstrument unless Borrower: (a)
I agrees in writing to the payment of the obtigation 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 forfeiwre of any part of the Property; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the licn to this Security Instrument. If Lender determines that any part of
the Property is sub}ect to a lien which may attain priority over this Security Instrument, Lender may give Borrower a
notice identiiying 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.
S. 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 Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shal) 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 shali include a standard mc~rtgage clause.
~ Lender shall have the right to hold the policies and renewals. If Lender requires, B~rrower 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 ma~~ make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shafl be applied to restoration or repair
r 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 or L.ender's security would be lessened, the insurance proceeds shatl be
E 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
d ofiered to settle a claim, then Lender may collect the insurance proceecis. Lender may use the proceeds to repair or restore
E the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period wiil begin
~ when the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, any application of prcxeeds to principal shall not extend or
post~ne the due date of the monthiy payments referred to in paragraphs 1 and 2 ar 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 resutting
~ from damage to the Property prior to the acquisition shall pass to I,ender to the eatent of the sums secured by this Security
r Instrument immediately prior to the acquisition.
~ 6. Peeservation and Maintenance of Property; I.easeholds. Borrower shall not destroy, damage or substanhally
i change the Property, allow the Property to deteriorate or corrsmit waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the leasr, 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.
Protection of Lender•s Riphts in the Property; Mortg,age Insueance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
I.ender'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 Praperty and Lender's rights
in the Property. Lender's aciions 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
L.ender may take action under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by Lender under ihis paragraph 7 shall become additional debt of Borrov?er secured by this
Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amdunts shall bear interat from
~ the date of disbursement at the Note rate and shall t~e payable, with interest, upon notice from Lender to Borrower
requesting payment.
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