|
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
<br />201405853
<br />to the interests granted by Borrower in this Security Instrument, but, if necessary to comply with law or
<br />custom, MERS (as nominee for Lender and Lender's successors and assigns) has the right: to exercise
<br />any or all of those interests, including, but not limited to, the right to foreclose and sell the Property; and
<br />to take any action required of Lender including, but not limited to, releasing and canceling this Security
<br />Instrument.
<br />BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the
<br />right to grant and convey the Property and that the Property is unencumbered. Borrower warrants and
<br />will defend generally the title to the Property against all claims and demands, subject to any
<br />encumbrances of record.
<br />THIS SECURITY INSTRUMENT combines uniform covenants for national use and non - uniform
<br />covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real
<br />property.
<br />1. Payment of Principal and Interest. Borrower shall pay when due the principal of, and interest on,
<br />the debt evidenced by the Note.
<br />2. Payment of Property Charges. Borrower shall pay all property charges consisting of taxes, hazard
<br />insurance premiums, flood insurance premiums, ground rents, condominium fees, planned unit
<br />development fees, homeowner's association fees, and any other assessments that may be required by local
<br />or state law in a timely manner, and shall provide evidence of payment to Lender unless Lender pays
<br />property charges by witholding funds from monthly payments due to the Borrower or by charging such
<br />payments to a line of credit as provided for in the Loan Agreement.
<br />3. Fire, Flood and Other Hazard Insurance. Borrower shall insure all improvements on the Property,
<br />whether now in existence or subsequently erected, against any hazards, casualties, and contingencies,
<br />including fire. This insurance shall be maintained in the amounts, to the extent and for the periods
<br />required by Lender or the Secretary of Housing and Urban Development ( "Secretary"). Borrower shall
<br />also insure all improvements on the Property, whether now in existence or subsequently erected, against
<br />loss by floods to the extent required by the Secretary. All insurance shall be carried with companies
<br />approved by Lender. The insurance policies and any renewals shall be held by Lender and shall include
<br />loss payable clauses in favor of, and in a form acceptable to, Lender.
<br />In the event of loss, Borrower shall give Lender immediate notice by mail. Lender may make proof of
<br />loss if not made promptly by Borrower. Each insurance company concerned is hereby authorized and
<br />directed to make payment for such loss to Lender instead of to Borrower and Lender jointly. Insurance
<br />proceeds shall be applied to restoration or repair of the damaged Property, if the restoration or repair is
<br />economically feasible and Lender's security is not lessened. If the restoration or repair is not economically
<br />feasible or Lender's security would be lessened, the insurance proceeds shall be applied first to the
<br />reduction of any indebtedness under a Second Note and Second Security Instrument held by the
<br />Secretary on the Property and then to the reduction of the indebtedness under the Note and this Security
<br />Instrument. Any excess insurance proceeds over an amount required to pay all outstanding indebtedness
<br />under the Note and this Security Instrument shall be paid to the entity legally entitled thereto.
<br />In the event of foreclosure of this Security Instrument or other transfer of title to the Property that
<br />extinguishes the indebtedness, all right, title and interest of Borrower in and to insurance policies in force
<br />shall pass to the purchaser.
<br />4. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan
<br />Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's
<br />Principal Residence after the execution of this Security Instrument and Borrower (or at least one
<br />Borrower, if initially more than one person are Borrowers) shall continue to occupy the Property as
<br />Borrower's Principal Residence for the term of the Security Instrument. "Principal residence" shall have
<br />the same meaning as in the Loan Agreement.
<br />Borrower shall not commit waste or destroy, damage or substantially change the Property or allow the
<br />Property to deteriorate, reasonable wear and tear excepted. Borrower shall also be in default if
<br />Borrower, during the loan application process, gave materially false or inaccurate information or
<br />statements to Lender (or failed to provide Lender with any material information) in connection with the
<br />loan evidenced by the Note, including, but not limited to, representations concerning Borrower's
<br />occupancy of the Property as a Principal Residence. If this Security Instrument is on a leasehold,
<br />Borrower shall comply with the provisions of the lease. If Borrower acquires fee title to the Property, the
<br />leasehold and fee title shall not be merged unless Lender agrees to the merger in writing.
<br />5. Charges to Borrower and Protection of Lender's Rights in the Property. Borrower shall pay all
<br />Page 2 of 10 HECM First Deed Of Trust -2014
<br />
|