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HomeMy WebLinkAbout0980 ~ . UN~F'ntt~1 Covttv~!v7s Borrotvef and Lrndtr cuvenant and agrer as folluw~~: 1. P~yment ot Priacipsl and Interest; Prepaymeat and [.ate Cl~uges. Aorrower shall promptly pay w~hrn duc the pnne?pal of and interest on the debt ev~denced by tht Note and any prepaycnent and late charges due und~r the Nc~tr. 2. Funds for Ta:es and InsurAnee. Subject to appiicabie law or to a written waiver by Lender, &}rrower tihail pay to Lender on the day monthly payments are due undtr the Note, until the Note is paid in full, a sum ("Funds") eyual t~~ one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (h) ~~early leasehold payments or ground r~nts on the Proprrty, if any; yearly hazard insurance premiums; and (d) yearly~ mortgage insurance premiums, if any. Thcse items are called "escraw items." Lender may estimate the Funds due on the basis of curren~ 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 b}~ a federal or state agency (including Lender if l.ender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge tor holding and applying the Funds, analyzing the account or veriCying the escrow items, unless Lender pays Borrower interest on the Funds an~ applicabie 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 pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to ~he due dates of the escrow items, shall exceed the amount r~quired to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or crediteti 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 deficiency in one or more payments as required by Lender. Upon payment in fuil of all sums secured by this Security Instrument, Lender shali 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 Propesty or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application 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 prepay~ment 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 Propert}~ w•hich may attain priority over this Security Instrument, 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, Borrower shall pay them on time directly to the person owed payment. Bormwer shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. lf Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptl~~ discharge any lien w~hich 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 ?ien 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) sec~~res from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Sec:urity Instrument. If Len~er determines that any part of the Property is subject to a lien which may attain priority over this See:urity Instrument, Lender may give Borrower a natice identifying the lien. E3orrowe: 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 thc Property i 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 ~nsurance carrier providing the insurance shall 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 ~hall include a standard mortgage ciause. ; Lender shall have the nght to hold the ~licies and renewals. If Lender requires. Borrow~er shall promptl}• give to Lender ; all receipts of paid premiums and renew~al notices. In the event of loss, Borrower shall gi~~e prompt notice to the insurance ' carrier and Lender. Lender may make proof of loss if not made promptl}~ by Borrower. Unless Lender and Borrower otherwise agree in w•riting, insurance proeeeds 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. [f the restoration or repair is not economically feasible or l,ender'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 does not answer within 30 da~~s a notice from Lender that the insurance carrier has ~ ofiered to settle a claim, then Lender ma~• 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 Borrow•er otherw~ise agree in writing, any~ applicanon of proceeds to principal shatl not extend or post~ne the due date of the monthl}• payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by [.ender, Borrower's right ro any insurance policies and proceeds resulting ~ from damage to the Property prior to the acquisition shall pass to Lender to the extent of ihe sums secured b}• this Security ~ InstrUment immediately prior to the acyuisition. ~ 6. Preservation and 1laintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantiaii}~ change the Property, allow the Property to deteriorate or commit w~aste. If this Securit}~ Instrument is cm a leasehold, ~ Borrower shall comply with the provisions of the lease, and if Borrow~er acquires fee title to the Propert}~, the leasehold and (ee title shall not merge unless Lender agrees to the merger in w~riting. 7. Protection of Lender's Rights in the Property; ~iortqage Insurance. If Borr~wer fails to perform the covenants and agreements contained in this Securit~• Instrument, or there is a legal proceeding that may sign~ficantl}• affect ~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or p regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ~ in the Propert}~. Lender's actions may include paying any~ sums secured by a lien which has priority o~~er this Securit}~ ~ Instrument, ap}~?earing in court, paying reasonable attorne}•s' fees and entering on the Propert}~ to make repairs. Although ~ Lender may take action ~nder this paragraph 7, Lender does not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrow~er secured b}• this ~ Security Instrument. Unless Borrower and Lender agree to other terms of pay~ment, these amounts shall hear internt from ~ the date of disbursemer.t at the Note rate and shall be payable, w~ith interest. upcm notice fmm Lender to Borrower rPquesting payment. ~ - ~ ~ B~,`~ ~45 Y~Uf ~80 ~ ~ ~ _ _ . E y~t.~c.... ~y', _ _ ' :.^~'~y ~f4i*'r; ~ZT' '-s~a~,'w+~,,.'~,~`~5`Y.r?_'"