HomeMy WebLinkAbout0924 • ~ ~ . 11. ,i
UN~(~ottM CovEtv~NTs. &~rrower and Lender covenant and agrc~ as follows:
1. Payme~t ot P~incipal and Inleresh Prep~yment aed l.~te Chorges. l3~srower shall promptiy pay v?t~en dur
the principal ut and intercst on the debt evider~ced bv the Note and any prcpayment and late charges due under the Note.
2. Fu~ds [or Taxes aed lnsune~ce. Subject to apPiicable irw or to a written waiver by Ler~der, E3orrow~er shall pay
to Lender on the day monthly payments are due under the Note. until tfie Note is paid in full, a sum ("Funds") equal to
o~e-twcl(lh of: (a) yearly taaes end asstssments which may sttain p~iority over this Securitv Instrumcnl; (b) yearly
leasehold payments or ground rents on the Prope~ty. if sny; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insurance premiums, itany. These items are called "escrow iltms." Lender may estimate the Funds due on the
basis of current data and reasonablo estimata oi future escrow items.
The Funds shall b~ held in an institution the deposi?s or accounts of which are insured or guaranteed by a faieral or
state agency (including Lender if Lende~ is such an institution). Lender shall apply the Funds to pay the escruw items.
Lender may not charge for holding and applying the Funds. anatyzinR the account or ver~fying the escrow items, unless
Lende~ pays Borrawer interat on the Funds and applicable law permits Lmder to make such a charge. Borrower and
Lender may agree in writing ~hat 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 Fun~s. l.ender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and dcbits to the Funds and the
purpose for which each debit to the Funds waa made, The Funds are pledgcd as add~tiona! security for the sums secured by
this Security Instrument.
If the amount of the Funds held by Ltnder. together with the future monthly payments of Funds payable prior to
the ~tue dates of the escrow items. shall exceed the amount required to pay the escrow items when due, the excess shall be,
at Barrower's eption. either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount of the Funds held by I.e~der is not suflicient to pxy the acrow itfms when dut. Borrower shall pay to Lender any
amount nccessary to make uP the def~ciency in one or more payments as required by Lender.
Upon payment in tull of all sums secured by this Security Instrument, l.ender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by l.ender, [.ender shalt apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender. ~ny Funds held by Lender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Application ot Paymeats. ~Unless applicable law provides otherwise, all paymcnts rcceived by Lender under
parag: aphs 1 and 2 shall be appli~d: 8rst, 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.
1. Charges; Liens. Borrower shall pay all taxes, assessr~ents, charges, fines and imnositions attributable to thc
Property which may attain priority over this Security lnstrument, and leasehold paymenis or ground rents, if any.
Borrower shall pay thcse obligations in th~ manner provided in paragraph 2, or if not paid in that manner, Bo~rower shall
pay thtm on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notica of amounts
to be paid under this paragraph. If Borrower makes t~nzse ~xyments directly, Borrower shall prompt~y turnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien which has Qriority over this Security lnstrument unless Borrower: (a)
agree's in writing to the payment of ti~e obligation secured by the lien in a manner acceptable to Lender; (b) contests in good
faith the lien by, or defends against enforcemeni af iht lirn in. kgat proceedings which in ihe Lender's opinion operate to
prevent the enforcement of the lien or forfeiture oF a~y pan of the Property; or (c) secures frorr~ the holder of the lien an
agreement satisfactory to Lender sabordinating the lien to this Socurity Instrument. If Lender determines that any ~?art of
the Property ~s subject to a lien which.may attain priority over this Security lnstrument. l.ender may give Borcauer a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions xt furth above within 10 days
of the giving ot notice. '
S. Hazard Insurance. Borrower shali kecp the improvements now existing or hereafter crected on the Property
I insured against loss by fire, ha7ards included within the term "eatended coverage" and any other hazards tor which l.ender
~ rtquires insurance. This insurance shall be maintained in the amounts and for the periods that l.ender rcquira. The
insurance carrier providing the insurance shall be ~hosen by Borrower subject to Lender's approval which shall not be
unrcasonably withheld. .
AI{ insurance policies and renewals shall be acceptable to Lender and shall :nc!ude a standard mortgage clause.
[.cnder shall have the r.ght to hold ihe policies and renewals. lf [,ender requira. Borrower shall promptly give to Lender
e all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to t:~e i~surancc
( carrier and [.ender. [.ender may make proof of loss if not made promptly by Borrower. ~
Unless L.ender and Borrower oiherwise agree in writing. insurance procecds shall be applied to restoration or repair
~ of the Property damaged, if the restoration or repair is ec~nomically feasible and I.ender's securit~+ is not lessened. If the
~ restnration or repair is not economically feasible or I.ender's security would be lessencd, !he :nsurance procecds shali be
applied to the sums secured by this Security Instrument. whether or not then ~ae, with any eacess paid to Borrower. If
Borrower abandons the Property, or does not answer within 30 days a notice teom Lender that the insurance carrier has
~ oRerecf to settle a claim, then Lender may col{ect the insurance proceeds. I.ender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. T!~e 30-day period will beg'sn
when the notict is given.
Unless Lender and Borrower otherwise agree in writing. any application of proceeds to principal shall not eatend or
postpone the due date otthe monthly payments referred to in paragraphs ! and 2 or change the amount of the payments. IF
under paragraph 19 the Property is acquired by Lender. Borrower's right to any iresurance policies and procceds resuiting
from damage to t~~ Froperty prior to the acquisition shall pass to Lender to the extent of the surns secured by this Security
~ Instrument immediately prior to the acquisition.
6. Preser~~ttc~ aad MatfifEtiance of Property; I.easeholde. $orrower shall not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. jf this Secu~ity Instrument is on a ieasehold,
~ Borrower shall comply with the provis'sons of the lease, and if Borrower acquirrs t'ee title to the Property, the leasehold and
' ia title shall not merge untess Lender agrees to the merger in writir.g.
; 7. Protection of Lender's Rights in the Property; Martgage Insurance. If Borrower fails to perform the
~ covenan~s and agreemrnts containtd in ttiis Security Instrumenf, or there is a(egal proceeding that may significantly af~ect
~ Lender's rights in the Properry (sech as a procecding in bankroptcy, probate. for condemna~ion or to enforce ~aws or
regulations), then Lender may do and pay for whatever is necessary to protcct thc vatue of the Property and Lender's rights
~ in the Properry. L,en~er's actions may includ~ payir~g any sums secured by a lien which has priority over this Security
; Instrument, appearirg in court, payir,g reasonable attorneys' fers and entering on the Property to make repairs. Although
~ Lcnder may take action under this paragraph 7. Lender doa not have to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this
Secunty Instrument. Unlcss Borrower and Lender agree to other terms of payment, lhtse amounts shall bear interat from
the date of disbursemtnt at the Note rate and shall be payable, with interest, upon notice from Lender to Burrower
reques~ing payment.
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