HomeMy WebLinkAbout0916 tilFORy CO~'EtiA'.tiTS. Borrowcr and Lender covenant and agree ~s folluµ~s:
1. Payment of ~'rincipal and Interest; Prepay~ment and Late Charges. Borrow~er s~all promptl~ pa~ ~ hen ~iue
; r,e pnncipal of and interest on the debt evidenced by the Note and an}~ prepa}~ment and late charges d~e under the Note.
2. Funds for Ta~ces and Insurance. Subject to appGcable taw~ or to a written w•aiver b}• Lender. Borrower shall pa~•
co Lender on the day monthly paymenis ar~ due under the Note, until the Note is paid in full, a sum ("Funds") equal to
~>ne-twelfth of: (a) yearly taxes and assessments which may attain priority over this Secunt~• Instrument; (b) ~earl}~
le3sehoid pa~~ments or groun~ rents on th~ Property~, if any; (c) yearly hazard insurance premiums; and (d) }•earl}•
mortgage insurance premiums, if any. These items are called "escrow items." Lender ma~• estimate the Funds due on the
hasis of current 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 guarantc~d b~~ a fe~eral or
~tate agency (including Lender if Lender is such an institution}. Lender shall apply the Funds to pa~~ the escrow items.
Lender may not charge for holding and applying the Funds, analyzing the account or venfying tne escrow~ items, unless
I_ender pays Borrower interest on the Funds and app:icable law permits Lender to make such a charge. Borrower and
Lender may a¢ree in wnting 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~ Bvrroµer an~ interest or earnings on the Funds. Lender
~hall give to Borrower, without charge, an annual accounting of the Funds show~ing credits and debits to the Funds and the
?urpose for which each debit to the Funds w~as 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 pa}•abie prior to
?he due dates of the escrow• items, shall exceed the amount required to pay the escrow items a~hen due, the excess shall be,
ac Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly~ payments of Funds. If the
amount of the Funds held b~- Lender is not sufficient to pay the escrow~ items when due, Borrower shall pay to Lender an}•
ameunt necessarS~ to make up the deficiency in one or more payments as required by Lender.
Upon payment in full of all sums secured by this Set;urity Instrument, Lender shall promptiy refund to Bonower
anv Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall appl}°, no later
than immediatel}• prior to the sale of the Property or its acquisition by Lender, any Funds held b}~ Lender at the time of
a; plication as a credit against the sums secured by this Security Instrument.
3. Applieatioa of Payments. Unless applicable law provides othervvise, all payments received by Lender under
~aragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
tiote; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principai due.
4. Charges; Liens. Borrowcr shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Securit}• Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided ir~ paragraph 2, or if not paid in that manner, Borrovver shall
p~ay them on time directly to the person owed payme~t. Borrower shall promptly furnish to L.ender all notices of amounts
5e paid under this paragraph. If Borrower makes these paymen.s directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrow~er shall promptly discharge any lien which has priarit~~ over this Security Insirument unless Borrowe*: (a)
a?rees in writing to the payment of the obligation secured b~• 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 a•hich in the Lender's opinion operate to
- prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the fien an
; sereement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priorit~~ over this Security Instrument, Lender ma~• give Borrower a
notice identifying the li~n. Bonower shall satisfy the tien or take one or more of the actions set forth above w~ithin 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 L,ender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's appro~•al which shall not be
unreasonably withhe[d.
All insurance policies and renewals shall be acceptable to L,ender and shall include a standard mortgage clause.
Lender shall have the righ: to hold the policies and renew~als. If Lender requires, Borrower shall promptl}• gi~~e to Lender
ail receipts of paid premiums and renewal notices. In the event of loss, Borro~ver shall give prompt notice to the insurance
;:arrier and I.ender. Lender may make proof of loss if not made promptly b}• Bonower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
er the Property damaged, if the restoration or repair is e~conomically~ feasible and Lender's security is not lessened. If the
restoration or rePair is not economically feasible or Lender's security would be lessened, the insuraiice proceeds shall be
applied te the sums secured by this Security Instrument, whether or not then due, with any ezcess paid to BorroNer. If
Borrower abandons the Propert~•, or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a claim, then I.ender ma~~ collect the insurance proceeds. Lender may use the prxeeds to repair or restore
thc 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 gi~•en.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
pustpone the due date of the monthly~ pa~•ments referred to in paragraphs 1 and 2 or change the amount of the pa}~ments. If
under paragraph 19 the PropeR}• is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b~• this Se.;urity
Instrument immediateiy prior to the acquisition.
6. Preserration and Maintenance of Property; Lease6olds. Borrower shall not destmy. damage or substantially
change the Properiy, allow the Property to deteriorate or commit w~aste. If this Security Instrument is on a leasehold,
Borrow~er sha11 comFly with the provisions of the lease, and if Borrower acquires fee title to the Propert}•, che leasehold and
fee title shall not me~ ge untess Lender agrees te the merger in writing.
7. Protection of Lender's Rigt~ts in the Property; :~lortgage Insurance. If Borrower Cails to perforr:~ the
covenants and ~greements contai~ed in this Securit} Insteument, or there is a legal pr~eeding that ma}~ significantl~~ affect
Lender's rights in the Property~ (such as a~roceeding in bankruptcy, p~obate, for condemr~at~on or to enforce laws or
regulations), then Lender ma}~ do and pay for whatever is necessarn~ to protect the value of the Propert~• and Lender's rights
~n the Property. Lender's actions may include paying any sums secured by a lien w•hich has priority over this Security
Instrument, appearing in court, pa}•ing reasonable attorneys' fees and entering on the Propert} to make repairs. Although
ma~~ orttnn ~,n~A• - - • ^ - ~h ~ I ~r.ra..• ~~1PC np~ ~13YP te da s~.
Any amounisd~sbursea o}~ Lxccuc, u(wc~ u~~a ~u~c~~~u~... ~ ~ 'T •"'c
Security Instrument. Uniess Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at the tiote rate and shall be pa}~able, with interest, upaa not~ce from Lender to Borrower
request~ng pa~~men[.
VL,~.k449 ~~.3
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