HomeMy WebLinkAbout0965 l.'titFc~RH Ccn'F`aN (s Horrower dnd Le~~der ccn~enant and agree as follows: ~
1. Payment of Principal and lnterest; Prepayment and I.ate Ch~?rges, E3orrower sh,:ll prumptly pay when ~lue
the pnnripal of and interest on the debt ~videncecl by the Note and any prepaymrnt ~nd late rhargc~s due under the Note.
2. Funds for Taxes and Insurynce. Subject to applicable (aw or to a written wai~•er by l.rnder, Borrower sh~lt pay
to Lender on the day monthiy payments are due under the Note, unt+! the Note is paic! in full, a sum {••Funds") eyual to
one-tw~elfth of: (a) yearly tares and assessments which may attain priority over th~s Security Instrument; (b) yearly
leasehuld payments or ground rents on the Property, if any; (c) ~~early hazard insurance premiums; and (d) yearly
martgage insurance premiums, if any. These items are called "escrow items." Lender may est~mate the Funds due on the .
basis of current data and reasonable estimates of fuwre escrow items.
The Funds shail be held in an institution the deposits or accounts of which are insured or guaranteed by a fecieral or
state agency (including Lender if Lender is such an institution). Lender shail apply the Fw~ds to pay the escrow itemc.
Lender may not charge for holding and applying the Funds, analyzing the arcount or verifying the escrow items, unless :
Lender pays Borrow~er interest on the Funds and applicable 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 !aw
requires interest to be paid, Lender shalt not be required to pay Borrow~er any interest or earnings on the Funds. Lender
shall gi~~e to Borrower, without charge, an annual accouniing of the Fur.ds show~ing credits and debits to the Funds and the
pur~se 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 manthly payments of Funds pa~~able 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 Borrow~er's option, either promptly repaid to Borrower or credited to Borrow~er on monthly pa}~ments of Funds. If the -
amount oi the Funds held by Lender is not sufficient to pay the escrow items H~hen due, Borrow~er shaU pa}• to Lender any
amount nece~sary 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 promptl}• cefund to Borrow~er
any Funds held by Lender. lf under paragraph 19 the Property is sold or acquired by Lender. Lcnder shall appl~~, no later
than immediatel}~ prior to the sale of the Property or its acquisition bY Lender, an~• Funds held b}• L.ender at the time of I
application as a credit against the sums secured by this Security lnstrument.
3. Application of Payments. Unless applicable law provides othe~~ise, all payments recei~ecl by Lrndrr under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges ~iue ur~der the
tiote; third, te amounts payabte under paragraph 2; fourth, to interest due; and last, to principa! due,
4. Charges; Liens. Borrow~er shall pay all taxes, assessments, cha~ges, fines and impositions aurit~utable to the
Pm~ert~~ H~hich may attain priority over this Security Instrument, and leasehold payments or ground rents, if an}~.
Horruwer shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow~er ~hall
pa}• them on time directly to the pc:rson owed payment. Borrow~er shall pn~mpN}~ furnish to Lender all notices of amounts
to be paid under this garagraph. If Barrower makes these payments directly, Borroti•er shall promptl}• furnich to Lender
receipts e~•idencing the payments.
Borrow~er shall pmmptl~• discharge any lien which has priority over this Securit}~ Instrument unlc~s Borrow•er: (a)
agreeti in w•riting to the pay~ment of the obligation secured ~y the lien in a manner acceptable to Lender, (b} contests in g~~
faith ,he lien by, or defends against enforcement of the lien in, iegat proceedings whirh in the Lender's opinion uperate to
pre~~ent the enforcement of the lien or forfeiture of any part of the Property~; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. !f Lender determinc~ that an}• part of
the Pro~rt~- is subjec:t to a lien w~hich map attain priority over this Security Instrument, Lender ma~~ gi~~e Bormw~er a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth atx~~e w~ithin i0 da}~s -
of the giving of notice.
S. E~azard Insurance. BorroK~er shaN keep the improvements naµ~ exi.ting or hereafter erected on the Yropert~~
insured against loss by fire, ha7~ards included w~ithin the term "exiended coverage" and an}~ other hazards fur ~~hich Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender reyuires. The
insurance carrier providing the insurance shall be chosen by Borrow~er sub;ect to Lender's approval H~hich shall ~j~~t be
unreasonabl}' withheld.
All insurance ~iicies and rene~~als shall be acceptable to Lender and shall inrlude a Standard mortgage rlaute.
tender shall ha~~e the righ! to hold the ~liries and renew~als. If Lender requires. Be~rre~~~er tihall promptl~ gi~e t~~ Lender
all re~eipts uf paid premiums and reneHal notices. In the e~ent of loss, BorroH~er shall gi~e prom~t nutire to the insurance
carrier and I.ender. Lender may make proof of loss if not made prompt l}• by Bc~rraw er. 1
Unless Lender and Borrow~er otherw~ise agree in w~riting, insurance ~nxeeds shall be ap~lied to restoration or repair i
of~ the Property~ damaged, if the restoration or repair is economical!}~ feasible and Lender's s~curity~ is not lessened. IC the '
restoration or repair is not economicall}~ feasible or Lender's security~ w~ould be lessened, the insurance prcxeeds shall br:
applied ti~ the sums secured b}• this Securit}~ Instrument, a~hether or not then due, with any excess paid to Borrow~er. If
Borrow~er abandons the Preperty, or does not answ•er w~ithin 30 days a notire Prom Lend;:r that the insurance carrier has
offered tn settie a claim, then Lender ma}~ collect the insurance prexeeds. Lender may~ use the ~roceeds to repair or restare _
the Fropert~• or to pay sums se~ured b~~ this Securit~• Instrument, whether or nc~t then due. The 30-da~ period uiU txgin ~
u hen the notic~ is given. ;
Unless Lender and Borrower otherw~ise agree in writing, any application of ~rckeed, to princi~al shall not extend or ~
po,t~ne the due d:~te of the monthly pa}~ments referred to in paragraph, { and 2 or change the amount of the ~ay ment~. If ;
under paragraph 19 the Propert}• is acquired by Lender, Borrow~er"s right to an}~ insurance ~,oticies and praceeds resulting ~
from damagc ro the Property prior to the acquisition shatl pass ro Lender to the extent of thc sums secured b}~ this Serurity~
Instrument immediately priortotheacquisition.
6. Preser~ation and \iaintenance of Property; Leaseholds. Borroµer shall not destro~•, damage or stjhstantially
change thr Propert}~, allow~ the Property to deteriorate or commit w•aste. If this S~curity Instrument ic on a leaseho(d.
Borrow~er shall compl~~ w~ith the pro~isions of the lease, and if Borrower acquires fee titte to the Propert}~, the leasehold and
fee title ~hall not merge unless Lender agrees to the merger in writing.
7, Protection of I,ender's Rights ie the Property. :~lortga~e Insurance. (f $orrower fails to perfc~rm the ;
co~enants und agreements contained in this Securit}• Instrument, or there is a legal pr~eeding that ma~ sign~firaititl} affect
Lender's rights in the Property (such as a proceeding in bankruptcy~, probate, for condernnation or to enforce laws or
regulations), then Lender may~ d~ and pa}~ for w~hatever is necessary~ to protect the value of the Propert~~ and Lender's rights
in the Propert~~. Lender's actions ma}~ inciude paying any sums secured b~~ a lien u•hich has priorih~ o~er this Security +
(nstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property~ ta make repairs. Althou~h ~
Ler~der ma~ take action under this paragraph 7, Lender does not have to do so. ~
An}~ =+mc~unts dis~ursed by- Lender under this paragraph 7 shall become additional debt of Borrow~er serured b~~ this 9
Securit}~ Instrument. C nle~s Borroa~er and Lende~ agree to other terms of pa~~ment, these amounts shall bear interest from
the date ~f di~bur.ement at the '.`'ote rate and shall be pa~abie, with interest, upo~~ nc~tice from Lender to Borrouer
reque5ung pa}~ment.
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