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HomeMy WebLinkAbout0967 ~ J~ l Un~FORwt CovFtiwNTS. Borrower and Lender covenant and agree as follows: i. Payment of Pri~cipal and tnteresh, Prepayment aad I..~te Charges. Bnrrower shall promptly pay w•hen due the principa) of and interest on the debt ~videnced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes ~ad Insurance. Subject to applicable law or to a written w~aiver by Lender, Borrow•er shall pay ~ to Lender on the day monthly payments are due under the Note~ until the Note is paid in tult, a sum ("fiunds") equal to one-twellth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yrarl~• leasehold payments or ground rents on the Property. if any; (c) yearly hazard insuranre premiums; and id) yearly mortgage insurance premiums, if any. These items arc callcd "escrow items." Lender may estimate the Funds due an the ~ basic 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 guaranteed by a federal or state agency (inctuding Lender if Lender is such an instiwtion). Lender shall apply the Funds :o pay the escrow items. Lender may not charge for hol~ing and applying the Funds, analyzing tht account ~r verifying the escrow• items, unless I.ender pays Borrower 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 Punds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrav?~er any interest or earnings on the Funds. ~ender shall give to Borrower, without charge, an annua! accounting of the Fur.ds showing credits and debits to the Funds and ihe purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security lnstrumeni. If the amount of the Funds held by Lender, together with the future monthly payments ot Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shaH be, at Borrower's option, either promptly repaid to 8orrower or credited to Borrower on monthty payments ot Funds. ]f the amount of the Funds httd by Lender is not suflicient to pay the escrow items when due, Borrow•er shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by Lender. Upon payment in full of al) sums secured by this Security Instrument, Lender shall promptlp refund to Rorrower any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall appty, no later than immediately prior to the sale of the Propeny 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 lnstrument. 3. Applicatioo of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 sha{I be applied: first, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable under paragraph 2; iburth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security lnstrument, and leasehold pa}ments or ground rents, if any. Borrower shall pay these obl+gations in ihe manner provided in paragraph 2, or if not paid in that rreanner, Borrower shall pay them on time directly to the person owed pay~ment. Borrower shall promptly furnish to Lender all r.otices af amounts to be paid under this paragraph_ If Borrower makes these payments directly, Borrower shal) promptl~• furnish to Lender receipts evidencing th~ payments. Borrower shall promptly discharge any lien which 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 lien 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 pan 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 determines that any part of the Prope~ty is subject to a lien which may attain priority over this Security tnstrument, Lender may give Horrow~er a notice identifying the ~ien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. Hazard Insurance. Borrower shall keep the impro.~ements now existing or nereafter 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 ins~rance shall be maintained in the amounts and for the periods that Lender reyuires. The insurance carrier providing the insurance shall be chosen by Bocrower subject to Lender's approval w~hich shall not be unreasonably withheld. All insurance policies and renewals shaU be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrow~er shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds 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. If the restoration or repair is not economically feasible or Lender'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 Borrow•er. If Borrower abandons the Propeny, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a cfaim, then Lender may 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 w•ill begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application oCprciceeds to principal shalt not extend or postpone the due date of the month(y payments reterred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 19 the Property is acquired by L,ender, Borrower's right to any msurance policies and proceeds resulting from damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Securit~~ Instrument immediately prior to the acquisition. 6. P~eservation and Maintenance of Property; Leaseholds. Borrower shal( not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Securit~~ Instrument is on a leasehold. Borrower shalt comply with the provisions of the tease, and if Borrower acquires fee title to the Froperty, the teasehold and fee titte shall ~ot merge unless Lender agrees to thc merger in writing. 7. Protection of Lender's Rights in tbe Property; :~lortgage Insurance. If Borrow•er fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantl~ affect Lender's r~ghts in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce law~s or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority o~•er this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender dces not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Aorrower and Lender agree to other terms of Payment, these amounts shal! bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower rcquesting payment. ~ ~ BooK 498 ~~f 96fi ~ . _ . _ - - . . - - - _ ~