HomeMy WebLinkAbout0939 UtilFOR!~1 CO~'FtiAN~I~. Borrower and Lender covenant and agree as follows:
l. Payment of PrincipAl and [nterest; Prepayment and I.ate Charges. I3orrower shalt prc~mptly~ p.~~~ Hhen duc
the principal of and interest ~~n the debt evidenced by the Note and any prepayment and late ch~rgrs dur undrr ~he `Votr.
2. Funds for Taxes and Insurance. Subject to applicable !aw or to a written waiver by Lender, E3orroH~er shall pa~•
to Lxnder on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fund.s") eyual to
one-twelRh of: (a) yearly taxes and assessments which may attain priority over this Security In~trument; (b} ~•earl}•
leasehoi~ paymenis ur gfuuii~i iciit5 ~h~ Pr~Y.:iy, ef any; !c1 yearlv hazard insurance premium~; and (d) }~rarl~~
mortgage insurance premiums, if any. These items are called "escrow items." l.ender may c~timate the Funds due on the
basis of current data and reasonable estimates of future escrow ilems.
The Funds shal) be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or
state agency (including Lender if' Lender is such an institution). Lender shatl applv the Funds to pay the escn~H~ items.
Lender may not charge for hulding and applying the Funds, analyzing the account or verify~ing the escrow items, uniess
Lender pays Borrower interest on the Funds and applicable Iaw permits Lender to make such a charge. Borrower and
Lender may agree in writing that interest shall be paid on the Funds. Unless an agree~nent is made or applicable law .
requires interest to be paid, Le+~der shal! not be required to pay Borrow•er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
nur~wse for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secureci b~•
this Security lnstrument.
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due dates of the escrow items, sha!! exeeed ihe amount required to pay the es~:row items when due, the excess shalt be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
ameunt of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender an~~
amount necessary 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 pmmptly relund to Borrower '
any Funds hetd by Lender. !f under paragraph 19 the Property is sold or acquired by Lender, Lender shai! apply, no later j
than irt~mediately prior to the sale of the Property 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 appticable law provides otherwise, all payments received b}• Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the I
1~1ote; 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 im~sitions attributable to the '
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if ang~_
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in tnat manner, Borrou~er shall
pay them on time directly to the person owed payment. Borcower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrou~er makes these payments directly, Borrower shall promptlp furnish to Lender .
receipts evidencing the payments_ °
Ba*~ower shall pmmptly discharge any lien which has priority over this Security Instrument uniess Borrow-er: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; tb} contests in ~o~!
faith the lien by, or defends against enforcement of the lien in, tegal proceedings which in the Lender's opinio~ operate to
prevent 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. lf Lender determines that any~ part of
the Property is subject to a lien w~hich may attain priority over this Security Instrument, Lender may give Borrawrr a
notice identifying the fien. Borrow•er shall satisfy the lien or take one or more of the actions set farth abcn•e w•ithin 10 days
of the giving of notice.
5. Hazard Insurance. Borrow-er shall keep the improvements nou• eaisting or hereafter erected on the Property
insured against loss by fire, hazards included within the term "e?ctended coverage" and any other hazards for which Lender
requires insurance. This insurance shall be maintained in the amounts and for the pericxls that Lender reyuires. The -
insurance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approval a~hich shall nut be
unreasonably withheld.
All insurance policies and renewals ~hall be acceptable to Lender and sha11 include a standard mortgage clause.
Lender shall have the right to hold ihe ~iicies and renewals. If Lender requires, Borrower shall promptly give to Lender
aU receipts of paid premiums and renew~al notices. In the event of loss, Borrow~er shall gi~~e prompt notice to the insurance '
carrier and Lender. Lender may make prcx~f oC loss if not made promptly by Borr~w•er.
Unless Lender and Borrower otherw~ise agree in writing, insurance proceeds shall be applied to restoration or repair -
of the Property damaged, if the restoration or repair is economicall}~ feasible and Lender's security is not lessened. If the
restoration or repair is not economically fea~ible or Lender's security would be lessened, the insurance pra:eeds shall t~
applied to the sums serured by this Security [nttrument, whether or not then due, w~ith an~• excess paid to Borro~er. If
Bnrrower abandons the Property, or does not answ~er within 30 da}•s a notice from Lendcr that the insurance carrier has
ofi'ered to settle a claim, then Lender ma}~ coUert the insurance proceeds. Lender may use the proceeds to repair or restore
the Propesty or to pay sums secured b}~ this Security Instrument, wheiher or not then due. The 30-day period will begin
when the notice is given.
Unless Lender and I3orrower otheru ise agree in ~vriting, any appiication af proc~eeds to ~rincipal shall not extend or
postpone the due date of the monthly~ payments referred to in paragraphs 1 and 2 or change the amount of lhe payments. I(
under paragraph 19 the Property is acquired by Lender, Borrower's right to an}~ insurance ~licies and proceeds resulting
from damage to the Praperty prior to the acquisition shall pass to Lender to the extent of the sums secured b}~ this Securit~•
Instrument immediately prior to the acquisition.
6. Preservation and tiiaintenance of Property; Leaseholds. BorroH~er shall not destm}•, damage or substantiaii}~
change the Propertr•, allow the Property to deteriorate or commit w•aste. If' this Securit~~ Instrument is on a teasehc~ld,
Borrow~er shall comply with the pro~isions of the lease, and if Borrower acquires fee title tc~ the Fro~erty, the teasehold and
fee title shall not merge unless Lender agrees to the merger in writing.
7, Pratection of Lender's Rights in the Property; Mortgage Insurance. If Borro~cer fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceedin~ that ma~~ tignifiraistl}~ afi'ect
Lender's rights in the Property (such as a prcx;eeding in bankruptcy, probate. for condemnation or to enforce IaNS or
regulations), then Lender may do and pay for whate~~er is necessary to protect the value of the Yroperty and Lender's rights
in the Propert~•. Lender's actions may include pa~•ing any sums secured by a lien which has priority o~er this Securit~~
Instrument, appearing in court, pa~~ing reasonable att~rneys' fees and entering on the Propert}~ to make repairs. Although
Lender may take action under this paragraph 7. Lender does not ha~•e to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Aorrower secured by~ this
Security Instrument. Lnless Borrow•er and Lender agree to other terms of paymeni, these amounu shall bear interest from •
the date of disbursement at the Note rate and shall be pacable, w~ith interest, u~n notice frc?m Lender to Borrou~er
requesting payment.
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