HomeMy WebLinkAbout0969 U~~tuxtN Cu~'[.~.4ti ~s 1's~~rniHer and 1_rnde, c~~ve~iant and ~gr~e as f~lic,~s:
1. Payment of Principal and Interest; PreRAyment and l.ate Charges. Burrower tihall pru;nptly ~a~ Nhrn ~iur
the principal of and interrst on the debt e~ide~~ced by the Note ai~d any prepayment and late chargeti ~iue unJrr ti~e ti~~~~.
2. Fu~ds for Taxes and Insarance. Subjec:t to appiicabie Iaw or to e written w•aiver by~ Lrncter, l3orroa er ~h;:ll ~a}
ro Lerider on the day monthly payments are due under the Note, until the Note is pa;d in full, a,um ("F~nds") eyu:?I tc~
une-twelfth of: (a) }-early taxes and assessments which may attain pr~ority over this Security Instrument; (b) yearl~•
leasehold payments o: ground rents on the Praperty, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage ~osurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
b~tis of current dasa and re:uonable estima~es of future escrow items.
The Funds shall be held in an inst~tuti~n the deposiis or accounts af whirh are insured or guacantecd by a federal or
state agency {including Lender if Len~er is such an instiwtion). I.ender shail apply the Funds to pay the esc:ro~x iten:s.
Lender may not charge for holding and applying the Funds, analyzing the account or vPrifying the escrc~w items, unless
Lender pays Borrower interest on the fiunds and applicablc law permits Lender to make su~h a charge. Borrow~er and
Lender may agree in writing that interest shall be paid on the Funds. Unless an agreeme~t is made or applicable !aw
requires interest to be paid, l.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender
sha!! give io Borrower, without charge, an annual accounting af the Funds showing tredits and debits to the Funds and the
purpose for which each debit to the Funds ~vas made. The Funds are pledged as additicnal security for the sum~ secureci b~~
this Security Instrument.
lf the amount of the Fu~ds heid by Lender, together with the future rnanthiy payments of Funds payabte ~~rior to
the due dates of the escrow items, shalt exceed the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid to Bonower or creeiited to Borrower on monthly payments of Funds. If the
amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower 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 all sums secured by this Sec~~rity Instrument, Lender shall promptiy refunc~ to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acqaired by Lender, Lender shall apply, no later
than immediately pr ~r to the sale of the Property or its acquisition by Lender, any Funds held by l.ender at the time of
app:ication as a credii against the sums secureti by this Security Instrument. ,
3. Applicateon af Payments. Unless applicable law provides otherwise, all payments received by Lender under i,
paragraFhs 1 and 2 shall ?~e applied: first, to late charges due under the Ncte; second, to prepayment charges due uncter the '
Note; thij d, to amounts payable under paragraph 2; fourth, to interest due; azzd last, to principal due. '
4. Charges; t.iens. Bonower shall pay al) tazes, assessments, charges, fines and impositions attributable to the '
Property which may attain priority over this Security Instrument, and leasehold payments or ground ~ents, if any. '
E;orrower shall pay these obligations in the manner provided in pa*agraph 2, or if not paici in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lencier all notices of amounts
to be pa,id under this paragraph. If Borcower makes these paymen:s directly, Bonower shal! promptly furnish t~ Lender
receipts evidencing the payments.
Borrower shall ~romptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of ¢he 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 enfurcement of the tien or torfeiture of any pan of the Property; or (c) se~ures from the holder of the lien an ~
agreement satisfactory to Lender subo.dinaiing the lien to th~s Security Instrument. If Lxnder determines that any part of
the Properiy is subject t~ a lien which may attain priority over this Security Ins~rument, Lender may give Borrower a
notice identifying the lien. Borrower shali satisfy the l:en or take one or more of the actions set forth above w~ithin ]0 days ~
of the giving of notice.
S. Ha~rd Insvrance, Borrower shali keep the improvements now eaisting or hereafter crected on th~ Praperty~ ~
insured against ioss by fire, hazards included within the term "eztended coverage" and any other nazards for which Lender
requires insurance. This insurance shali be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Borrower subject to I.ender's approval ~vhich shall not be
unreasonably withheld.
Alt insurance policies and renewals shall be acceQtable to Lender and shall include a standard mortgage clause.
Lender shali have the right to hold the policies and renewals. IF I,ender requires, Borrower shall promptly give to Le~ider
all receipts of pai~ premiums and renewal notices. In the event of Iess, Borrower shall give prompt notice to the insurance
carrier and Lender. L.ender may make proof of loss if not made promptly by Borrower.
Unless Lender and ~orrower otherwise agree in writing, insurance prcx;eecis shall be appliecl to restorai~on or repair
of the Property damaged, if the restordtion or repair is econorrnically feasible and Lender's security is not tessened. If the
restora~io~ e~r repair is not economicaliy feasible or Lender's security would !~e lessened, ihe insurance proceeds sha11 be
applied to the sums secured by this Security lnstrument, whether or not then due, with any excess paid to Bonower. If
Borrower abandons the Property, or does not answer within 30 days a notice ~rom I.ender that the insurance carrier has
offered to settle a claim, then Lxnder may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security lnstrument, whether or noi then due. The "s0-day period will begin
when the notice is given.
Un~ess I,ender snd $orrower otherw~se agree in wriiing, any application of groceeds to principal shall not extend or
postpone the d~e date of ihe monthly payments referred to in paragraphs 1 and 2 or change the amount of the payme~~ts. If
under paragraph 19 the Property is acquired by I,cnder, 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 by this Security
Instrument immediately prior to the acquisition.
6. Preservatian and Maintenance of P~operty; Leaseholds. Sorrower shal! not destroy, damage or substantially
change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a teasehold,
Borrower shall compiy with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not merge unless L,ender agrees to the merger in writing. ,
7. Protection of Lender's Right~ in the Property; Mortgage Insurance. If Borrower fails to perform the
covenants and 3greem~nts cantained in this Security Instrument, or there is a legal proceeding tk~at may significantly affect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, f~r condemnation or to enforce laws or
regulatior.s), then Ixnder may do and pay for whatever is necessary to protect the vaEue of the Property and I.ender's nghts
in the Property. Ixnder's actions may include paying any sums secured by a lien which has priority over this Security
Instrument, apF,earing in court, paying reasonable attorneys' fees and entering ~n the Propert}~ to make repairs. Although
Lender may take action under this paragraph 7, Lxnder dces not have to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additiorial debt of Borrower secured by this
Security instrument. Unless Borrower and Ixnder agr~~e to other terms of payment, these amounts shall bear interrst from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender ;o Borroa•er
req~~esting payment.
~oRK508 969
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