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HomeMy WebLinkAbout0947 f . S . UhiFOR41 CUVEy~NTS. Borrowtr and Le~der covcria~~t and agree as t'ollew~s: 1. Poyment at Principtl and Interesh, Prepayment arEd I.ate Charges. Borrower shall promptiy pav ahen dur the principal of and interest on the debt evidenced by the Note and any prepaymen: 3nd late charges due under the Note. 2. ~nd~ tor Tixea and Insuranre. Subject to applicable taw or to a written waiver by Lender, Bcxrower shall pay to Lender on the day monlhly payments are duc under the Note, un:il the Note is paid in full, a sum ("F~nds") equal to one-twelRh of: (a) yearly taxes and asszssments which may attain priority aver this Security In~trume?~t; (b) yearly leasehold payments or ground rents on the Property. if any; (c) ycarly hazard ~~surance prerniums; and (d) ytarly mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds duc on ihe basis of current data and reasortable estimates of futare acrow itcros. The Funds shall be hzld in an institution the deposits or acc~unts of which are ii~sur,.~ or gua~ anteed tiy a tederaf or statt agency (includirsg I,ender if Ltnder is such an institution). I,er.der shall apply the Funds to ~~y the escrow items. I,ender may not charge fo~ holding and applying tht Funds, analyzing the accoant or verifying the escrow items, ~nless L,ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and L,ender may agree in writing that interest shall be paid on tht Funds. Unless an agreement is made or applicable law ret~uires interest to be paid, Lender shall not be reqcired to pay Borrower any interest or earnin~s on the Funds. Lendzr shal! give to Borrower, without charge, an annual accounting of th~ Fur.ds showing cre~its and debits to the Funds and Zhe . purpost for which each debit to the Funds was made. The Funds are pleaged as additional security for the sums secured by this ~ecurity Iastrument. tf the amo~nt of the Funds held by Lenatr, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount required :o pay the escrow items when due, the excess shali be, at Borrower's option, tithtr promptly reNaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not suflicient to pay the escrow items when due, Borrower shall pay t4 Lender any amount necessary to makt up the deficiency in one or more payments as required by Ixnder. Upon p~yment in fult of all sum~ sezured by this Security Instrumtr~t, Lender shall promptly refund to Borrower any Funds held by L.ender. if under pa:agraph 19 the Froperty is sold ar acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by I.,ender, ar.y Funds held by Lender at the time of application a~ a credit against the sums secured by this Security Instrument. 3. Application of Psymeats. Unless applicabEe law provides otherwise, all payments receiveci by Lender under paragraphs 1 and 2 shall be applied: first, to fate charges due under the Note; second, to prepayment charges due under the Note; third, t~ 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 impositions attributable to the Property which may attain priority over this Security Instrurrtent, and lea~ehold payments or ground rents, if any. Borrower shall pay these obligatiosr in the manner providea in paragraRh 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shail promptly furnish to Lender all not~ces ef amounts to be psid under this parag~aph. If Borrower makes these payments directly, Borrotver shall promptly furnish to Lender receipts evidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) ~ agrees in writing ta the payment of the obligation se~:ured by the lien in a manner acceptable ta Lender; (b} contests in good , faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's upiniun operate to prevent the enforcement of the lien or forfeiture of any part of the Propeny: or (c) secures from the holder of the lien an . agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien wt~ich may attain priority over this Security lnstrument, Lender may give Borrower a notice identifying the lien. 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 Insuranc~. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss ~y fire, hazards included within the term "eztcnded coverage" and any other hazards for which Len~er requires insurance. This insurance shal[ be maintair.ed in the amounts and for the periods that I.ender requires. The in~urance carrier providing the ins~rance shail be chas~en by Bo*rower subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shall include a standard morigage clause. Lender shall have the right to hold the policies and renewals. If L,ender requires, Borrower shall promptly give to I.ender all teceip:s of paid premiums anci renewal notices. In.the event of loss, Borrower shall give prompi notice to the insurance carrier and Lender. L.ender may make proof of losc if not made promptly by Borrower. Unless L.ender and Borrower otherwise agree in writing, insurance proceecis shall be applied to restoration or repair of the Propecty damaged, if the restoration or repair is economicalfy feasible and Lender's security is not lessened. If the ; restoration or repair is not economically feasible or Lender's serurity W~ould 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 Borrower. If ~ Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that :he insurance carrier has offered to settle a claim, then L,ender may collect the insurance proceeds. L.ender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, ~vhether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any apptication of proceeds to principal shall not extend or postpune the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount af the payments. If under paragraph 19 the Property is acquired by L.ender, Borrower's right to any insurance policies and proceeds resulting ~ from damage to the Propcrty prior to the acquisition shall pass to Lender to the eztent of the sums secured by this Security InstruRS~nt immediately prior to the acGuisitian. 6. Presenation snd Msintenanct of Praperty; Lease6alds. Borrower shall not destroy, damage or substaniially change the Property, allow the Property to deteriorate or commit waste. If ti~is Security Instrument is on a leasehol~, ~ Horrower shall comply with the provisions of the lease, and if Bonower acquires fee title to the Property, the leasehofd and t fee title shall not merge unless Lender agrees to the merger in writing. 7. Protecfion of Leader's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the ; covenants and agreements cantained in this Securiiy lnstrument, or there is a legal pra.eeding that may significantly affect ~ Lender's rights in the Property (s~lch as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ regutations), then Lend~r may do and pay for whatever is necessary to protect the value of the Property and Lxnder's rights ~ in the Property. Lender's actions may includt paying any sums secured by a lien which has priority over this Security ~ Instrument, appearing in court, paying reasonable attorneys' fees and enttring on the Property to nnake repairs. Although ~ Lender may take action under this paragraph 'I, Lender does not have to do so. Any amounts disbursed by I.ender under this p~ragraph 7 shall oecome additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear ir~terest from the date of disbursement at the Notc rate and shail be payable, with interest, upon notice•from I.ender to Borrower roquesting payment. aoa~ 50~9 P~1GE 945 . ~ ~ . e _ .._~s__._.____. ~ _ . - . _ ~ - - - _ ~ - - - - _ . - - - _ _ ~