HomeMy WebLinkAbout0926 Ut~~F~~K!?~ Ctn•ftv~~vTS Hurrower and LeRJer c~~venant anci agrer as fi~lluws:
1. Paymeat of Principal and Interest; Prepayment and [.~te Charges. Durrowrr tihall prrmptly pay whrn dur
thr princi~al of and interest un the drbt eviJence~! by the Notr and any prepayment and latr rhargc~ due undrr tt~r N~~tr.
2. Funds tor Taxes and Ins:?rance. Subject to apphcabte law ar to a written H•aiver by Lrnder, E3orruw er shall pep
to Lrnder un the day manthiy µvyrnents are due ~~nder the Note, until the Note is paid in full, a sum ("Funds") rqu~l to
~ae-lwelith of: (a) yeariy taxes and assessments which may attain priority ovrr this Se.:urity Instrumenr, (b) yearly
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance prrmiums; and (d) yrarly
mortgage insurance premiums, if any. These items are called "es~:row items." Lender may rstimate the Funds due an the
basis of current data and reasonable estimates of tuture ~scrow items.
The Funds shall be hetd in an institution the deposits or accounts oP whicF: are insured or gua~anteed by a frderal or
seate ag~ncy (including l.ender if Ltnder is such an institution). Lender shall apply the Funds to pay the eurow• items.
Lender rr,ay not charge for holding and applying the Fu~ds, analyzing the account or verifying the escrow it~ms, unless
L,ender pays Borrower inte~est an tkr Funds and applicable law permits Ler.der to make such a charge. Borrow~er and
Lender may agree i~i writing that interest shali be paid on the Ftsnds. Unless an agreement is made or applicable law
requires interest to be paid, l.ender shall r~ot be required to pay Borrow•er a~y interest or earnings on the Funds. Lender
st~all give to Borrnwer, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the
pur~OSg for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by
thi~ Security Instrumcnt.
If the amount of the Fur?ds hetd by Lendt~, tog~ther a-ith the future mo~eh~y payments of Funds pa~able pn~r to
the due data of the escrow items, shall exceed the amount required to pay the escrQw items when due, th~ excess shall be,
at Borrower's option. either prom~tly repaid to Borrower or credited to Borrower on monthly payments of Funds. if the
amouni of the Funds held by Lender is not sutTicient to pay the escrow items when due, 9orrower shall pay to Lender a~y
amount necessary to make up tht deficiency in one or more payments as required by Lender. ,
Upon payment in full of a11 sums ser.ured by this Security Instrument, Lertder shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Propcrty is sold or acquired by Lender. Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by L.ender, any Funds held by I.ender at the time af
application as a credit against the sums secured by this Security Instrument.
3, Applieation of Payments. Unless applicable law provides otherwise, al! psyments received by Lendrr under
paragraphs 1 and 2 shall be applied: 6rst, to tate charges due under the Note; second, to prepayment charges due under the
Note; 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 impositiona attributable to the I
Property which may attain priority over this Security instrument. and leasehold payments or ground rents, if any. i
Borrower shall pny these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower shall prompdy furnish to Lendet all notices of amounts ~
to be paid under this paragraph. [f Borrower makes these payments directly, Borrower shaU promptly furnish to Lender
receipts evidencing the payments. ~
Bono~er shall promptly discharge any lien which has ~riority over this Security Instrument unless Borrower (a)
agrees in writing to the payment of the obligation secured by the litn 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
~revent the enforcemeni of the tien 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. If Lender determines that any part of i
the Property is sub}ect to a lien which may attain priority over this Security Instrument, Lender r~ay give Borrower a %
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within i0 days
of the giving of notice.
5. Ha~rd Iasurance. Borreswer shall keep ihe improvements now existing or hereafter erected on the Property ~
insured agair~st loss by fire, hazards included wiihin the terrr? "eatended coverage" and any other hazards for which Lender ~
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance sha11 be chosen by Borrower subject to Lender's approval which shalt not be
unreasonably withheld.
Al( insurance policies and renewais shall be acceptable to Lender and shall include a standard mortgage clause.
Lender shall have the right ro holci the po3icies and renewals. If Lender requires, BorroH~er shall promptly gi~e to Lender
all receipts of paid premi~ms and renewal notices. In the event of loss, Borrow~er shall gi~~e prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrow~er.
Unless Lender and Borrower otherv?~ise agree in writing, insurance proceeds shall be applied to restoration or repair
of the Property damaged, if the restoration or repair is econorreically feasible and Lender's security is not lessened. If the
restoration or repair is not economically feasible or Lender's security w~auld be lessened, the insurance proceeds shall be
applied to the surns secured by this Security Instrument, whether or not then due, w~ith any excess paid to Borrower. I5
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
oflered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or ta pay sums secured by this Security Instrument, whether or not then due. The 30-day period wili begin
when the notice is given.
, Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not e~tend or
postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the paymer.rs_ If
under paragraph 19 the Property is acquired by Lender, $orrower's right to any insurance policies and proceeds resulting
~ from damage to the Property prior to the acquisition shali pass to Lender to the exteni of the surres secured by this Security
~ Instrument immediately prior to the acquisition.
6. Preservation and Maiateeance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Propert~, allow the Property t~ deteriorate or commit waste. If this Security instrument is on a leasehold,
Borrower shall comp!y with the ~rovisions of the le~se, and if Borrower acquires fee title to the Property, the ieasehold and
fee title shall not r~erge un(~ss Len~er agrees to the merger in writing.
7. PrutectioR of I.ender's R:ghts in the Prnperty; Mortgage I»surance. If Borrow~er fails to perform the
covenants and agreements contained in this SPcu: ity Instrument, or there is a legai proceeding that may significantly affec[
L,ender's rights in the Propert} (such as a proceeding in bankrup!cy, probate, for condemnation or to enforce la~~s or
regula:ions), then Lencler may da and pay for wliatever is necessary to protect the value of the Pruperty and Lende~'s rights
in the Property. Lender's acti~ns may inclu~le ~aying any sums secured by a(ien w~hich has priority over this Security
[nstr~ment, appea~ing in court, paying reasonable attorr.eys' fees and entering on the Property to make repaiss. Althougti
Lender r~ay take action under this aaragraFh 7, Lender does not have to do so.
Any amounts disburse~ by Lender unde? this paragraph 7 shall become additiona: debt of' Borrower secured by this
~ecurity Instrument. Unless Barrower and Lender agree to other terms of payment, these amounts shall brar interest from
the date of disbursement at the Nute rate and shali be payable, with interest, upon notice from Lender to Borrow~er
req~esting payment.
go~5~~ ~ 925
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