HomeMy WebLinkAbout0941 U~IF~~RM Cc~vf:N.~tv7~ Borruw•~r and Lenderro~~enant and agrc~ as fialluw~:
1. Payment of Priacipal and lntereat; Prepayment and l.~te Ctiarqes. f3arrower ~hsll ~rumptly pay whrn duC
the prinripal af and inttrest on the d_bt rvidenced by the Note and any pr~payme~t and late chargr~ dur under the N~~tr.
2. Funds to~ Taxes aad insuranee. Subject to applicable law or to a writttn waiver by [.ender, Borrou er +huSl pay
to Lender ot? the day monthly payments are due under the Note. untit the Note is paid in full, a sum ("F'unds") c~ual to
une-twelRn of: (a) yearly taxes azid assrssments which may attain priuriry over this Srcurity Instrument; (b) yrarly
!eas~hold payme~ts or ground rents on the Pruperty, if any; (c) year!y har.ard insurance premiums; and (d) ~eurly
mortgage insurance p:emiums. if any. These items are called "escrow items." Lender may estimate the Fund~ due on the
basis of current data and reasonable estimates of futur~ escrow items.
The Funds ~hall be held in an institution the deposits or accounts of which are insured or guaranteeci by a frderal ur
Sta!e agtncy (including Lender if Lender is such an instilution). l,ender shall apply the Funds to pay the escrow items.
L.ender may not charge for holding and applying the Funds. analyzing the account or verifying the ex;row items, untess
Lender pays Borrower interest on the fiunds and applicable law permits Lcnder to make such a charge. Borsower and
Lender may agcte in writing that interat shall be paid o~ the Funds. UnlFSS an agreement is made or apQlica~le !aw
requires interest to be paid. Lender shall not be required to pa~ Borrower any interest or earnings on the Funds. Lend~r
shall give to Borrower, without charge. an annual acCOUnting of the Fur.ds sh~wing crcdits and debits to the Fund~ and the
purpose ~ur which eacli debit to the Funds Was madr. 7'he Fu~=ds are pledged as arlditinnal s.-turity F~r the sums securecl by ~
this Security Instrument.
If the amount of the Funds held by Ltnder. tog~ther with the future monthly payments of Funds payable prior to
the due dates of the escrow i:eins, shall exceed the amount ~equired to pay the escrow items when due, the excess shafl be.
at Sorcow~r's option. either promptty repaid to Borrower or crttiited to Borrower on montlily payments of Funds. If the
amount of the Funds held by Lender is not sufl'icient to pay the escrow i!ems when due, Borrower shall pa~ 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 Sa:urity lnstrumcnt, Le~der shail promptty refund to Borrower ,
any Funds held by L,ender. If under paragraph 19 the Property is soid or acquired by L.ender, Lender shall apply, no later . I
than i~:?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 xgainst the sums secured by this Security Instrument.
3. Applicatioe of Psymeats. Unless applicable Iaw provides otherwise, all payments receiveei by Lender unJer
paragraphs 1 and 2 shall be applied: first. to late charges due under the Note; second, to prepayment charges due uRder the
Note; third, to amounts payable under paragraph 2; foucth, to interest due; and last, to principal d;~e.
4. C9iarges; Liens. Borrower shail pay all taaes. assessrnents, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall i
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shatl prompdy discharge any lien which has priority over this Security Instrument unless Borrower. (a)
agrees in writing to the payment of i;~e 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 i
prevent the enforcement of the lien or forfeiture a~ any ~a~ i::~ P:~t.^°..::;; s°c~!r~ from the holder of tlie 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 iien which may attain priority over this Security Instrument, Lender may give Borrower a ~
notice ideniifying the lien. Borrower shall satisfy the lien or take one or more of the actions set fonh above within 10 days i
of the giving of notice. '
S. Hs~rd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for v?~hich Lender
requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Bo*rovver subject to Lender's approval which shall not be
unreasonably withheld.
All insurance policies and renewals shall be acceptable to Lender an~i shatl inctude a standard mortgage clause.
I,ender shaU have the right to hold the policies and renewais. Ii' Lender requires, Borrower shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event ~f 3oss, Borrow•er shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if nat made p:~mptly hy 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 ihe
restoration or repair is not economically feasible or I.ender's security would be lessened, the insurance proceeds shall be
applied to the sum~ secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
' o~'ereei to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Prope:ty or to pay sums srcured by this Security Instrument, whether or not then due. The 30-day period ~vil! begin
when the notice is given. ;
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or .
postpone the due date of the monthly payments referrrd to in paragraphs 1 and 2 or change the amount of the pay~ments. If
' under Paragraph 19 the Property is acquired by I,ender, 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 ~xtent of the sums secured by this Security
Instrument immediately prior tu the acquisition.
6. Presenstion and Ms?intenance ot Property; Leasehofds. Borrow~er shall not destroy. damage or substantiatly
change the Property. aliow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
I3orrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leaseha!~ and
fee titlz shall not merge unless :.,ender agrees to the mPrger in writing.
7, Protection af Lender's Rig6ts in the Pro~terty; M1iortgage Insurance. If Dorrower Fails to perf'orm the
covenants and agreements contained in this Security Instrument, er there is a lega! proceeding that may signific~ntl~~ affect
Lender's rights in the Property (such as a pra:eeding in t~ankruptcy, probate, for condemnation or to enforce law~s or
regulations), then Lender r~.ay do and pay for whatever is neccssary to protect the value of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums secused by a lien wF~ich has prority over this Security
Instrument, appearing in court, paying reasonable attorneys' fees and entering c,n the Property to make repairs. Although
Lender may taSce action under this paragraph 7, Lender does not aave to do so.
Any amaunts disbursed by L.ender ~ndrr this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Un~ess Borruw~er and Lender agree to other terms of pa}•ment, these amounts shall bear interest fro~n
the date of disbursement at the Note ~ate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment. ~
go~~ 511 PACE 940
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