HomeMy WebLinkAbout0965 Utv~tuKH Covt~_~~tvTS I3orrower and Leader roti~ennnt and agree a~ fuUuw~:
1. PAyment oi Y.incipa! snd Interest; Prtpayme~nt and l.ate Charges, l~~rrower ihall prumptly ~y whrn Jur
thr prinripel of and i~tcr~st on the debt evidencecl by the Ivote and a~y prepayment and late rhsrgr~ due un~lt~ tt~r Nc~tc.
2. Funds [or Taxes pad Insurance. Subject to applicabie law ar to a w~ritten waiver by Lrndrr, t3urrowrr ~h~ll pa~~
to Lender on the day monthly paymenis are due und~r the Note, unti) the Nole is paiQ in fuli, a sum ("F~nds") rqual to
un~-twelRh of: (a) yearfy taxes and asses~ments which may attain priority over this Secunty [nstrumrnt; (b) y~rarly
leasehold payments or ground rents on the Property, if any; (c) yearly hazard ins~rance premiums; bnd (J) ~•rarly
mortgage insurance premiums, if any. These items are cailed ''escrow items." Lender may estimate thr ~unds due on the
basis of current data and reasonable estimates of future escruw items.
Tht Funds shall be held in an irstit~tion the deposits or accounts of which are insureci or guaranteed b}• a federal or
s~ate agency (including [.ender if L.ender is such an institution). Lender shall apply the Funds to pay the escruw• itemti.
Ixnder may not chargr for hofdij~g and applying the Funds. analyzing the account or verifying the escrow items, untess
l,ender pays Borrower interest on the Funds and app!:cable law permits Lender to make such a charge. 8orrower and
Le~der may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicablr law•
~equires inte~tst tc? be paid, Lendrr shall rwt be required to pay Borrower any interest ar earnings on the Funds. Lender
shali give to Burrov?cr, wiihaut c~arge, an annual accounting of the Fu~ ds showing ~r~iits ~n:i debits to the Funds ar.d thz
purpose for which esch debi[ to the Funds was made. The Funds are piedgeei as additional se.;uri!y for the sums sccured by
this Security Instrument.
If the amount of the Funds held by Lender. togeiher with the future monthly payments of Funds payable prior to
the due dates of the escrow ite~ns, shall exceed the amount required to pay the escrow items w•hen due, the excess shall be,
at Borrower's optiou, either promptly repaid to 8orrower or credited to Borrower on monthly paymeuts of Funds. If the
amount oF the Funds held by Lender is not sut6cient to pay the escrow items when due, Borrower shaU pay to [.ender any
amount necessary to make up the deficiency in one or more paymtnts as required by Lender. i,
Upon payment in full of all sums secured by this Sec~rity Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragrapi~ 19 the Property is sold or acquired by Lender. Lender shall apply, no later
than immediately prior to the sale of the Property or its acquisition by Ltnder, any Funds held by Leader at the time of
application as a credit against the sums secured by this Security Instrument.
3. Applicatioa of Payments. Unless applicable law provides otherwise. all payments rcceived by Lendrr under
paragraphs 1 and 2 shaU be applied: first, to late 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. Clearges; Lieas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Security Instrument, and teasehold paymeuts or ground rents, if any. i
Borrower shaU pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall '
pay them on time direcdy to the person owed payment. Borrower shall promptiy furnish to Lender all notices of amounts ~
to be paid 4nder this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly dixharge any lien which has priority over this Sec~urity Instrument unless Borrower: (a)
agrees in writing to the payment of the 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 enforcement of the lien or forfeiture of any paR of the Property; or (e) secures Irom the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Insirument. If Lender determines that any part of
the Property is subject to a iien which may a~tain priority over this Security Instrument, Lender may give Borrower a
notice identifying the lien. Borrower shall satisCy the lien or take one or more of the actions set forth above w~ithin 10 days
of the giving of notice.
5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards ineluded within the tecm "extended coverage" and any other hazards for w~hich Lender 1
requires insurance. This insurance shal! be maintained in the amounts and for the periods that Lender requires. The
ir.surance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
unreasonably withheld.
All insurance policies and renewals shali be acceptable to Lender and shall include a standard mortga&e clause.
Lender shall have the right to ho'd the poticies and r~newals. If Lender requires, Borrower shall promptly give to Lender
all receipts of paid premiums and renewal notices. In the event of loss, BorroNer shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shal! be apptied to restoration or repair
of the Property damaged, ~f the restoration or repair is economicatly feasible and Lender's secunty is r,ot lessened. If the
restoration or repair is not economicatly feasibie or L.ender's security a~oul~ be lessened, the insurance proceeds shall be
applir•i to the sums secure~ by this Security Instrument, whether or not then due, w~th any eacess paid to Borrower. If
Borrower abandons the Prapeny. or does not answer within 30 days a notice from Lender that the insurance carrier has
offered to settle a cla;m, then Lender may coll~et the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin
~ when the notice is given.
Unless Lender and Borrower otherwise agree in writir.g, any applic2tion of proceeds to principat shall not extend or
~ postpone the due clate of the monthly payments referred to in paragraphs 1 and 2 or change the amount otthe payments. If
under paragraph 19 the Propeny is acquired by Lender, Borrower's right to any insurance poiicies and proceeds resulting
from ~amage t~ the Property prior to the acquisition ~hall pass to Lender to the extent of the sums secured by this Security
Instrument immecliately prior to the acquisition.
6. Presenation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially
change the Property, aflow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
Borrower shall co:nply v~ith the provisiois of th~ lea~e, and if Borrower acquires fee title to the P~operty, the teasehold and
fee t~tle shall not merge unless Lcnder agrees to the merger in writing.
7. Protection of Lender's Riy,hts in the Property; ltortgage Insurance. If Borrow~er fails te perform the
covenantc ai~d agreements contained in this Security Instrument, or [here is a legal prcx:eeding that may significantl}~ affect
Lxnder's rights in the Proprrty (such as a prc?ceeding in bankruptcy, probate, ~'or condemnation er to enforce law~s or
regulations), then Lender may do and pay for whatever is necessa: y to protect the value of t:~e t roperty and Lender's rights
in the Pro}xrty. Lender's actions may include paying any sums secured by a tien w~hich has ~7orit}~ over th:s Securiiy
InstrumPnt, appearing in cou*t, paying reasonable attorneys' fees and entering on the Propeny to make repairs. Al.huugh
Lender may take action ~nder this paragraph 7, Lender does no: have to do so.
Anq asnounts disbursed by Lender under this paragraph 7 shall become additionai debt of Borcow~er secured by this
S..-~curity Instrument. Unless Bnrrower and Lender agree to other terms of pa}~ment, these amounts shall bear interest from
the date af disbursement at the Note rate and shall be payable, w•ith int:rest, upnn notice fmm Lender to ~orrower
requesting payment.
~QOx 511 PACE 964
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