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HomeMy WebLinkAbout0999 _ ~ , Utv~FORM Cov~tvqN7~. Borrower and Lender covenant and agree as follows: 1. Payment ot Principal and Interest; Prepayment and Lsite Charges. Borrower shall pramptly pay when due the principal of and interest an the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by LendEr, Qorrower shall pay to Lender on the day monthly payments are due under the Note, until the Notc is paid in !all, a sum ("Funds") equal to ' one-twelfth of: (a) ycarly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. 'fhese items are called "escrow items." tender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (inciuding Ltnder it' Lender is such an instittttion). Lender shat! 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 escrow items, unless Lender pays Borrower interest on the Funds and applicable !aw permits Lender to make such a charge. Borrower and ~ Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or ap~~licable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purposg for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. [f the amount of the Funds held by I.ender, together with the fature monthly payments of Funds payable prior to ~ the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds hel~ by Lender is not suf~'icient to pay thc escrow items when due, Borrower shall pay to Lender any amount nec:ssary to make up the deficieney in one or more payments as required by L.ender. Upon payment in full of all sums secured by this Security lnstrument, Lender shall prompily refund w ftorruwer any FUnds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shail apply, no later than immediately prior to the sale of the Froperty or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless appticable taw provides otherwise, all payments receiveci by Lender under paragraphs 1 and 2 shalf be applied: first, to late charges due under the Note; second, to prepayment charges due under the i Note; t}iird, to amounts payable under paragraph 2; fourth, to interest due; and las;, to principai due. 4. Charges; Liens. Borrower shall pay aU taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and teasehold payments or ground rents, if any_ Borrower shall pay t6ese obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay ~hem on time directly to the person owed paymeRt. Borrower shall promptly furnish to Lender ap 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 shall promptly discharge any lien which has priority over this S~curity Instrument unless Borrow•er: (a) ~ agrees in writing to the payment of the obiigation secured by the lien in a manner acceptable to Lender; (b) coniests in good , faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinian operate to = prevent the enforcement of the lien 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 j ~ the Property is subject to a tien which may attain priority over this Security Insirument, Lender may give Borrower a 3 F notice identifying the lien. Borrower s6all satisfy the lien or take one or more of the actions set forth above within l~ days ~ - of the giving of notice. - 5. Hazard Insurance. Borrower shall keep the improvements nov+~ existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extendecl 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 ' ins~rance carrier providing the insurance shall be chosen by Borrower snbject to Lender's approval which shall not be ~ unreasonably withheld. ~ All insurance polici~s and renewals shall be acceptable to Lender and shall include a standacd mortgage clause. ! Lender shall have the right to hofd the policies and renewals. If Lender requires, Borrower shalt promptly give to Lender ~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shail give prompt notice to the insurance F ' 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 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 the ; restoration or repair is not economically feasihle or Lender's security 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 Barrower. If _ 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 cepair 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 writing, any app[ication of proceeds to principal shal) not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph l9 the Property is acquired by Lender, 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. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the Property, allow the Property ta deteriorate or commit waste. If this Sec~rity Instrument is on a leasehold, ~ ~ Borrower shall comply with the provisions of the lease, and if Borrower acquires fee titte to the Property, the leasehold and ~ ~ fee title shall not merge miless Lender agrees to the merger in writing. ~ ' 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If IIorrower faits to perform the f covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect ' Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or K regulations), then I.ender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ~ in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on ihe Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. , Any amounts disbursed by Lender under this ~aragraph 7 sha1) become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest f'rom the date of disbursement at the Noie rate and shall be payable, with interest, upon notice from Lender to Borrower . requesting payment. ~ BooK 513 PAGE 992 - .