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HomeMy WebLinkAbout0965 r i r ~ Utv~FOttM CovENANTS. B~rrower and Lender covenant and agree as follows: ~ 1, Payment of Principal and Interest; Y~epayment and Late Charges, Borrower shall promptly pay when due ~ the principal of and interest on the debt evidenceci by the Note and any prepayment and iatc charges due under the Note. ~ 2. Funds !or'Y'axes and Insurance. Subject to appticable 1aw or to a written waiver by Lender, f3orrower shal! pay to Lender on the day monthly payments are due u~der the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelRh oP: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leaschold payments or ground rents on the Property, ii' any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, iP any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escro~v items. The Funds shall be held in an institution the deposits or accounts of which are insur.,~ or guaranteed by a federal or state agency (including Lender if I.ender is such an institution). Lxnder shal! apply tlie Funds to pay the escrow items. Lender 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 applicabte law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreemeni is made or applicable law requires interest to be paid, Lender shall not be reqiiired to pay Borro~~•er any interest or earnings on the Funds. Lender ' shal) give to Bortower. without charge~ an annual accounting of the Fur.ds showing credits and debits to the Funds and the purpose for whieh each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. ' If the amount of the runds held by Lender, together with the future monthiy payments of Funds payable prior to the due dates of the escrow items, shaN exceed the amouni required to pay the escrow items when due, the excess shall be, ai Borrower's opiion, either promptly repaid to Borrower or credited to Barrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escraw items when due, Borrower shall pay to Lender any amount necessary to make up the deftciency in one or more payments as required by Lender. Upon payment in full of all sums secured by this Security Instrument, Lender shal! pramptly refund to Dorro~ver any Funds hetd by Lender. If under paragraph 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 Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Ir?strument. 3. Applieation of Payments. Unless applicable law provides otherwise, all payments received b~ Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charge~ due under the I~dote; third, to amounts payabte under paragraph 2; faarih, to interest due; and last, to principal due. j 4. Charges; Liens. Borroraer shall ~ay all taxes, assessments, 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 shal! pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borro~ver shaii pay them on time directly to the person owed payment. Borrower shali promptly furnish to Lender all notices of amounts I to be paid under this paragraph. If Borrower makes ihese payments directly, Borrower shaU promptly furnish to Lender I- receipts evidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the paym~nt of the ~bligation 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, tegal proceedings which in the Lender's opinion 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 Le~~der subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, 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 Insurflnce. $orrower shall keep the improvements now existing or hereafter erected on the Properiy insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lerider requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to L:ender's approval which shall not be unreasonably withheld. _ All insurance policies and renewats shall be acceptable to Lender and shall include a standard mortgage clguse. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of los~ if not made promptly by Borrower. Unless I,ender and Borrower otherwise agree in writing, insurance proceeds shall be apptied 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 feasible or Lender's security would be lessened, the ins~rance prc~ceeds shall be . applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to IIorrower. If _ ~ Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may i~se 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 perial will 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 referred 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 extent of the surris secured by this Security Instrument immediately prior to the acquisition. ~ b. Preservstion and Mafntenance of Propertyf I,easeholds. Borrower shall not destroy, damage or substantially change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehc~fd, Borrower shall comply with the provisions of the lease, and i; Borrower acquires Fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Propeety; Niortgage Insurance. If Borrower fails to perform the covenanis and agreements eontained in this Seeurity Instrument, or there is a legal proceeding that may signifieantly ati'ect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, far condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Pro~erty. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in couri, 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 paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless $orrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shali be payable, with interest, upon notice trom Lender to~ Borrower requesting payment. - , + ~ ' , gQOK ~1~ PACE ~ ' ~ ?