HomeMy WebLinkAbout0991 L;~i~~~,tc~iC'c~vf.~:~~1~ l3orro~~rr:?ndLrndercovenantanc]agreeastollu«~:
1. Payment oi Princi~ai and ]nterest; Yrepayment and I.ate Charges. t3urr.~~+~er tih~+ll , rc~mptl~~ pa~ ~~~hcn ~lu~
thz ~rinripal <~f anet interetit on ~hr dtbt r~-,drnced by the Note and any prepayment and latr chargrt due under th~ Nut~.
2. Funds for Taxes and imurance. Subject to applicable law or to a written ~~•aiver b~• I_rn~ier, [2orrcn~~er shatl pa~
to L.end~r un the ifay m~~nthly paymc;nt~ are due unde~ the Note, until the Note is pnid in fuii, a sum ("Fund~") equal to
~~n~-tu•elfth of: (a) yearly taxes and assrssments which may attain priarity over this Security Instrument: {b) }early
lea.ehuld ~ ment. cr round f~fi(S on the ~~O ~l , 11 dil (C citii i~ai:itu ii::si~:~i::.i • .;!?~i !r1\ yr_~rly
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murtgage incura~tce premiums, if any. These items are called "escrow ilems." Lender ma~~ istimate the Punds due em the
basis of current data and reasanable estimates of future escrow items.
The FunQs sltall tx held in an institution the deposits or accounts of'which are insured or guaranteed by a fedrr~) or
~tate agency (inctuding l.ender if Lender is such an institution). Lender shall apply the Funds to pny thc escro~v itemti.
Lender ma~• not ~harge for hatdi~g and appl}~ing the Funds, analyzing the ace~unt or verifying the cscro~~~ items, unless
I.end~.r pays Borro~scr ~nt~res[ on the Funds and applicable law permits Lender to make such a::harge. E3orro~~~er ~,nd
Len~er ma~~ agrre in w~riting that interest shall be paid on the Funds. Unless an agreement is made or applicahle iaw
rc;yuirz~ intc~e~t t:~ he paid, Lender shall nr~t be required to pay ~3orrower any intcrest or earnings on the f~unds. l.endcr
shall xwe to I3orru~ver, without charge, an annuat accounting of the Fur,ds shoa•ing credits and dehits to the Funds and the
purpose for which eac6 debit to the h'unds was made. The Funcis are ~le.ige~ as a: ~~ticna'. s~~;s~it ; fos the s~l•nc ~<<~~~rr•~i hv
this Se~:urity lnstrument.
If the amount ot the runtis neiu o• i.er~uer, iv i:iiia.i ~y:~ fe~t:~rQ ~~nt};1 ..:.~.~,Pn~c ~f Funds navable ~rior to
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the due datrs of the escrow items, shall exceed the amount required to pay the escrow items w~hen due, the excest shall he,
at E3on•ower's option, either promptly repaid to Borrower or credited to Borrower on monthly pa}•ments of Funds. If the
amount of'the Funds held by Lender is not sufl5cient to pay the escrow items N~hen due, Borr~wer shall pay to Lender any
amount necessary tcti make up the deficiency in one or more payments as required by Lender.
U~on payment in full of all sums srcured by this Security Instrument, Lend~r shall prc~mptl~~ refund to 13orrower
any Funds helJ b~• Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shali apE~iy, rto latrr
than immediately prior to the sale uti the Pro~xrty or its acquisition by Lender, any Funds hcld h}• f.ender at the time ~f
appliration ~~s a credit again~t the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law pr~vides otherwise, all payments received by Lendrr unc~er
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Notc; third, to amounes payable under paragraph 2; fourth, to interest due; and last,lo principal due.
4. Charges; I.~ens. Borro~ver shall pa~~ all taxes, assessments, charges, fines and impositions attributable to tt?e
Pro~erty ~~•hich may attain priority over this Security lnstrument, and leasehold payments or ground rents, if any.
Borrower shalt pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. 13orro~ver ahall
pay thertt on time dirertly to the person owed payment. Bcirrower shall promptly furnish to Lenc~er all notices of amounts
to be paid under this paragraph. If BorroH•er makes these payments directly, Borrower shall promptly furnish to [.ender
receipts e~•idenring the payments.
Horruwer ~hall promptl~~ di;charge any lien which has priority ~ver this Security Instrument unless 13orrc,w~er: (a)
LI_ 1_~..:7.~r. lL~1 r.in!rcte ~n O!1!1!~
agrees ~n w~riting to the papment of the obligation secured by the iien in a mannrr acce;-,ta~~< L..~.....,,
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faith the lien b~~, or defends against enforcement of the lien in, legal pra:eedings K~hich in the Lender's apinion operate to
prey~rnt thr enf~rrement c~f the lien or forfeiture of any part of the Property; or (c) secures from the holder of the licn an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that en}- part of
the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Horrower a
notice identifying the lien. Borrower shali satisfy the lien or take one or more of the actions set torth above within 10 days
ef the giving of notice.
5. Hazard Insurance. Bor~ower shall keep the improvements now existing or hereaf'ter erected on the Propert}•
insureii against loss by fire, hazards included within the term "extended coverage" and any other hazards tor which Lender
requires insurance. ThiS insurance shall be maintained in the amounts and for the periods that Lender reyuires. The -
insurance carrier pro~•iding the insurance shatl be chosen by 8orrower subject to I.ender's approval whieh shall not be
unreasonabi~~ withhetd.
Ai! insurance ~licies and renew~als shall be acceptable to Lender and shaU include a standard mortgage clause.~
Lender shail ha~•e the right to hold the policies and renewals. lf Lender requires, Borrower shall promptl}~ give to Lender
all receipts of pa~d premiums and renewa! notices. In the event of loss, Borrow•er shall give prompt notice ro the insurance
carrier and Lenaer. Leode~ may make proofof loss if not made promp~ly by f3orrower. :
linless Lender and BorroK•er otherwise agree in writing, insurance prc~eeds shall be applied ta restoration or repair
af the Pro~ rt}~ damaged, if the restoratien ~r repair is economically feasible and Lender's security is not lessened. If the
restoration ur repair is not economically feasible or I.ender's security would be lessened, the insurance prc~ceedt shall be
applird to the sums secured by this Security Instrument, whether or not then due, with any e~cess paid tv Borrower. If
Barrower abandons the Property, or does not answer within 3U days a notice ,`.-am Lender that thc insurance rarrier has
offered tu settle a claim, then Lender ma}~ coNect the insurance proceeds. I.rnder may use the ~rc~ceeds to repair or restore
thr Property <~r to ~?sy~ tiurtis secured by this Security Instrument, a•hether ur not then clue. The 30-da?~ pe~iod will begin
when the noticc ~s gi~~en.
~ Unless Lender and Borrow~er otherwtse agree in wnting, any appl~: at~on af proceeds to principat shali not extend cir
pc~st~emr the due d.ite of thc monthl~~ payments referred to in pacag.raphs I and 2 or change the amount ~f thc pa}'ments. !f
undrr ~aragraph Iq the Property is acquired b}~ Lender, Bc~rrower's right to an}~ in,urance ~licies and proceeds resuiting
~ from damage to the Property prior to the acquisition shal; pass to Lender to the extent of the sums secured b}• this Security
[ns,rument immediatel}~ prior to the acquisition.
6. Preservation and ~laintenance of Property; Leaseholds. Borrower shall not destroy. damage or substantiaily
change the Property, allow the Property to deteriorate or comm~t waste. If thiti Security Instrument is on a leasehold,
Borrou•er tihall .omply~ with the prrn•isions of thr iease, and if Borro~c~r a~quir~~s tee title t~ the Yropert~~, the I.aseh~ld and
fee titlr tiliall nut merge unless Ler~der agrees to the merger in w•ritiri~.
7. Yrr~teciion of I,ender's Rigf~ts in the Property~; ti'fortRa~e Insurance. if BorroH~er faiis to ~erform the
coti~enants :.nd agrerc~~nts contained in thi1 Securit}• Instrument, r;r :hert a legai ~n;ceeding that m~} signifirantly afi'ect
Lender's rigF?tti i!~ the Pr~Exrty (such as a proceeding in bankruptc~•. (~:~~ha[e, for condemnation or to enfarce laa~; or
regulauuns), then Ler~dcr ma}• do and pa}~ for whatever is neces~ery :o pmtect the value of the Propert~• and Lender's rights
in the Yr~~ert}. Lrnder's acti<~nti mar include paying eny sun~s ,tcurzti b~ ~ lien w~hieh has pri~rity~ o~~er this Secunty
Instrument, a}~~Srar+ng in court, pa}~ing reasonable att~~rneys' fees and entenng on the Propert}~ to make repairy. Althc~ugh
I,cnder ma~~ takr actian under thi~ paragraph 7, I.ender does not ha~~e to do
I Any amc~unts di~bursed h~~ Lender under this paragraph 7 shall lxr~~;~.c additional debt ~f Ei~rrc~w~er secured by~ this
Secun~} Instrument Unless f3~rrower and [.ender agree to other cerma ot F.a~ ment, thrse amou~ts shall t~ear interest t~rom
the datr of disbLr~ement at lhe '~'ote rate and shall be payable. ~cith intrr~st, upcm notice• trom 1_ender tc~ E3ormwer
requesting pa}~mcnt.
aooK ~72 FAGE y9~.
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