HomeMy WebLinkAbout0926 UN~FOtt~1 CnvEtv~xTS. 8orrower and Lendrrcovenant and agree as folluws:
l. Payme~t ot Principal and Interest; Prepoyment a~d I~te Charges.` Bor~owe~ shall piomptly pay when due
the principal of and interest on the debt evidenced by the Notc and any prepayrrient and tate cha~ges due under tht Note.
2. Funds for Taxes and Insur~nce. Subject to applicable law or to a written waive~ by Lende~, Borrower shall pay
to Lender on the day monthiy payme~ts are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twel(1h oi: (a) yeariy taxes and assessments which may attain priority ove~ this Securily lnst~ument; (b) yea~ly
irasehold payments or ground rents on the Property, iP any; (c) yearly haza~d insurance premiums; a~d (d) yearly
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the
basis ~f 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 tederal or
state agency (including Lender it Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
i.ender may not charge for holding and applying the Funds, analyzing the account o~ verifying the escrow items, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. 8orrower and
Lendcr may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law
requires interest to be paid. Lende~ shall not be required to pay Boerower a~y interest or earnings on the Funds. Lender
shall give to Bo~rou•er. without charge, an annual acc~unting of the Funds showing credits and debits to the Funds and the
pu~pose for which each debii to the Funds was made. The Funds are pledged as additional security for the sums secured by ;
this Security Instrument. t
[f the amount of the Funds held by Lender, rogether with tF~e future monthly payme~ts of Funds pa~~able prior ro }
the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess sha!! be,
a~ Borrower's option, either promptly repaid to Bor~ower or credited to Borrower on monthly payments of Fu~ds. If the
amount of the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay 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 Security Instrument, I.ender shall promptly refund to Borrower
any Funds held by Lender. tf 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 ~ender, any Funds held by Lender at the time of
application as a creciit against the sums secured by this Security Instrument.
3, Application of Payraents. Unless applicable law provides otherwise, all payments received by [.ender under
paragraphs 1 and 2 shall 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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain priority over this Secunty Instrument, and leasehold payments or ground rents, if any.
Borrower shall pay these obligations in fhe manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay them on time directly to the person owed payment. Borrower Shall promptly furnish to C.ende~ all notices of amounts
to be paid under this paragraph. [f Borrower makes these payments directly, Borrow~er shall promptly turnish to Lender
receipts evidencing the Qayments.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptabte to Lender; (b) contests in good
faith the lien by, or defends against enforcement of the lien in, legal Qroceedings which in the Lender's opin~on operate to
prevent the eniorcement of the lien or forfeiture of any pan of the Property; or (c) secures from the holder of the tien an
agreement satisfactory to I_end~r 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 (nstrument. Lender may give Borrower a
notice identifying the (ien. Borrow~er shalt satisfy the lien or take one or more of the actions Set forth above within 10 days
of the giving ~f notice.
S, Hezard Insurance. Borrow~er shall keep the improvements now• existing or hereafter erected on thz Property~
insured against loss by fire, hazards included w~ithin the term "extended coverage" and any other hazards for which Lender
reqnires 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 Borrow~er subject to Lender's appro~~al which shall not be ,
unreasonabty w~ithheld.
All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ;
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 reneu•al notices. In the event of loss. Borrower shatl give prompt notice to the insurance
carrier and Lender. Lender may make proof of toss if not made promptly by Borrower.
UntPss 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 feasible or Lender's security would be lessened, the insurance proceeds shall be ~
applied to the sums secured by this Security [nstrument, 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 ~
oRered to settle a claim, then Lender may collect 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 a•ill begin
when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of pro~eeds 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 payments. If
under paragraph 19 the Property is acquired by Lender, Borrow•er's righi to any insurance policies and proceeds resulting '
from damage to th~ Property prior to the acquisition shal! pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition.
6. Preservation and Maintenanze of P~operty; Leasehotds. Borrower shall not destroy, damage or substantially '
change the Property, allow the Froperty to deteriorate or commit waste. [f this Stcurity instrument is an a leasehold,
Borr~wer shall comply with the p~ovi;ions of the tease, and if Borrower acquires fee title to the Property, the leasehold and
fee title shall not mtrge unless Lender agrees to the merger in writing.
7. Protection ot Lender's Rights in the Property; ~tortgage Insurance. [f Borrowec fails ta perform the
covenants and agreements contained in this Security [nstrument, ur there is a legal proceeding that may significantly affect
Lender's rights in the Property (such as a procecding in bankruptcy, probate, for condemnation or to enforce laws or
~ regulations), then Lend~r may do and pay for whatever is necessary to protect the vatue of the Property and Lender's rights
~ in the Propeny. Lender's actions may include paying any sums secured by a lien which has priority over this S~curity
Instrument, appearing in court, paying reasonablt attorneys' fets and entering on the Property to make repairs. Although
Lender may take ac~ion under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by Lznder under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unless Borrower and Lende~ agree to other terms oPpayment, thas amouncs shali bear interrst from
the date of disburxment at the Note ~ate and shalt be payabte, with interat, upon notice from Lender to Borrow~r
requesting payment.
aoUK574 927
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