HomeMy WebLinkAbout0926 U~It c?K~~ Cu~•c~:~ti I~ l3ormH•cr and Lender r~~venaiit and aKree cic fc~ll~~ti~
1, i'a~•ment of Principal and interesh, Prepayment and l.ate Charges. 13urm~~~rr ~hcill pmmptly pa~~ ~~~hcn dur
the princir:~l <~f a~~d interest nn the debt evidenced by the Note and any prepa~~ment and late rh~irgr. due under ihe Nnt~.
l. Funds for Taxes and Insurance, Subj~~ t to applicable law or to a written «~uiver b~~ l.ender,l3orro~~•er shall {~a}~
to l.ender on the da~~ monthly paymen~s .~re due under th~ Note, until the Note is paid in full, a tium ("Funds") equai ~c~
une-twelfth of: (a) yearly taxes and ussetismenis ~~hich may attain priorit~~ over this Sccurity lns~rumeni: {b) ~•earl~•
Ieasehold payme~ts or ground rents on the 1'ro~ierty, if any; (c) yearly hazard insurance premiums; and (d) yearly
mortgage insuranre premiums, iP any. These items are called "esc~aw items." l.ender ma~~ estimate the Funds due on the
basit of current data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits or SiCI'OUq1S Of which are insureci or guarantecd b~~ a federi! or
state age?u}~ (including Lender if' l.ender is such an instilution). Lender shaN apply thc Funds to pa~• the escro~~~ items.
Lender may nol charge for holding and applying the Funds, analyzing the account or verifying ihe escroti~ items, unless
Lender paps E3orroa~er interest on the Funds and applicable law permits Lender to make such a charge. I3orrawer and
l.ender ma~• agrec in «~riting that interest shall be paid on the Funds. Uuless an agrecment is made or applicable I~iH•
reyuires interest to be: paid, Lender shall not be rcquired to pay Barro~~~er any interest or earnings on thc Funds. Lender
shul) give to E3orrower, ~vithout charge, an annual accounting of the Funds sho«ing credits and debits to the Fw~ds and thc
pur~se Por which each debit to the Funds was made. The Funcis are pledged as additional security for the sums secured by
this Security Instrument.
lf the amount of the Funds held by Lender, together with the future monthly pay~ments of Funds payablc prior to
the due dates oP the escrow items, shall exceed the amount required to pay the escro~i~ items when due, the excess shalt be,
at E3orro~ver's option, either pramptly repaid to I3orrower or credited to Borrow~er an monthly~ paymer~ts oP Funds. 1P thc
amount of the Funds held by Lender is not sufticient to pay the escrow items when due, I3arro~~•er shalt pay to Lender uny
amount necessary to make up the deficie~ey in one or more payments as required by Lender.
U~n payment in full of all sums secured by this Secu~ity lnsirument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shatl apply, no later
than immcdiately prior to thz sale ~f 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 Instrument.
3. Application of Papments. Unless applicable law provides otherwise, all payments recei~~ed by Lender under
paragraphs 1 and 2 shaU be applied: first, to late charges due under the Note; second, to prepayment charges due under ihc
Note; third, to amounls payable under paragraph 2; fourth, to interest due; and last, to principal ciue.
4, Charges; Liens. Borro~~~er shall pay all taxes, assessments, charges, fines and impositior~s attributable to the
Property which may attain priority over this Security lnstrument, and leasehold payments or ground rents, if an~•.
Borrow•er shall pay thzse obligations in the manner provided in paragraph 2, or if not paid in that manner, Borroa~er shall ,
pay them on time directly ta the person owed payment. Borrower shall promptly furnish to Lender all notices ot' amounts
ro be paid under this paragraph. IP Borrower makes these payments directly, Borrow•er shall promptly furnish to Lender
receipts evidencing the payments.
Borro~ver shall promptly disrharge any iien which has priority over this Security Instrument unless t3orrow~er: (a)
agrees in writing ro the payment of the obligation secured by !he lien in a manner acceptable to Lender, (b) contests in gcx~d
faith the lier~ 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 part of the Property; or (c) secures from the holJer of the lien an
agreement satisfactory ta Lender subordinating the lien to this Security Instrument. If Lender Jete-~ =ines that an}~ part of
~ the Pr~pert~~ is subject to a lien which may attain priority over this Security Instrument, Lende. may give Borrower a
notice identifying the tien. Borrow~er shall satisfy the lien nr take one or more ~f the acsions set forth above ~vithin 10 days
of the giving of notice.
5. Hazard Insurance. Borraw~er shall keep the improvements no~v existing or hereafter erected on the Yrapert~~
insured agaiiist loss by fire, hazards inciuded within the term "extended coverage" and any oti~er hazards far which l.ender
reyuirc~ 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 Borrower subject to Lender's approval which shall not be
unreasonably withheld.
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 ~licies and renewals. If Lender reyuires, Borrower shait promptly give to Lender
all receipts of paid premiums and renewal notices. In the event of ioss. 8orrawer shaN give prompt notice to the insurance
carrier and Lender. Lender may make prooFof toss if not made promptly by Borro~1er.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration ar repair
of the Property damaged, if the restoration or repair is economically feasible and Lender's securit~~ 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 lnstrument, whether or not then due, with any excess paid to $orrower. If
Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
ofTered to settie a claim, then Lender n~ay collect the insurance proceeds. Lender may use the proceeds to repair ar restore
' the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period ~vill begin
i w~hen the notice is given.
~ ' Unless Lender and Borrower otherw~ise agree in writing, any applicatior~ of proceeds to principal shall not extend or
~st~ne the due date of the monthly payments referred to in ~aragraphs 1 and 2 or change the amount of the payments. If
( under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance {wlicies and proceeds resufting
from damage to the Yro~erty prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisitic?n.
i 6. Preservation and Maintenance of Property; Leaseholds. BorroH~er shall not destroy, damage or substantia!!~~
~ change the Property, allow~the Property to deteriorate or commit waste. If this Security Instrument is ~n a leasehald,
Borroa~er shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
fie title shall not merge unless Lender agrees to the merger in writing. .
7. Protection of I,ender's Rights in the Property; ~'[ortgage Insurance. If I3orrower fails to perform the
co~•enants and agreements contained in this Security Instrument, or there is a lega) proceeding that may signifirant~t~ afl~ect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or ro enforce laws or
regulations), thcn Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Yroperty~. Lender's actions may include paying any sums secured b~• a lien w~hich has priority over this Securit}~
lnstrument, ap~earing in court, paying rcasonable attorneys' fees and entering on the Propert}~ 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 Dorrow~er secured by this
Security Instrument. Unless I3arrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at the Note rste and shall be payable, w•ith interest, u~n notice from Lender to Borrower
requesting payment.
~~o~ 576 F~A~E 926
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