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HomeMy WebLinkAbout0992 identifieci in the Note secured hereby as the Prime Rate established by citibank of tvew York date or1 Wh.ich the itlt~x~est rate m1y change is called an "Interest C~~ar~ge Date". Before each Interest Cl~~ge Date, the Note Holder will calculate the new interest rate by addirig One at~d One-Half perce~~tage pc,ints (1.50~) to the Ctirrent Index. Zhis rate is called the "~lly Indexed Rate". Zhe interest rate will never be gr~ater than ZWenty-Nine peroent (29~). Interest rate changes may be limited for a twelve (12) month t~rn? by addir~g a premitm? of ~ao and One-Half peraea~tage points (2.50g) to the Fully Irxiexed Rate in aooordanoe with the Note secured hereby. The interest rate may be reduoed by establishing and maintaining a designated checking account in ac~oordance with the Note secured hereby. ~fiis rate reduction is called the nPreferred Rate". The new inter~t rate will beccm~e effective on each Interest Change Uate. 'Ihe monthly interest payme.nt will chanqe in aoaordanoe with the Note secured hereby. Each date this change beoGanes effective is called the '~Payment C2~ange Date". Zfie Note Holder will deliver or mail a notioe of any changes in the amount of the monthly payment before the effective date of any change. Zh,at notioe will contain the interest rate or rates applicable to the loan for the month inunediately pr+ec~eding the notioe, or, for the first notioe, since the date of the Note secured hereby. Zhe notice will also ir~clude inforntiation rec~uired by law and the title ar~d telephone nwnber of a person who will answer any questions regarding the notioe. BpRRO~i,TF~2 AND Ia1DII2 cavenant and agree as follvws: 1. ~~I2C.~ ANL) L~SLS. Borrower shall pay all taxes, assessmP.nts, charges, fines ar~d i~itions attributable to the Progerty which may attain a priority aver this Security Instnunent, and leasehold payme~~ts or ground rents, if any. Borrawer shall pay these obligations on time directly to the person awed paym~.nt. BonYxaer shall prrs~tly furnish to I~xider all notices of amounts to be paid under this paragraph, and shall pra~tly furnish to Lender receipts evidencir~g the PaYments. Borrawer shall pra~tly discharge any lien which has priority aver this Security Instmm~ent unless Borrawer: (a) agrees in writi.r~g to the payment of the obligation secured by the lien in a manner aooeptable to Lender; (b) contests in good faith the lien by, or defend.s against enfor~ement of the lien in, legal procee~dings which in the Iender's opinion operate to prevent the enforcement of or forfeiture of any part of the Property; or (c) secures fran the holder of the lien any agreement satisfactoYy to L~nder su}~ordinating the lien to this Security Instnm~ent. If I,ender determines th,at any part of the Pro~erty is subject to a lien which may be attain priority aver this Security Instnmient, Le.nder may give Borrawer a notice indemnifyir~g the lien. Boz~awer shall satisfy the lien or take one or more of the actions set forth abave within 10 days of the giving of ~ notice. 2. ~~ZAI2D IrL~JRl~. Borrawer shall keep the i~rovements nc7w existing or hereafter erect.od on the Prnperty insured against loss by fire, hazaYds included within the term ~~extended caverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Ie.nder requires. 'Ifie in~Curance carrier praviding the insurance shall be chosen by Borrvwer subject to Lender's approval which shall not be unreasonably withheld. All insurance policies and ren~wals shall be aoceptable to Lex~der and shall include a standard mort~gage clause. I~x~der shall have the right to hold the policies and renewals. Borraaer shall prc~ptly to Lender all receipts of paid premiwns ar~d ren~ral notices. In the event of loss, Borrawer shall give prvm~t notice to the insurance ca_~'z'ier ar~d LP..nder. Lender may make proof of loss if not made prc~tly by Borrc~wer. Unless Lender and Bon~cxaer otherwise agree in writir~g, insurance proceeds shall be applied to restoration or repair of the P~aperty damaged, if the restorntion or repair is ecorxxnically feasi.ble or Lender's security is not ~essened. If the restoration or repair is not eoonvmically feasible or Lender's security would be less~ned, the insurance proceeds shall be applied to the stmts secured by this Sec,vrity Instnmie.nt, whether or not ther~ due, with any exoess paid to Bon~awer. If Borrower abatxions the Pro~perty, or does not answer within 30 d,ays a notioe from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insl~ranoe procee~s. Lender may use the proceeds to repair or restore the Property or to pay sums secuz~ed by this Security Instnm~ent, whether or not then due. The 30 day period will begin when the notice is given. -2- sooK 5~6 rnr,E 9y2 . ~ .