HomeMy WebLinkAbout0373 l:ti~f c~ky Cc~~'t:tin'~TS Borrower and Lender covenant and agrer as foll~~ws:
1. Payment of Principal and Interest; Prepnyment and I.ate Charges. Horrow~r ~hall prc~mptl~ pa~ ~~hrn dur
the pnnripai of and interest on the debt e~~idenced by the Note and any prepayment and late charges dur under thr \utr.
2. F unds for Taxes and Insurance. Subject to applicable faw or to a written w~aiver hy Lender, F3orrow er ,hal l pa~
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Fundti eyu~1 to
one-tw~elfth oE (a) yearly taxes and assessments which may attain priority over this Securit~~ Instrument; (b) ~~earl~
leasehold payments or ground rents an the Property, if any; (c) Yearly hazard insurance premiums; and (d) ~~rarl~
mortgage insurance premiums, if any. These items are cailed "escrow items." Lender may ~~+timate the Funds due on the
basis of current data and reasonable estimates ot future escrow items.
The Funds shall be heid in an institution the deposits or accouats of which are insured or guaranteed by a federal or
stare agency (including Lender if Lender is such an inst~tutian). Lender shall apply the Funds to pay~ the escrow~ items.
Lender may not charge t'or holding and applying the Funds, analyzing the account or verifying the escrow items, unlesti
Lendes pays Horrower interest an the Funds and applicable law permits Lender to make such a rharge. Horrow~er and
Lender 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, Lender shall not be required to Qay BorroH~er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds show~ing credits and debits to the Funds and the
purpose t'or which each debit to the Funds was made. The Funds 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 monthiy payments of Funds payable prior to
the due dates of ihe escrow items, shall exceed the amount required to pay the escrow items when due, tfie excess shatl be,
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly pa~~ments of Funds. If the
amaunt oi'the Funds held by Lender is not sufficient to pay the escrow items when due, Borrow~er shall pay to Lender any
amount necessary to make up tfie deficiency in one or more payments as required by Lender.
Upon payment in full of a!1 sums secured by this Security Instrument, Lender shall promptly refund to Borrow~er
any Funds held by Lender. If under paragraph l9 the Property is sold or acquired by Lender, Lender sfiall apply, no later
than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held b~~ Lender at the time of
application as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law provides otherwise, al) payments received by Lender under
paragraphs 1 and 2 shall be applied: 6rst, to late charges due under the Note; second, to prepayment charges due und~r the
Note; third, to amounts payable under paragraph 2; fourth, to interest due; and 1ast, to principat due.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Yroperty which' may attain priority over this Security Instrument, and leasehold payments or ground rents, if an}~.
Borrower shall pay these obligations in the manner pravided in paragraph 2, or if not paid in that manner, Borrow~er shall
pay them on time directly to the person owe~ payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph_ If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shaU 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 acceptable to Lender; (b) contests in good
faith the lien 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 forfe~ture of any part of ti:e Properiy; or (c) secures from the holder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any parl of
the Property ?.s subject to a)ien 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 a~ithin 10 days
of the giving of notice.
5. Hazard Insurance. Borcower shall keep the improvements now existing or hereafter erected on the Property
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
~ requires insurance. This insurance shal) 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 renewa{s shall be acceptabie to Ixnder and shall include a standard mortgage clause.
€ Lender shall have the right to ho[d the policies and renewals. If I.ender requires, Borrower shalf 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 loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied ro restoration or repair
9 of the Praperty damaged, if the restoration or repair is economically feasible and Lender's security is ti~ot lessened. If the
~ restoration or repair is not economically feasible or Lender's security would be iessened, the insurance proceeds shall be
~ applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower_ If
~ Borrower abandons the Property, or does not answer within 30 days a nolice from Lender that the insurance carrier has
€ offered to settle a claim, then L,ender 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 wi11 begin
when the notice is given.
E Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal sfiafl 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
`s under paragraph 19 the Property is acquired by Lender, 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 sums secured by this Security
g Instrument immediately prior to the acquisition.
~ 6. Preservation and ;~iaintenance of Property; Leaseholds. Borrow~er shall noi destroy, damage or substantially
~ change the Property, allow the Property to deteriorate or commit waste. If this Securit~~ Ir?strument is on a leasefiold,
' Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehotd and
fee titie shali not merge unless Lender agrees to the merger in writing.
7. Protection of I,ender's Rights in the Property; Mortgage Insurance. If Borrow~er fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proc;eeding that may significantly aHect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for 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 Property. Lender's actions may include paying any sums secured by a lien which has priorit}~ o~~er this Securit}
Instrument, appearing in court, pay~ng reasonable attorneys' fees and entering on the Property to make repairs. Although
; Lender may take action uader this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrow~er secured b}~ this
- Security [nstrument. Unless Borrower and L,tnder agree to other terms of payment, these amounts shali bear i~terest from
; the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrow~er
= requesting pa}~ment. ~ •
eoc~67~ ~?c~ 373
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