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HomeMy WebLinkAbout0551 ~ ~ 1' T ~ ~ . ~ . ~ . w~ . j- r 1t~-. f ~Nlf•URM COVt:NAN"TS. l3urruNrr and Lender ru~rnant and agrer ;ss Iollow~: 1. Pa~men~ ot Principd yod Intercsl; Prcpa~meat and l.ate CAarQes. KurroNer ~hall prumptty pay when due thr prinripal ui ar.J ~ntrrest on the debt evidenced by the Note and any prepayment and late chargec duG under the Note. 2. }'unds tor Taxes aad Insumnct. Subjert to applicable law or to a written waive? by Lender, Borrower shall pay to l.ender vn the day monthly payments are due under the Note, untii the Noi~ is paid in full, a sum ("Funds") eyual to onr-tweifth of: (a) ~~early~ taxes and assessments which may attain priority over this Security Insuumenr, (b) yearly leasrhold payments or grounJ rent~ un the Property, if any; (c) >•early hazard insurance premiums; and (d) yearly mortgage insuranre premiums, if any. Th~se items are called "escrow items." Lender may estimate ~he Funds due on the basis of current data and reasonable estimates of future escruw items. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agenry (inciuding Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrow•er interes[ on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable !aw requires interest to be paid, Lender shall not t~e required to pay Borrower any interest or earnings on the Funds. Lender shall gi~•e to Borrower, without rharge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shali be, at Borrower's option, either promptly repaid to Borrower or rredited to Borrower on monthly payments of Funds. If the amount of 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 the deficiency in one or more payments as reyuired by Lender. Upon payment in full of ali sums secured by this Security Instrument, Lender sha11 promptly refund to Borrower any Funds held by Lender. If 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 Lender, any Funds held by Lender at the time of application as a credit against the sums se~:ured by this Security Instrument. 3. Application of Paymeats. Unless applicable law provides otherwise, all payments recei~•ed by Lender under paragraphs 1 and 2 Should be applied: first to amounts payable under paragraph 2: second to interest; and last to principal. ~ 4. CharRes; Litns. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which ma~• auain priority over this Security lnstrument, and leasehold payments or ground rents, if any. Borrower shall pay these obliga- tions in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed pa~ment. Borrow•er shall promptly furnish to 1_ender all notices of amounts to be paid under this paragraph. If Borrow~er ~ makes thzse payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. ~ Borrower shall prompdy discharge any lien which has priority over this Securiry Instrument unleas Borrower: (a) agrees in E xri~ing 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, lega! proceedings which in the Lender's opinion operate to prevent the enforce- ~ ment of the lien or forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to Lendcr subordinating the lien to this Security Instrument. If Lender determines that any part of the Property i~ subject to a f lien which may attain priority o~~er this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower Shal1 satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. ~ 5. Hazard Insurancr. l3orrower shall keep the improvements now existing or hereaf[er erected on the Property insured against ~ io~s by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the ~ insuranc~ shall be chosen by Borrow~er subject to Lender's approval which shall not be unreasonably withheld. ~ Alt insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall ~ ha~r the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid ~ p~rmiums and renewal notices. In the event of loss, Borrow-er shall give prompt natice to the insurance carrier and [.ender. Lender j may make proof of loss if not made promptly by Borrower. ~ [)ntess 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. tf the restoration ' or repair is not economically feasible or Lender's security would be (essened, 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 Proper- ~ ty, or dozs not answer w~ithin 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender k may collec~ 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 will begin when the notice is gi~•en. ~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principa! 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, Borrower's right to any insurance policies and proceeds resulting from damage to the Pro- ~ pert}• prior to the acyuisition shall pas~ to Lender to the extent cf the sums secured by this Security Instrument immediately prior ~ to the acyuisition. ~ 6. Preser~ation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially change the ~ Property, allow the Property ro deceriorate or commit waste. If this Security Instrument is on a leasehold, Borrow~er shall comply F with the pro~isions of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. 7. ProtecGon uf Lender's Rights in the Property; Murigage lnsurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (S~rh a~ a proceeding in bankruptcy, probate, for condemnation or ro enforce laws or regulations), then Lender may do and pay fur Hhatever is nece~sary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying an} sum~ se~ured b~ d lien which has priority over this Security Instrument, appearing in court, paying reasonab!e attorneys' lee, and entering un [hr Pr~perty co make repairs. Although Lender mdy take action under this paragraph 7, Lender does not ha•.r to do so. t G ~ t ~ eoo~ 67~ ~cE 55i _ _ p,- - ~ - .~~~mr ~ ,~k,-:~ - ~