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HomeMy WebLinkAbout0612 ; ~ Uti~FOrt~t Covt;vA~TS Borrower and Lender covenant and agree as foliow~s: 1. Payment of Pirincipal And Interest; Prepayment and I.ate Charges. Borrower shall promptly pay when due the principal af and interest on the debt evidenced by the Note and any prepayment and late charges due under the ?~'ote. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, BorroH~er shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") eyual to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insura~ce premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Funds shali be held in an institution the deposits or accounts of which are insured or guaranteed by a federal or state agency (including 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, unle~s ' Lender pays Borrower interest on the Funds and applicable !aw 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 law~ requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender j shall give to Borcower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the i 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. I 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 shall be, ' at Borrower's option, either proinptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not suflicient 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 L,ender. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by I.ender. 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 secured by this Security Instrument. 3. Applieation of Payments. Unless applicable law provides otherwise, all payments received by Lender 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 tast, to principal due. 4. Charges; Lieas. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shail pay these obligations 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 payment. Borcower 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. Borcower 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 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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an agreement satisfactory to L.ender 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 Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set focth above within 10 days ' of the giving of notice. ~ 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property i insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender i requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The ~i insurance carrier providing the insurance shall be chosen by Bonower 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 ctause. ~ 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 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 Bonower. Unless 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 I.ender's security would be lessened, 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 t Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai the insurance carrier has ~ oRered to settle a claim, then I,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 w~ill begin ~ when the notice is given. ~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or ~ postpone the due date of the monthiy 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 Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security~ ~ Instrument immediately prior to the acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantia{ly change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehoid, Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Propert~°, the leasehold and fee title shali not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that ma~~ significantly affect i Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce law~s or ` regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lend ~ghts ! in the Property. Lender's actions may include paying any sums secured by a lien which has priority o~~er this urity g Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender doc~ not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additiona) debt of Borrower secured by this ~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear intere~ ~ from the date of disbursement at the Note rate and shail be payable, w•ith interest, upcm notice from Lender to Bor -ow~er ~ requesting payment. . ~ ~ eoo~ 67~ ~cE 6~2 ~ ~ - - . ~ : ~~-~~.~-~3.,~-~~~