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HomeMy WebLinkAbout0664 • l ~ l'~IFC~R~t Corf:~A~TS Borrow•er and Lendercovznant and agree as fi~lb~~s: 1. !':~~ment of k'rincipal and Intcresh Prcpa~~ment and [.ate CharRes. I3arro~~rr ~hail rromptly ra~~ ~~hen due the pnnripal uf and intrrrst on the clebt evidencee! by ~he Note and any prepa~~ment and latr rhargeti dur unJ~r thr \ote. 2. ~unds for Taxes and Insurance. Subject to applicable law or to a written waivrr by Lender, f~~xruH er tihaU ~ay so Lrnder on Ihe day munthly payments are due under the Note, until the Note is paid in full, a~um ("Fundti") equ~l to cme•~~velf~h of: (a) yearly taxes and assrssments which may attain priority ov~r this S~~:urity Instrumrnt; (b) ~•early , leasehold pa~•ments or ground rents on the Property, if any; (c) yearly hazard insurance premiumti; and (d) yearly moriga~e insurance premiums, if any. These items are called "escrow items." Lcnder ma}• cstimate thr Funds due on the basis uf currenl data and reason;~ble estimatcs of fuwre escrow items. The Funds shall be held in an inslitution the de~sits or accounts of ~i•hich are insured or guarantred b~~ a fcdcr:~l or stete agcncy (including Lender if Lender is such an institution). Lender shall apply thr Funds to pay the escro~v items. Lender may not charge for holding and applying the Funds, analyzing the accaunt or ~•erifying the escrow iterns, unless Lend~r pays E3orrower interest 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 law requirrs interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lendcr shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the purposr for ~~•hich each debit to the Funds was made. The Funds are pledged as additional security for the sums securcd by this Security lnstrument. lf the amount ot the Funds held by Lender, together with the future monthly payments of Funds pa}~able prior to the dur dates of the escrow items, shalt exceed the amount required to pay the escrow items when due, the excess shall be, at E3orro~ver's option, either promptly repaid to Borrower or credited to Borro~ver on monthly payments of Funds. If the amount of the Funds held by Lender is not suti'icient 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 Lender. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held b~~ Lender. If under paragraph 19 the Property is sotd 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 appliration as a credit against the sums secured by this Security lnstrument_ 3. Applieation of Payments. Unless applicable law provides otherwise, all paymcnts received by Lendrr 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 last, to principal due. 4. Charges; Liens. Borrower shalt pay all tazes. assessments, charges, fines and impositions attributable to the Property H~hich may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borroµ•er shall 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. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shal) promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priarity over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner accepta5le to Lender; (b) contests in good ~ faith the lien by, or defends against enforcement of the lien in, legal proceedings w~hich in the Lender's opinion operate to ~ pre~ent 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 Lender 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 Borro~~•er a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above w•ithin 10 days of the giving of notice. i 5. Nazard 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 ~~~hich Lender ~ requires insurance. This insurance shalf 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. ; i All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ' i Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly gi~•e to Lender ? , all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance i ' carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ 4 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 Lender'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 Borrov+•er. If ~ ~ IIorrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ~ ~ offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore ~ ~ the Propert}• or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin o ~ when the notice is giren. ; ~ Unless Lender and Borrow•er otherwise agree in writing, any application of proceeds to principal shall not extend or ~ post},one 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 Property prior to the acquisition shall pass to Lender to tt~e extent of the sums secured b~• this Security ~ Insirument immediately prior to the acquisition. 6. Preservation and ~taintenance of Property; L,caseholds. Borrow~er shall not destroy, damage or substantially ~ change thc Yroperty, allow the Property to deteriorate or commit waste. If this Se~urity Instrument is on a leasehold, E3orrow~er shall comply w~ith the pro~~isions of the lease, and if Borrower acquires fee title to thr Ym~ert}•, the leasehotd and fee title ~hall not merge un~ess Lender agrees to the merger in writing. % 7. f'rotection of Lender's Rights in the Property; ~1ort~aRe Insurance. If I3arrow~er fails t~• ~crf~,rm the co~•rnants and agreements contained in this Security Instrument, or ihere is a legal ~rocerding that may tiignihcanth~ atTrct Lender's rights ~n the Property (such as a proceeding in bankruptcy, prob:~te, for cundemnation ur to enlorce la~~: or regulation+), then Lender may do and pay for whatever is necessary to protect the v~lur af the Yro~ert~~ and 1_ender's rights in the Pru~rty. Lender's acti~ns may include paying any sums secured b~~ a lien w•hich h:~s rriant~ o~er this Serurity f in~trument, appearin~t in cuurt, paying reasonable attorneys' fees and entering cm the 1'rc~pert~~ to makr re~~irs. Althuugh i ~ Lender ma~~ take action under this raragraph 7, Lender does not ha~~e to da co. ~ An~~ ~m~unt, dirbursed by Lcnder under thie raragrapfi 7~hall bec~mr additi~nal deht ~f B~~rmuer .e~ured h~~ this ~ Serur~t~ ln~~rum~nt. Unlr.~ Borrow~cr and Lendcr agrec to other terms of ~+a~~mrnt, thrtie ame~unts,hall t~ar ~nterc~t irom ~ thr d:?tr c~f disbursement at thr N~~te rate and shall be rayable. with intrrest, uFx~n not~ce from Lender to Borrower ~ requesting ~a~•ment. , ~ 20C~ `t~~ 'r:'. 2~6 . ~ ~OOK U7~ PACE VU~ ~ ~ z~~, U -.N C~,.~~ ~~--N r ,zL .