HomeMy WebLinkAbout0866 U'vIFOR!~t COVF:'vA~is Hurrc~~rr and Lender co~~enant and agrr~ fc+ll~ntiti:
1. Payment of Principal and Interest; PrepAy'ment and Latc Charqes. BurruHer ,h:~li prumptl~ ~a~ wh~n dur
the pnncipal of and interest an the debt evidenced by the Note and an~• prepa~ mrnt and late ~~h:~rge~ due undrr ihe tiu~e
2. Funds forTaxes and Insurance. Sub~ect to applicable laK~ ur to a v?•n~ten wai~cr b~~ Lender, Borrowrr tihall pay
to Lender on tt?e day monthly payments are due under the Note, until the Note ~s paid in fuil, a Lum i"Funds") ryuai to
one-twelfth of: (a) yearly taxes and assessments which may attain prio~iry aver this Securit~~ Instrument; {b) y~early
leasehold payments or ground rents on the Property, if any; (c) yeariy h~zard in~urance prrmiums; and (d) yearl}~
mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Fw~ds due on the
basis of current data and reasonable estimates of future escrow items.
Tl?e Funds shalt be held in an institution the dc~wsits or accounts ot which arc imurrd ar guaranteed hy a(ederal ur
state agency (including Lender if l.ender is such an institutian). l~ender shatl apply the Funds to pay the escrow item~_ t.ender
ma}• not charge for holding and appl~~ing the Funds, analyzing the account or ~erif~-ing the escrow items, unle`s I_ender ~?a~~~
BorroH•er interest an the Funds and appGcable laH permits t.ender to make such a charge. A charge asse,+ed b}• Lender in
a~nnection w•ith f3orroH~ers' entering into this krurity Instrument to pa}~ the cost of an independent tax reporting sen ice
shall not be a charge for purFx~ses of the preeeding sentence. &~rrower and Lender may agrez in w~riting that interest shall be
paid on the Funds. Unleis an agreement is made or applicable law~ reyuin~ interest to hc paid, Lender ~halt not tx: reyuired to
pa}~ Borrow~er am~ interest or earnings on the Funds. l.ender shall gi~~e to Borrower, µ~ithout charge, an annual accounting of
the Funds show~ing credits and debits to the F=unds and the purpose for which each debit tu the Fund~ Nas made. ~lhe Funds
are pledged as additional securit~• for the sums sc:cured b}~ this Se~uritr lnstrument.
IP 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, sfiall exceed the amount required to pay the esr.row items when due, the excess shall be,
at Borrower's option, either promptly repaid to Borsower or credited to Borrower on montfily payments of Funds. [f the
amount of the Funds held by Lender is not sufficient to Qay 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 heid by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall apply, no later
than immediately Qrior 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 lnstrument.
3. Application of Payments. Unless applicable law provides otherwise, al! 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; i'ourth, to interest due; and last, to principal due.
4, Charges; Liens. Borrower shal{ 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 shall pay these obligations in the manner provided in paragraph 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 shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall prom~tly discharge any lien w•hich 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 ~f the lie~ 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 Lender subordinating the lien to tfiis Security Instrument. If Lender determines that any part of
the Property is subject to a lien which may attain priority over this Security lnstrument, Lender ma~~ give Borrower a
notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days
oi the giving of notice.
S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property
! insured aga~nst loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
~ requires insurance. This insurance shal[ be cnaintained in the amounts and for the periods tfiat Lender requires. The
~ insurance carrier providing the insurance shall be chosen by Bo~row~er subject to Lender's approval which shall not be
unreasonably withheld.
j Ait insurance policies and renew~als shall be acceptabte to Lender and shall include a standard mortgage clause.
; Lender shalt have the right to hofd the poticies 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 sha11 give prompt notice to tfie 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 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
~ cestoration or repair is not economicatly feasibte or Lender's security would be lessened, the insurance proceeds shall be
apptied to the sums secured by this Security Instrument, whether or not tfien due, witfi any excess paid to Borrower. If
~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
oRered to settle a claim, then Lender may collect the insurance proceeds. Lender ma~ use the proceeds to repair or restore
~ the Propeny or to pay sums secured by this Security (nstrument, w~hether or not then due. The 30-day period will 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 monthfy 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. Preservsttioe and Maintenance of Property; Leaseholds. Borrower shal) not destroy, damage or substantially
~ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold,
` Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehold and
;ee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of Lender's Rights in the Property; Mortg9ge Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly afTect
; Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce iaws or
` regulations), then I.ender may do and pay for whatever is necessary to protect the value of the Property and L:ender's rights
in the Property. L.ender's actions may include paying any sums secured by a lien which has priority over this Security
= Instrument, appearing in court, Paying reasonable attorneys' fees and entering on the Property to make repairs. Although
~ Lcndcr may take action under this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed by Lender under ihis paragraph 7 shail become additional debt of Borrower secured by this
~ Security Instrument. Unless Borrower and Lender agree to other terms of Qayrrient, these amounts shal{ bear ~nterest from
~ the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
~ requesting payment.
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