HomeMy WebLinkAbout0926 L'wIFORM CovE~A'vTS AorroW ~r and l.ender co~enant and agrrr a. ti~liuw ti:
1. Payment of Principa) end lnterest; Prepayment and l.ate Charges. BorroNrr ~h:~ll pr~~mp11~ pa~ whrn dur
the principal of and interest on the debt evidenced by the Note and any prepa~ ment and I;~te chargr, due under thr 'V~~tr. ~
2. Funds for Taxes and Insurance. Sub~ect to applirable law• or to a wntten w~a~~ er by Lender, B:~rruw~rr shall pa~ `
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a~um ("Fund~") ryual to :
one•tweUth of: (a) yearly taxes and assessments which may~ attain priority over this 5ecunt~~ ln~trument; (b) yearly
leasehoid payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums, and (d) ~~earl~~
mortgage insurance premiums, if any. These items are called "escrow items." Lender may rst~mate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be held in an institution the deposits or accounts ol which are insured or gu:iranteed by a federal or
state agency (including l.ender if Lender is such an institution). l.ender ~hall appl~~ the Funds to the:scrow items. l.ender
mdy not charge for holding and applying the Funds, analyl~ng the account or ~•~erifying the escroN~ items, unless l.ender pay~
t3ezrro~•er interest on the Funds and applicable law permits l.ender to make such a charge. A charge assessed b}• I.ender in
connection w•ith BorroN•ers' entering into this Security~ Instrument to pa~~ the eost of an independem tax reponing ser~~ice
.hall not be a charge for purposes of the preceding sentence. Borrow•er and Lender may agree in W~riting that interest shall be
paid on the Funds. Unless an agreement is made or applicable law reyuires interest to be paid, Lcnder shall not be reyuired t~~
pa~~ &~rrower an}~ interest or earnings on the Funds. l.ender shall give to Borrower, without charge, an annual accounting ol
the Funds show~ing credits and debits to the Funds and the purpase for Hhich each debit to the t=unds a~as made. lhe Fund~
are pledged as additionaf securitJ• for the sums secured by this Securit~• In~trument.
[f 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 promptly 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 d~e, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or more payments as required by Lender.
Upon pavment in full of all sums secured by this Security Instrument, Lender shall promptty 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 secured by this Sec:urity 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 last, to principal due.
4. Charges; Liens. 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 shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrow~er shall ~
pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender al( 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 promptly discharge any lien w•hich has priority over this Security Instrument unless Borrower. (a)
agrees in writing to the payment of the obligation secured bp 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 an ~ art of the Pro rt - or e secur fro
II~; } O es m the holder of the lien an
P Pe Y.
agreement satisfactory to Lender subordinating the lien ro this Security Instrument. [f Lender determines that any part of
i 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 forth above within 10 days
i of the gi~•ing of notice.
j 5. Hazard Insuranee. Borrower shall keep the improvements now existing or hereafter erected on the Property
i insured against ioss 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
insurance carrier providing the insurance shall be chosen by Bo~row~er subjert to Lender's approval which shal) not be
; unreasonably withheld.
; All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
f Lender shail have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
; alt 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 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 Borrower. If
Borrower abandons the Property, or does not answer within 30 days a notice from Lender thai the insurance carrier has
offered to settle a claim, then L.ender may colleci the insurance proceeds. Lender ma~ use the proceeds to repair or restore '
the Property or to pay sums sec~red by this Security Instrument, whether or noi 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 monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If ~
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under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulti~g
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 substantiafly
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
fee title shall not merge unless Lender agrees ro the merger in writing. ~
7. Protection ot 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 may significantly aff'ect ~
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemn~ion 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 Fights -
in the Property. Lender's actions may include paying any s~ms secured by a lien which has priorit `over this Security
Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to ma~e repairs. Although
Lender may take action under this paragraph 7, Lender does not have to do so.
Any amounts disbursed by I.ender under this paragraph 7 shall become additional debt of Borrower secured by this
Security Instrument. Unlas Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
the datt of disbursement at the Note rate and shall be payable, with' interest, upon notice from Lender to Borrower
requesting payment.
BOOK 674 PAGE 926 "
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