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HomeMy WebLinkAbout0987 ~ l~~~F~~k~t Ce~~'F.\A\TS Borrower and Lenderrovenant and ~gree as follc~w.: ' 1. Pa~~ment uf Principal and Interest; Prepayment and Late Charges. Borro~er tihall pn~mptl~ pa~ whrn due thr ~rincipa! of and interest on the debt evidenced by the Note and any prepayment and late charg~s dur w~der the tiute. 2. Funds for Taxes and Insurance. Subject to applicabte law or to a written waiver b}• Lender, BorruH er tihal! p~~~ to Lender on the day monthly payments are due under the Note, until the Note i~ paid in full, a tium t"Funds") eyual to one-twelRh of: (a) yearly tazes and assessments which may 3ttain priority over this Securit~~ Instrument; (b) yearl}• , leasehuld payments or ground rents on the Property~, if any; (c) }•early hazard insurance premiums; and (d) y~earl~~ mortgage insurance premiums, if any. These items are called "escmw items." Lender ma}~ e.timate the Funds due on the basis of current data a~d reasonable estimates of future escrow items. The Funds shall b~ held in an institution the deEx~sits or accounts of which are insured or guaranteed bS~ a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the c~crow~ items. Lender may not charge for holding and applying the Fu~ds, analyzing the account or verifying the escrow items, unless Lender pays Borrower 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 laH~ reyuires interest to be paid. Lender shail noi be required to pay Borrow~er any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fur.ds showing credits and debits to the Funds and the purpose for which each debit to ihe 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 mon~hty 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 sufficient 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 by Lender. If under paragraph 19 the Property is sald 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. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: 6rst, to late charges due under the Note; second, to prepayment charges due under the Note; third, to amounts payable ~nder 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 graund rents, if any. ~ Borrower 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 alf notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borroa•er shall promptly furnish to Lender rec:eipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borroa~er: (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 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 lnstrument, 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 g ; of the giving of notice. 5. Hazard Insurance. Borrower shall keep the improvements now~ existing or hereafter erected on the Property i j insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender ; r 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 Borrower 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 mongage clause. ~ ~ Lender shall have the right to hold the policies and renewals. If L.ender requires, Borrower shal! promptly give to Lender = ; all receipts of paid premiums and renewal notices. In the event of loss, Borrower sha(1 gi~~e prompt notice to the insurance ; ' carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. a 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 that the insurance carrier has ~ ofi'ered to settle a claim, then Lender may collect the insarance 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 ~ w•hen the notice is given. ~ ~ Un(ess Lender and Borrower otherw~ise 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. tf ~ under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance ~{icies and proceeds resulting ; from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b}~ this Security i ~ Instrument immediately prior to the acquisition. ~ ~ 6. Preservation and ~liaintenance of Property; Leaseholds. Borrow~er shall not destroy, damage or substantiall~~ i ~ change the Property, allow the Property to deterio~ate or commit w•aste. If this Security Instrument is on a leasehold, € Borrow~er shall comply with the pro~~isions of the lease, and if Borrow~er acquires fee title to the Propert}~, the leasehold and fee title shall not merge unless Lender agrees to the merger in w•riting. 7. Protection of Lender's Rights in the Property; ~lortgage Insurance. If Borrow~er fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal prcxeeding that ma}~ significantl~~ affect Lender's rightc in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender ma}~ do and pay for whatever is necessary ro protect the ~~alue of the Propert}• and Lender's rights in the Propert}~. Lender's actions ma}• include paying any sums secured by~ a lien which has priorit}~. over this Securit~~ s 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 dces not ha~•e to do sa I ' Any amounts disbursed b}• Lender under this paragraph 7 shall become additional debt of Borrow~er secured by this ~ Security Instrument. Unless Borrow~er and Lender agree to other terms of pa}~ment, these amount~~ shall bear interest from ~ ~ the date oF disbursement at the Note rate and shall be pay~able, with interest, upon notice fmm Lender to Borr~~~er ; ~ requesting payment. ! i F f go~K 674 ~~E 987 [ ~ . ~ _ . . _ . . . " ' :II'~"~ ~„'v yl-""~ - '~'"EP y t ~ ~`z~C~~cv.`~•xrsz'2 °~"-~'~:~~~~'~i+~~~..~~i~~~~~m .