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Home My WebLink About1179 ' . l~ti1Fl)R4f COVt:~Ati7s Horn~Wer and Lender cuvenant and agrrr a~ f~?Uu~~~. 1. Payment of Principal and Interest; Prepa~~ment and l.ate Charges. HurruHrr ,h~ll pn~mptl} (~:i\ KI1Ci1 ~UC the pnncipal of aud interest on the debt ev~dence~i by the Note and an~• prrpay mccu and l~tr ~hargt. ciur undrr thr ti~~tr 2. Funds for Taxes And Insurance. Sub~ect to applicable law or to a w~ntten wa~~ er b~ Lendrr, B~~rruHer ~hall pa~ to Lender on the day monthly paymentt are du~ under the Note, until the Note is paid in full, a~um ("Funds") ryu~l tc~ one-twelRh of: (a) yearly taxes and assc~sments which may auain prionty over this Securit~ Instrumrnt; (b) ~•earlg leasehold payments or ground rents on the Praperty, ~f any; (c) yearly hazard insuranre premiums; and (d) yearly mortgage insurance premiums, if any. These items are called "escrow~ items." Lrnder may elhmate the Funds due on the basis of current data and reasonable estimates of future escrow items. 7he t=unds shall be held in an in~tiwtion the deposits or account~ ~~t uhich are in~urrd or gu:iranteed by a federal or ,tate agency (including Lender if Lender is such an institution). l~ender sh~ll appl~~ the Funds to therscruw~ item,, Lender ma}~ not charge for holding and appl~~ing the Funds, anal~•~ing the account ur ~~erif~~in~ the euro~ itcros, unlrss l.ender &~rroN•er interest on the Funds and applicable law• pc:rmits l.endcr to make such a charge. A charge asus.ed b~• I.ender in connertion with f3~rro~•e~' entering into this Securit}~ (nstrument to pa~• the cost af an independrnt tax repurtinK tien~ice shall not be a charge f~x purposes of the prcceding ~entence. BorroH•er and Lendcr ma}~ agrce in wnting that interest tihall tx: i paid on the Funds. Unless an agreement is made ar applicable law reyuires intcrcst to be paid, I.ender shall not be reyuired tu j pa~~ Borrow~er am~ interest or earnings on the Funds. Ixnder shall gi~e to t3urro~er, ~?ithc~ut charge, an annual aecuunting of ' the Funds show~ing credits and debits to the F=unds and the purpo,e for ~chich each debit to thr Funds wa, made. Ihe f~und~ 1 are pledged as additional securit~~ Eor the sum+ urured by this kcunt~• Instrument. 1 If the amount otthe Funds held by Lender, together with the future monthl}~ pa}~menis of Funds payable prior to I~ the due dates of the escrow items, shall exceed the amount required to pay the c~crow 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. lf 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. I Upon payment in ful) 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 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. Application 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, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts ro be paid under this paragraph. If Borrow~er makes these payments directly. Borrower shall promptly furnish ro Lender receipts evidencing the payments. Borrower 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 b}~ the lien ~n a manner acceptable 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 prevent the enforcement of the lien or forfeiture of any part of the Property; or (c) secures from the holder oi the lien an agreement satisfactory to Lender subordinating thr lien to this Securit}~ Instrument. If Lender determines that any part of the Property is subject to a lien which may attain pnority over this Security~ Instrument, Lender ma~~ give Borrower a notice identifying the lien. Borrower shall satisf~~ the lien or take one or more of the actions set forth abo~~e within 10 days of the giving of notice. 5. Hazard Insurance. Borrow~er shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier pro~~iding the insurance shall be chosen by Bo*row~er subject to Lender's approval w~hich shall not be unreasonably withheld. All insurance policies and renewals chall be acceptable to Lender and shall include a standard mortgage clause. ! 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 ~otice ro 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 tc~ restoration or repair ~ of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the ~ ratoration or repair is not economically feasible or Lender's security w~ould be lessened, the insurance proceeds shall be ¢ applied to the sums secured by this Security lnstrument, whether or not then due, with any excess paid to Borrower. If ~ Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has oftered to settle a claim, then Lender may collect the insurance proceeds. Lender ma~ 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-da~~ 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 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 substantially change thc Propertv, allow the Propeny 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 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 may significantly affect Ltnder's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or rcgulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights ~ in the Property. I.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 ~ Lender may take action under this paragraph 7, Lender does not have to do so. ~ Any amounts disbursed by Lender under this paragraph 7 shall become additiv~al debt of Borrower secured by this ~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from ~ the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender ro Borrow~er ~ requesting payment. € ~ ° ~ 674 P~~1~.79 BOGK r ~ ~ : : . ~ _ , ~ - - ~ -~-.;~t ~