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HomeMy WebLinkAbout1430 Lti1fc~R~tCc~vE~.4NTS Bc~rrow~erandLendercu~~enantandagreeasfollow.: ' 1. Payment oi P~incipal and Interest; Prep,:yment and I.ate Charges. Borrow~er tihall prumpti~~ pa}~ whrn due ihr pi incipal of and interest on the debt e~~idenced by the Note and any prepayment and late charge~ due under the ?~ote. 2. Funds for Taxes und lnsurance. Subject to applicable law or to a written waiver by Lender, Borrow•er shali pay tu Lender on the day monthly payments are due under the Note, until the Note is paid irt full, a sum ("Funds") equal to one-twelfth of: (a) yearly taxes and assessments which may attain prioritp over this Security Instrument; (b) yearly leasehold payments or ground rents on the Pruperty, if any; (c) yearly hazard insurance premiums; and (d) yearl}~ mortgage insurance premiums, if any. These items are called "escrow items." Lender may estimate 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 of which are insured or guaranteed by a federal ar state agenc~ (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the esrrow items. Len~er may not charge for holding and apPlying the Funds, 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. Borrow~er and Lender may agree in writing that interest shall be paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on t6e Funds. Lender shall give to Borrower, without charge, an annual acco~nting of the Fur.ds showing credits and debits to the Funds nnd the purpose for which each debit to the 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 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 shatl 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 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 Borroa~er any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shall appfy, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds hetd 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 recei~~ed by l.ender under paragraphs 1 and 2 shal) 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 leasehotd payrnents or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or iP not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shal! promptly furnish to Lender all notices of amounts to be paid under this paragraph. ]f Borrower makes these payments directly, Borrower shall-promptl~~ furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument uniess 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 of the lien in, lega! proceedings which in the Lender's opinion operate to prevent ihe 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. lf Lender determines that any part of 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 of the giving of notice. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereatter erected on the Property insured against loss by fire, ha2ards 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 providing the insurance shal! be chosen by Bonower subjeci to Lender's approval which shall not be unreasonably withheld. All insurance poiicies and renewals shatl be acceptable to Lender and shall include a standard morigage 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 notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptty 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 feasibte and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender s securiiy 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 affered to settle a claim, then Lender may collect the insurance 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 witl i~egin w~hen 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 ihe 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 acquisit~on 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. Borrow•er shal! not destro}•, damage or substantially change the Property, allow the Preperty to deteriorate or commit waste. If this Security Instrument is on a teasehold, 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 Borrow~er fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly~ affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laa~s or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property~ and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority o~~er 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 additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms o}'payment. these amounis shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice fr~m Lender to Borrow~er requesting payment. ~a~cb ~4 ~ac~14~~' - - ~.,~s.y-~-~. ~_.~~-'t~.,~~:~~~x , .