HomeMy WebLinkAbout1446 ~;ti1F'ORtit COVEtvA~TS. Borrower and Lender cavenant and agree as follow,:
1. Payment uf Principal and lnterest; Prepayment and I.ate Charges. Borrow~er ~hal) pmmptl~• pay N hen due
the principal ofand interest on the debt evidenced by the Note and any prepayment and late charges due under thr \ote.
2. Funds fo~ Taxes and lnsurance. Subject to applicable law~ or to a written waiver by Lender, Borrow•er ~hall pa~~
to Lender on the day monshly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelRh of: (a) y~early taxes and assessments which may attain priority o~~er this Security lnstrument; (b) yearly
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly
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 or
state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items.
Lender 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. Borrower 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 Borrow~er any interest or earnings on the Funds. Lender
shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and 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 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 L.ender is not sufficient to pay the escrow items when due, Borrower shal! 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 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. Applicadon of Payments. l~nless applicable law provides otherwise, all payments received by l.ender 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. Borcower 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 iFnot 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 promptly discharge any lien which 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 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 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.
5. Hazard Insurance. Borrower shall keep the improvements now~ existing or hereafter erected on the Property
insured against loss by fire, hazards included within t~e term "eztended 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 shall be chosen by Bonower 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 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 gi~~e 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 proceecls shali 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 dces not answer within 30 days a notice from Lender that the insurance carrier has
y offered 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 will begin
~ when the notice is given.
i 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 the Properiy, allow the Property to deteriorate or commit waste. [f 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 significantl~~ affect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemna;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 rights
in the Property. Lender's actions may include paying any sums secured by a lien w~hich has priority over this Security
s Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property ro make repairs. Although
~ Lender may take action under this paragraph 7, Lender dces not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrow~er secured b}• 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 inierest, upcm notice from Lender to Borrower
requesting payment.
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