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HomeMy WebLinkAbout1480 . , l'~It c~KtA Ce~vEtiAtiTS Borrower and Lender co~•enant and agree as follow~: • 1. Payment ot Principal and Interest; Prepayment and Late Charges. BorroH~er tihall promptly pay wher. due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under thr'.`~~te. 2. Funds (or Taxes and Insurance. Subject to applicable law or to a written wairer by Lender, Borrow~er shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in fuU, a sum ("Fund.s") eyual to one-twelRh oE (a) yearly taxes and assessments which may attain priority~ over this Security Instrument; (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 etitimate 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 pa~• 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 oP 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 sufficient to pay the escrow items when due, Borrower shall pay to Lender any amount r.ecessary 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. 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 shali promptiy 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 lnstrument 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 gcx~d 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 ta{.e 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 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 providing the insurance shalt be chosen by Borrower subject to Lender's approval which shall not be ~ unreasonabiy withheld. All insurance policies and renewals shall be acceptable to Lender and shali 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 notice to the insurance ~ carrier and Lender. Lender may make proof of loss if not made promptly by Bonower. Unless Lender and 8orrower 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 i 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 ~ 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. ~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or ' ~stpone 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 ~licies and proceeds resuiting E from damage to the Property prior to the acq~isition shall pass to Lender to the extent of the sums secured by this Securit}~ ~ Instrument immediately prior to the acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially ~ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrume7t is on a leasehold, ~ Borrower shali comply with the provisions of the fease, 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 Ri,ghts in the Property; Mortgage Insurance. If Borrower fails to pertorm the covenants and agreem~nts contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proc~eding in bankruptcy, probate, for condemnation or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the vatue of the Propert~~ and Lender's rights in the Property. Lender's actions may incfude paying any sums secured by a lien which has priority over chis Securiey~ i 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. E ~ Any amounts disbursed by Lender under this paragraph 7 shall hecome additional debt of Borrow~er secured by this ~ Securit}~ Instrument. Unless Borrower and Lender agree to other terms of pa~~ment, these amounts shall bear interest from the date of disbursement at the tiote rate and shall be payable, with interest, upon notice fr~m Lender to Borrow~er ~ requesting payment. ~ r ~ `r ~ ~ ~ soo~ 674 P,uE14~~ ~ ~ _ ~~.~~.~~~~~~~~z~~~~:~~~~ ~ .