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HomeMy WebLinkAbout2403 ~ , ~ l'~It c~1t~~ C~~~'Eti~tiTS Bc~rrower and Lender covenant and agree ati follo~,: 1. Yayment of Principal and Interesh Prepayment and Late Charges. IIorn~~~rr ~hall prumptl~ pa~• ~~hrn du~ the principal of and interest on the debt evidenced by the Notr and any prepayment and latr ~harge~ due under thr \,~te. 2. Funds for 1'axes and Insuranee. Subject to applicabie law or to a written wai~er b}~ Lender, I3orroNer ~hall ~ay tu Lender on the day monthly payments are due under the Note, until the Note is paid in full, a~um ("Funds") eyual to une-twelfth af: (a) y~early taxes and assessments which may attain priority o~•er this Sc~urity In~trument; (h) ~~rarly le:~sehold payments ar ground rents on the Property, if any; (c) }~early hazard inturanre premiums; and (d) }~earl} mortgage insurance premiums, if any. These items are called "escrow items." Lender ma~• e~timate the Funds due on thr basis of current data and reasonable estimates of future escrow items. The Funds shall be held in an instiwtion the deposits or accounts of which are insured or guaranteed b}~ a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Fund~ to pa}• the escrow items. Lender may not charge for holding and applying the Funds, analyzing the account or verif~~ing the escrow items, unlesti 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 ihat interest shall be paid on the Funds. Unless an agreement is made or applicable laH• requires interest to be paid, Lender shall not be required to pay BorroW~er any intere~t 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 the Funds was made. The Funds are pledged as additional security~ for the sums secured b~~ this Security Instrument. If the amount of the Funds held by Lender, together with the Cuture monthly payments of Funds pay~able 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 w~hen 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 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. Applieation of Payments. Unless applicable law provides otherwise, all payments received by I.ender under II 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. Borrawer 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 paragrapn 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrov?er 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 [.ender'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. [f Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrow~er 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 hereaiter erected on the Propert}• 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 shall be chosen by Barrower subject to Lender's appro~~al which shall not be unreasonably withheld. All insurance policies and renewals shall be acceptable to Lender and shal) 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 i all receipts of paid premiums and renewal notices. In the event of loss, Borro~~er 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 proceeds shall be applied to restoration or repair i 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 Borrow•er. 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 i 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. ~ 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 s under paragraph 19 the Property is acyuired by Lender, Borrower's right to any insurance policies and proceeds resulting ~ fmm damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured b}~ this Securit}• ~ Instrument immediately prior to the acquisition. ~ 6. Preservation and Ltaintenance of Property; Leaseholds. Borro~cer shall not destroy~, damage or substantially~ ~ change the Property, allow the Property to deteriorate or commit w•aste. If this Securit}• Instrument is on a leasehold, , r Borrow~er shall comply with the provisions of the lease, and if Borrow•er acquires fee title ro the Propen}~, the leasehnld and fee title shall not merge unless Lender agrees to the merger in w•riting. 7. Protection of Lender's Rights in the Property; :~iortgage Insurance. If Borrow~er fails ro perform the covenants and agreements contained in this Security Instrument, or there iti a legal pr~eeding that may significantl}~ affect Ler.der's rights in the Property (such as a proceeding in ~ankruptcy, probate, for condemnation or to enforce law~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 w•hich has priority over this Securit}~ ~ Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Pro~rt}~ ta 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 Borrow~er secured b}~ this Security Instrument. Unless Borrower and Lender agree to other terms of pa~~ment, these amounts shall bear interest fmm the date of disbursement at the Note rate and shall be pa}~able, with interest, u~n notice fr~m Lender to Borrc~wer ~ requesting payment. ~ ~ ~ ~ € ~ . b00~4 67~ PA~E~~OJ ~ - _ ; - - - _ , ~ ~ ~ „ ~ .