HomeMy WebLinkAbout2417 l~'NIFONh1 COVENAtiTS AurroHer and Lender ro~~enant and agrrr fullo~~ti:
1. Payment ot Principal a~d lnterest; Prepayment and Late Charges. Horrower .hall prumptl~ pay w hen due
the principal of and ~nterest on the debt evide~ced by the Note and any prrpa} mrm and I~tr ~ hargeti due undrr the tiote
2. Funds tor Taxes And Insurance. Sub~ect to applicable iaw ur to a w~ntt~n w~i~er by~ Lender. Horrow~er,hall pa}
to Lender on the day monthly payments are due under the Note, until the Nc~te ~t paid ~n full, a sum ("Funds") eyual to
one-twelfth of~ (a) yearly taxes and assessments which may attain priority over ihis Secunty lnstrumem; (b) }~early
leasehold payments or ground rents an 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~ rstimate the Funds due on the
basis of current data and reasonable ~timates of future escrow items.
The Funds shall be held in ~an in~titution the deposits or acc:ounts ot w•hich are insurcd ar guaranteed b~• a federal ~ir
~tare agency (including l.ender if Lender is such an instiwtion). (xnder shall apply the Funds to par theescroH~ items. Lender
ma~• not charge for holding and appl}~ing the Funds, anal~~ring the account or ~~rrifying the escrou~ items, unless l.ender pa~•s
E3orrow~er interest on the Funds and applicable law~ permits Lender to make such a charge. A charge assessed b~~ Lender in
connection with Borrow~ers' entering into this Securih~ Instrument to pay the cost of an independent tax reporting sen~ice
shall not t?e a charge for purposes of the preceding senten.e. f3orrow~er and Lender may agree in wnting that interest shall tx:
paid on the Funds. Unleu an agreement is made or applicable IaH• reyuirc,~ interest to be paid, I.ender shall not be reyuired to
pay ~rrow~er an~~ interest or earnings on the Funds. Ixnder shall give to t3~~rro~~er, w~ithout charge, an annu:~l accounting uf
the Funds showing credits and debits to the F=unds and the purpose for w~hich each debit to the F=unds Nati made. 'Ihe F~und~
are ptedged as additional security for the sums secured b~~ this Securit~~ Instrument.
If the arinount 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. lf the
amount of the Funds held by l.ender 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.
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, an~• Funds held by Lender at the time of
application as a credit against the sums secured by this Security lnstrument.
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
to be paid under this paragraph. If Borrow•er 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 f~rfeiture 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 lnstrument, Lender may give Borrower a
notice identifying the lien. Borrower sha11 satisfy the lien or take one or more of the actions set forth ab.~ve within 10 days
of the giving of notice.
' S. Hazsrd 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 reyuires. The
i insurance carrier providing the insurance shall be chosen by Bo~row~er cubject 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
I all receipts of paid premiums and renewal notices. In Ihe event of loss, B~rrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
; Unless L.ender 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 ('easible 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
apptied to the sums secured by this Security Instrument, whether or not then due, with any eacess paid to Borrower. If
Borrower abandons the Property, or does not answer within 30 days a noticz from Lender that the insurance carrier has
offered 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-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
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 Propeny, allow the Property to deteriorate or commit vvaste. [f this Security Instrument is on a leasehold,
t Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Property, the leasehotd and
fee title shafl 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 aflect
c. Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
~ regulations), then Lender may do and pay for whatever is necessary to protect the value of tne Propeny and Lender's rights
~ in the Property. Lender's actions may indude paying any sums secured by a lien which has priorit~, over this Security
~ Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repeirs.•Altfiough
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 of payment, these amounts shall bear interest from
the date of disbursement at the Nott rate and shall be payable, with interest, upon notice from Lender to Borrower
~ requating payment.
~ OR
; BOOK~7~ PaGE212j,
BooK6~4 PAGE24~.7
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