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HomeMy WebLinkAbout2536 t; ~ ~FC~Ktit Cc~vetiA!~TS Borrow~er and Lender covenant and agree as folluwti: 1. Payment o[ Principal and Interest; Prepayment and I.ate Charges. BorroHer +hal1 prumptly pa~ ~hen due thr pnnripal of and interest on the debt evidenced by the Note and any prepapment and late charges due under thr tiotr. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waivrr by l.ender, Borrower shall pa~ to Lrnder on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") eyual to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly leasehold payments or ground rents on thr Property, if any; (c) Vearly hazard insuranre 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 futu~e escrow items. The Funds shall be hetd 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 shali apply the Funds to pay the escrow items. Lender may not charge for holding and applying the Funds, analyring 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. A charge assessed by Lender in connection with Borrower's entering into this Security Instrument to pay the cost o[ an independent tax reporting service shall not be a charge for purposes of the preceding sentence. Borrower and Lender may agree in writing ehat 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 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 w~as made. The Funds are pledged as additional security for the sums secured by this Security Instrument. If the amount of the Funds hela 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 I.ender is not suffecient 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 ail sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. lf 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. Appiication 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 shatl pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrow•er 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 rec:eipts 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 oi'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 L.ender 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. Ha~rd Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against toss 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 Borrower 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, Bonower 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 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 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 ezcess 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 I,ender may collect the insurance proceeds. Lender may use the proceeds to repair or restore ~ the Praperty 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 ~aragraphs 1 and 2 or change the amount uf the payments. If g under paragraph 19 the Property is acquired by Lender, Borrower's right to any insurance ~licies and proceeds resulting ~ from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured b}~ this Security ~ Instrument immediately prior to the acquisition. 6. Preservation and :~isintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially ' change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold. Borrower shall comply with the provisions otthe lease, and if Borrower acquires fee title to the Property, the leasehold and r fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; liortgage 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 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 which has priority over 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 additioral debt of Borrou~er secured b}~ this ~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shail bear interest from ~ the date of disbursement at the Note rate and shall be payable, a~ith interest, upon notice from Lender to Borrouer requesting payment. t Eoo~~674 PAGE25~6 ~ ~ - - ~ ~ - - - ~ , ~ ~ ~~~~v; . ~ - ~d; ~ . .