HomeMy WebLinkAbout2701 ~ , .
I;tiIFOk!NC(1~'EtiAtiTS BorroHrr:~ndl.endrr~uvenai~tand:~grrrasfollu«~
1. Payment of Principal and lnterest; Prepeyment and l.atc Charges. BurraHrr ~hall prumptly r~~ ~,~h~n due
the pnncipal of and interest on the debt evidenred by the Note and any prepa~ mtnt and late rharge~ due under the ti~,tr.
2. Funds for Taxes and lnsurance. Sub~ect to apphrable law ur to a w~ntten N aner by Lender, t3orru~ rr.hall pay ~'I
to Lender on the day monthly payments are due under ihe Note, until the Note is pa~d in full, a~um ("Funds") ryual to
one-twelfth oL (a) yearly taxes and assessments which ma}• attain priority aver this Secunt~~ Inctrument; (b) yearly
leasehold payinents or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) ~~early i
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 depasits or accounts of which are insured or guaranteed b~• a federal ur
state agenr~• (including Lender if Lender is such an institution). Ixnder shall ~ppl~~ the Funds to pay the escrow items. Lender
ma}• not charge for holding and appiying the Funds, anal}•ring the accaunt or ~erifying the euruN~ items, unless l.ender pa~~s
f3orrow~er interest on the Funds and applicable law permits l_ender to make such a charge. ~ charge auessed by Lender in
connection w~ith &xrow~ers' entering into this Security Instrument to pay the cost of an independent tax reporting sen~ice
snall not be a charge for purposes of the preceding sentence. Borrower and Lender may agree in writing that intercst.shall be
paid on the Funds. Unless an agreement is made ur applicable law reyuires interest to be paid, Lender shall not he required to
pa~~ Borrower an~• interest or earnings on the Funds. l.ender shall gi~~e to Borrower, without charge, an annual accounting c~f F
the Funds showing credits and debits to the Funds and the purpose far which each debit tu the Funds Has made. ll~e Funds
are pledged as additional securit~• for the sums securecl b~• this Securit~• Instrument. ~
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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 ezceed the amount required to pay the escrow items when due, the excess shall be, ,
at ~orrower'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 ~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. z
3. Applieation 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. Chsrges; Giens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the ~
Property which may attain priority over this Security Instrument, and leasehotd payments or ground rents, if any.
Borrower shall pay these obligations in the manner provided ~n paragraph 2, or if not paid in that manner, Borrov?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 ~
receipts evidencing the payments. i
Borrower shaU promptly discharge any lien which has priority over this Securiry Instrument unless Borrower. (a)
agrces 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. tf 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 Iien or take one or more of the actions set forth above within 10 days
of the giving of notice.
S. Ha7ard 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 shall be chosen by Bo~row•er 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.
~ L,ender 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 los~ if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
E 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 wouid 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
F 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. L,ender 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 oi Property; Leaseholds. Borrower shall not destroy, damage or substantially
~ change the Property, allow th~ 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 significantly affect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, (or condemnation or to enforce laws or
regulations), then Lender may do and pay for whatever is necessary to protect the value of tne Property and Lender's rights
` in the Property. L.ender'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, Ltnder 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. Unlas Borrower and Lender agree to other terms of payment, these amounts shall bear interest from
~ th~ date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
~ requesting payment.
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~ go~ 674 P~ 2701
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