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HomeMy WebLinkAbout2730 Uti~t~c~Ry Ce~vF.~AyTS Borrow•er and Lender covenant and ~sgrre as follow~~: 1. Payment of Principal and Interest; Prepayment and I.ate Charges. Borrow~er shall promptly pa~ w~hrn due the princi~l of and interr t on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds tor Taxes and lnsurance. Subject to applicabie law or to a written w~aiver by Lender. Borrow~er shall pa~~ tu Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one•twelfth ot: (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 , martgage 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 deposits or accounts of which are insured or guaranteed by a federal or state agency (+nclud~ng Lender if Le~der is such an institution). L.ender shall apply the Funds to pay 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 Bonower 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 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 Borrow~er'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 sutficient to pay the escrow items when d~re, Borrower shall pay to Lender any amount necessary to make up the deficiency in one or more payments as required by I.ender. Upon payment in full of all sums secured by this Security Instrument, I.ender 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 L.ender, 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 Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepavment 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 preority 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. Bonower 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 promRtly 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 forfeiture of any part of the Property; or (c) secures from the holder of the lien an j 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 take one or more of the actions set forth above within 10 days I ; of the giving of notice. i ~ 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereaiter 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. T'his insurance shall be maintained in the amounts and for the periods that Lender requires. The i insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be ~ unreasonably withheld. j All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. ~ Lender shall have the right to hotd 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 I.ender. 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 ~ of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the t restc~ration 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 ofTered to settle a claim, then Lender may collect the insurance proceeds. L,ender may use the proceeds to repair or restore ~ ihe 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 ara ra h 19 the Pro rt is ac uired b Lender, Borrow~r's ri ht to an • insurance licies and roceeds resultin P 8 P Pe Y 9 Y 8 } P~ P 8 from damage to the Property prior to the acquisition shall pass ta Lender to the extent of the sums secured by this Security [nstrument immediately prior to the acquisition. G. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or ~ubstantially ~ 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 of the lease> and if Borrower acquires fee title to the Praperty, 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 tnsurance. If Borrower fails to perf'orm the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the PropeRy (such as a proceeding in bankruptcy, probate, for condemnaiion or to enforce laws 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, ap~xaring in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although a Lender may take action under this parag~aph 7, Lender dc~es 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. tJnless 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, with interest, upon notice from Lender to Borrou~er , , requesting payment. . ~ , ~ K ao~s74 ~Ez7~o ~ s ~ r ~ ~L~~ ~ ~~:w ~~y~_~ ~ _ ~,_.~r. ~