HomeMy WebLinkAbout2739 , .
L~~IFt~R~1 C~>vk.~:~~TS Horrower and l.ander co~~en~nt and agrre a~ i'ulluH,:
1. Payment of Principal and Interest; Piepsyment and I.ate Charges. Borru~~rr ~hall ~mm~tl~ pa~ ~~h~n dur
~hr ~rinripal uf and intrrest on the debt evidenced b}• the Note and :~ny prrpayme~t and latr rharge~ dur under the'.~ote.
2, Funds for Taxes and Insurance. Subject to applirable law or to a w~ritten ~~ai~cr hy l.ender, BorruHer ~hall ~a~
to Lender on thr day monthly payments are due under the Note, until the Note i+ paid in ful1, a+um ("Fund~") eyual to
one-tw•elf'ta of: (a) yearly taxes and assessments which may attain priority o~er this Securit~• Intitrument: (b) yearl~~
leasehold payments or ground rents on the Property, if any; (c) vearly haa.ard in,urance przmiums; and (d~ yearl~
mortgage imurance premiums, iiany. These items are called "escrow~ items." Lender map e~timatr the Funds due on the
basis of current data and reasonable estimates of tuture escrow items.
The Funds shall be held in an institution the deposits or accounts of ahich are insureci or guaranteed by a federal or
state agency (incfuding Lender if Lender is such an institution). Lender shall apply the ~unds to pay the escrow items.
i.ender rnay not charge for holding and applying the Funds, analyzing the account cr ~~erifying the c~crow items, unless
Lender pays Borrower interest on the Funds and applicable law Qermits Lender to make such a charge. Bc~rrower and
Lender may agree in w~riting 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 Borrov?~er any interest or earnings c~n 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 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 Sorrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the
amount af the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any
amount ne~:essary 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
appticatian as a credit against the sums secured by ihis Security Instrument.
3. Application of Payments. Unless applicable lav? provides otherwise, all payments received by l.ender 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 sha11 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 ~f not paid in tfiat manner, Borrower sha{1
pa~~ 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, Borrow~er shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shail promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a)
agrees in writing to the pa}ment 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 af the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If L,ender 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 shali satisfy the iien 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 hereafter erected on the Propert~~
insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender
I'i 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 cfiosea by Borrower subjeci 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.
F Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly gi~~e to Lender
i all receipts o(' paid premiums and renewal notices. In the event of loss, Borrow~er shall give 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 agcee in writing, insurance proceeds shal{ be applied to restoration or repair
~ of the Property damaged, if the restoratien 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 shali be
~ applied to the sums secured by this Security Instrument, whether or not then due, with any exce,s paid to Borrower. If
~ Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
e offered to settle a claim, then Lender may collect the insurance proceeds. Lender may 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 wi11 begin
w~hen the notice is given.
~ Unless Lender and Borrower ot:~erwise agree in wri:ing, any application of proceeds to principal shal) 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 snms secured b}~ tfii~ Security
~ Instrument immediatelp prior to the acquisition.
~ 6. Preservation and MaintQnance of Property; Leaseholds. Borrower shall not destro~~, damage or subscantiali}'
change the Property, allow the Property to deteriorate or commit v~•aste. If this Security Instrument is on a leasehold.
~ E3c~rrower shalt comply with the provisions of the lease, and if Borrow•er acquires fee title to the ProF?ert}~, the leasehold and
fee title shalt not merge unless Lender agrees to the merger in wri:ing.
' 7. Protection of I,ender's Rights in the Property; :~iortgage Insurance. tf Borrow~er fails tn perform the
" co~~enants and agreements contained in this Security Instrument, or there is a legal proceeding that ma}~ significanth affecc
Lender's rights in the Property (such as a proceeding in bankruptcv, probate, for condemnation or to enforce laa•s or
regutations), then C.ender may do and pay for whatever is necessary to protect the value of the Pro~rty and Lender's rights
in the Property. Lender's actions may inc{u~e paying any sums secured by~ a tien w~hich has priorit~~ over this Securit}~
~ [nstrument, appearing in court, paying reasonable attorneys' fees and entering on the Propert}~ to make repairs. A{thougt~
Lender ma~• take action under this paragraph Lender dces not have to do so.
Any~ amounts disbursed by Lender under this paragraph 7 shal) become additional debt of Borro~~er secured b}' this
~ Securit}~ Instrument. Unless Borrower and Lender agree ro other terms of payment, these amounts shall bea~ interest from
~ the date af disbursement at the Note rate and shall be pay~abie, wiih ir~terest, up<~n notice fr~m Lender to Borro~~er
~ requesting pa}~ment.
z:
~
~
~
~ . . s~ 674 ~2?39
€
~ _ _ r _ ~ .
~i