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HomeMy WebLinkAbout2762 L tiIFnRH Cc~~'FtiA\TS Borrow•er and Lender covenant and agree as foliow~s: 1. Paymeat of Principal and Interest; Prepaymeot and [ate Charges. [3orrower ,h;sll promptly pay~ ~~hen due the rnncipai ai'anJ i~uerest on the debt evidenced by the Note and any prepayment and late rhargeti due under the Note. 2. Funds for Taxes and Insurance. Subjrct to applicable taw or to a written wai~~er by Lender, Borrower shall pay tu Lcnder an the day manthiy payments are due under the Note, unti! the Note is paid in full, a sum ("Funds") equal to I one-twelFth of: (a) yearly taxes and assessments which may attain prionty over this Secur~ty Instrument; (b) yearly ,i leasehold payments or ground rents on the Property, if any; (c) yearly hazard ~nsurance premiums; and (d) yearly i mortgage insurance premiums, if any. These items are called "escrow items." Lrnder may etitimate the Funds due on the ~ basis of current data and reasonabfe estimates of future escrow items. ' The Funds shall be held in an institution the deposits oc accounts of which are insurcd or guaranteed by a federal or state agency (inciuding Lender if Lender is such an institution). Lender 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 j Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and i Lender may agree in writing that interest shaU 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 Borroa-er 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 tor the sums secured by this Security lnstrument. [f 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 exceeci the amount required to pay the esCrow items when due. the excess shail be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly Qayments of Funds. If the amount of the Funds hetd by Lender is not suff'icient 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 tfiis Security Instrument, Lender shall promptly reiund to Borrower any Funds held by Lender. lf under paragraph 19 the Property is so{d oc acquired by Lender, Lender shall apply, no fater 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. Application of Payments. Unless applicable law provides otherwise, all paymenis ret:eived 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; thi~d, to amounts payable under pa~agraph 2; fourth, to interest due; and last, to principal due. 4. Charges; Liens. Borrower shall pay all taxes. assessments, charges. 6nes 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 Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shal! 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 1'aith the lien by, or defends against enforcement uF the lien in, legal proceedings which in the Lender's opinion operate to Qrevent 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 subocdinating the lien to this Security Instrument. If Lender determ+nes that any pan 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. Hazard Insurance. Borrower sha11 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 L,ender requires. The j insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shal! not be ~ unreasonably withheld. Atl insurance po{icies and tenewa{s 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 requises, Borrower shall prompt~y 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. I.ender may make proof of loss if not made promptly by Borrower. Uniess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair I of the Psoperty 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, tt~e insuranee proceeds sha11 be t applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. lf 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 colleet the insurance proceeds. Lender may use the proceeds to repair or restore the Propeny 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 applicatian of Qroceeds to principal shall not extend or ~ postpone the due date of the monthly payments referred to in paragraphs ! and 2 or change the amount of the payments. lf ~ 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 shali pass to Lender to the extent of the sums secured by this Security ~ [nstrument immediately prior to the acquisition. 6. Preservation and Maintenance 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 of the lease, and if Borrower acquires fee title to the Property, the leasehold and fee titie shalf not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower i~ails to perform the ' covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly af~ect 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 the Property and Lender's rights i in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security lnstrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although ~ Lender may take action under this paragraph 7, L.ender dces 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 ofpayment, these amounts shall bear interest from ~ the date of disbursement at the Note rate and shall be payable, with interest, u~n notice fram Lender to Borrower ~ ~ requesting payment. ~ ~ ~ t 6o~K674 ~~~E2762 ° F .,y,ya~~,.~'~ ~ d~~~"'w~ .~m ~`'r: ~ 3~~s~^"