HomeMy WebLinkAbout2772 l, \IFnRM CO~~EtiAtiTS Borrow•er and Lender covenant and agree as folloN~:
1. Payment of Principal and Interest; Prepayment and l.ste CharRes. E3orrow•rr tihall promptl~ pay H hcn due
~he ~nnripal of and interat on the debt evidenced by the Note and any prepayment and latr rharge, due under the No~e.
2. Funds for Taxes and Insura~ce. Subject to applicable law or to a written waiver by Lendrr, Horrow~er ~hall ~ay
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to
one-twelflh of: (a) yearly taxes and assessments which may attain prionty over this Secunty Instrument; (b) yearly
leasehold payments or ground rents on the Property, if any; (cl yearly hazard insurance premiums; and (d) yeariy
mortgage insurance premiums, if any. These items art called "escrow items." Lender may e~t~mate 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 b~~ a federal or
state agency (inciuding Lender if Lender is such an institution). I.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 ~tems, unless
Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and
Lender may agre~ in writing that interest shalt 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 was made. The Funds are pledged as additional security for the sums secured by
this Sec:urity 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 ezceed the amc,unt required to pay the esc:row 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. lf the
amount of the Funds held by I,ender is not sutficient 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 this Security Instrument, Lender shall promptly refund to Borrower
any Funds heid 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.
3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under
paragraphs 1 and 2 shall be appiied: 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 shail 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 if not paid in that manner, Borro~ver 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 shal! promptly furnish to Lender
receipts evidencing the payments.
Borrower shap 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 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 I,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 pri~rity over this Security Instrument, I.ender 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 shall keep the improvements now existing ar hereaRer erected on the Property
insured against loss by fire, hazards included within the term "eatended coverage" and any other hazards for which L.ender
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 shal) not be
i 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 oC 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 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 Propeny damaged, if the restoration or repair is economicall~ feasible and I.ender's security is not lessened. If the
~ restoration or repair is not economically feasible or L.ender'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 Borrower. 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 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 will begin
when the notice is given.
$ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not eatend or
postpone the due date of the monthly payments referred to in paragraphs t 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 of Property; Leaseholds. Borrower shall not destroy, damage or substantially
~ change the Property, allow the Property to deteriorate or commit w~aste. 1f 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 i~ 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 significantly afi'ezt
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
` in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security
~ Instrument, a arin in court, a~in reasonable attorne s' fees and enterin on the Pro rt to make re airs. Althou h ,
PPe 8 P S 8 Y 8 F~ Y P 8
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 additional debt of Borrower secured by this
~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from ,
the 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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~ ~oo~ 674 P~E2772
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