HomeMy WebLinkAbout0981 l%ti~~~~lt» Cen~tti.a`7, Horru~rr and l.rnder covenant and agrre a~ f~~Ifi,N,
1. Payment of Principal and Interest; Prepayment and Late Charges. f3urruHrr tihall prump~l~ ~a~ when ~i~~e
the pnncipal of and interest an the debt evidenced by the Note and any prrpa~ ment and late charge, dur undrr the Nute.
2. Funds for Taxes and Insur~nce. SubJecl to appGcable law or to a wntten wai~ er by Lender, Bc~rrc}~er ~haU pa~
to Lender on the day monthly payments are due under the Note, until the Note ~ti paid ~n full, a.um ("Funds") ryual t~~
one-twelRh of: (a) yearly taxes and assessments which may auain priority o~~er this Secunt~~ Intitrument; (b) pearl~•
leasehold payments or ground rents on the Yroperty, if any; (c) yearly hazard insurance prem~ums; and (d) ~~early
mortgage insurance premiums, if any. These ~tems are called "escrow items." Lender may rtitimate the Funds due on the
basis of current data and reasonable estimates of future escrow items.
The Funds shall be held in an instiwtion the dcposits or acrounts of ~ hich are insured or guaranteed b~~ a federal or
,[ate agency (including Lender if l.ender is such an institution). l.ender shall appl}~ the Funds to pa~~ theescrow items. Lender
may not charge for holding and applying the Funds, analyzing the account or ~erifying the escro~?• items, unless Lender pa~s
i~orruwrr inte~e~t on the I~unds and app4iiable law Fx:rmits t_en~ier to make such 2 charge. A charge a~~ecsecl hti• l.ender in ~
runnection with E3orrow~ers' entering into this Security Instrument to pay the cost uf an independent tax reporting ~ervice
.hall ni~t be a charge for purposes of the preceding sentence. E3arroµ~er and l.ender may agree in wnting that interest shall be
paid on the Funds. Unless an agreement +s made or applicable law~ reyuires interes~ to be paid, I_ender shall not be reyuired to ~
pa~~ &urower any interest or earnings on the Funds. I.ender shall gi~e to &~rrow~er, w~ithout charge, an annual accounting of '
the Funds showing cred~ts and debits to the Funds and the purpose for which each debit to the Fund~ was made. il~e Funds {
are pledged as additional securit~~ for the sums secured by this Secunty Instrument.
It the amount of the Funds held by Lender, together with the future monthly payments of
Funds payable prior to s
the due dates of the escrow items, shall ezceed the amount required to pay the escrow items when due, the excess shall be,
at Borrower's option, either promptly repaid ta Borrower or credited to Borrower on monthly payments of Funds. lf the
amouni of the Funds held by Lender is not sufficient 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 fuil 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 soid or acquired by Lender, Lender shall apply, no later ~
than immediately prior to the saie 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 lnstrument.
3. Application 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 (ast, to principal due.
4, Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may atta~n priority over this S~curity 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 shati
pay them on time directly to the persan ovved payment. Borrower shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. lf Borrower makes these payments directly, Borrower shall promptly furnish to Lender
! receipts evidencing the payments.
Borrowcr sha!! prom~tly discharge an~~ l~en ~•ti:~h has p~i~rity 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 hotder of the lien an
agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lcnder determines that any part of
the Property is subject to a lien whieh may attain priority over this Securiry 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.
S. H~rd Insurance. Borrower s'~all keep the improvements now exis;ing 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 shail be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shall be chosen by Bo~rower 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 ctause. ~
Lendec shall have the right to hold the policies and renewais. If Lender requires, Borrower shall promptly give to Lender ~
all receipts of paid premiums and renewal notices. In the event of loss, Borrower shal! give prompt notice to the insurance
carrier and Lender. Lender may make proof of losc if not made promptly by Borrower. 3
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ;
of the Propeny damaged, if the r~storation or repair is economically feasible and Lender's security is not lessened_ If the i
restoration 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 i
8orrower abandons the Pro~erty, 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. Lender ma~ use the proceeds to repair or restore !
the Property or to pay sums secure~ 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 af proceeds to principal sh~ll 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 shap pass to Lender to the extent of the sums secured by this Security
Instrument immediately prior to the acquisition. '
6, Presenation ~nd Maintenance of Piroperty; Leaseholds. Borrower shall not destroy, damage or substantially
change the Property, a11ow the Property to deteriorate or commit waste. If
lhis Security lnst~ument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fce title to the Property, the leasehold and
fee title shall not merge unless Lender agrces to the merger in writing.
7. Protection of Lender's Rights in the Property; Mortgage [nsurance. [f Borrower fails to perform the
covenants and agrcements contained in this Security Instrument, or there is a legal proceeding that may significantly at~ect
I.ender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enfor~e laws or
regulations), then Lender may do and pay for what~~er 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
Ir~strument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Aithough
L.ender 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
S~cunty 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 shalf be payable, with interest, upon notice from Lender to Borrower
rcquesting payment.
aooK 6?'~ ~c~ 981
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