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HomeMy WebLinkAbout1147 ~ L'~it ~~rt~1 Cu~'E`a~TS I3orrower and Lender to~enant and agree ~5 fc~llows: l. Payme~t of Principal and Interest; Preps~y~ment and I.ate Charges. Borrower ~hall prompUy~ pay uhrn due the pnn;:ipai of and interest on the debt evidenced by the Note and any Frepapment and late charges due under the tiote. 2. Funtis for Taxes and lnsurance. Subject to applicable law~ or to a wntten w~aiver by~ Lender, Borrow~er Shall pay~ to Lender on the day monthly payrnents are due under the Note, unti! the Note is paid in full, a sum ("Funds") equal to one-twelfth of: (a) yearly taxes and assessments which may attain priority over this Security Instrument; (b) }•earl~~ leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly mortgage insurance premiums, if any. These items are cailed "escrow~ items." Lender may estimate the Funds due on the basis ot'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 (including Lender if I_ender 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 la~v requires interest to be paid, Lender shall not be required to pay BorroK~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 w•hich 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 reguired to pay the escrow 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. If the amount of the Funds held by Lender is not sufi'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 fulf 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 application as a credit against the sums secured by this Security Instrumeni. 3. Application of Payments. Cinless applicable law provides otherwise, all payments ~ecei~~ed by Lender under paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; S2CO~id, to prepayment charges due under the Note; third, to amounts payable under ~aragraph 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 priority over this Security Instrument, and leasehold payments or graund 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 t,ender 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 promptly discharge any lien which has priority over this Security Instrument unless Borrower. (a) i 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 f ~ agreement satisfactor~• to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of i the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a ~ notice identify~ing the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 da~•s ~ of the giving of notice. ~ 5, Nazard Insurance. Borrower shall 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 Lender requires. The ~ insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval w~hich shall not be ~ unreasonablv withheld. All insurance policies and renewals shalf 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 Len~der ; all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance i rarrier and Lender. Lender may make proof of loss if not ma~e promptly by Borrower. j Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ~ ~f the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the ~ restoration or repair is not econ~mically 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 E Bc~rrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has ~ offered to settte 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 w~hen the notice is gi~~en. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or ~ttpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. IC 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. ~1 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substanhalty ~ change the Property, allow the Property to deteriorate or commit waste. If this Security Instrument is on a leasehold, q-~ Borrow•er shall comply with the provisions of the lease, and if Borrawer acquires fee title to the Property, the leasehold and ; ~ fee title shall not merge unless Lender agrees to the merger in writing. a ~ 7. Protection of Lender's Rights in the Property; Mortgage Insurance. If Borrower faiis to perform the ~ ~ covenants and agreements contained in this Security Instrument, or there ~s a legal proceed~ng that may sign~ficantly attect r,,. ~ Lender's rights in the Property (such as a prc?ceeding in bankruptcy, probate, for condemnation or to enforce laws or ~ ~ regulations), then Lender may do and pay for whatever is necessar~~ to protect the value of the Property and Lender's rights ~o in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security om 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, Lender does not have to do so. Any amounts disbursed by Lender under this Paragtaph 7 shall become additional debt of Borrower secured by th~s Secunty 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 ir.terest, u~n notice from Lender to Borrower requesting payment. ~ - - - - - r ~