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HomeMy WebLinkAbout1317 UtiIF(ilttit CO~'ENANTS. BorroNrr and Lender ~u~enant and agr'ee as follo~~s: I. Pa>ment of Principal yad Interest; Prepa~meot and Late ChuQes. BorroH•er shall prompth pay when due the prin~ipal of and interest on [he debt e~idenced by the Note and any prepa}~ment and late charges due u~icler the Noee. 2. Funds for Tazes and Insurance. Subject to applicable IaN or to a writ[en waiver b~~ Lender, Borrower shall pa~• to Lender on the da~• monthly payments are due under the Note, until the No[e is paid in tull, a sum ("Funds") equal to one-tHelf~h ot: (a) yearly taxes and assessments which may attain priority over this Security lnstrument; (b) yearly leasehold payments or ground rents on the Proper[y, if an~; (c) yeariy hazard insurance premiums; arsd (d) yearly mortgage insurance premiums, if any. These , i~ems are cal!ed "escrow items." t.ender may estimate 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 by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds ta pay the escroH• items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items. unless Lender pays Borrower inrerest on the Funds and applicable law permits Lender to make such a charge. Borrow•er a:?d Lender may agree in writing 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 Borrower any interest or earnings on the Funds. Lender shall give ta Borrower, witho~t 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 additior.al security for the sums secured by this Security Instrument. o If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the due daees of the escrow• items, shall exceed the amount required to pay the escrow items when due, the excess shall be, at Borrower's option, either promptl~~ repaid to Borrower or credited to Borrow•er on monthly payments of Funds. If the amount 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 full of all sums s~ured by this Security Instrument, Lender shall promptly refund to Borrov?•er 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 bp Lender at the time of application as a credit against the sums secured by this Securit~~ Instrument. 3. Application of Payments. Unless appticable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 should be applied: first to amaunts payable under paragraph 2; second to interest; and last to principal. 4. Charges; Liens. Borrower shall pay all taYes, assessments, charges, fines and impositions aitributable to the P: operty which may attain priorit}• o~•er this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay ihese obiiga- tions in the manner pro~~ided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directl~~ to ihe person owed payment. Borrower shall promptty furnish to Lender all notices of amounts to be paid unde~ this paragraph. If BorroN~er makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrow~er shall promptly discharge any lien which has priorit}~ over this Security Instrumrnt unless Borrower. (a) agrees in µ~~~~~g r~ rhe payment ~f the o5ligation secured by the lien in a manner acceptable to Lender; {b) contests i:: g~e~± faith ~he lien by, or defends against enforcement ot the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforce- ; ment 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 subordinating the lien to this Security instrument. If Lender determines that any part of the Property is subject to a I lien which ma~~ attain priority o~~er this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrow•er j 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 or hereafter erected on the Propeny insured against ! loss by fire, hazards included ~sithin 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 which shall not be unreasonably withheld. ; All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shal{ ; ha~~e the right to hold the policies and renewals. If [.ender reauires, Borrow•er shall promptly give to Lender all receipts of paid ~ premiums and renew~al 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. F Unless Lender and 8orrow•er otherw~ise agree in writing, insurance proceeds shall be applied ro restoration or repair of che Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. !f the restoration ~ or repair is not economically feasible or Lender's security would be lessened, the insurance proceeas shall be applled to the sums ~ se~ured by this Security lnstrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Proper- ty, or does not answ~er within 30 days a n~tice from Lender that the insurance carrier has offered to settle a claim, then Lender ~ ma~~ 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 extend or postpone ~ the d~e date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments. If under paragraph ~ 19 the Property is acquired by Lender, Borrowe:'s right to any insurance policies and proceeds ~esulting from damage to the Pro- ~ ~ perty prior to the acquisition shall pass to Ler~er to the extent of the sums secured by this Security instrument immediately prior ~ to the acquisition. ~ 6. Preservation and Maintenance oE Property; Leaseholds. Borrower shall not destroy, damage or substantially change the ~ Property, allow the Property to deteriorate or commit waste. !f this Security Instrument is on a?easehold, Borrow•er 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 Rig6ts in the Froperty; Mortgage [nsuranee. If Borrower fails to perform the co~•enants and agreements containec~ in this Security Instrument, or there is a legal proceeding that may significantly affect 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 w•hatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include pa}~ing any sums secured by a lien which has priority over this Security (nstrument, 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. g ~ ~ ' ' # e~K 675 PAGF131? k - _ - - - - ~~~~~s~-~~~~~~~~.