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HomeMy WebLinkAbout1430 l;~iFuk~1 l'e»'t `~ti rs Borr~~wer and Lender covenant and :~grre a, fo,fau,. , 1. Payment ot Principal and Interest; PrepAyment ajid Late Charges. Borro~~er tihall prumptl~~ pa}~ ~h~n due thr pnncipal uf and interest on the debt evidenced by the Note and any prepa} ment and late chargrti due under the ti~~tr. _ 2. Funds for Taxes and Insurance. Subject to applicable law or to a wniten w ai~ er by [.encier. Borrow~er shall pay~ ~ to Lender on the day monthly payments are due under the Note, until the Nore is paid in full, a sum ("Funds") equal to ~ one-tw~elfth of: (a) ~•early taxes and assessments which may attain priorit}~ over this Security Instrument; (b) y~earl~~ ~ leasehold payments or ground rents on the Property, if any; (c) }~early hazard insurance premiums; and (d) }~early ~ mortgage insurance premiums, if any. These items are calied "escrow~ items." L~nder may estimate the Fund+ due on the basis of current dala and reasonable estimates of future escrow items. ~ The Funds shall be held in an instituti~n the deposits or accounts of ~~hich are insured or guaranteed by a federal or state agency (including Lender if Lender is such an insti?_utionl. Lender shall appl}• the Funds to pa~• the escrow• items. ~ Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow itrms, unless ~ Lender pa}~s Borrow~er interest on the Funds and applicable law permits Lender to make such a charge. ~ , < ~ ~ 3 , Borrower and ~ 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 Barrow~er any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of ihe Funds showing credits and debits to the Funds and the ~ purpose `or which each debit to the Funds H~as made. The Funds are pledged as additional security for the sums secured by ~ this Security Instrument. ~ If the amount of the Funds held by Lender, together with the future monthly payments oi' Funds payable prior ta ; tl?e due dates of the escrow items, shall exceed the amaunt required to pay the escrow items when due, the excess shall be. ' at Borrower's option, either promptly 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 secured by this Security Instrument, Lender shall promptl~~ reCund to Borrow~er 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 b~~ Lender, any Funds held bp 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 b}~ Lender under paragraphs 1 and 2 shal! be a~plied: first, to late charges due under the Note; second, to prepayment charges due under the ~ Note; third, to amounts pa~~able under paragraph 2; fourth, to interest due; and last, to principal due. ; ~ f , 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 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. Bonower shall pmmptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptiy furnish to Lender ; receipts evidencing the payments. I Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrow~er: (a) j agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in goad ` 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 Lender subordinating the lien to this Security Instrument. If Lender determines that any part of ~ the Property is subjzet to a lien which may attain priority over this Security~ Instrument, Lender may give Borrower a ~ notice identifying the lien. Borrower shal! 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 Property ~ insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which Lender j 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 shali not be s unreasonably withheld. ~ Ali insurance pc~licies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. € Lender shall have the right to hafd the policies and renewals. If Lender requires, Borrower shall promptly 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 Lender. Lender may make proof of loss if not made promptly by Borrower. fi Unless Lender and Borrower othervvise agree in writing, insurance proceeds shall be applied to restoration or repair of 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 economically feasible or Lerder'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 Borrower abandons the Property, or dces 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 pra:eeds to repair or restore r 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 gi~~en. Unless Lender and Borrower otherwise agree in writing, any~ application of proceeds to principal shall not extend or postpane the due date of the manthly payments referred to in paragraphs 1 and 2 or change the amount of the pa~~ments. 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. Q : 6. Preservation and Maintenance of Property; Leasehofds. Borrower shall not destroy, damage or substantially G7 ~ change the Property, allow the Property to deteriorate or commit waste. If' this Security Inscuu~ent is on a leasehold, !r ~ Borrower shall comply with the provisions of the lease, and if Bilrrow~er acquires fee title to the Property, the leasehold and fee title shall not merge unless Lender agrees to the merger in writing. Q 'l. Protection of Lender's Rights in the Property; l~tortggge Insurance. If Borrower fails to perform the ~ co~~enants and agreements contained in this Security Instrument, or there is a legal proceeding t6af May s~gn~ficantly atfect ~ ~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for.cc~edemnationfor to enforce laws or j~o ~ regulations), then Lender may do and pay for whatever is necessary to protect the value.~s~?Prope~y and Ixnder's riRhts in the Property. Lende~'s actions may include paying any sums secured by a lien which has priority over this Security ~o Instrument, appearing ~n court, paying reasonable attorneys' fres and entering on the Property to make repairs. Although o~ 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 Borrow~er and Lender agree to other terms of payment, these amounts shall bear interest trom the date of disbursement at the Note rate and shall be payable, with interest, upon notice trom Lender to Borrower reyuesting payment. p~• - v,~~ ~ -