HomeMy WebLinkAbout1541 l'~IFC~ItH Cc~~ F.~.a~ls t3urruwrr and Lcndrr ru~rn:+nt and agr.~ a, f~,11:n~~ '
1. Pay~ment of Principal and Interest; Prepayment and l.atc Charges. Burr~~Hrr ~hall ~n~m~tl~ ra~ whr~~ ~iur
thr pr~ncipal of and ~nterest un the debt e~~dencrd by the Note and an~~ prrpa~ mcnt .ind latr rh.~rge, dur unclrr th~ ti~,i~
2. Funds for Taxes snd Insurance. SubJe: t to appl~cahle laN~ ur to a a rittrn waner b} Lr~?der, Burrutirr ~hall ~a}
to Lender on the day monthly payments are due under the Note, until the Nute i~ paid in full, a~um ("Fundt") ryual tu
i~ne-twelfth of~ (a) yearly taties and as~essments wh~ch ma~~ attain pnonty o~er this Secunt} lmtrument; (b) ~~early
leasehold payments or grcwnd rents on the Property, if any; (c) ~early hazard in,uranre premium~; and (d) yrarl~~
martgage insurance prem~um~, if any. These items are ralled "escruw~ items." Lrnder may~ r~timatr the Fw~ds due on the
basis of current data and reasonable estimates of futurr escrow items.
The Funds shall he held in an in,titution the deposits or a~ruunts ot Nhich are in,ured ur guarameed bt a federal or
,tatr agenc~~ (including l.ender i~ Lender is such an instiwtiun). lxndrr shsll appl~• the Fund~ tu par thee~cro~~ items. i.ender
may not charge for h~~lding and applying the f=unds, ~inah•~ing the :~ccoum ur ~erif~ing the euru~c items. unleti; Lrnder ~t~.
Burrouir intere~t an the Fund~ ~ind applicuhle la~ permits Lender to make ~uch a rhar~r. A charge a..e..ed hy I ender in
runnc.~tiun ~~ith &~rro~~ers' entering into this Sc~~lrit~~ (n~trument to pa~• the cust of an independem tax reporting ~er~ire
,hall not be a charge for purpo.e, of thc pre~~cding sentence. &~rro~~er and Lender ma~• agree in w nting that interest ,hall tk
paid un the Fund~. Unless an agrerment i~ made ur appGc:~ble law reyuire, intereit ~u tx paid, l.ender shall not he reyuired to
~a~ &~rro~~er am intrrrst or earnings on the F~unds. t.ender shaU gi~e t~~ &~rrower, ithout charge, an ansiual accuunting ~~i
the Fund. shu~~ing crcdit~ and debit~ tu thr t=unds and the purpu,e f~~r which each debit t~~ the F=und~ Ha~ made. ~lhe Fund~
are ~ledged a~ addiuunal ~ecurit~ Cor the tium~ xrurcd b~• thi~ tiecunt~ In~trununt. 1
If the amount of the Funds held by Lender, together with the future monthly pa}•ments of Funds pay~abfe prior to ~
the due dates o( the escrow items, shail exceed the amo~nt required to pay~ the escrow~ items when due, the excess shall br, ~
at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. U the
amount of'the Funds held by Lender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender an~~
amount necessary to make up the deficiency in one or more paymenis as required by Lender. i
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund ro Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired b~• 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 lnstrumeni.
3. Application of Payments. Unless applicabie 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
?`ote; third, to amounts payable under paragraph 2; fourth, to interest due; and last, ro principal due.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the
Property which may attain pnority over this Security Instrument, and (easehold payments or ground rents, if any.
Borrower shall pay these obl~gations 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 pramptly furnish to Lender aU notices of amounts
to be paid ~nder this paragraph. I~' Borrower makes these payments directly, Borrow~er shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge an}~ lien H~hich has prioritp o~~er this Security Instrument unless Borrow~er: (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 w~hich in the Lender's opinion operate to
prevent the enforcement of the lien or for(eiture of any part of the Propzrty; 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 lien which may attain priorit}~ o~~er thic Security Instrument, Lender may give Borrower a
notice identifying the lien. Borr~wer shall satisf}~ the lien or take one or more of the actions set forth atw~e w~ithin ]0 days
of the gi~~ing of notice.
! 5. Hazard Insurance. Borrower shall keep the improvements now~ exi5t~ng 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 shalt be maintained in the amounts and for the periods that Lender requires. The
i insurance carrier providing the insurance shall be chosen by Bo~rower subject to Lender's approva) which shall not be
! unreasonably withheid.
' All insurance policies and renewals shall be acceptabie to Lender and shall include a standard mortgage clause.
~ Lender shall have the right to hold the policies and renew~als. If Lender requires, Borrower shall promptly give to Lender
; all receipts oP paid premiums and renewal nolices_ In the event of loss, Borrow~er shall give prompt notice to the insurance
carrier and Lender. Lender may make proo(of losc if not made promptly by~ Borrower.
[Jnless Lender and Borrower otherwise agree in writing, insurance proceeds shall be appl~ed 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
r 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
~ 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 ma~ use the proceeds to repair or restore
5 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.
; ~
L?nless Lender and Borrow~er otherwise agree in writing, any application of proceeds to principal shall not extend or
~ postpone the ciue 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 L,ender, Borrower's right ~o 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 waste. If this Security Instrument is on a leasehold,
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title t~ the Property, the leasehold and
fee title shall not merge unless Lender agrees to the merger in writing.
` 7. Protection of Lender's Rights in the Property; :~iortgage Insurance. If Borrower fails to perform the
covenants and agreements contained in this Security Instcument, 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 whatever is necessary to protect the value of tne Property and I.ender's rights
in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Secucity
Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although
~ Lendcr may take action under this paragraph 7, Lender does not have to do so.
~ Any amounts disbursed by Lender under this paragraph 7 shal) become additional debt of Borrower secured by this
~ Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amoun~s shall bear interest from
~ the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to $orrower
t requesting payment.
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