HomeMy WebLinkAbout1660 L,'ti1FOR!~! C(~~'E'~A'~T~ Horrower and Lender co~~enant and agree a. fc~lic~ws_
1. Payment of Principal and lnteresi; Prepayment Qnd Late Charges. Borr~~wer shall promptl~ pa~ w~hen due
the pnncipal of and interest on the debt ev~denced hy the Note and an~~ prepa~~ment and late charges due under the Note.
2. Fuads for Taxa and Insurance. Subject to applicable laK or to a w~ntten w•ai~er bp Lendtr. Borrower shall pa}
to Lender on the day monthly paymcn[s arc due under the Note, until the Note ~s paid in full, a sum ("Funds") equal to
onatwelfth of: (a) yearly tax~s and assessments which may attain pnont~ over this Sccunty Instrument; (b) yearl~•
leasehold payments or ground rents on the Propcrt~~, if an~•; (c} yearl} hazard ~nsurance prem~ums; and (d) yearly
mortgage insurance prem~ums, if any. Thcse ~tems are called "escrow~ item~." Lender ma~~ estimate the Funds due on the
basis of cunent data and reasonable est~mates of future escrow uems.
The Funds shalf be held in an ins!itution the depos~ts or accounts of wh~ch are ~nsured or guaranteed b~~ a Rderal or
statc agency (inciuding Lender if Lender is such an institution). Lender shall appl~• the Funds to pa~~ ~he escrow items.
Lender may not charge for holdmg and applying the Funds, analyFing the account or verifying the escrow ~tems, unless
Lender pays Borrower intcrest on tht Funds and applicable law permits l,ender to make such a charge. Horrower and
Lender may agree in wnting that interat shall be paid on the Funds. Uniess an agreemenc ~s made or applicable law~
roquires interat to bt pai~+, Lender shall not be rcquired to pa~• Borrovvcr any tnterest or carnings on tht Funds. Lender
shall give to Borrower, without charge, an annual account~ng of the Fur.ds showing crcdits and dehits to the Funds and the
purpose for which each debit to the Funds was made. The Funds arc pledgcd as addtt~onal security fo* the sums secured b}~
this Security Instrument.
If the amount of thc Funds held b~ Lender, together w~th tht future monthl~• payments of Funds paya6le prior to
the due dates of the acrow items, shall excecd ihc amount requ~rod to pa~~ thc escrow~ items when due, the eacas shall be,
at Borrower's option, either promptly repaid to Bocrower or cred~ted to Borrower on monthly payments of Funds. If the
amount of the Funds held by L.ender is not sufficient to pay the escrow items when due, Borrower shall pay to Lender any ~
amount necessary to make up the deficienc}~ in one or more payments as requirtd by L,end~r. ,
Upon payment in full of aU sums secured b}• this Securit~~ Instrument, Lender shall promptlS• refund to Barrowet '
any Funds hdd b~~ Lender. If under paragraph l9 the Propen~• is sold or acquired b~• Lender, Lender shall appl~•, no later
than immediatel~• pnor to the sale of the Propert~~ or its acquis~tion by Lender, an~• Funds held by Lender at the time of
application as a credit aga~nst the sums secured b~- this Security Instrument.
3. Applieation of Payments. Unless applicable law providcs otherwise, all payments received b~• Lender under J
paragraphs 1 and 2 shall be appliad: first, to late charges due under the Note; serond, to prepayment charges due under the ~
Noie; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to pnncipal due. j
4. Charges; Li~ns. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the j
Propert~~ which may atta~n priorit~~ over this Securit~• Instrument, and leasehold payments or ground rents, if anp. ~
Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pa}~ them on time directly to the person owed payment. Borrower shall promptl}~ furnish to Lender all not~ca of amounts
to be paid under this paragraph. If Borrower makcs thesc payments directiy~. Bonower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptl}• discharge an~~ lien w~hich has pnority over this Securit~~ Instrumrnt unl~ss Borrosver: (a)
agrees in writing to the payment of the obligauon secured by thc lien in a manner acceptable to Lender; (b) contests in good
faith the Iien by, or defends against enforcement of the lien in, legal proceedings which in the Ltnder's opinion operate to
prevent the enforcement of the lien or forfciture of any pan 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 licn which may attain pnority over this Security lnstrument, Lender may give Bonower a
notice identifying the lien. Borrower shall satisf~ the lien or takc one or more of the actions set forth above within 10 days
of the giving of notice.
5. Hazard Insurance. Borrower shall ketp the improvements now ~xisting or hereafter erected on the Propert}•
~ insurod against loss b}~ fire, hazards include~ within the term "extcndcd coverage" and any other hazards for which Lender
i requira insurance. This insurance shall be maintaincd in the amounts and for the penods that Lender requira. The
~ insurance camer providing the insurance shall be chosen b}~ Borrower subject to Lender's approval which shall not be
; unreasonably withheld.
; All insurance policies and r~neu•als shall be acceptable to Lender and shall include a standard mortgage clause.
Lender shall have the right to hold the policia and renew•als. IC Lender requ~res, 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 insuranct
carrier and I.ender. L.ender may make proof of loss if not macle promptly by Borrower.
F Unlas Lendcr and Borcower otherwise agree in wnting, insurance prxeeds shall be applied to restoration or repair
` of the Property damaged, if the ratoration or repair is economicall}~ feasible and Ltnder's security is not lessened. If the
~ restoration or repair is not economically feasible or Lxnder's securi:y would be lessened, the insurance proceods shall be
~ applied to the sums secured bp this Security Instrument, whether ~r not then due, with anS~ ezcess paid to Bonower. If
Borrower abandons the Propert}~, or does not answer within 30 days a notice from Lender that the insurance carrier has
~ oSered to settle a claim, then Lender ma~• collect the insurance proc~eds. Lender may use the proceeds to repair or ratore
~ the PropeRy ot to pay sums secured b~~ this Secunt}~ Instrument, whether or not then due. The 30-day period will begin
~ when the notice is given.
Unless Lender and Borrower otherw~se agree in u°riting, an}~ application of proceeds to principal shall not extend or
~ postpone the due date of the monthl~• payments refcrred 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 riEht to any insurance policia and proceeds resulting
~ from damage to the Property prior to the acquisition shall pass to Lender to the ext~nt of tne sums secured by this Security
~ Instrument immediatdy prior to the acquisition.
6. Preserv~tion and Maintenance of Property; Lea~eholds. Borrowcr shall not destro~~, damage or substantially
change the Praperty, allov?• the Propert}• to deteriorate or commit w~aste. If this Secunt}~ Instrument is on a leasehold,
Bonow~er shall comply with the provisions otthe lease, and if Borrower acquires fee title to the Propcrt}. the leasehold and
fa title shall not merge unless Lender agre~s to the merger in a~nting.
7. Protection of I,ender's Rights in the Prop~rty; Mortgage Insurance. lf Borrower fails to perform the
covensnts and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect
L~nder's rights in the Propert~• (such as a proceeding in bankruptc~•, probate, for condemnation or to enforce laws or
regulations), thcn Lender may do and pa}• for whatever is necessarv to protcct the value of the Property and L,ender's rights
in the Property. Lender's actions may include pa}ing any sums sccured by a lien w~hich has pnority over this Security
Instrumsnt, appeanng in court, paying reasonable attorncys' fees and entering on the Property to make repairs. Although
: 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 s~cureci by this
F Security Instrument. Unias Bortower and Lender agree to other cerms of pa~•ment. these amounts shall bear interest from
~ the date of disbursement at the I~ote ratc and shali bc pay~ablc, w~ith ~nterat, upon not~ce from Lender to Borrower
requesting payme~t.
6o~rc
, ~ ~ 675 F,,~E1660
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