HomeMy WebLinkAbout1696 l`~~t ~>k~t Cu~ eti~~ I~ Borrow~er and Lender «~vena~t an~ agrre ati fc~11~~H ~
1. Yay~ment of Principal and [nterest; Yrepayment and Late Charges. Hc~rro~~er ~hall pr~mptl~• pa}~ whrn ~iue
thr princ~pal of and interesl on the debt e~ idenced by the Note and an~~ prepa~~ment :~nd latr rhargr~ tiue under the \i~Ir
2. Funds for Taxes and Insurance. Subject to applicable law or to a w•ri[[en waiver by l.ender, Borruw~er shall p:~}
to I.ender un the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") eyual to '
one-tH~elfth uf: (a) }~early taxes and assessments which may attain priority a~•er this Secur~ty Instrument; (b) yrarl~~
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yrarl}•
mortgage insurance premiums, if any. Th~se items are called "escr~~w~ item~." Lender may~ estimate the Funds due un the
basis of current data and reasonable estimales of future escrow items. '
The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a tederal or
state agency (including Lender if Lender is such an institution). Lender shall apply thr Funds to pay the escrow~ iten».
Lender ma~• not charge for holding and applying the Funds, analyzing the account or verifying the escrow itrms, unless
Lender pa~~s Borrower interest on the Funds and applicable law permits Lender ro make such a charge. Borrower and '
Lender may agree in wnting that interest shall be paid on the Funds. Unless an agreement is mad~ or applicable !a~v
requires inrerest to t~ paid, Lender shall not be required to pay Borrow~er any interest or earnings un the Funds. Lender
shall gi~~e to Borrt~wer, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the
purpose fur which each debit t~ the Funds was made. The Funds are pledged as additional security for the sums secured b~
this Security Instrument.
If the amount of ihe Funds held by Lender, together with the future monthly payments of Funds pa~~able prior to
the due dates of the escrow items, shall exreed the amount required 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 pa~~ments of Funds. If the
amount of the Funds held by Lender is not suflicient to pay the escrow items when due, Borrow~er shall pay to ~er~der any
amount necessary to make up the deficienc}• in one or more payments as required bp Lender.
U~n pay~ment in iull of all sums secured by this Security Instrument, Lender shall promptly refund to Borrow~er
an~~ 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 I
appliration as a credit against the sums secured by this Security Instrument.
3. Application of Payments. Unless applicable law~ pro~~ides otherwise, all payments received b}~ Lender under
paragraphs 1 and 2 shall be applied: first, to late charges due under the Note; second, to prepayment charges due under the
Nute; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. '
4. Charges; Liens. Borrower shall pa}~ all taxes, assessments, charges, fines and impositions attributable to the '
Pro~rty w~hich may attain priority over this Security Instrument, and leasehatd payments ~r ground rents, if an~~.
Borrow~er shall pa~• these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall
pay th~m on time directly to the person owed pa}•ment. Borrow~er shall promptly furnish to Lender all notices of amounts
to be paid under this paragraph. If Borrower makes these payments directly, Borrower shal! promptly furnish ro Lender
` receipts e~~idencing the payments.
4 Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrow~er. (a)
~ agrees in w~riting to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contest~ in gocxi
faith the lien b}•, 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 fram 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 Prc~perty is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrow~er a
I; notice identif}~ing the lien. Borrowe: shall satisf ~ the lien or take one or more f
S o the act~ons set forth at+ove w~thtn 10 da}~~
c~f 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
~ requires in;urance. This insurance shall be maintained in the amounts and for the periods that Lender requires. The
~ insurance carrier pro~~iding the insurance shall be chosen by Borrower subject to Lender's approval which shall not be
~ unreasonablv withheld.
I
~ All insurance poficies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
E Lender shal! have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender
F all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall gi~•e prompt notice to the insurance
~ carrier and I_ender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower atherwise agree in writing, insurance proceeds shall be appiied to resturation or repair
~~f the Pro~.erty damaged, if the resroration or repair is economically feasible and Lender's security is not lessened. If the
' 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
~ Borro~ver 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 may use the proceeds to repair or restore
the Propert}• or to pay sums secured b}• this Security Instrument, whether or not then due. The 3Q-day period w~~ll begin
! w~hen the notice is given.
~ Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
F post~ne the due date of the monthly pa}~ments referred 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 right to any insurance policies and proceeds resulting
~ l~rom damage to the Propert~~ prior to the acquisition shall pass to Lender to the extent of the sums secured by this Securit~~
~ Instrumenc immediately prior to the acquisition.
~ 6. Preservation and viaintenance of Property; Leaseholds. Barrower shall not destroy, damage or substanually
~ change the Property, allow the Property to deteriorate or commit waste. If this Security~ Instrument is on a leasehold,
~ Borrow~er snall comply with the pro~~isions of the lease, and if Borrower acquires fee title to the Property~, the leaschold anci
fee title shall not merge unless Lender agrees to the merger in writing.
7. Protection of L,ender's Rights in the Property; ~iortgage Insurance. If Borrower fails to perform tFe
ro~:enants and agreements contained in this Security Ins[rument, or there is a legai proceeding that may significantly aSect
Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or to enforce law~s or
regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights
in the Property. Lender's actions may include paying any sums secured by a lien w~hich has priority o~~er this Security
Instrument, 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 ha~•e to do so.
Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured b}~ this
Secunty instrument. Unless Borrower and Lender agree to other terms of payment, thes~ amounts shall bear interest from
~ the date of disbursement at the \~'ate rate and shall be payable, with interest, upon notice from Lender to Borrower
r
requesting ~a}•ment.
B~K u75 ~E~.69~
: _ -
l~ ~
~ ~s%s'ifi~~"+rn~"n.~~i-r~w.~.~~,st.~,~~..~~i`'a .E...t..'~.z\'i aa"~_:~