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HomeMy WebLinkAbout2369 t; ~iF~c~K~t Cc»~f:~.4ti Ts Borro~~er and Lender covenant and ugree ati folic,ws: 1. Payment of Principat and Interesh, Prepayment and Late Charges. Borrower ,hall prumptly~ pa~~ whcn due the pnncipal af and interest on the debt evidenced by the Note and any prepa~~ment and late charges due under the tiate. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written w~aiver by Lender, Borrow•er ,hall pa~• to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") eyual to one-h~~elfth of: (a) }~early taxes and assessments which may attain priority o~~er this Securit~• lnstrument; (b) pearl}• leasehold payments or ground rents on ~he Property, if any; (c) yearly hazard insurance pr~miums; and (d) yearl}• mortgage insurar.re premiums, if any. These items are called "escro«• items." Lender may estimate the Funds due on the basis of current data and reasonable estimates of future escrow items. The Fur~ds shall be held in an institution the deposits or accounts of ~~~hich are insured or guaranteed by a federal or state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow• items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrow~er interest on the Funds and applicable law permits Lender to make such a charge. Borroaer and L::r,u~r ~~~a~ a~;« ::;;ii~ig i;~ai i~~irrc-~i ~i~aii oe pa~d on tnz runas. i.iniess an agrrement is made or appi~cable law requires interest to be paid, Lender shal! not be required to pay Borrow~er any interest or earnings on the Funds. Lender shall gi~~e to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as addit~onal s~curity for the sums secured b}~ this Security Instrument. If the amount of the Funds held by Lender, together with the future monthly payments of Funds pa}•able prior to the ~ue dates 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 promptly repaid to Borrower or credited to Borrower on monthly payments of Funds. If the amount of the Funds held by Lender is not sufficient to pay the escrow items w~hen 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~~ refund to Borrower 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 by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable 1aw provides 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 Note; third, to amounts payable under paragraph 2; fourtn, to interest due; and last, to principal due. ~ 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. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower malces these payments directly, Borrower shall promptly i'urnish to Lender ~ receipts ewidencing the payments. ~ Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) ~ agrees in writing to the payment of the obiigation 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 which in the Lender's opinion operate to ~ prevent the enforcement of the lien or forfeiture of any part of the Propeny; or (c) secures from the hotder 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 attair, priority over this Security Instrument, Lender may give Borrower a G notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days i of the giving of notice. 5. Hazard Insurance. Borrow~er shall keep the improvements now existing or hereaiter 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 shall be maintained in the amounts and for the periods tha[ Lender requires. The ~ insurance carrier providing the insurance shal) be chosen bp Borrow~er subject to Lender's approval which shall not be ~ ~ unreasonably withheld. R All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause_ ~ Lender shall have the nght to hold 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 E carrier and Lender. Lender may make prexif of loss if not made prompth~ by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair ~ of the Property damaged, if the restoration or repair is economicall}~ feasible and Lender's security is not lessened. If the ~ restoratian or repair is not economically feasible or Lerder's security would be lescened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with anS~ excess paid to Borrow•er. If ~ Borrower abandons the Property, or dces not answer within 30 days a notice from Lender that the insurance carrier has ~ oflered to settle a claim, then Lender may collect the insurance praceeds. 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-da}~ period w~ill begin when the notice is given. Unless Lender and Borrower otherwise agree in w•riting, any applicatian of proceeds to principal shall not extend or postpone the due date of the monthly payment~ 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 an~~ insurance policies and proceeds resultin~ fram damage to the Propeny prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately ps~or to the acquisition. 6. Preservation and Maintenance of Property; Leaseholds. Borrow•er shall not destroy, damage or substant~ally ~ change the Property, allaw 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 to the Property, the leasehold and ~ ° fee title shall not merge unless I,ender agrees to the merger in writing. ~ ~ 7. Protection of Lender's Rights in the Property; ~lortgage Insurance. If Borrower fails to perform the ~ ~ co~~enants and agreements contained in this Security Instrument, or there is a legal proceed~ng that may sign~ficantly attect ~ Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or ro enforce laws or lr'~ £ regulations), then Lender may do and pay fc~r whatever is necessary to protect the value of the Property and Lender's rights in t:~e Pro~~rty. Lender's actions ma}• include paying any sums secur:d by a lien which has priority over this Security ~ Ir.strument, appearing in court, paying rcasonable attorneys' fees and entering on the Property to make r~pairs. Although o~o Lender may take action uncier this ~aragraph 7, Lender does not have to do so. o° Any amounts disbursed by Lenc~er under this paragraph 7 shall hecome addit~onal debt of BorrowQr secured bv this Security Instrument. Unless Borrower and Lencier agree to other terms of pa}~ment. these an~ounts shall bear ~nterest fn~m the date of disbursement at the Note rate and shall be payable, with interest, u}~<~r~ ~r.•~r~ T~r,d~~. <<~ ?3o~r~~v.:~r requesting payment. : ,G~=, ~ . ' ~r ' m..~' C' i~."~%~53 s;~%„y~'