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HomeMy WebLinkAbout2793 ~ L'ti~FC~Ktit CcrvE~~NTS. Borrow~er and Lender covenant and agree as follows: 1. Payment of Principal stnd Interest; Prepayment and l.ate Charges. Borrower shall promptly pa~~ ~hen due the nrincinal nf and intere~t on the debt evidenced hv the Note and anv nreoavment and late charQCS due under the tiote. 2. Funds for Taxes and lnsurance. Subject to applicable law or to a written waiver by Lender, Borrow~er shall pa}• to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") equal to one-twelRh of: (a) yeariy taxes and assessments which may attain priority over this Security Instrument; (b) ye~+rly leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance premiums; and (d) yearly martgage insurance premiums, if any. These items are called "escrow items." Lender may estimate the Funds due on the basis of current data and reasonable estimates oifuwre escrow items. The Funds shali be held in an institution the deposits or accounts of which are insured or guaranteed b~~ a federal or state agency (including Lender if Lender is such an institution). I.ender shall apply the Funds to pay the eserow items. Lender may not charge for holding and applying the Funds, analyzing the account or verifying the escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits I.ender to make such a charge. 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 Borrower any inierest or earnings on the Funds. Lender shall give 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 additional security for the sums secured by this Security Instrument. If the amount of the Funds held by I.znder, together with the future monthly payments of Funds payable ~+rior to the due dates of the escrow items, shall exceed the amount required to pay the escrow items when due, the excess shalf be, at Borrower's opiion, either promptly repaid to Bonower 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 when due, Borrower shall pay to Lender any ~mo~!ni necessary te make up the ~eficiency in one or mnre ~ayment~ ac rrcauirecl by I.ende~. Upon payment in fuil of all sums secured by this Security Instrument, Lxnder shall promptly refund to Borrower any Funds held by L,ender. If under paragraQh 19 the Property is sold or acquired by Lender, Lender shall apply, no later than ammediately prior to the sale of the Property or its acquisition by Lender, any Funds held b} 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 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 Note; third, to amounts payable under paragraph 2; fourth, to interest due; and last, to principal due. 4. C6arges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable lo the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shail pay these obiigations 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 payrnent. Borrower shall promptly furnish to Lender ali notices of amounts ~ to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender t receipts evidencing the payments. i Borrower shall promptly discharge any lien which has priority over thes Security Instrument unless Borrower. (a) j agrees in writing to the payment of ihe 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 which in the Lender's oPinion operate to I 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 subject to a lien which may attain priority over this Security Instrument, L,ender may give Borrower a ~ notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days ~ of the giving of notice. j 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the PropertS• ~ insured against loss by fire, hazards included within the term "extended coverage" and any other hazards for which L.ender requires insurance. This insurance shall be maintai~ed in the amounts and for the periods that C.ender requires. The ~ insurance carrier providing the insurance shall be chosen by Bonower subject to L,ender's approval which shall not tx unreasonably withheld. ~ A!1 insurance policies and renewals shall be acceptable to I,ender and shall include a standard mortgage clause. ~ Lender shall have the right to hold the palicies and renewals. If Lender requires, Bonower shali promptly give to Lender ~ all receipts of paid premiums and renewal notices. In the event of loss, Borrower shail give prompt notice to the insurance carrier and I.ender. L.ender may make proof of loss if not made promptly by Bonower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be applied to restoration or re~air t of the Property damaged, if the restoration or rePair is economically feasible and I.ender's security is not lessened. If the ~ restoration or repair is not economicall~• feasible or L.ender'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 Bc~rrower. If f Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has ~ ` ofiered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore ; the Property or to pay swns secured by this Security Instrument, whether or not then due. ?he 30-day period wilt begin ~vhvn thn nntirv ic oivv~ i - a- • . Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due 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 I.ender. 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. t 6. Preserration and Maintenance of Property; Leaseholds. Borrower shafl not destroy, damage or substantially s ` change the Property, allow the Property to deteriarate or commit waste. If this Security lnstrument 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 titie shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rig6ts in the Property; Mortgage Insurance. If Borrower fails ro perform the co~~enants and agreements contained in this Security Instrument, 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 the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Securit}- Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Propert}~ to make repairs. Although Lender may~ take action under this paragraph 7, Lender does not have to do so. Am• arnounts disbursed by Lender under this paragrap;~ 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrow•er and Lender agree to other terms of payme~t, these amounts shall bear interest from the date of disbursement at the tiote rate and shall be pa}'able, with interest, u~n notice from Lender to Borrow~er reques!ing pay~ment. 840K 675 ~~E2793 ~ ` - - - _ _ - ~ - ~ r s ~