HomeMy WebLinkAbout2888 l;tilFC~tt~t Ci~~'t:tiA!vTS Borrower and Lender covenant and agree as falle~~~~:
1. Payment of Principal and Interest; Prepayment and Late Charges. HorruH~rr ~h:~ll promptl~ pa~ ~ hrn ~iur
the pnnripal uf and interest on the debt evidenced bv the Note and anr• ~rena~~ment and late rharee~ due under the tiote.
2. Funds for Taxes and Insurance. S~bject to applicable law or to a written v~•:~iver by Lendrr, Borruwer ~hall ~a~
to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a~um ("Fund~") eyu~l to
one-twelRh of: (a) yearly taxes an~i assessments which may attain priorit~~ o~•er this Security Instrument; (b) y~rarl~~
leasehold payments or ground rents on the Property, if any; (c) yearly hazard insurance prrmiums; :~nd (d) yeari~
mortgage insurance premiums, if any. These items are called "escrow items." Lender may ~~,timate the ~'unds due on the
basis of current data and reasonable ~timates of future escrow items.
The Funds shall be held in an institution the deposits or accounts of which 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~ item,.
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 Lender to make such a charge. Borrow•er and
Lender may agree in wnting that interest shall be paid on the Funds. Unless an agreement is made or applicahle law~
requires interest to be paid, Lender shall not be required to pay Borro~~er any interest or earnings on the Funds. Lender
shall give to Borruwer, 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 rnade. The Funds are pledged as additional security f~r the sums secured by
this Security Instrument.
If the amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to
the due 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 when due, Borrower shall pay to Lender any
amount necessary to make up the deficiency in one or m~re payments ac requireci hy I.ender.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower
any Funds held by Lender. If under paragraph 19 the Property is sold or acquired by Lender, Lender shalt 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 Ir~strument.
3. Application of Payments. Unless applicable law provides othenvise, 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. Charges; Liens. Borrower shall pay all taxes, assessments, charges, 6nes 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, ~3orrow~er shali
I' 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 makes these payments directly, Borrower shall promptly furnish to Lender
receipts evidencing the payments.
Borrower shall promptly discharge any lien K~hich has priority over this Security Instrument unless Borrower: (aj
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 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 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, Lender 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 l0 days
~ of the giving of notice.
5. Hazard Insurance. Borrower shal! keep the improvements now esisting 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 shall be maintained in the amounts and for the periods that Lender requires. The
insurance carrier providing the insurance shalt be chosen by Borrower subjec; to Lender's approval which shall not be
~ unreasonably withheld.
~ All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause.
€ Lender shall have the ri ht to hold the luies and renewals. If L.ender re uires, Borrower shall rom tl ne to Lender
; 8 P~ 9 P P YB~.
~ al! reeeipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance
carrier and Lender. Lender may make proof of loss if not made promptly by Borrower.
Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair
E of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the
€ restoration or repair is noi economically feasibte or Ler:der's security would be lessened, the insurance ~roceeds shall be
~ applied to the sums secured by this Secur'sty Instrument, whether or not then due, with any excess paid to Borrower. If
i Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has
I oRered 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 sums secured by this Security Instrument, whether or not then due. The 30-day period will b~gin
~ k•hen the n~tice is QivPn
' U~less Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or
f postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If
j under paragraph 19 the Propeny is acquired by Lender, Borrower's right to any insuranre policies and proceeds resulting
t from damage to the Property prior to the acquisition shall pass ta Lender ro the extent of the sums secured b}~ this Securit}~
E Instrument immediately prior to the acquisition.
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f 6. Preservation and Maintenance of Property; Leaseholds. Borrow~er shall not des;ro}~, damage or subst~ntiall}
` change the Property, altow the Property to deteriorate or commit waste. If this Security Instrument is cm a leasehold.
Borrower shall comply with the provisions of the lease, and if Borrower acquires fee title to the Pro~erty, the leasehoid and
fee title shall not merge unless L~ender agrees to the merger in writing.
7. Protection of L~nder's Rights in the Property; liortgage insurance. 3f $orrower fails ro perform the
covenants and agreements contained in this Security Instrument, ar there is a legal proceeding that ma}~ signifirantl}~ 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 Propeny 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 reasonabSe attorneys' i'ees and entering on the Property to make repairs. Although
Lender 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 Borrov.er secured b}~ this
Security~ Instrument. Unless Borrower and Lender agree to other terms c~f pa}•ment, these amounts shall bear interesi from
s the date of disbursement at the Note rate and shall be pa}~able, with interest, upon notice from Lender to Bnrrotier
requesting pay~ment. `
aooK 675~ FacE2888
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