HomeMy WebLinkAbout2897 I:~IFC~R~1 Ccn F.~.a~TS H~~rruwrr ;~nd Lender covrn~nt an~i sgrre a, l~~ll„~~,
1. Payment o( Principal and Interest; ['repa~mcnt and Latc Charges. t3urn~wrr ~hall ~run~ptl~ r;i~ µhen ~i:,r
the pnncipal of and intere~t un the debt e~ idrnced hy the tiute and any prrpa~ mrnt snd I:~te ~ h:~rgrti ~iuc undrr the ti~~tr
2. Funds for Taxes and [nsuranee. Sub~ert tc~ applicable law~ ur to a H ntten H a~~ rr b~ 1_rndrr, R~~rruH rr ~haU 4~a~
to Lender on the day montbly payment~ are due under the Note, unhl the Note ?ti pa~d ~n full, a~um 1"Fundti") ryual tu
~~ne-twelRh of: (a) yearl~~ taxes and assrssment~ w~hich may aitain prioril}• over thi~ Serunt~ Intitr~mcnt; (b) prarl~
leasehold payments or ground ren~s on the Pro~rty, ~f an~~; (r) y~earl}~ hazard imuranre premiums; and (d) ~earl~
mortgage insurance premiums, if any. These ~tems are ralled "escrow items." I_ender may rtitimatr thr Fundti dur c~n the
basis of current data and reasonable estimates of fu~ure escrow itcros.
The f~unds shall be held in an insliwtian the deposits or accounts at ~~hich are in~ured or guaranteed b~ a federa! ur
,tate agrnc~~ (including Lender if Lender is tiurh an instiwtion). I.ender tihall appl~• the Fund~ to the e~rroN ite[rs. Lettder
may not charge for hulding and appl~~ing the Funds, ~nal}•~ing the arcount or ~enf~~ing the e,rroH items, un~e~+ Lender
Fi.~rroN•er intere,t on the f=unds and applicable law permits Lender to ntake such a rharge. A charge asu:s,ed b~• l.ender in
runnection ~vith I3~rroyers'entering into this Sccu;ity Instrument to pa~~ the cost of an independent tax reporting,er~icr
,hall not be a charge for purpu,es of thc preceding ~entence. BorroH~r and l.ender ma~ agree in writing that intere.t shall he
paid ~~n the t=unds. Unless an 3greement is made or applicable law reyuires interest to tx paid, Lender ~hall not be reyuired t~~
~a~ &~rrower an~~ interest or earnings on the Funds. Ixnder shall give to B~~rro~~er, ~~ithout rharge, an annu~l acrounting of
the Fundti shuHing credits and debits to the Funds and the purpose far ~hich each debit to the F-undti uas made. Ihe Fund~
are pledged a~ additional ~ecurity for the ~ums ucured b~ this Serurit}~ In~trument.
IP the amount of the Funds held by Lender, together with the future monthly payments of Funds payable pnar 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 oP the Funds held by Lender is not sufficient to pay the escrow items when due, Borrow~er shall pay to Lender any
~?nount n~?ccary !o s!!?k.C L~ th~ ~Cfi,rjPnrY in n!1C OS' .T.L'i~ r^,3ymenis as re~l:Sf£L t?)' ~.CP.f~Ci.
Upon payment in full oFall sums secured by this Security Instrument. Lender shall promptly refund to Borrower
any Funds held by Lender. If und~er paragraph 19 the Property is sold or acquired by l.ender, Lender shall apply, no later
than immediately prior to the saie of the Property or its acquisition by Lender, any Funds held by Lender at the time of
application as a creciit 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. Charges; Liens. Borrow~er shali 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 ro Lender all notices of amounts
~ to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender
receiptsevidencing the payments.
Borrower shall promptly discharge any lien w~hich has priority over this Security Insirument unless Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien ~n a manner acceptable to Lender; (b) contests in good
j 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; ar (c) secures from the halder of the lien an
~ agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of
~ the Properiy is subject to a lien which may attain pr?ority 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 10 days
! of the giving of notice.
` S. Hazard Insurance. Borrower shall keep the improvements noa~ existing or hereafter erected on the Property
~ ~nsured 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
E insurance carrier providing the insurance shall be chosen by Bo~row•er subject to Lender's approval w~hich 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 right to hold the policies and renewals. If Lender requires, Borrower shall promptly give [o Lender
ail receipts 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 L,ender and Borrower otherwise agree in wnting, insurance proceeds shall be applied to restoration or repair ~
of the Propeny damaged, if the restoration or repair is economically feasible and Lender's security is not (essened. 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 '
; F3orrower abandons the Property, or dces 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 ma~ use the pra.eeds to repair or restore
the Property or to pay sums secured by this Security Instrument, whether or not then due. Thc 30-da~~ period will begin
when the nntice is Qiven
Unless I,ender and E3orrower 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 L,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.
' 6. Preservation and Maintenance of Property; Leaseholds. Borrower shall not destroy, damage or substantially ~
change the Property, a11ow 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 Lender agrees to the merger in writing.
7. Protection o~ Lender's Rights in the Property; Mortgage Insurance. If Borrower fails to perform the
covenants and agrcem~nts contained in this Security Instrument, or there is a legal proceeding that may significantly affect
Lender's rights in the Proptrty (such as a proceeding in bankruptcy, probate, for condemnation or to enforce laws or
regulations), then L.ender 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 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 have to do so.
Any amounts d~sbursed by Lender under this paragraph 7 shall become additional debt of Borrower sec~~rcd by this
Security Instrument. Unless ~orrower and Lender agree to other terms of payment, these amounts shall bear interest from
the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower
requesting payment.
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~ eooK 6 ~5 PAGF 289?
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