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HomeMy WebLinkAbout0831 •a i UH~~oRt?t CaveN~N~rs. Bor~ower and Lender covenant and agree as follows: 1. Paymeat ot Princlpal aod Interesl. Harrower ahall prumptly pay wheo due the principal of and interest on 1he indebtednest evidenced by the Note, prepayment aad late charges as provided in the Note, and the principal of and interest on any Future Advances secured-by thi~-Mortgage. 2. Ihu~d~ tor Tua and Inwnnce. Subject to spplicable law or to a written waiver by Lender. Borrower shall pay to L.endcr on the day monthly i~stallments u[ principal and intcrest are payable under the Note, u~til the Nota is p9id in tuli, a wm (here+n-.,~andt")-equa~-io on~twclGh of~ 1he-ye~riy-ta~es--~nd- ~s~Ms-which ~ay-.attaiu-prio~ity._over_ ihit ~ Mortgage. and ~round rentc on the Property. it any, plus one-tweltth ot yeuly premium inataltmeob for hazard imuraace. plus one-iwelfth oi yeuly prcmium installments for mortgage insuranct, if aay. all u reasonably estimated initially and from i Nme to time by Lender on tl~e buis of sssessments and bills and reasonable astimates thereof. k '[l~e Funds shall be held in an institution the deposiu or accounts of which are insurod or gwrantoed by a Fedenl or state a~ency (including Lender if Lender is such an institution). Le~der shall apply 1he Funds to pay uid taua. assasments, insuraaoe premiums aad grouad rcnts. Le~der may not charge for so holding and applying the Funds, analyzing said acc~ount, or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds ai~d applicabk law permits Ler~de~ to make such a charge. Borrower and I.eoder may agree in writi~g at the time of eatecution of this Mort~e that iaterest on the Funds s6a11 be paid to Borrower, and unless such agrament is made or applicabk law requires such interat to be paid~ Lender shall not be rcquired to pay Borrower any interest or earni~gs on the Funds. Lender slull give to Borrower, without charge, an annual aceounting of the Funds showing crcdits and debits to the Funds and tbe parpose for which each debit to the Funds was made. 'i~e Funds arc plaiged as additional security for the sums secured by this Mortgag~t. lf the amount of the Funds held by Lender, together with the future monthly installments of Funds payabk prior to the due dates of taxes. as.sessments. insurance premiums and ground rents, shaU exceed the amount requirod to pay said tua. auesame~ts. in:urance prcmiums and ground rents as they fall due, such excess shall be. at Borrower's optian. either promptly repaid to Borrower or crodited to Borrower on mon~hly installments of Funds. If the amount of the Fu~t held by Lender shall not be sufficieat to pay taxes. assessments, insurance premiums and ground rents as they fall due. Borrower shall pay to Lende~ any amount necessary to make up the deficiency within 30 dayr from the date notice is mailed by I.ender to Borrower requesting payment thereof. Upon paymeat in full of all sums secured by this Mortgage, Lender shall promptly rcfund to Barrower any Fund~ held by Lender. If under ~paragraph 18 hereof the Propeny is sold or the Property is otherwise acquircd by Lender. I.e~der sball apQly. oo later than immediately prior to the sale of the Propeny or its acquisition by Lender. any Funds held by I.ender at the time of application as a credit against the sums secured by this Mortgage. 3. A~plkaNoa of P~eneats. Unless applicable Iaw provides otherrvise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under puagraph 2 h~reof. then to interest payable on the Note, then to the prir~cipal of the Note, and then to interat and principal on any Future Advance.c. 4. C6arj~ Leas. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to the Property which msy attain a prioriry over this Mongage. and leasehold paym~ats or ground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to tbe payee thereof. Borrower s6a11 promptly furnish to Lender sll notices of amounts due under this paragraph. and in the avent Borrower shall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments. ' Bonower shall promptly discbarge any lien which has priority over this Mortgage; provided. that Borrower shal! not be requirod to discharge any such lien so long as Borrower shall agree in writing to the paytnent of the obligation secured by s~uh lien in a manner acoeptable to Leader. or shall in good faith contest such lien by, or defend enforcement of such lien in, tegal proceedings which operate to prevent the enforcement of the lien or fodeiture of the Property or aay part thereof. S. Hazard Iasnraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insurod agai~t loss by 8re, hau.*ds included within the term "extended coverage", and such other hazards as Lender may roquire and in such amountt and for such periods as Lender may require; provided, that Lender shall not nquire that the amount of such coverage excced that amount of coverage required to pay the sums securcd by this Mortgage. 'Ibe insurance carrier providing t6e insurance shatl be chosen by Borrower subjcet to approval by Lender. providod, that such approval shall not be unnasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragcaph 2 henof or, if not paid in such manner. by Borrower making payment, when due. directly to tbe ; insurance curier. All insurance policias and renewals thereof shall be in form acceptable to Lender and shall include a standard moRgage ! clause in favor of and in form acceptable to Lender. Lender shall have the right to hoid the policies and renewals thereof, ~ and Borrower shall proropdy furnish to Lender all rencwaf notices and all receipts of paid premiums. In tht event of 1oss, ~ Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of bss if not madt promptly E by Borrower. . ~ Unless Lender aad Borrower otherwise agree in writing. insurance proceeds shall be applied to restoration or repair of ; the Propeny damaged. provided such restoration or repair is economically feasible and the security of this Mortgage is s not thereby impsired. If such restoration or repair is not economically feasible or if the security of this Mortgage would bt impaired, the inaurance procxds shall be applied to the sutns secured by this Mortgage, with the excas. if any. paid ~ to Borrower. If the Property is abandone.i by Borrower, or if Borrower fails to respond to Lender within 30 days from tlx z date notice is mailed by Leader to Borrower that the insurance carrier offets to setde a claim for insurance benefits. Lender ~ is aut6orizod to collect and apply the insurance procecds at Lender's option either to restoration or rep~ir of the Property ~ or to the aums secured by this Mortgage. - ~ Unless Lender aad Borrower otherwise agrce in writing. any such application of proce~ds to principal shall not extend ~ or postpone the due date of the monthly inuallments referrcd to in paragraphs 1 and 2 hereof or change the amount of ~ such installmeots. If under paragrapb l8 hercof the Property is acquired by Lender, all right, tide and interest of Borrower in and to any ia~urance policies aad in and to the proceeds thereof resulting from ~amage to the Property prior to the sale ~ or acquisition shall p:us to I.eader to the extent of the sums secured by this Mortgage immediately prior to such sak or ~ ~ acquiaition. 6. PreservaBou aod ~taiotenaoce of Property; Lea9eholds; Condominiutns; Planned Un1t Derdopmeats. Borrower ~ shal! keep the Property in good repair and s6all not commit waste or permit impairment or deteriontion of the Property _ and shall comply with the provisions of any lease if this Mortgage is on a leasehold. lf this MoKgage is on a unit in a ~ condominium or a planned unit development, Borrower shall perform all of Borrowei a obligations under the declaration ~ or covenants creating or gove~aing the condominium or planned unit developroent, the by-laws and tegulations of the ~ condominium or planned unit development. and constituent documents. If a condominium or plann~d unit development ~ rider is executed by Borrower and recorded together with this Mortgage, the covenaats and agreements of such rider ~ shall be incorporated into and s6a11 amend and suppiement the covenants and agreements of this Mortgage as if the rider ~ were a part heroof. ~ 7. Protcctioo of Leode~s Security. If Borrower fails to perform the covenants and agreements contained in this ~ Mortgage, or if any action or proceeding is commenced which materially afiects Lender's interest in the Property. ~ including, but not limited to, eminent domain, inscilvency, code enforcement, or arrangements or proceedings involving a ~ bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower. may make such appearances. disburae such ~ sums aad take such action az is naxssary to protect Lenders interest. including. but not limited to. disburtement of ~ reasonable attomey's tees and entry upon the Property to make repairs. If Ltnde~ required mortgage insurance as a ~ condition of making the loan securai by this Mortgage. Borrower ahall pay the premiums required to maintain such ~ insurance in effect until such time as the requicement for such insurance terminates in accordance with Borrower's and ~ ~ ~w ~ ~ ~ . E':t 25.7 FAGE 83~.