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HomeMy WebLinkAbout0378 v . • ~ Bormwer and l.eoder covent?nt and agree ae followa: 1. Payment ot Principal and laterest. EioRUwer ahall promptly pay when due the principal ot and intereet on the i~debtedneaa evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and intereet on any ~ture Advancee eecured by this Mortgage. 2. ~nde tor Ta~ces aad Insurance. Subject to applicaWe law or to a written waiver by l.ender, Borrower eha11 pay to I.e~deron the day ~nonthly inatallmenta ~f principal and ic?tereat are payable under the Note, until the Note ia paid in full, a aum (herein "Funda") equal to une twelRh of the yearly taxes and s~saesaments which may attain priority over thie Mortgage, and gruund rente on the Property, i[any, plua one twelfth otyearly premium inetallmenta for hazard inaurance, plus onetwelfth of yearly premium installmenta for mortgage insurance, if any, all aa reaeonably estimated initially and from time to tiR~e by I.ender on Ihe buais ot etsaeasments a~d biUs and reasoonble eatimates thereof. 'R~e ~1nds ehall be held in an institution the depoaite or accounta of which are insured or guaranteed by a Federal or State agency (including Lender if Lender ia euch an inetitution). I.ender ehall apply the Funda to pay aaid taxee, aesesaments, inaurance premiums and ground rente. I.ender may not charge for eo holding and applying the ~nds, analyzing eaid account, or verifying and compiling esid aeaeesmenta and biUs. unlesa l.ender paya Borrower intereat on the ~nds and applicable law permite Lender to make euch a charge. Borrower and l.ender may agree in writing et the tune oi execution of thie Mortgage that intereat on the Funda ahali be paid to Borrower, and unleas auch agrcemeat ie made or applicable law requires auch intereat to be paid. I.ender shail not be required to pay Borrower any intereat ot earnings on the FUnds. Lender ehall give to Borrower, without charge, an annual accounting of the Funda ahowing credite and debita to the F1u?ds and Lhe purpoee for which each debit to the Fnnda wae made. The Funda are pledged as additional eecurity for the auma secured by this Mortgage. If the amount of the ~nde held by Lender, together with the future monthly inataltmente ot Funds payable prior to the due datea of taaes, aseesamenta, insurance premiums and ground rents, ahall excaed the amount required to pay said taxes. assessmenta. inaurance premiums and ground rents as they fall due, such excese ahall be, at Borrowrer's option, either pmmpdy repaid to Borrower or credited to Borrower on monthly installmente of ~Lnds. If the amount of the Funda held by [.ender shall not be aufficient to pay {axea, assessments, insurance premiume and ground rents ae they fall due, Borrower shall pay to Lender any amount neceasary lo make up the defiriency within 30 daya From the date notice ie mailed by Lender f,o Borrower requeating payment thereoL - Upon payment in full of all sume secured by this Mortgage, I.ender ahaU prompdy refund ta Borrower Any funds held by Lender. lf under paragraph 18 he~eof the Property ia sold or the Property is otherwise acquired by I.ender, Lender shall apply, no laterthan immediately prior to the sale of the Property or its acquiaition by Lender, any ~Lnda held by I.ender at the time of application as a credit againat the suma secured by thia Mortgege. 3. Application of Payments. Unless applicable law providea otherwiee, all payments received by l.ender under the Note and paragrapha 1 and 2 heteof ehall be applied by I.ender firxt in payment otamounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then tb intereat and principal on any Future Advancea. 4. Chargea; Liene. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable tn ihe Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renfs, if any, in the manner pmvided under paragraph'l hereof or, if not paid in such manner, by Borrower making payment,-when due, directly W the payee thereof. Botrower shall promptly furniah to I.ender all notices of amounts due under this parugraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to I.ender receipts evidencing such payments. Iiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good taith contest such lien by, or defend enforcement otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof.. 5. Hazard Ineurance. Borrower shall keep the improvementa now exieting or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "extended coverage; ' and euch other hazards as [.ender may require and in auch amounta and for such periode as Lender may require; provided, that I.ender shall not require euch.coverage amount exceeding the minimum, as may be required by state or federal regutations governing activities of Lender, or that amount of coverage required to pay the aums secured by this Morlgage, whichevet ia the greater. ~ The insurance carrier providing the insurance shall be chusen by Borrower subject to appro~ al by I.ender; provided, that such approval shall not be unre~sonably wit6held. All premiums on insuranrn policies shall t?e paid in the manner pmvided under paraKraph 2 hercr?for, if not paid in auch manner, by I3orrower making payment, when due,-directly lo the insurance carrier. All insurance policies and renewals thereof ahall be in form acceptable ta Lender and ehall include a atandard mortgage clause in favor of ~ and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i~ender all renewal notices and all receipte of paid premiums. In the event of losa, Borrower ahall give prompt notice to the insurance carrier j and Lender. Lender may make proof of loss if not made promptly by Borrower. i Unleas I.ender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or rnpair of the Property ~ damaged, provided auch restoration or repair is economically feaeible and the security of this Mortgage is not thereby impaired_ If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shaU be applied to the suma secured by thia Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance camer offers to eettle a claim for i inaurance benefita, Lender is authorized to collect and apply the inaurance proceeda at l.ender's option either to restoration or repair of the ~ Property or the aums secured by thie Mortgage_ Unless Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of such installmenta. I[ under paragraph 18 hereof the Property ia acquired by Lender, all right, tide and intereat of Borrower in and to any ineurance policiea and in and to the proceeda thereof reaulting from dainage to Property prior to the sale or acquisition ahall pass to I.ender to the e:tent of the eums secured by this Mortgage immediately prior to auch aale or acquisition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Coadominuma; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deteriaration of the Property and ahall comply with the provieiona of any lease if this Mortgage ia on a lessehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower aha11 perform all of Borcower's obligations under the dectaration or covenants creatirigor governing the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and conetituent dceuments. If a ~ rnndominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and agreementa of such rider shali be incorporated into and shall amend and supplement thecovenanta and agreements of thia Mortgage as if the ridet were a part hereof. _ ~ 7. Protertion of I.ender's 3ecurtty. If Borrower faila to perforru the oovenants and agreemente contained in thie Mortgage, or if any ~ action or proceeding is rnmmenced which materially affecte Lender'e interest in the Property, including, but not limited to, eminent domain, insolvency. oode enforcement, or arrangements .or pr~ceedinge involving a bankrupt or decedent, then I.ender at Lender'e option,upon ~ notice to Borrower may make auch appearancee, diaburee such eums and take ench action as ie neceeeary to protect Lendei s in~t, ~ including, bnt not limited to, diebureement of reaeonable attorney'e fees and entry upon the Property to make repaire. If Lenda required ~ morfgage insurance ae e condition of making the loan aecared by this Mortgege, Borrower ahall pay the premiums required to maintain ~ such inaurance in effect until euch time ae the requirement for auch ineurance tern?inatea in accordance with Borrower's and Lendei's ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragraph 2 hereof. My amounta diabursed by Lender persuant to this paragraph with intereHt thereon, ehall become additionel indebtednese of ~ Borrower secured by thia Mortgage. Unleea Borrower and Lender agree to other terme of payment, such amounte ehall be peyable upon ~ notice from I.ender to Borrower requeating payment thereof, and ahall bear intereet from the date of diebureement at the rate payable from time to time an outatandinq principal under the Note nnlees payment of interest at auch rate would be contrary to applicable law, in which ~ event euch amounta ehall bear intereet at the higheat rate permieeible under applicable law_ Nothing contained in thie paragreph 7, ehall ~ require Lender to incur any_ expenee or take any action hereunder. < ~ ~ j ~ C~ - t Y ~%^J1 ""~s~ ~ GvL~1~~ ~ ~_'a