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HomeMy WebLinkAbout0409 .r E3or~ower and Lende~ covenant and agree as followa: • 1. Peyment ot Prlncipal end Interest. Borrower ahall promptly pny whe~ due the principal of and intereet on the indebtedneue evidenced by the Note, prepayment and late chargee aa provided i~ the Note, and the principal of and intereet on any F uture Advancea secured by thia Mortgage. 2. F1~nds for Tasea and Ineurance. Subject to applicable Iaw or to a written waiver by I.endEr, I3orrower shall pay to t.ende~ on the day monthly installmeata of principal and interest are payable under the Note, until the Note ia paid in full, a aum (herei~ "E~'unda") equa! to one twelfth oithe yearly taxee and aasesemente which may attaio priority over this Mortgage, pnd ground rentei on the Pruperty, itany, plua one- twelfth of yearly premium inatallmeots for hazard insurance, plua one~twelRh of yearly premium inatallments for mortgage insurance, if any, all as reasonably eatimated initially and from time to tirne by lxnder on the baais of nasessmenla and billa und rnuaunAbte eatimutea thereof. The ~nds ahall be held in an institution the depoeita or accounts ot which are ineured or gueranteed by a Federal or State agency (including I.ender it I.ender ia euch an inatitution). l.ender ehall apply the Funda to p~y said taxes, asaesamenls, inaurance premiuma and ground renta. I.e~der may ~ot charge for eo holding and applying the ~nde, analyzing said account, or verifying and compiling aaid assesamentu and bills, unlesa L.ender paya Borrower intereat on the F~nda and applicable law permite I.ender to make euch a charge. Borrower and Lender may egree in writing at the time of e:ecution of thia Mortgage that intereet on the Ftinds ahall be paid to F3orrower, and unleas auch agreement is made or applicable law requires euch intereat to be paid, I.ender ehall not be required to pay Borrower any interest or earnings on the ~Lnds. Lender nhall give to Borrower, without charge, an a~nua! accoanting of the Funda ahowi~g credita and debit» to the F~nds and the purpoee for which each debit fo the F~nds was made. The Funds are piedged as additional security for the aums eecured by thie Mortgage. If the amount of the Fl~nde held by I.ende~. together with the future monthly inetallments of Funda payabie prior to the due datea of taxee, assesamenta, inaurance premiuma and ground renta, ahaU excred the amount required to pay eaid taxes, asaeasmente, inaur~nce premiums and ground rente ae they fall due, such e:cess ahall be, at Borrower e option, either promptly repaid to Borrower or credited to Borrower on monthly inetaUmenta of F~nda. If the amount of the Funda held by Lender ehall not be sufficient to pay taxes, assesaments, inaurance • premiums and ground rente as they fall due, Borrower ehall pay to Lender any amount necesenry to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all aums secured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by L.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by I.ender, l.ender shall apply, no later than immediately prior to the sale of the Property or ite soquiaition by I.ender, any Funds held by Ixnder at the time of application as a credit against the aums aecured by thie Mortgage. 3. Applleation of Payments. Unlesa applicable law provides otherwiee, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by I.ender first in payment of amounta payable to Lender by E3orrower under paragraph 2 hereof, then to intereat payable on th~ Note, then to the principal of the Note, and then to interest and principal on any Futum pdvancea. Charges; Liens. Borrower shal) pqy all taaes, assesaments and other charges, fines and impositions attributable to the Property v? hich may attain a priority over this Mortgage, and leasehold payments or grouhd mnta, ifany, in the manner provided under paragraph 2 hereof or, if notpaid in such manner, by Borrower making payment, when due, dirertly to the payee thereof. Borrower shall promptly furnish to I.ender all noticea of amounte due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipte evidencing such paymenta_ Botrower ahall promptly discharge any lien which has priority over this Mortgage; pro~~ided, that Borrov`er shall not be required to diacharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation securrd by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal procecdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any parl thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against losa by fire, hazarda included arithin the term "eztended coverage," and auch other hazards as Lender may requirn and in such amounts and for such periods as l.ender may require; provided, that~Lender ahall not requim such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiee of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the inauranrn shall be chosen by Rorrower subject to approval by I.ender; pm~ ided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shnll be paid in the manner provided under paraKraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directly to the insurance carrier. All inaurance poliries and rnnewala thereof shall be in form acceptable to Lender and shall include a atandard mortgage clauae in favor of and in fortn acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall pTOmptly furnish to ' iender all renewal noticea and all receipts of paid premiums. In the event of loss, Bomuwer shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loss if not made prompdy by Borrower. f Unleas Lender and Borrower otherwise agree in writing, insurance proceeds aha11 be applied to reatoration or repair of the Property i I damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage ia not.thereby impaired. If such ~ rnstoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to Lhe sums aecured by this Morigage, with the eacess, if any. paid to Borrower_ If the Property is abandoned by ~3orrower, or if Borrower fails to ' respond to L.ender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier oPfera to settle a claim for ~ inaurance benefits, L.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the aums eecured by this Mortgage. Ur.leas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal sha11 not eactend or poatpone the due ~ date of the monthly instalimente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 hereof the Froperty is aoquired by Lender, all right, tide and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition ahall pass to L.ender to the eatent of the auma secured by this Mortgage immediately prior to such sale or soquisition 6_ Preservation and Maintenance otProperty; Leaseholds; Condominume; Planned Unit Developments. Borrower ehall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaione of any lease if this Mortgage is on a leasehold. If ihis Mortgage is on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creatingor goveming the condominium or planned unit development, the by-lawe and rrgulations of the condominiuro or planned unit development, and conatituent documents. If a rnndominium or planne~ unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants an~ agreementa otsuch rider shall be incorporated into and shall amend and aupplement the covenanta and agreementa of this Mortgage as if the - ' rider were a part hereof. 7. Protection of Lender's Securlty. If Borrower faila to perform the oovenanta and agreemente oontained in thie Mortgage, or if any ~ action or proceeding is oommenced which materially aftecte Lendei e interest in the Property. including, but not limited to, eminent domain, ~ insolveacy, aode enfoe~oement, or arran~ements or pra~edings involving a bankrupt or decedent, then Lender at I.ender s option,upon notice to Barrower may make euch appearanoee, dieburae auch aums and take euch action aa ie neceseary to protect Lendei s int~ereet, including, but not limited to, disbureement of reasonable attorney'e fe~ and entry upon the Property Lo make repaire. If L.ender required " mortgage inenrance ah a rnndition of making the loan eecured by thie Mortgage, Borrower ahall pay the premiums required to mainfsin ~ ench inaurence in effect until anch time a8 the requirement for auch ineurance terminatee in accordance with Borrower'e and Lender s n wtitten agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under ~ paragraph 2.hereof. ~ My amo~u?ta diebursed by Lender pereuant to thia paragraph 7, with intereet-thereon, ehall beoome additipnal. indebtedneae of ~ Borrower secvred by thie Mortgage. Unlese Borrower and I.ender agree to other terme of payment, euch amounte el~8~l'bepayab~e upon notice from Lender to Borrower requeating payment thereof, and ehall bear intereat from the date of diebureement at the rate payable from ~ time to time on outatanding principal under the Note unleas payment of intereet at such rate would be oontrary to applicable law, in which ~ event such amounta ehall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall require Lender to incur any expense or take any action hereunder. ; ~ ~ ~ s°ot,u ~SJ ~ ~Q~ ~ ~ _ _ - - ~ {k- _ . _ ..:r . _ _ . r . ~