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HomeMy WebLinkAbout0017 • ~ ~ 4 ~ E3orrower end I.ender covenant and agree ae followa: t. Payment of Principal and intereet. Aorrower ahall promptly pay when due the principal of aud intereat on the indebtedneaa evidenced by the Note, ptepayment and late charg~ ae provided in the Note, and the pri~cipal of and intereat oo any F~ture Advancee secured by this Mortgage. 2. !~`unda for Taxes and I~eurance. Subject to applicable law or to a written waiver by l.ender, Borrower ahaU pay to [xnder un the day monthly inatallmente olprincipal and interest are payable under the Note, until the 1Vote ia paid in full, a aum (herein "~ods") equal to one twelfth otthe yearly taxes and asseaamenta which may attai~ priority over this Nortgage, and ground mnts un the Pn~perty, if uny, plus une~ twelRh of yearly premium installmenta for hazard insurance, plus onetwelfth ofyearly premium inat~timenta for mortgage insurance, if any, ali as reasonably estimUted initially and from time to time by I.cnder on the basia of naaeasmenta and bills And reasonable eatimates thereof. Tfie Ftinds ahall be held in an inatitution the deposits or accounta of which are ineured or guarantetd by a Federal or State agency (including Lender if I.ender ie auch an inetitution). [.ender ehall apply the ~nds to pay said taxea. assesaments, inaurance premiums and ground rents. Lender may not charge for so holding and applying the Funde, analyzing eaid aecount, or verifying and compiling said asseesmenta and bills, unlees Lender paye Borrower interest on the Funda and epplicable law permita Lender to make euch a charge. Borrower and Lender may agree in writing at the time of e:ecution of thie Mortgage that interest on the Funda shall be paid to Borrower, and unlesa euch agreement is made or applicable law requires auch intereat b be paid, Lender BhaU not be required to pay Borrower any interest or earninge on the F~nds. [.ender ahall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debita to the Funds and the purpoae for which each debit to the F`unds was made. The Funde are pledged as additional security for the auma secured by this Mortgage. If the amount of the Funda held by Lender, together with the future monthly inatallmenta of Funds payabie prior to the due dates of taxee, aseesamenta, insurance premiums and gronnd rents, shaU excred the amount required to pay said taxea, Hsaessmenta, inaurance premiuma and ground rnnts as they fall due, euch excesa shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inelallments of ~nda. If the amount of the Funde held by Lender shall not be autficient to pay taxes, asseasments, inaurance premiume and ground renta as they fall due, $orrower shall pay to Lender any amount neoessary to make up the deficiency within 30 daye from the date notice es mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of sll aums secured by thia Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If ander paragraph IS hereof the Propcrty is sold or the Property ia otherwiee acquired by [.ender, I.ender shatl appty, no tater than immediately priar to the sale of the Property or its acquieition by Lender, any ~trtds held by Lender at !he iime of application as a credit against the aums aecured by this Mortgage. 3. Application of Paymente. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahali be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nole, end then to interest and principal on any Future Advances. 4. Charges; Liene. $orrower ahall pay all taxea, assessments and other charges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner ptovided under paragraph Z hereof or, if not paid in such manner, by Borrower making payment, when due, directly ta the payee thereaf. Borrowershall promptly furnish to Lender atl notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall prompdy fumish to l.ender receipts evidencing such payments. Borrower ahall promptly discharge any lien which has priority overthis 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 obli~ation secured by such lien in a manner acceptable to Lender, or shail in good faith eontest such lien by~ ordefend enforcement of such lien in, legal proceeciings which operate to prevent the enforcement of the leen or forfeitum of the Property or any pari thereof. 5. Hazard Insurance. Borrower shali keep the improvemrn4s nuw existing or hercufter erected on the Property ineured agai~st loss by 5re, hazards included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and forsuch periods as I.ender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activitiee of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. " The insuranee carrier providing the insurance shalt be chosen by I3ortower subject to approva) by [.ender; pro~•ided, that such approval ' shall not be unreasonably wi~hheld. Al) prerniums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof shali be in iorm accepiaole io ixuurr x,tid aha:::;.~:::3t a o.: ~~'.'~~*o.?n „1a na~. in fa vnr nF .a.^~_ and in form acceptable to I.ender. Lender ahall have the right to hold the policiea and renewals lhereof, and Borrower ahall promptly fumish to i.ender all renewal noLices and a11 receipts of paid premiums. In the event of loss, Borrower ahall qive prompt notice to the insurance carrier and Lender_ I.ender may make proof of loss if not made promptly by Borrower. Unleas I.ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair ie economically feasible and the security of this Mortgage is not thereby impaired. If auch . restoration or repair is not economically feasible or if the security of this Mottgage would be impaired, the insurance proceeda shali be applied to the suma secured by this Mortgage, with the eacesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faita to reapond to Lender within 30 daye from the date notice is mailed by Lender to Borrower Lhat the insurance carrier offers to settle a claim for inaurance benefits, Lender is autharized to collect and apply the insurance proceeda at Lendei s option either to restoration or repair of the ~ Property or the suma eecured by this Mortgage. Unleas Lender and Borrower otherwise agree in writiog, any such application of proceede to principal ahail not extend or postpone the due date of the monthly inatallments refemd to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda , thereof reaulting fiom damage to Property prior to the sale or acquieition ahall pass to I:ender to the extent of the sums eecured by thia Mortgage immediately prior to auch sale or acquisition. _ 6. Preaervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the provieiona of any lease if this Mortgage ie on a leasehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrowet's obIigatione under the dectaration ar cavenants creatingor governing !he e~ndominivm or planned ' unit development, the by-lawe and regulations of the condominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider ia execute~ by Borrower and recorded together w-ith this Mortgage, the oovenanta and - agreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. ' 7. Protection of I.ender's 3ecutity. If Borrower fails to perform the oovenante and agreementa oontained in thie Mortgage, or if any action or proceeding ia commenced which materially affecta I.ender e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or anangementa or proceedings iavolving a banim~pt or dec~dent, then Lender at Lender e option,upon notice to $orrower may make euch appearances, dieburse auch eums and ta1~e anch action ae is neoeeeary to protect L,ender'a intereet, induding, but not limited to, dieb~ueement of reaeonable attorney'a feee and entry upon the Property to make repaire. If Lender required mottgage inenrance se a oondition of making the loan aecured by thia Mortgage, Borrower ehall pay the premiume required to maintain anch ineurance in effect until euch time se the requirement for euch inaurance terminatea in aoeordance with Borrower's and I.ender'r written agreement or applicsble Law. Borrowez ahall pay the amount of all mortgage ineurance premiuma in the manner provided under paregraph 2 hereof. Any amounte dieburaed by Lender pereuant tn thie paragraph 7, with intereat thereon, ehall become additional indebtedness af Borrower eecured by this Mortgage. Unleas Bonower and Lender agree to other terma of payment, auch amounte ahall be payable upon notice from I.ender to 8orrower r~ueeting payment thereof, and shall bear interest from the dale of diabnreement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereat at euch rate would be oontrary to applicable law, in which event such amounte ehall bear intereet at the higheet rate permieaible under applicable Iaw. Nothing conteined in this paragraph 7, eha~l require L.ender to incur any expenae or take any action hereunder. $ODK~ ~