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HomeMy WebLinkAbout0506 11~~FOax COYFhAN7S. Borrower and Lender co~•enant and agree as fotlow~s: l. PaYmeat of Priacipal and lnterest. Aorrowt~ shall ptomptt~• pay when due ttie principal o( anc! interest on the indebtedness evidenccd by the Note, prepayment ai~d late charges as providcd in the Kote, and the principal of and inter• • est on any Future Advancea secured b~ this ~lortgage. 2 Funds Eor Taxq and Iusunnca Subject co applicable law or to a written wai.•e~ by Lender. Bc+rrower shall pay to l.e~ider on the day monthly installments ot principal and interest are payable under the Note, until the Note is paid in [ull, a sum (herein "Funds') equal to one-twelith o( the y~uly taxes and assessments which may attain priority over this itor~gage, and ground rents on the Property, it any, plus one-twelith ot yearly premium installments (ot haiard insurance, plus one-twel[th of yearly premium installments tor mortgage insurance, if any, all as rcasonably estimated initiall~~ and irom time to time by Lender on the basis ot assessmencs and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts oE which arr insured or guarantecd b?~ a Federal or state agency (including Lender ii Lender is such au institution). l.ender shall apply the Funds to pay said taxes, assessmenu, insurance premiums ancl ground rents. Lender may not charge tor so holding and applping the Funds, aoal~zing said ac- count, or ~•eri[ying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and ap- plicable law permits Lender to make such a charge. Borrower and Lender may agree in r,riting at the ~ime of execution o[ thic :ltortgage that interest on the Funds shall be paid to $orroM•er, and unless such agreement is macie or applicabie law rcquires such interat to be paid, l.ender shall not be required to Pay Borrower an~• interest or earninRs mi the Funds. Lender shall Rive to Borrower, without charpe, an annuat accounting of the Funds showinR crecfits and debits to the Funds and tht purpose for which each debit to the Fnnds w•as made. The Funds are pledged a~ additional secvrity tor the sums secured b} this Mortgage. . If the amount o[ the Funds held by Lender, toqether with the future mcnthly instaltmencs of ~unds pa}~abtc prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceec! the amaant required to pay said taxes, assessments, insurance premiums and ground rents u they fall due, such excess shall be, at Borrower's option, either promptly repaid to BonoNer or rredited to $orrower on monthly installments o[ Funds. 1t the amounc of the Funds held by Lender shall not be su[ficient to pay taxes, assessmenu, insurance premiums and ground rents as they fall due. Borrower shall pay to L.ender any amount necessary to make up the de[iciency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon paymenc in full of all sums secured by this 1liortRage, Lender shall promptlr retund to BorroMer any Funds held by Lender. IE uader paragraph 18 hereof the Property is sold or the Property is otherr. ise acquireci b~• I.ender. Lender shall appi~~. no later chan immediately prior to the sale o[ the Propert~• or its acquisition b}• Lender, an~~ Funds held by i.ender at the time of application as a credit ay,ainst the sums secured by this \lortgage. 3. Applia[ion of Payments Unless applicable laM proeides otherwise, all pa~ments recei~ed bp I.ender under the lote and paragtaphs 1 and 2 hereo[ shall be appliecl by Lender first in pacment o( amounts pa}•able to Lender b~ BorroMer under paragraph 2 hereof, then to interest pa}able on the T'ote. then to the principal o[ the 1ote, and theo to interest and principal on a~y Future Advances. 4. Chazge~ Liens Borrower shalt pay all taxes, assecsments and other charges, fines and impositions attributable to the Property which may attain a priorit}• o~•er this ~iortgage, a~~d leasehold pa~Tnents or p,round rents, i[ any, in the man- ner proeided under paragraph 2 hereof or, if not paid in suth manner, b~ Borrower makinR pa}-ment, when due. directly to chc payee thereof. Borrower shall promptly furnish to I.ender alt notices of amounts due undcr this Paragraph, and in the e~•cnt Borrower shall make payment direcdy. BorroNer shall promptly [urnish to l.ender receip[s e.~idencinR such pa}~ents. Borro~.er shall promptly discharge an~~ lien which has priority o~~er this \(ortgaRe: pro~~ided, that BorroNer shall not be re- quired to discharge any such lien so long as BorroHer shall agree in writing to the payment of the_obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or de(end eulorcement o( such lien in, le- Ral prcxeedinRs whech operate to prevent the enforcement of the lien or (orfeiture ot the Property or any part thereof. 5. Haiard Inu~rance. Borrower aha11 keep the improvemrnts noN existing or hereafter erected on the Property in- sured against loas by [ire, hazatds indadeci within the term "extended co~•erage", and such other hazards as Lender may re- quire and in such amounts and [or such periods as Lender ma}~ require: provided. that Lender sha11 not require that the amoune o[ such co~erage exceed thae amount o[ co~•erage required to pay che sums secured by this ~tortRaRe. The insurance carrier proriding the insurance shall be chosen b~ Borr~~ser subject to appro~~al b~• Lender: pro~ided. that such appro~~al shall not be unreasonably Mithheld. All prrmiums on insurance policies shall be paid in the manner pro~~ided under paragraph 2 hereof or, it not paid in such manner, by Borrower makinR pay~nent, s+hen due, directly to the insunnce carrier, All insurance policies and reneNals thereo[ shall be in form acceptable~to Lender and shall indude a standard mort- gaRe dause in [a~~or of and in torm acceptable to Lender. Lender sha11 ha~•e the right to hold the policies and rene~+als thereoE. and Borrower shall prvmptl}' furnish to I.ender aIl renewai notices and ail receipts ot paid premiums_ In the event of loss, Bonower shal! gi~r prompt notice to the insurance carrier and l.ender_ Lender ma}• make proof ot loss if not made prompdy bv Borrower. Unlexs Lender and Borrower oeherwise agree in Mriting, insurance prcxeeds shall be applied to restoration or repair of the Property damaged, pro~•ided such restoration or repair is economicail}~ feasible and the sec~ritv o( this ~iortp,age is not thereby impaired_ It such restoration or repair is not economically ieasible or if the securit}~ of this ~iortgage would be im- paired, the insurance proceeds shall be applied to the sums secured by this ~tortgaKe. with the excess, i[ an~, paid to Bor- roN•er. If the Propertv is abandoned bv Borrower, or i[ BonoMer tails to respond to [.ender hithin 30 da}~s irom the date notice ix mailed by Lender to Borrower that the insurance carrier o(fers to settle a claim !or insurance benefiu, Lender is authorized to collect and appl?~ the insurance proceeds at I.ender's option either to restoratiori or repair of the Property or to the sums serured by this ~tortgaRe. Unless Lender and Bortower othenvise aqree in writing, any such application of proceeds to princiPal shail not extend or postpone the due date of the monthly installments re[erred tu in paraRraphs 1 4nd 2 hereof or change the amount oE such inctallments_ I( under para~;raph 18 hereo( the Property is acquired b~• Lender, all riRht. tide and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resultinR from damage to the Propert~• prior to the sale or acyuisition shall pas~ to Lender to the extent ot the sums secured by this ~fortgage immediatel}~ prior to svch sale or acquisition. 6. Presmation and Maintenance of Property; Leaxholda; Condominiums; Planned Unit Developments BorroMer sl~alt keep the Property in good repair and shall not commit waste or permit impairment or deterioration ot the Property and shall comply with the pro~•isions o( any lease if this ~tortgage is on a leasehold. It this liortRage is on a unit in a condominium or a planned unit de.•elopment, Borrower s6a11 F?erform all of Borrower's obliRations under the declaration or coeenanu creatinR or governing the condominium or planned unit development, the by~-laws and requlations of the condo- minium or planned unit de~•etopment, and constiment documents. I( a condominium or planned unit de~•elopment rideT is • executed by Borrower and recorded toRether ~+ith this ~iortgage, the covenants and agreements of such rider shall be in- corporated into and shall amend and supplement the coeenants and ap;reements of this ~fortgaRe as if the rider Here a part ~ hereof. 7. Protection of Lender'a Security. If Borrower fails to perform the cor•enants and ap,reements contained in this ~fortgage, or if an}' action or proceedinR is commenced which materially affects Lencler's interest in the Propett}'. including, hut not limited to, eminent domain, insoh-ency, cocie enforcement, or arranqements or proceedinRs im•ol~•ing a bankrupt or decedent, then Lender at Lender's option, upon notice to $orrower. may make such appearances, disburse such sums and take such action as is necessary to protect lxnder's interest, indudinR, but not limited to. disbursement of reasonable attorney's tees and entry upon the Propertr• to make repairs. If I.ender required m~irtqage insurance as a condition of making the loan secu~ed by this ~tortgaqe. Rorrower shall pay the premiums required to maintain such insurance in ef• fect until ~uch time as the requirement for such insurance terminates in accordance with Borrower's and L.enders written ~ 60~K ~8U PA6E t~~ ;