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HomeMy WebLinkAbout0670 Borrower and l.ender covenant and agree aa fulluwa: ~ 1. Pa~rme~t o[ PriACipal a~d Intereat. Fiorrower shall promptly pay when due the principal of and interest on the indebtedneae evidenced by the Note, prepayment and late charges aa ptovidcd in the Note, and the pnncipai of and i~tereat on any Future Aci~ unces aecun.d by this Morigage. • 2_ F~tnds tor Taues and Iaeurance. Subject to applicable law or to a written waiver by l.ender,l3orrower sha11 pay to l.e~der on the day mnnthly inatallmenta of principal and intereat are payuble under the Note, until the Note is paid in full, a eum Ihe~ein "Funda") equul to u~e- twelfih of the yeaTly taxea and asst.~axmente? which mey attAin priority over thia Mortgage, and qround rents on the Yroperty, if any, plus one twelRh of yearly premium inatallmenta for hazard inaurance, plus onPlwelfth of yearly prrmium inatullmentx for morigi~ge inau~ance, if any, all as reaeonably estimated initially and from time to ti~ne by l.e~der on the basid of usseaements and bills a~d reasonable estimatea thereof. The F~nda shall be held in an inatitudon the depoeita or accounta of which are ineured or guaranteed by a Federal or State tt~ency (including Lender if l.ender ia auch an inatitution). [.ender ahall apply the Funde to pay said tuxea, assesaments, insurance premiuma and ground rents. I.ender may not charge [or eo holding and applying the ~nda, analyzing said account, or verifying and compiling xaid asaesements and bills, unlese l.ender paye Borrower intereat on the Funds and applicable law permita I.ender to make auch a charge. Borruwer and Lender may agree in writing at the time of execution of thia Mortgage that intereet on the Funda ahall be paid to Aorrower, and unlesa euch agreement ia made or applicable law requires such interest to be paid, l.ender ehall not be required to pay Borrower any interest or earnings on the Funds. I.ender ahall give to Borrower, without charge, an annual accounting of the Funda ahowing creclite and debits to the Funde and the purpoee ior which each debit to the Funda wae made. The Funds are pledged as additionai aecurity for the suma secured by thie Hlortgege. ' If the amount of the ~nda held by Lender, together with the futum monthly installments otFunds payable prior to the due datea of taxea, asseasments, insurance premiums and ground renta, shall excred the amount required to pay said taxes, asseasmenta, inaum~ce pmmiums and ground rnnte ae they fall due, such eacesa xhall be, at Borrower'a option, either promptly repaid to ~3ocrower or credited to Borroweron moathly ingtallmenta of Funda. If the amount of the Funda heid by l.ender shail not be auCficient to pay taxes, aaeeasments, insurance premiums and ground rents as they fall due, Borrower ahall pay to I.ender any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of all auma secured by this Mortgage. I.ender ahall promptly refund to I3orrower any funda held by I.ender. I[under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquiaition by l.ender, any ~nda held by Lender at the time of application as a credit against the suma secured by thie Mortga&e. - ~ 3. Applieation of Paymente. Unless applicable law providea otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof shal! be applied by Lender fire;t 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 lhe Note, and then to interest and principal on any Future Advances. a. Charaes; Liens. E3orrovrershall pay all taxes, assessments and other charKes, fines and impositions attributable to the Yruperty which may attain a priority o~ er this Mortgnge, and leasehold payments or ground renti+, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event E3~rrower shxll make payment direcUy. Rorma•er shall promptly furnish to l,ender receipts evidencing auch payments. I3orrower shall promptly discharge any lien which has priority over ihis Mortg:?ge; pmvided, that E3orrower shall not be required to discharge any such lien so long ~?s E3orrower ~hall aRree in writing to the payment of theobiigntion secured by such lien in a manner aceeptable to l.ender, or shall in gcwd faith contest such lien by, ordefend enforcement of such lien in. legal pn,ceedings .chich operate to prevent the enforcement o[ the lien ur forfeiturn of the Property or any part thereof. . 5. Hezard Insurance. Borrower aha11 keep the improvements now exiating or hereafter erected on the Property insured againat losa by fire, hazarda included v~-ithin the term "extended coverage," and ~uch other hazards ae Lender may require and in such amounte and for such periods ae Lender may require; provided, that Lender ahall not requim such coverage amount exceeding the minimum, as may berequired by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be ch~xzen by Korruwer subject to approvul b~• I.ender, pmvided, that such approvai shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under pariKraph 2 hermf or, if ~ not paid in such manner, by E3orruwer making payment, when due, directly to the insurance carrier. f All insnrance policies and renewala thereof ehall be in form acceptable to Lender and shall include a standard mortgage clause in favor of E and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewale thereof, and E3orrov?er shall promptly fumish to f _~~Aor oll .o..na.rsl nntirug g~{~ g~] .P.~;~~o ..f ~.;d ;.rPmiuma. In thP event of loax_ E3orruwer ahall give prompt notice to the insurance carrier j and Lender. [.ender may make proof of losa if not made promptly by Borrower. f Uniess Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this 1ltortgage is not thereby impaired. If such ' reatoration or repair is not economicaUy feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the sama secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrawer, or if E3orrower faila to ~ respond to Lender within 30 days from the date notice is mailed by Lender to I3orrower that the insurance carrier ofl'ers to aettle a claim for ~ inaurance benefita, Lender is authorized to collect and apply the insurance proceeds at I.endei s option either to restoration or repair of the ~ Property or the sume aecured by this Mortgage. g Unless Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or postpone thedue ~ date of the monthly installments referred to in paraqrapha 1 and 2 hereof or change the amount of auch inatallments. If under paragraph IS ' hereof the Property ia acquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda t thereof resulting fram damage to Property prior to the sale or acquiaition ahall paea to Lender to the extent of the auma secured by this ' Mortgage immediately prior to auch sale or acquiaition_ ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmenta. Borrower ahall keep ~ the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall comply with the - pmvisions of any lease if this Mort~tage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~s ~rrower ahall perform ali of Borrower a obligations under the declaration or covenants creatinRor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the =r rider were a part hereof. ^ 7. Protection of I.ender's 3ecurity. If Borrower faila to perform the oovenante and agreemente conteined in thia Mortgage, or if any action or proceeding ia commenced which materiaily affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, insolvency. oode enforcement, or anangemente or proceedinga involving a banktupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make euch appearancee, diaburee such aume and take euch action aa is neceaeary to protect I.ender's intereet. ~ inclnding, bat not limited to, diebureement of rea8onable attorney'a feee and entry upon the Property to make repairs. If L.ender required mortgage ineurance as a rnndition of making the loan Becured by this Mortgage, Botrower ehall pay the premiuma required to maintain i snch insurance in effect until euch time ae the requirement for such insurance terminates in accordance with Borrower'e and Lender a written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner provided undet paragreph 2 hereof. - My amounts disbursed by Lender persuant to thie paragraph 7, with interest thereon, ehail become additional indebtedneaa of Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, auch amounte ehssll be payable upon - notice ftom Lender to Borrower requeeting payment thereof, and ehall bear intereet from the date of diabureement at the rate payable from time to time on outatanding principal under the Note unleas payment of intereat at euch rate would be contrary to applicable Iaw, in which event ench amounte shall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehall requ'ue Lender to incur any expenee or take any action hereunder. s,.y - SoFr z~s ~ ~:rv _ _ _ ~ ~ _ _ . - x ~1