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HomeMy WebLinkAbout0935 ~ . ~ t• ~ Borrower and Lender covenant and agree as followr 1. Pwyeaent of Principal and Intere~~ Eiorrower shall promptly psy when due the principal of and interesL on the indebtedneea evidenced by the Note, prepayment and late charQes as pmvided in the Note. and the ptincipal of and intesest on any Fl~ture Advancea secu~od by chis MortQage. 2. Ptiwda [or Tsxee and Iaauranoe. Subject b applicable law or to a written weiver by I.e~der, Borrower ehall pay to l.ender on the day monthly installme~ts of principsl and interest are payable under the Note. untit the Note is paid in tull. a sum (herein "I~~nds") equal to on~ twelfth of the yearly taxes and aseesementa which m~y attain priority over thie Mortgage, and ground renta on the Property, if any, plus one twelfth of ye~rly premium inatallmente for hazard inaura~ce, plus onetwelRh of yearly premium installments fo~ mortgage ineurance. if any. all as reasonably eetimated initially and from time to timc by I.ender o~ the baais of assesaments and bille and reasonable eatimates thereof. The F~nds ehall be heW in an inatitution the depoaits or aooounta of which are insured or guaranteed by a Federal or Slate agency (including Leader if Lender is such an inetitution). Lender shall apply the Funds to pay said tauea. aseesements, insurance premiwna and ground nnf~s. I.ender me~y not charge for so holding and applying the Flinds, ae~alysing said acoount, or verifying and compiling eaid aaseeemente and bills. unlesa L.ender paye Borrowec intareet on the Ftinde and applicable law permits Lender to make such a charge. Borrower and I.ender may agree in writing at the time oi esecatioa oi lhia Mortgage that interest on the fi~nds shall be paid to Borrower. end unless ' such agreemeat is made or applicable lsw requires such intereet to be paid. I.ender shatl not be roquired to pay Borrower any inte?~est or earnings on the Flu~ds. l.ender shall giva to Borrower. without charge. an annual accounting of the ~ade showing c~edifa and debita to the I~nds and the purpoee for which each debit to the ~nde wae made.'llie Fuade are pledged as additional eecurity for the auma eecured by this Mortgage: If the amount oithe P~nda held by Gender. together with the future monthly inatsllmente of Funda payable prior to the due dates of t~ea. assesaments. inanranoe prenaiums and ground renia. sheU e:~ed the amount required to pay said taxea. aseeeaments. inaurance premiuma and grouad rents ea they fall dne. auch exceee ahall be, at Bortowerb option. either pmmpdy repaid to Borrowet or credited to Borrower on monchly installmente of I~hads. If We an?ount of the ~nds held by Lender shall aot be sufficient to pay tazes, aesesements. inaurance preminme and ground renta as they fall due. Bormwer ahall pay to I.ender any amount neceeearyr to maice up the deficiency within 30 daye from the date notice is mailed by Lendet b Borrower requeating payment thenof. Upon payment in fiill of all sume eecured by thia Mortgage, Lender shaU prompdy refund to Borrowez any funda held by Lender. If uadtr paragraph 18 hereof the Property ie eold or the Property is otherwiae acquired by Lender, Lender ahall applg, no later than immediately prior to the eale of the Rroperty ar its aaquisition by Lender, any Fl~nda held by Lender at the time of application as a credit againat the aums eecured by thie MoTtgage. ~ 3. Application of Paymeats. Unlese epplicable law providea otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 herEOf ahall be applied by I.ender firet i~? payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to inteeest payable on the Note. then to the princapal of the IVote, and then to interest end principal on any I~ture Advances. . 4. Chargee: Liens. Borrower ahall pay all taxes, aeeeesments and other chargea, fines and impositiona attributable to the Property which may attain a priority over thie Mortgage, and leasehold payme~ta or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower malcing payment, when due, directly to the payee thereot Borrower shall pmmptly furniah to I.ender all notioes of amounta due nnder this paragraph, and in the event Borrower shall make payment directly, Borrowgr ahall promptly fumish to I.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over~~iSa~Yiortgage; provided, that Borrower ahall not be required to discharge any auch lien so long as Borrower shall agree in writing to the paymeat of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest sach lien by, or defend enforcementof such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or s~ny part thereof. 5. Hazard Ineuranoe. Borrower shall keep the improvements now ekisting or hereafter erected on the Prop~rty insured against loas by fire, hazards included wichin the term "eztended.coverage," and auch other h azarde as Lender may require and in auch amounts and for ench perioda as I.ender may require; pmvided, that Lender shall not require such ooverage amount e:ceeding the minimuqi, as may be requind by atate or federa) regulationa governing activities of Lender, or that amount of rnverage required to pay the sums aecured by this Mortgage, whichever is the greater. The ineurance carrier providing the insuranoe shall be chosen by Borrower snbject to approval by t.ender; provided, that such approvai shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower maicing payment, when due, directly to the inaurance carrier. All insurance policies and renewala lhereof ahall be in form aoceptable b Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shalt have the right to hoW the poliries and renewale thereof, and Borrower shall pmmptly furnish Lo i.ender all renewal notices and all receipta of paid pqemiums. In the event of losa, Borrower ahaq give prompt notice to the inaurance carrier i and Lender. Lender may make proof of lo8s if riot made promptly by Borrower. ` Unleea Lender and Borrower otherwiee agree in wriTing. ineurance proceede shall be applied to restoration or repair of the Property , damaged, provided such restoration or repeir ie economically feasible and the eecurity of thie Mortgage ia not_thereby impaired. If anch ~ reetoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds ehall be applied to the suma eec~ued by this Mortgage. with the excess, if any, paid to $orrower. If the Property is abandoned by Borrower. or if Borrower fails to E respond to Lender within 30 daye from the de?te notice is mailed by Lender to Borrower that the inaurance carrier offers to eettle a claim for ~ insnrance benefite, Lender ia authorized to mllect and apply the insnrance proceeda at Lender's option either to reetoration or repair of the Property or the auma eecured by thia Mortgage. Unleas Lender and Borrower otherwiee agree in wridng, any auch application of proceeds to prinripal ahall not extend or poatpone the due date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof ot change the amount of euch inatellmenta. If under paragraph 18 hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any ineurance policiee and in and to the proceeds thereof reaulting from damage to Property prior to the eale or acquisition ahall paea to Lender to the eztent of the eums eecured by thie Mortgage immediately prior to such sale or soquiaitioa. - 6. Preservatjon and biaintenance of Property; Leaseholde; Condominuma; Planned Unit Developments. Borrower shall keep the Property ia good npair and ahall not commiE waste ar permit impairment or deterioration of the Property and shall aomply with the provisions of any leaee if thiB Mortgage ia on a leaeehold. If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower ahall perform al! of Borrower's obligations under the declaration or covenanta creatingor governing !he coadominium or planned uait development, the by-laws and regulations of the condominium or planned unit development, and conatituent documents. If a condominium or planned unit development rider ia eaecuted by Borrower and recorded together with this Mortgage, the aovenante aad agreementa of aueh rider shall be incorporatcd into and shall amend and eupplement the rnvenante and agreements of thia Mortgage se if the rider were a pact henwf. • - Protection ot Leoder'~ Secutity. If Borrower fails to pe:foim the wvenante aad agreEments oontained in t}w Mortgage, or if any ~ action or prooeeding ia commenoed which materially affects Lender's intereet in the Property, including, but not limited to. emin~t domain, - insolvency. aode enfocc~ent, or anangements or proceedings involving a banlQnpt or deoedent, then I.ender at Lender's option,upoa ~ ~ notioe to Borrower may malce such appearanas. disbnrse suc6 aums and take snch ection aa ie necessary to prot~ect I.ender's interest, - iaclading, bat not limited to. disbursement of reasonable attorney's fees and entry upon the Property to mal~e repaire. If I.enda reqaired ~ martgege insurance as a condition of making the loan eecnred by this Mortgage, Borrower ehall pay the preminma reqnired to meintain such inenranoe in effect nntil such time as the requirement for such ins~rance taminatee in aocordanoe with Borrower's and Lendde written agrcemeat ~ applicable IBw. Barrower ahall pay the amount of all mortgage inanrance premiums in the menner provided under Pa=aeraPh 2 hereof. Any amo~wts disbureed by I.ender pereuant to thie paragraph 7, with intereat ther8on, ehall beoome additional indebtednees of Borrowe: secured by this Mortgage. Unlesa Bonower and L.ender agree to other terme of payment, auch amounts ehall be payable upon - ~ notice from Lender to Borrower requesting payment thereof, and ahall bear intereat from the date of disbureement at the rate payable from ~ time to time on outetanding principal nnder the Note nnleas payment of interest at such rate would be aontrary to applicable law, in which ~ event snch amounts shall bear intereat at the highest rate permieaible under applicable law. Nothing oontained in this paragraph 7, ahall ~ ~ reqaire Leader to incar any ~pense or teke any action hereunder. ~ ~ ~ ~ ~ ao~287 ~ ~ ~ . . _ _