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HomeMy WebLinkAbout0939 ~ . ••.f . ~ Borrower and Lender covenant and aQree ai follows: 1. Payment of Princ1p41 sad Intere~~ Borrower shall promptly pay when due the principal of and intetest on the i~debtednesa evidenoed by the Note, prepayment and late charge~ as pmvided in the Note, and the principal of and inter~t on any P~ture Advancea eecured by this Mortga~a 2 I~nds [or T~~ and Insuraace. Subject to epplicable law or to a writtea waiver by l.ender. Borrower shall pay to I.ender on the day monthly inatallmeats of principal and iatere8t are Fayable under the Note. unW the Note is paid in fuU, a sum (herein "FLnds") equal to one twelRh of the yearly taxes and aseesements which may attain priority over thie Mortgage. and ground re~ta on the Property. if any, plus one~ twelfth of yearly premium inatallmenta for hezard ineurance. plus onetwelRh of yearly premium inatallment8 fo~ mortgage inaurance, if any, aU ea reasonably eatimated initislly and from time to time by Lender on the beaie of aaseasments and bills and ceaaonable estimates thereof. The PLnda ~haU be held in aa institution the depoaits or aooounta of which are insured or guaranteed by a Fedual or 3tate ager~cy (including Lender if I.eader is such an institution). Lender ahall apply the Funda to pay said taxea, aseesements, inaurance premiums and ground reats. Lender may not charge for so holdi~g and applying the I~nde. analysing eaid account, or verifying and compiling eaid asseesmenta and biW. unless I.ender pays Bormwer interest on the F~nde and applicable law permits l.ender to make auch a charge. Borrower and I.ender m~y agree in vvriting at the time of execution of thia Mortgage that interest on the ~nde ehaU be paid to Borrower. and unleas such agroement is made or applicable law requires such interest to be paid. l.ender shall not be required to pay Borrower any intereat or earnings on the Phnds. l.ender ahall give to Borrower, without charge, an annual acoounting of the ~?nda showing credits and debita to the + Ftiu?ds and the purpose [or which each debit to the Fl~nds was made. The Funds are pledged as additional security for the eume secured by this Mortgage. If the amount of the FLAda held by Lender, together with the future monthly inatallmente of Funda payable prior to the due datea of ta~ces, aeseeamenta, insuraaoe premiums and grouad rents, ehall e:ored the amount required to pay eaid taxea, essesaments, ineurance premiuma and ground ~+enfa as they fall due. such encceea ahall be. at Borrower s option, either pmmpdy repaid to Borrower or credited to Borrower on _ monthly installments of Flinde. If the amount of the Funds held by Lender ahall not be eufGcieni to pay tazes, aeeeeaments. insurance ; premicuns and ground renta as they fall due, Borrower ahall pay to I.ender any amount ne~.~easary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower oequeeting payment thereof. Upon payment in fiill of all euma eecured by thia Mortgage. Lender shall promptiy refund to Borrower any funda held by Lender. If und~ paragraph 18 henof the Pcoperty ie eold or the Property ia otherwise acqnired t?y Lender. Lender ahall apply. no later than immediaLely prior to the sale of the Property or ita aoquisition by Lender, any ~nds held by Lender at the time of application ae a credit againet the euma eecured by this Mortgage. 3. Application ot Paymeate. Ualess epplicable law provides otherwise, aU payments reoeived by Iender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to inteeest payable on the Note, then to the principal of the Note, and then to intgrest and principal on any Future Advancee. 4. Charges; Liene. Borrower shall pay all taxea, asseasmenls and other chargea, fines antl'f ~positiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the mannerprovided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereo£ Borrower shall promptly furniah to Lender all noticea of_amounte due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to Ixnder receipta evidencing aach payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that ~ Borrower ahall not be required to discharge any such lien so long as Eiorrower ahall agree in writing to the payment otthe obligation secured by i such lien in a manner acceptable to Lender, or shaU in good faith oontest auch lien by, or defend enforcement of such lien in, legal proceedings ; which operate to prevent the enforcement of the lien or fodeiture of the Property or any part thereof. ~ 5. Hasard Ineurance. Bornower shall keep the impmvements now ezisting or hereafter erECted on the Property insured againat lose by fire, hazarda included within the term "e:tended coverage," and auch other hazards as Lender may require and in sach amounts and forsuch perioda as Lender may require; pmvided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be required by atate or federal regulatione governing activities of Lender, or that amount of coverage required to pay the sums aecured by thie Mortgage. whichever ia the great~. ~ The insnrance carrier providing the insurance shall be chosen by E3orrower subject to approval by I.ender, provided, that such appsoval shall not be unreasonably withheld_ All premiuros on insurance policies shall be paid in the manner provided under paragraph ~ hereof or, if not paid in such manner, by Borrower making payment, when dne, directly to the insurance carrier_ All insurance policiea and renewals thereof ahall be in form aoceptable to Lender and ehall include a atandard mortgage clause in favor of and in form acoeptable to Lender. Lender shall have the right to hold the policies and renewals thereof; and Borrower shall pmmptly furniah to i.ender all renewal noticee and all receipte of paid premiuma. In the event of laea, Borrower ahaA give prompt notice to the insurance carrier _ and [.ender. Lender may make proof of laea if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwiae agree in writing, inaurance proc~ds ahall be applied to reetoration or repair of the Property E damaged, provided auch reetoration or repair ie econoaucally feasible and the eecurity of this Mortgage ia not thereby impaired. If such j reetoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the euma eecured by thia Mortgage. witkthe euoess, if any. paid to Borrowet. If the Property ie abandoned by Borrower, or if Borrower fails to ~ reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Botrower that the inanrance carrier offera taeetde a claim for ~ insurance benefita, Lender is authorized b collect and apply the inaurance proceeda at I.ender'a option either to restoration or repair of the Property or the eums eecnred by this Mortgage. ~ Unlesa I.ender and Borrower otherwise agree in writing, any such application of proceede to principal shall note~ctend or poatpone the due . date of the monthly inatallmenta reterred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and intereat of Borrower in and to any inanranoe policiee and in and to the prooeeds thereof reaulting from damage to Property prior to the eale or aoquisition ahali pasa to Lender to the e:tent of the sums eecnred by thia Mortgage immediately prior to such eale or aaquisition. . ; 6. Preeervation and ~aintenance of Property; Leaeeholds; Condominume; Pianned Unit Developmente. Borrnwer ehall keep the Property in good repeir and shall not commit wasle.or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if thie Mortgage is on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, Borrower shall pertorm all of Borrower'e obligationa under the declaration or oovenants creatingor governing the oondominium or planned ~ unit development, the by-lawe and regulatione of the oondominium or planned un~.t development. and oonetituent documente. If a ~ condominium or planned unit development rider is e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and agrcemente of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreemente of thia Mortgage as if the rider were a part hereof. 7. Protection of tiender's Securitp. U Botrower fails to perform We oovenante and agreements oontained in this Mortgage, ot if any ~ action or prooeeding is oommenoed which materially aNecte Lender's interest in the Property, including. but not limited to, eminent domain. ~ insolvency. oode enforcement, or arrangements or pt+oceedings involving a ban~rupt or deoedent, then Leader at Lender s option,upon ~ notioe to Borrower may malce auch appearances, disbnrse auch eume and take aach action as is neoeseary to p~oted Lenda's interes~ ~ indnding, bat not limited to. diebnrsement of reasonable attorney's fees and entry upon the Property to mal~e repairs. If I.ender required ~ mortgage insnraace as a condition of making the loan secared by thia Mortgage, Borrower ahsll pay the preminms required to maintain ~ auc6 inanrance in effect nntil ench time as the sequirement for such inawance terminates in aocordanoe with Borrower's and L.ende~s written agrcement or applicable Iaw. Borrower shall pay the amount of all mortgage inaurance pr~niums in the manner provided nnder ~ ParagrBPh 2 bereof. ~ ~ Any amounte disbursed by L.ender persuant to this peragraph 7. with intaeat thereon. ehall beoome. additional indebtednees of ~ Borrow~ eecu~ed by tLis Mortgage. Unlesa Borrower and Lender agree to other terms of payment, such amounta ehall be payable upon ~ notice from Lend~ to Borrower reqaesting paymeat thereof, and ahall bear interest from the date of disbarsanent at the rate payable from E time to time on ontstanding principal uader the Note unless payment of interest at such rate would be oontrary to applicable law, in which eveat such amounta a6a11 bear intereet at the higheat tate peimiasible under applicable law. Nothing contained in this paragraph 7, shall = - require Lender b incur any eupenee or telce any action hereunder. ~ 0 Q P~E a7W ~ bDOK ~ _t, ~