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HomeMy WebLinkAbout0598 . fiorrower and l.ende~ covenant and agree as foUuwa: 1. Peyment of Principal and lnterest. I3or~ower ahall promptly pay when due the principal of and intereet un the i~debtrdneea evidenced by the Note, prepayment end late chargea aa provided in the Note, and the principal of and intereBt oo any Fl~ture Advances eecured by chis Mortgage. 2. F~nds [or Taxes and Ineurance. Subjecl w applicable Inw ur to a written waiver by ! a~~er, t;orrower shaU puy to I.ender on the duy monthly inatallmente of principal and intereat are payable under the Note, until the Nute ia puid in full, a sum lherein "F unde") equal to one twelRh of the yearly taxes a~d asaeaementa which may attain priority over this Mo~tgxge, and ground rente on the I'roperty, if any. plus one twelRh of yearly premium inatallmenta for huzarc~ inaurance, plua on~twelRh of yearly premium installments fo~ morlgaKe inaurance, i[any, all as reasonably eatimated i~itially nnd itom time to ti~r~e by I.ender on the bt?sis oC asaessmenta and billa and re.~suni?ble estimules thereol. The Funda ahall be held in an institution the deposits or accounte of which ar~ inaured o~ guaranteed by a Federal or State agency (including I.ender if l.ender is euch an institution). l.ender shall apply the Funds to pay eaid taxes, assessmente, insurance premiuma and ground rente. Lender may not charge for eo holding and applying the Funda, analyzi~g said account, or veri[ying and compiling said easeeements and bitls, unlesa l.ender paye Borrower intereat on the Funde and applicable law permits Ixnder to make such a charge. F3orruwer and l.ender may agree in writing at the time of eaecutio~ of this Morigage that intereet on the ~nds ehall be paid to Borrower, and unless euch agreement ia made or applicable law requires such intereat to be paid, I.ender ehall not be required to pay Borrower any interest or earninge on the ~nde. Lender ehall give to Borrower, without charge, an annual accounting of the Funda showing credits and debits to the Funde and the purpose for which each debit to the F unda was made. The Funds are pledged as additional aecurity for the sume secured by thie Mortgage. If the amount of the Funda held by l.ender, together with the future monthly inatallments of Funds payabie prior to the due datea of taxes, asaesamenta, inaurance premiuma and ground renta, shall exc~red the amount required to pay said taxea, assessments, inaurance premiums and ground rente aa they fali due, auch exceea aha11 be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nda. If the amount ot the Funds held by Lender ahall not be sufficient to pay taxea, assesamente, inaurance pre~niume and ground rnnta as they fall due, Borrower ahaU pay to Lender any amount_ neceesary lo make up the deficiency within 30 days from the date notice is mailed by l.ender tn Borrower requesting payment thereof. Upon payment in full of all aums aecured by this Mortgage, Lender shaU pmmptly refund to E3orrower any funds held by I.ender. If under paragraph 18 hereof ihe Property ia sbld 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 ita acquiaition by I.ender, any Funda hetd by I.ender at the time of application as a credit against the sums secured by thie Mortgage. 3. Appli~ation of r^~;;:~~ =ts. °!?olicable law providea otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firet in payment of amounts payable to I.ender hy Borrower under paragraph 'l hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargea: Liene. [3orrower shall pay al) taxes, aasessmenis and other charges, fines and impositions attributable to the Pre~periy which may attain a priority over this blortgpqe, and leasehold paymenta or ground rents, if any, in the manner pi~ovided under paragraph 2 hereofor, if not paid in auch manner, by 13orrower making payment, when due, directly to the payee thereof. Borrower shaU promptly fumish to I.ender ail notices of amounts due under this paragraph, and in the event F3orrower shall make pa3•ment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. Borrower ah~ll promptly discharge s?ny lien which has priority over thia Mort{;age; provided, that Borrower shall not be required to discharge any such lien so long a.s E3orrower shall a~-ee in writing to the p~yment of theobligation secured by such lien in a munner acceptable to l.ender, or shaU in good faith contest such lien by, ~?rdefend enforcement of such lien in, IeKal proceedings which operate to prevent the enforcement of the lien or forfeiture ot the Property or any part thereof. 5_ Hazard Inaurance. Borrower shall keep the impruvementa now exiating or hereafter erecttd on the Property inaured against losa by fire, hazarda included within the term "extended coverage; ' and such other hazarda as I.ender may require and in auch amounts and for such periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regalationa governing activitiea of L.ender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater_ ~ The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, pmvided, that such approval ahall not be unreasonably withheld. All pmmiums on insur~?nce policies shall be paid in the manner pruvided under p~vagraph 'L hereof or, if . not paid in such manner, by E;orrower making payment, when due, directly to the insurance carrier. All inaurance policies and mnewala thereot ahall be in form acceptable to I.ender and shall include a standard mortgage clause in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policiea and renewals thereot, and Borrower ahail promptly furnish to i i~ende~ all renewal noticea and all n~ceipta of paid premiums. In the event of lose, Born~wer shall give prompt notice to the insurance carrier and Lender_ Lender may make proof of loss if not made promptly by Borrower. ~ Unleas Lender and Bonower otherwise agree i~ writing, insurance proceeds shall be applied to reatoration or repair of the Property 3 damaged, provided auch reatoration or rnpair ia economically [easible and the aecurity of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied a to the aums secured by thia Mortgage, with the exceas, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower fails to ' respond to l.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier oft'ers to settle a claim for ~ ineurance benefita, L,ender ie authorized to collect and apply the insurance proceeda at Lendei s option either to restorafion or repair of the ~ Property or the sums aecured by this Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poatpone the due ~ date of the monthiy inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 ; hereof the Property ia acquired by Lender, all right, tide and interest of Borrower in and to any insurance poliries and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the aums secured by this Mortgage immediately prior to such sale or soquisition. ~ 6. Preaervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shali comply with the ~ provisions of any lease if this Mortgage ia on a leasehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahal) perform aU of Borrowei s obtigations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulatione of the rnndominium or planned unit development, and rnnatituent documente. I[ a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the wvenants and ~ agreementa o[such rider ahali be incorporated into and shall amend and supplement the covenanls and agreementx of this Mortgage as if the rider wern a part hereof. ~ Protection of Lender's 3ecarity. If Borrower faile to perform the oovenants and agreements contained in this Mortgage, or if any ~ action or proceeding ie rnmmenced which materially affecte Lender'a interest in the Property, including, but not limited to, eminent domain, - insolvency. oode enforcement, or anangementa or proceedinge involving e bankrupt or decedent, then Lender at Lender's option,upon w; notice Lo Borrower may make euch eppearanaee. diaburee euch aume and take euch action ae ie necessary to protect Lender e interee~ ~ including, but not limited to, diebureement of reaeonable attorney'e fees and entry upon the Property to make repairs. If Lender required y mortgage insurance as a condition of making the loan eecured by this Moxtgage, Borrower ehall pay the premiume required to maintain anch insurance in effect until euch time es the requirement for euch ineurance terminatee in accordance with Borrower'e and Lender a writien agreement or applicable Law_ Borrower ehall pay the amount of all mortgege inaurance premiume in the manner provided under R paragraph 2 hereof. ~ My amounte diebureed by Lender perauant to thie paragraph with interest thereon, ehall become additional indebtedneea of Borrower eecured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounta ehall be payable upon notice from Lender to Borrower requeeting payment thereof, and shell bear intereet from the date of diebureement at the rate payable ~om time to time on outetanding prinripal under the Note unleae payment of intereat at such rate would be oontrary to applicable law, in which ~ event euch amounta shall bear intereet at the higheet rate permieeible under applicable law. Nothing contained in this paregraph ahall require Lender to incur any e:pense or take any action hereunder_ ~ ~ ~ 4T ~ ~~uK ~9~ r' 5~9 ~ ~ ~ ~x ~ ~ - - _ ~ , . ~::z 4 sy. 4~"i^~~° _ ' ~ ~ ~ ,s^?&"~.~52' z+.v'i«:3'^"vy'~~'~"e.Y"x``~~~-'Y . .