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HomeMy WebLinkAbout0798 8orrower and I.ende~ covenant and agree ae fullowa: 1. Payment ot Principal a~d Intereet. [3orrower ehall promptly pay when due the principal uf and intereat un the indeGtednrsa evidenced by the Note, prepayment and late chargea tie provided in the Note, and the principal of und iotereal on uny F uture Advancex secured by this Mortgage. 2. ~nde for Taxee a~d Insurance. Subject to applicuble law or to a written waiver by I.ender, &,rn,wer shali pay to 1 xnder on the day monthly inetaltmenls of principal and intereat xre p~yuble under the Nute, until the Note is paid in full, U sum lherein "N unda") equul to one twelRh of the yearly taxes and assessmenta which may attain priority over this Mortguge, and ground rents un the Property, if any, plus one~ twelRh of yearly premium inatallmenta for hazard inaurunce, plus onrtwelfth of yearly premium installments fur murtgttge insurunce, if any, all as masonably estimaled initially nnd from time to tirr~e by l.ender on the huais o[ au;sexsments und bills and reusons~ble c~timt~tess thereof. The Funds shall be held in an inatitutio~ the depoaite or accounts of which are inaured or guaranteed by a Federal or State agency (including I.ender if l.ender is auch an inatitution). l.ender ehall apply the Funda to pay eaid taxes, asxear+menta, insurance premiums und gr ta. l.ender may not charge for ao holding and applying the Hunds, analyainq said account, or verifying and rnmpiling aaid asa ts and billa, unleas I.ender paya Borrower intereat on the Fuada and upplicable law permita I.ender to makesuch a cha~e. Borrower and Lender may agree in writing at the time of execution of this Murtguge that interest on the Funds ehaU be paid to Borruwer, and unleas euch agreement ia made or applicable law requirea such internat to be paid, I.ender shall not be ~equired to pay Borrower any interest or eamings on the ~nda. l.ender ahall give to Borrower, without charge, an annual accuunting of the Funda ehu~ving credits and debita to the Funda and the purpose for which each debit to the F unda was made. The F unda are pledged as additional security for the suma secured by thie Mortgage. If the amount of the Funda held by l.ender, together with lhe future monthly installments of Funda payable prior to the duedates of taxes, easesamenta, inaurance premiuma and ground renta, ahall excaed the umuunt required to pay said taxes, ae;aesaments, insurance premiums and ground rente as they fall due, such excees ahall be, at Borrower s option, either promptly repaid to E3orrower or credited to Borrower on monthly inataliment8 of ~nds. If the amount of lhe Funde held by lxnder ahall not be sutficient to pay taxea, asaeasments, ine~urance premiums and ground rente as they fall due, Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requeating payment ihereof. Upon payment in full of all sums eecured by this Mortgage, l.ender ahall promptly refund to Rorrower any funda held by l,ender. If under pan~graph 18 hereof the Property is eold or the Property is otherwise acquired by I.ender, Lender shall apply, no later ihan immediately prior to the sale of the Property or ita aequiaition by Lender, any Funds held by l.ender at the time of application as a credit against the sums securecl by this Morfgage. 3. Application ot Paymenta. Unlesa applicable law provides otherwise, all paymenta received by I,ender under the Note and paragrapha 1 and 2 hereof shall be applied by I.ender firxt in payment of ~muunts payable to l,ender by I3orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, nnd then to interest and principAl on any I~uture Advances. 4. Charges; Liena. I3orrowershall pay all taxes, assessments and other charKes, fines and impositions attributable to the F'roperty which may attain a priority over thia Mortgage, and lexsehold paymenta or gruund rentx, if nny, in the manner provided under parigraph'L hereufvr, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereuL l3orrowershall promptly furnish to Ixnder all notices of amounts due under thia paragraph, and in the event E3orrower shall make payment directly, l~orroN~er ehall promptly furnish to l.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien v?hich has priority over this Mortgage; provided, that Borrower shall not be required to discharqe any such lien so long ~s E3orruwershall agree in writinK to the p.tyment uf theobliKution secured by such lien in a me.~ner Acceptable to Ixnder, or shall in good faith contest such lien by, or defend enforcement of such lien in, leRal procecdink, which operate to prnvent the enforcement of the lien or forfeiture of the Property or any part thereoL 5. Hazard Insurance. Borrower shaU keep the improvements now exiating or hereafter erected on the Property insured against luss by fire, hazards inctuded within the term "extended coverage; ' and euch other hazards as I.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender ahall not require such coverage amount eaceeding the minimum, as may be required by state or federal regulationa goveming activitiea of Lender, or that amount of coverage required to pay the aums secured by this Alortgage. whichever ie the greater. The insuranc~e carrier providing the insurance ahali be chosen by Eiorrower subject to approval b~~ l.ender; pn?vidcd, th.~t such appro~•al shall not be unreasonably withheld. AU pmmiums on insurance pulicies shall be pn+d in the m~~nner pmvidecl under paraKraph 'L hrrmf or, if not paid in such manner, by Borrower makinQ payment, when due, directl~• to the insurance carrier_ All inaurance policies and rnnewale thereof ahall be in form acceptable to Lender and shall include a atandard mortgaRe ciause in favor nf and in form accepteble to Lendes. I.ender ahall have the rightto hold the policies and renewals thereof, and Boaower shall prom ptly furnish to i.ender all renewal notices and all receipts of paid premiuma. In the event of loss, Borrower ahal) give prompt notice t~ the insurance carrier and Lender. Lender may make proof of loss if not made pmmptly by Borrower. Unless Ler?der and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or rnpair of the Property damaged, pro~~ded euch restoration or repair ia economically feasible and the aecurity of this Mortgage ie not thereby impaired. If such reatoration or repair is not economically feasible or if the sec~uity of thie Mortgage wouid be impaired, the insurance proceeds shall be applied to the euma secured by this Mortgage, with the e:cesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to ~ ~espond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefite. Lender is authorized to collect end apply the insurance proceeds at I.ender's option either to rnstoration or repair of the Fmperty or the sums secured by this Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inetaliments. If under paragraph 18 hereof the Property ie aoquired by I.ender, all right, title and intereat of Borrov~er in and to any insurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the eale or acquiaition atiall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to auch eale or aoquisition. 6. Preaervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and shail comply with the pmvieions of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, E3orrower ahal) pertorm all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-iaws and regulationa of the condominium or planned unit development, and conetituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and ~ agreements of such rider ahall be incorporated into and ahall amend and aupplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenanta and agreemente rnntained in thie Mortgage, or if any 3 action or proceeding ie commenced which materially affecte Lender a interest in the Property, including, but not limited to, eminent domain, s ~ ineolvency, oode enforcement, or errangemente or proceedinge involving a bankrupt or deoedent, then I.ender at I.ender'e opqon,upon ~ notice to Borrower may make auch appearanoes, diaburee euch aums and ta1~e auch action se is neceaeary to protect Lender e inteteet, ~ including, but not limited to, diebureement of reaaonable attorney's feee and entry upon the Property to make repaira. If I.ender required ~ mortgege inaurance ae e condition of making the-loan eecured by thie Mortgage, Borrower ahall pay the premiume required to maintain ench ineurance in effect untii auch time ae the requirement for such inaurance terminatee in accordance with Borrower'e and Lender e ~ written agreement or applicable Law. Borrower ahall pay the amount of a11 mortgage ineurance premiume in the manner provided under 3 paragraph 2 hereof. ~ Any amounte diabureed by Lender perauant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneae of $ Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, auch amounte shall be payable upo:~ ~ notice from Lender to Borrower requeHting payment thereof, and ahall bear interest from the date of diabursement at the rate payable from time to time on outetanding principal under the Note unleas payment of intereet at auch rate would be contrary to applicabte law, in which ~ event euch amounte ahall bear intereet at the highest rate permiseible under applicable law. Nothing rnntained in thia paragraph 7, shall require Lender to incur any e:penae or take any action hereunder. ~ ~ ~ i'Al,i ~vv ~ ~ 6'JUr ~ ~ ~ - ~ ; - - ; , . `~s,~'~ , ~ ! , _ - ~ ~i`M~~tis ~ ~'s