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HomeMy WebLinkAbout0072 ~ N • Bo~ower and l.ender cove~a~t and a~res as foU.,ws: 1. Payment ot Principal and [nlereat. E3orrower ehall promptty pay when due the p~ncipal of and intereet un the indebiedneas evidenced by the Nots, prepayment and late chargea es provided in ?he Note, and the principal of and interesl on nny ~lture Advan~~ee aecured by thia Mottgage. Z._Flutds for Teutes and [naurance. Subject W applicable law or b a written waiver by t.ender, t3orruwer xhu11 pay to i.coderon the day monthly inatallmenta of principal a~d i~terest are payable under the Note, until the Note ia paid in full, a aum Iherein "Funds") equal to one twelfth of theyearly taxes and asseuamenta which may ettnin priority over this Modgage, and ground rentx o~ the Property, ilany, plua one twelRh of yearly premium inatallmenta for hatard insurance, plue onetwelfth of yearly premium i~stallmenta for mortgage inaurance, if any, all ae reaeonably eatimated initially and from time to time by t.ender on the basis of asaesaments and bills nnd rexsonoble estimatee thereof. The FLade shall be held in sre institation the deposits os aceounta o! which are inaured or guamnteed by a Federal or State agency . (including I.ender if I.end~ is auch an ineiituaon). I.ender ahatl apNiy th~ Fun3s ta pay sai~ tazes, assrssmenia, insurans;~ premiume sad giround renta. Lender may not charge for so holding and applying the F~nde, analyzing said account, or veritying and compiling said aaseesments and billa, unleas L.ender pays $orrower intereat on the Ftinds and applicable lew permita I.ender Lo make auch a charge. Borrower and Lendet may agree in writing at the time of execution of ihia Mortgage that intereat on the ~nda shall be paid to Borrower, and unleas such agrcement ie made or epplicable law requires such interest b be paid, I.ende~ ehaU not be required to pay Bo~ower any intereet or earninga on the Ftinda. Lender shall give to Borrower. without charge, an annual accounting of the Funda showing credits a~d debits tc~ the fiunda and the putpoee for which each debit to the ~rtae wae made. The Funde are pledged as additional security for the eums eecured by this Mortgage. If the amount oithe Ftinda held by Lender, together with the future monthly installmenta of Funda payable prior to the due dat~ of taxes, aeseasmente. inaurance premiuma and ground renta, ehall e:c~ed the amount required to pay said texea, asseasments. insurance premiume and ground rents ae they tall due, auch excese ahall be, at Borrower s option, either pmmptly repaid to Borrower or credited to Borrower on monthly instaUments of ~Lnda. If the amount of the Funde held by I.ender shall not be sufficient to pay taxee, aaseeamenta, inaurance pretniums and ground rents as they fall due, Borrower shall pay to Lender any ~mount neceasary to make up the deficiency within ~0 daye from the date notice ia maited by Lender to Borrower requesting payment thereof. Upon payiaent in full of all euma eecured by thie Mortgage, Lender shaU prompdy refund to Borrower any funds held by Lender. If under paragreph 18 hereof the Propetty ia sold or the Property ie otherwiee acquired by L.ender, Lender shall apply, no later than immediately prior to the aale of the Ptoperty or its acquiaition by Lender, any ~nda held by Lender et the time of epplication as a credit against the eums aecured by thia Mortgage. 3. Applieation of Paymenta. Untesa applicable law provides otherwiae, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to iaterest payable on the Note. Ehen to the principal of the Note, and then to interest snd principal on any Future Advancea. 4. C6argea; Liene. Borrowerahal! pay all taxes, assessments and other charges, fines and impositions attributable to the Properiy which may attain a priority over this Mortgage, and leasehold paymenta or ground mnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Rorrower shalt promptly furnish to l.ender afl noticee of amounta due under thia paragtaph, and in the event Borrower shall make payment directly, Borrower ahall pmmptly furnish to Lender re~eipte evidencing such paymente. Borrower ahall promptly diacharge any lien which hns priority over this Mortgage; provided, that Borrower shaU not be required to discharge any such lien so long as Borrower shal! agree in writinq to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such iien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enfar~ement ot the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehell keep the improvements now existing or hereafter erected on the Property insured against losa by fire. hazards induded within the term "e:tended rnverage; ' and auch other hazarda ae Lender may require and in such atnounta and for such periode as Lender may require; provided. that I.ender ahall not require such coverage amount exceeding the minimum, as may be requited by etate or federal regulations governing activitiea of Lender, or that amount of coverage reqnired to pay the suma secured by this Mortgage, whichever ia the greater. The inaurance carrier providing the insurance shal! be chosen by Borrower subject to approval by I.ender, provided, that such aFprovai ahall not be unreseonably withheid. Ail premiums on insuranc~e policies shall be paid in the manner provided under paragn~ph 2 hereof ur, if not paid in sueh manner, by Borrower making payment, when due, directly to the inaurance cartier_ All inaurance policiea and renewala thereof shall be in fortn acceptable to L.ender and shall include a st~ndard mottgage clause in favor of ~ and in form acceptable to Leader. I.ender shall have the right to hold the policiea and renewate thereot, and Eiorrower shall promptly furnish to i.ender aIl renewal aotices and all neceipts of paid premiuma. In the event of losa, Bornower shall give prompt notice to the insutance carrier and Lender. Lender may make proof of losa if not made pmmptly by Borrower. Unlese Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to reatoration or repair of the Property damaged, provided such reatoration or repair ia economically feasible and the security of this Mortgage is not thereby impairs~l. If auch restoration or repair ie not ecanomically feasible or if the security of this Mortgage would be impaired, the insurance proceede shall be applied to the suma secured by this Mortgage, with the exoess, if any, paid W Borrower. If the Property is abandoned by $orrower, or if $ortower faits to cespond to Lender within 30 daye from the date notice is mailed by I.ender to Borrower that the inaurance carrier offera to settte a claim for inaurance benefita, I.ender is authorized to collect and apply the ineurance proceede at Lender's option either to restoration or repair of the Prnperty or the auma eecured by thie Mortgage. Unless I,ender and Borrower otherwise agree in writing, any such application of proceeda to prinripal ahall not e:tend or postpone the due date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of euch inatallmente. If under paragraph 18 hereof the Property is aoqnired by Lender. all tight, title and interest of Borrower in and to any insurance policiea and in and to the proceeds thereof reaulting from damage to Property prior to the eale or acquiaition shall paes to Lender to the extent of the aums securecl by this Nortgage immediately prior to auch eale or aoquieition. . 6. Preservation and Maintenance of Property; Leaeehotde; Condominume; Planned Unit Developmenta. Borrowerahali keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisiona of any leaee if thie Mortgage is on s leasehold. If this Mortgage ia on a unit in e condominium or a planned unit development, Borrower ehall perfortn all of Borrower'e obligationa under the declaration or covenants creatingor governing the condominium or ptanned unit development, the by-lawa and regulations of the condominium or planned unit development, and conetituent documents. If a condomininm or planned unit development rider ia e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and agreements oi euch rider shall be incorporated into and ahall amend and aupplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's 3ecurlty. If Bonower taile to perform the mvenante and agrcements oontained in this Mortgage, or if any action or procxeding ia commenced which materially affecte I.ender'e interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangemente or proceedinga involving a ba.nlQUpt or deaedent, then I.ender et Lender's option,upon { noticx b Borrower may make such appearances, disburae such eume and take auch action aa ia neoeesary to protect I,ender e intereat, including. bat not limited to, dieburaement of reasonable attorney'a feea and entry upon the Property to make repairs. If I.ender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borroaer shall pay the pr~iums required to maintain auch inenrance in effect until auch time ae the requirement for auch inaurance terminates in aocordance with Borrower'e and Lender'e written agreement or appticable I.aw. Borrower ehall pay the amount of ell mortgege ineurance premiums in the manner pmvided under paragraph 2 hereof. My amounte diebureed by I.ender persuant to this paragraph 7, with intereat thereon, shall become additional indebtedneae of Borrower secured by thia Mortgage. Unlese Borrower and Lender agtee to other terma of payment, auch amounta ahall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear intereet from the date of diebureement at the rate payable from time to time on ooGstanding principal under the Note nnleae payment of intereet at such rate would be oontrary to applicable law, in which event such amounte ahall bear intereat at the higheet rate permiaeible under applicable law. Nothing contained in thia paregraph 7, ahell require i.ender to incur any e:penae or take eny action hereunder. ~ ~J3~~ t'.1Li ~ ~ t _ _ ~ : - - . ; : ~ ~Y~- ~ z4 - ~ y ~ '~TV _ x~ n ~ ~ ~ k~~ x`~`~.. °b