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HomeMy WebLinkAbout0386 Borrower end l.et?der covenant and agree as follows: 1. Peyment o! Principal and laterest. Borrower shall prompUy pay when' due the principal of and interest on the indebtedneea evidenced by the Note. prepayaaent and late chargee as provided in the Note, and lhe principal of and inte~eet on any ~ture Advancee eecured by this Mortgage. 2. Ptinde for Taxes and lnsurance. SubjeM to applicable law or to a written waiver by L.ender, I3orrower ehall pay to I.ender on the day monthly i~atallments of priacipal and intereet am payable under the Note, until the Note ie paid in full, a sum (herei~ "FLnds") equal to one twelfth of the yearly taxes and asseasmente which may attain priority over thia Mortgage. and groynd renta on the Property, if eny, plus on~ twelfth of yearly prnmium inatatlmente for hasard ir~eurance, plus onetwelfth ofyearly premium installmenta for mortgage inaurance, if any, all as reaeonably eatimated initially and from time to time by I.ender on the basie of assesemeote and bills and reasonable eatimates thereof. Tl~e FLnds shaq be held in an institution the depoaits or accounts of which are ineured os guaranteed by a Federal or State agency (including Lender if l.ender ia such an institutionl. I.ender ahall apply the Ftinda to pay eaid ta:es, aaeesamenta, ineurance premiums and gmund rents- I.ender may not charge for ao holding and applying the ~?nda, analyzing said account, or verifying and compiling aaid asee8sments and bills, untese I.ender pays Borrower interest on the ~nda and epplicable law permite l.ender to make such a charge. Borrower and Lender may agree in wridng at the time o! execution of this Mortgage that intereat on the ~nda ahall be paid to Rorrower, and unleas snch agreement is made or applicable law requires auch interest to be paid, Lender ahall not be required to pay Bor~ower any intereet or earninga on the ~nds. I.ender ehall give to Borrower, without charge, an annual acaounting of the Funda ahowing credits and debits to the Ftinda and the purpoee for which each debit to the ~nda wea made. The Funds are pledged as additional eecurity for the suma eecured by this Mortgage. If the amount of the Fl~nde held by I.ender, together with the future monthly inetallmenta of Funds payable prior to the due datea of taxes, seseesmente, insurance premiuma and ground rente, shaU exc~ed the amount required to pay said ca:es, aseesamgnta. inaurance premiums and ground rente ae they fall due, such e:cese ahall be, at Borrower e option, either prompdy repaid to Borrower or rredited to Borrower on monthly inatallmenta of.Fti?nds. If the amount of the Funda heM by I.ender ehall not be aufficient to pay ta:ea. aseeaementa. inaurance premiums and ground rente as they fall due. Borrower $hall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of a11 suma secured by thia Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph IS hereof the Property is eold or the Property is otherwiae acquired by Lender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquiaition by L.ender, any FLnds held by I.ender at the time of application as a credit againat the sums eecured by thia Mortgage. ~ 3. Application of Payments. Unle~s applicable law providee otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firs! in payment of amounte payable to Lender by Borrower under paragraph 2 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. Charges; Liene. Borrower ehall pay all taxes, assessments and other chargea, fines and impositions attributable to lhe Property which may attain a priority over this Morigage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender all notices of amounts due under thia paragraph, and in the event Borrower shal) make puyment direcdy, Borrower shall promptly furnish to Lender receipta evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as I3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loea by fire, hazarda included within the term "e:tended coverage," and euch other hazards se Lender may require and in euch amounta and for such periods se Lender may require; provided, that Lender shal! not requirn auch ooverage amount exceeding the minunum, as may be required by state oF federal regulations governing acrivitiea of L.ender, or that amount of coverage required to pay the suma secuted by this Mortgage, whichever ie the greater. The insurance carrier prbviding the insurance shnll be chosen•by Borrower subject to approval by I.ender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shaU be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Rorrower making payment, when due, direcdy to the insurance carrier. All inaurance policiea and renewale thereof shall be in torm acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to I.ender. Leader ahall have the right to hold the policies and renewals thereof, and Boaower shall promptly fumiah to ~ , i.ender all renewal notices and all receipts of paid premiums. In the event of loea, Born~wer ahall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwiee agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is econoroically feasible and the security of this Mortgage ia not thereby impaired. If such ~ reatoration or repair ia not eoonomically feaeible or if the aecurity of thia Mortgage would be iropaired, the insurance proceFda ahall be applied to the eums aecured by this Mortgage, with the excesa, if any, paid to Borrower_ I tthe Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier of1'era to aettle a claim for ~ ineurance benefite, I.ender is authorized to collect and apply the inaurance proceeda at Lender s option either to reetoration or repair of the ~ Property or the suma secured by thie Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal ahall not eatend or poatpone thedue date of the monthly inatallments referred to in paragraphs I 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 interest of Borrower in and to any insnrance policira and in and to the pmceede thereof reaulting from damage to Property prior to the sale or aoquisition ahall paas to Lender to the eatent of the euma secured by this Mortgage immediately prior to auch eale or acquieition. 6. Preaervaaon and Maincenance ofPropercy; Leaseholde; Condominuma; Planned Unit DeveIopmente. Borrowerahall keep the Property in good repair and ahaU not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisiona of any leaae if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or covenanta creatingor goveming the condominium or planned ~ unit development, the bylawe and regulatione of the condominium or planned unit development, and constitueni dceumenta. If a condominium or planned unit development rider ie ezecuted by Borrower and recorded together with thie Mortgage, the oovenante and agreementa of auch rider shall be incorporated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the rider were a part hereof ~ Protection of I.ender's 3ecurity. If Borrower fails to perform the oovenants and agreementa oontained in thie Mortgage. or if any action or proceeding is commenced which materially affecte Lender s interest in the Property, including. but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,npon notice to Borrower may make snch appearanoes, disburee euch anms and take euch action as is neceeeary to pmtect I.ender's interest, including, but not limited to, disbnrsement of reasonable attorney e feee and entry upon the Property to make repairs. If I.ender required PaY the premiume reqaired to maintain ~i mortgage insurance aa a oondition of making the loan secured by thie Mortgage, Borrower ehall ~ snch insurance in effect antil ench time as the requirement for such ineurance teraninatee in socordance w~ith Borrower's and I.ender's ; ~ written agreement or applicable Isw. Barrower shall pay the amount of all mortgage inaurance premiume in the mannez pmvided under i ~ paragraph 2 heceof. Any amounts dieburaed by Lender persuant to thie paragraph T, with intereet thereon, shall beoome additional indebtednees of ~ Borrower secured by this Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounte shall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ehall bear intereat from the date of diebursement at the rate payable from ; ~ time to time on outetanding principal under the Note nnlees payment of intereet at such rate would be rnntrary to applicable law, in which ' event auch amounte shall bear intereet at the highest rate per~niaeible under applicable law. Nothing contained in thia paragraph ehall reqnire Lender to incar any expenae or take any action hereunder. ~ ~ ~ ~ ~ so~~~91 3~6 G _ r`~ X _ - - - ~ , ~ ~ 1 ~ ~ y~' S~'~: ~ ~ 'G c~+'. S. ~a - Y~• ~ _ _ ' `''s=- - . P ^`S ~ -.Y ~