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HomeMy WebLinkAbout0758 Borrower and l.e~der rnvenant and agroe as follows: 1. Payment ot Principal and Intereet. Borrowe~ shaU promptly pay when due the principal of and interest on the indebtednesa evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and intereet on any ~ture Advances secured by this Mortgage. ~ 2. Fltnd. tor Te~es and lnsurance. Subject to applicable law or to a written waiver by l.e~der, E3orruwer ahall pny to l.ender on 1he day monthly inatallments o! principal and interest are payable unde~ the Note, u~til the Note ie paid in [ull, a eum (herein "Funda") equal to one tweltth of the yearly taxes and easesamenta which may atlain priority over this Mortgage, and ground rents on lhe Properiy, if any, plua ont twelfth of yearly premium installmenb for hazard insurance, plua onetwelRh of yearly premium inatallmente tor morigage inaurance, if any, all as reasonably eatimated initially and from time to time by [.ender on lhe baeis of asaesaments end bills and reasonable eatimatea thereof. The P~nds shall be held in an inetitution the deposits or accounte of which are ineured or guara~teed by a Federal or State agency (including Lender if Lender ie such an inatitution). I.ender ahall apply the Funda to pay eaid ta:es, asseaaments, inaurance premiums and ground rents. Lender may not charge [or eo holdi~g and applying the ~nde, analyzing said account, or verifying and rnmpiling said asseaamente and bille, unleee Lender paye Borrower intereat on the F~nda and eppliceble law permite Lender to make auch a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that inte~eat on the ~nda ahall be paid to Borrower, and unleea such agreement is made or applicable law requirea auch intereet to be paid, Lender shaU not be requi~ed to pay Borrower any intereat or eaminga on the Flinds. Lender ehall give to Borrower, without charge, an annual accounting of the Funde ahowing credita and debita to the Funde and t1?e purpoee for which each debit to the ~nds was made. The Funda are pledged as additional eecurity for the eums aecured by this Mortgage. If the amount of the I~nde held by l.ender. together with the future monthly inatnllmenta of Funda payable prior to the due datea of taxes. aeeesamente, inaurance premiuma and ground rente. ahall excred the amount required to pay said taxes, aseeaamenta, ineurance premiuma and ground renta as they fall due, such e:ceea ehall be. at Borrower'e option, either pmmpdy repaid to Borrower or credited to Borrower on monthly inetallments of ~Lnde. If the amount of the ~nda held by I.ender ahall not be sufficient to pay ta:ea, asseasmente, insurance premiums and ground rents se they fall due, Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by Lend~ to Borrower requeating payment thereof. Upon payaient in fuil of all sume eecured by thie Mortgage, L.ender ehall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender ahaq apply. no later than immediately prior to the sale of the Property or ita aoquieition by Lender, any FLnde held by Lender at the time of application as a credit againat the suma secured by this Mortgage. 3. Application of Payments. Unlesa applicable law providea otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firat in payment of amounts payable to I.ender by Bom,wer under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liene. Fiorrower ahall pay all taxes, assesamenfs and other chargea, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground tents, 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. Borrower ahall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to Lender receipts evidencing auch payments. Borrower shap promptly discharge any lien which has priorily over this Mortgage; provided, that Borrower shall not be required to discharge any auch lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enforce~nent of such lien in, legai pra.~eedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. b. Hazard Ineursnce. Borrower ehall keep the impmvements now exiating or hereafter etected on the Property insured againat loas by fire, hazaids included within the term "e:tended coverage," and auch other hazards as I.ender may require and in such amounta and for such prrioda as Lend~ may require; provided, that Lender ehall not require such rnverage amount exceeding the minimum, as may be required by stete or federal t~egulatione governing activitiea of I.ender, or that amount of coverage required to pay the auma eecured by this Mortgage. whichever is the greater. - . The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by l.ender, provided, that such approval ahall not be unreaeonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof sha11 be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form aoceptable to Lender. I.ender shall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly fumiah to i.ender all reaewal notices and all receipts of paid premiume. In the event of losa, Borrower shali give prompt notice to the insurance carrier and Lender. Lender may make proof o[ losa if not made promptly by Borrower. ~ Unlesa Lender and Borrower otherwise agree in writing, insurance procecds ahal! be applied to reatoration or repair of the Property ~ damaged, provided euch reatoration or repair is economically feasible and the security of this Mortga6e is not thereby impaired. If such ; reatoration or repair ie not economically feaaible or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied E to the auma eecured by thie Mortgage, with the e:oesa, if any, paid to Bonower. If the Property is abandoned by Borrower, or if Borrower faile to ; respond to L.ender within 30 daya from the dete notice is mailed by I.ender to Borrower that the insurance carrier otters to aettle a claim for ~ ineurance benefita, Lender is authotized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair of the Property or the sums aecured by thia Mortgage. ~ Unlesa Lender and Bortower otherwise agree in writing, any such application of proceeda to principal ahall not extend or poetpone the due ~ date of the monthly inetallments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proci.'eda ~ thereof resulting from damage to Property prior to the sale or acquiaition ahall paae to Lender to the extent of the sums secured by this ~ Mortgege immediately prior to such sale or acquieition_ 6. Preaervation and Maintenance of Property; Leaseholde; Condominuma; Planaed Unit Developmente. Borrower shall keep the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the ~ provieione of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower e obligatione under the declaration or covenanta creatinqor governing the rnndominium or planned unit development, the by-lawa and regalatione of the condominium or planned unit deveiopment, and rnnetituent documents. If a ~ oondominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the oovenante and agreements of such rider ahall be incorporated into and shaU amend and supplement the covenants end agreemente of thia Mortgage as if the rider were a part hereof. ~ 7. Protection o! Lender's Security. If Borrower fails to per[orm the covenants and agrcemente oontained in thie Mortgage, or if any action or proceeding is commenoed which materially affecte I.endei a intereat in the Property, including, but not limited to, eminent domain, insolvency. aode enforcemen~. or arrangemeate or prooeedings involving a banlmrpt or decedent, then L.ender at Lender's option,upon notice to Borrower may make such appearances, diaburse euch eums and ta1~e euch action aa is necessary to proteci Lender's intereet, ~ inclading, but no! limited to. disbursement of reasonable attorney's feee and entry apon the Property to meke repairs. If I.end~r reqnired ~ mortgage insurance as e oondition of making the loan eecnred by thia Mortgege, Borrower ahall pay the premiume required to maintain ~ snch ineurance in effect until euch time as the requirement for such insurance terminatee in aooordance with Borrower'e and Lende~e a+ritten agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner provided under ~ paragraph 2 hereof. ~ My amounts disbureed by Lender pereuant to thie paragraph 7, with interee! thereon, ehall beoome additional indebtedneee of ~ Borrower secured by thia Mortgage. Unleee Borrower and Lender agree to other terme of payment, auch amounte shall be payabie upon ~ notice from I.ender to Borrower requeeting payment thereof, and ahall bear interest from the date of diabureement at the rate payable from ~ time to time on outatanding principal under the Note unleae payment of interest at such rate would be oontrary to applicable law. in which ~ rvent such amounta shall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thia paragraph 7, ahell ~ require Lender to incnr any expenee or take any action hereunder. ~ R ~ R~~K291 PAGE 750 ~ ~ ~ ~ - _ - - ~ ~ ~~r - ~ ,x., s~ ~ ` ~ r ~ ,~k- .s,.,~ ` s~~~~ ~ ~ , . . _