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HomeMy WebLinkAbout0947 , Borrower and l.ender covenant and agree as follows: 1. Peyment ot Principal arid lnterest. Borrower ehall promptly pay when due the principal of and inlereet on the i~debtednese evidtnced by the Note, prepnyment and late charges ae provided in the Note, and the princiFal of and intemat on any Future Advances secured by this Mortgage. 2. F uttde forTaxes and Ineurance. Subject to applicable luw or to a written waiver by l.ender, E3orrower shall pay to I.ender on the day monthly inatallments of principal and intereat are payable under the Note, until the Note ie pAid in full, z~ aum lherein "F unde"),equal to one- twelRh o[the yearty taxee and assesamenta which may attain priurity over this Mortgage, And ground rentx on the Property, ilany, plus one~ twelfth of yearly premium installmenta fur hazard insurance, plus onelwelfth ofyea~ly prnmium inetallmenta for mortg~e inau~nnce, if any, all aa reaeonably estimated initially and from time to time by l.ender on the bf?sie of asaeasments and biUs and rensonable eistima/es thereof. The ~nds aha11 be held in an inatitution the depoeita or accou~te of which are ineured or guaranteed by a Federal or 3tate agency (including Lender if l.ender ia such an inatitution). Lender ehaU apply the Funds to pay said taxea, aaseaxmente, ineurance premiume and giround rents. Lender may not charge for eo holding and applying the Ftinda, analyzing eaid account, or verifying and compiling eaid assessmenta and billa, unlese I.ender paye Borrower intereet on the FLnda a~d applicable law permita l.ende~ to make such a charge. l3orrower and Lende~ may agree in writing at ?he time of ezecution of this Mortgage that intereat on the Funde ahall be paid to I3orrower, and unleee euch agreement ie made or applicable law requirea such intereet w be paid, l.ender shall not be requind to pay Borrower any intereat or earnings on the fi~nds. Lender shall give to Borrower, without charge, an annual nccounting of the Funda ahowing credits and debits to the Funde and the purpoee for which each debit to the Funda was made. The Funda are pledged as additional security for the auma eecured by thie Mortgage. If the amount of the Funds held by l.ender, together with the future monthly inatallmenta of Funds payable prior to the due dates of ?axes, aaaceamenta, inaurance premiuma and ground rents, ahall ezezed the amount required to pay aaid taaea, asseasments, inaurance premiuma and ground rn~te se they fall due, auch e:cess ahall be. at fior~bwer a option, either prompUy repaid to E3orrower or credited to Borrower on monthly installments of ~nda. If the amoant of the Funde held by l.ender ahall not be eufficient to pay taxes, asseasmenta, insurance premiume and ground rente as they fall due, Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 days fmm the date notice ia mailed by I.ender to Borrower requesting payment ihereof. Upon payment in full of all aums eecured by this Morigage, I.ender ehall promptly refund to Borrower any funds hetd by I.ender. If under paragraph 18 hereotthe Property ia sold or the Property ie otherwise acquired by l.ender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquiaition by L.ender, any ~nda held by I.ender at the lime of application as a credit againat the auma secured by thie 1liortgage. 3. Application of Paymente. Unlesa applicable law providea otherwiae, al) payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by I.ender first in payment of amounts payabie to l.ender by E3orrower under paragtaph2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liens. Eiorrower ahall pay all taxes, assessmentrz and other rharges, fines and impositions attributAble to the Property which may attain a priority over this Mortgage, and lcasehold payments or ~und ~ents, if any, in the manner pmvided under par~graph 2 hercr~f or, if not paid in such manner, by I3orrower muking pnyment, when due, directly to the payee thereof. BorrowerahaU promptly furnish to Ixnder all noticea of amounts due under this paragraph, and in the event E3orrower shaU make payment directly, Borrower ahall promptly furnish to [xnder receipts evidencing such paymenta. I3orrower shall promptly dischnrge any lien which has priority oeer this Mortgage; provided, that ~ Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good taith contest such lien by, ordefend enforcemer?tof such lien in, legal proceedings which.operate to prevent the enforcement of the lien or forfeiture of the Property or any pari thereof. • 5. Hazard Insurance. Borrower ahall keep the improvementa now existing or hematter erected on the Property inaured ugainst loss by fire, hazarde included within the term "extended coverage; ' and auch other hazards as Lender may require and in such amounta and for such periods as Lender may tequire; provided, that Lender shall not requirn such ooverage amount exceeding the minimum, as may be required by state or federal regulations governing activifiea of Lender, or that amount of coverage requirecl to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by E3orrower subject to approval by l.ender, provided, that such approval shall not be unreasonably withheid. All premiums on insurance policies shall be paid in the manner provided under paragraph `l hereoCor._if not paid in auch manner, by Borrower making payment, Khen due, directly to the insurance carrier. All insura~ce policiea and renewals thereof ehall be in form acceptable to Lender and ahail include a standard mortgage clause in fa~ or of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewais thereof, and E3orrower ahall promptly fumish to i.ender all renewal notices and all recripts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance ~unier and Lender. Lender may make proof of loss if not made promptly by Borrower. ; Unlesa Lender and Borrower otherwise agree in writing, ineurance proceeds shall be applied to reatoration or repair of the Property damaged, provided auch restoration or rnpair is economically feasible and the security of this Mortgage is not thereby impaired_ If such reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied . l to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ' respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the inaurance carrier of~era to settle a daim for i inaurance benefite, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or repair of the ~ Property or the suma secured by this Mortgage. ~ Unless Lender and $orrower otherwise agree in writing, any such application of proceeda to principal shall not extend or postpone thedue date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of such installments: If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Botrower in and to any insurance policiea and in and to the proceeda, thereof reaulting from damage to Property prior to the sale or acquisition ehall pasa to Lender to the eatent of the sums secnred by thie Mortgage immediately prior to avch sale or aoquieition. - 6_ Preeervation and Maintenanceof Property; Leaseholds; Condominume; Planned Unit Developments. Borrowerahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisione of any leoae if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrower e obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent dceumente. If a ~ condominium or planned unit develupment rider is e:ecuted by Borrower and recorded together with thia Mortgage, the rnvenants and agreementa of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ T. Protection of Lender'e 8ecurfty. If Borrower faila to per[orm the aovenante and egreesnente oontained in thie Mortgage, os if any ~ action or proceeding ie commenced which materially affecte Lender e intereet in the Property, inclnding, but not limited to, eminent domain. insolvency, oode enforcement, or arrangemente or pmceedinga involving a bankrupt or decedent, then Lender et Lender e option,upon 5 notice to Borrower may make auch appearancea, disburee euch eums and take euch action as is neceaeary to protect Lender's interest, ; including, bat not limited fu, diebursement of reaeonable attorney e feee and entry upon the Property to make repaire. If Lend~ required y mortgagt insurance as a rnndition of making the loan eecured by this Mortgage. Borrower ahall pay the premiums required to maintain " snch insnranoe in effect nntil euch time as the requirement for such inaurance termiaaLes in accordance with Borrower'e and Lender'e - ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineursnce premiume in the manner provided under paragraph 2 hereof. ~ My amounts disbureed by Lender pereuant to thie paragraph 7, with intereat thereon, shall become additional indebtedneas of ~ Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, such amounts ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear interest from the date of dieburaement at the rate payable trom ~ time to time on outetanding principal under the Note unleee payment of intereet at euch rate would be aontrary to applicable law. in which ~ ~ event auch amounta ehall bear interest at the highest rate permieeible under applicabie law. Nothing contained in this paragraph 7, ehall w require Lender to incur any expenee or talce any action hereunder. ~ ~ ~o~K 449 P~cF 686 ~ L r1 ~ ~ ~gi 939 ~ , , . ~ . : ~ .r r :-,~~u ~ - _ - - - - - ~ ~ ~ x ~