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HomeMy WebLinkAbout0626 E3orrower and I.ende~ covenant and agree as foUows: ~ 1. Payment ot Princlpal and Intereet. I3orrower shall prumpUy ~xy when due the principal ot und iot.erest un Ihe indrbtednrns evidenced by the Notr, prepayment and latechargee as pcovided in the Note, and the principal oCand inle~eet un any Muture Advancrs eecured by this Mortgage. • 2. ~tnds tor Teutee aad Inaurance. 5ubject to applicnble law or to a written waiver by l.ender, I;orrower ahull puy to l.ender un thr day monthly inatallme~ta of principal and inlereat are payable under the Note, until the Note ie paid in full, n aum (hemin "Funda") equal to one twelRh of the yearly taxes and asseasmenta which may attain priurity over this Mortquge, and gruund rentef on the Pn~periy, if any, plue one twelRh of yearly premium inatallments for hazard inaurance, plua one-twelfth of yearly premium inutaUmenta for mortgt~ge inaurance, if any, all as reasonably eatimated initially and firom time to time by l.ender on the bueis uf asseasmenta i~nd bills and reusunable eatimutes thereof. 'Ihe I~l?nda ahall be held in an inatitution the depoeita or accounte of which are inaured or guaranteed by a Federal or State agency (including l.ender if Lender ie such an institution). I.ender shall apply the Funda to pay said laxes, aaneesamenta, insurance premiuma and ~round renta. I.ender may not charge for so holding and apply~ng the h~tnda, analyzing said account, or verifying and compiling said aseeeamenta and billa, unleae l.ender paya Borrower intereat on the Funds and applicable law permita l.ender to make auch a charge. I3orrower and I..ender may agree in writing at the time of execution of thia Mortgage that intereat on the Funda shall be paid to Borrower, and unleae euch agreement is made or applicable law requiree auch intereet to be paid, l.ender ehall not be required to pay E3orrower any intereat or earninga on the ~nds. Lender ahall give to Borrower, without charge, an annual accounting of the Funds ehowing credits and debite to the Funda artd the purpose for which each debit to the Funde wae made. The Funda are pledged as pdditional security for the aums secured by this Mortgage. If the amount of the Ftinda held by Lender, together with the futum monthly inatallments of Funde payable prior to the due datea of taxes, aaseaementa, inaurance premiuma and ground renta, ahall exc+~ed the amount required to pay said taxea, assesaments, insurance premiums and ground rents as they fall due, auch exceas ahall be, at Boitower's opdon, either promptly repaid W Borrower or credited to Borrower on monthly instaUments of ~nde. If the amount of the Fbnda held by l.ender ahall not be au~cient to pay taxes, assesamenta, inaurance premiutns and ground rents ae they fall due, E3orrower ahall pay to Ixnder any amount necessary to mc?ke up the deficiency within 30 daye from the date notice ia mailed by l.ender to Borrower requeating payment thereof. Upon payment in full of all auma secured by this Mortgage, Lender shall promptly refund to Borrower any funda held by Lender. lf under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, I.ender ahall apply. no later than immediately prior to the sale of the Piroperty or ite acquiaition by l.ender, any Flinds held by l.ender at the time of application as a credit against the sums secured by thie Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwise, al) paytnents received by I.ender under 1he Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liene. Borrower shall pay all taxes, assessments nnd other churges, fines and impositions attributable to the E'roperty which may attain a priority over this Mortgage, and leasehold payments or ground mnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directiy to the payee thereof. Borrnv?er shaU promptly furnish to l.ender all notices of amounta due under thia paragraph, and in lhe event Borrower shall make payment direcdy, Borrower shall prumptly fumish tu l,ender ~eceipts evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as F3orrower ahall agree in N ritinQ to the payment otthe obliRation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or ciefend enformment of such lien in, legal proceedings ..•hich operate to prevent the enforcement of the lien or forfei:ure ot the Property or any part thereof. 5. Hazerd Inaurance. Borrower shall keep the improvements now exiating or hernafter erected on the Property insured againat loss by fire, hazarda included within the term "exLended coverage," and auch other hazards as Lender may require and in such amounts and for such periods as L.ender may require; provided, that Lender ahall not require such rnveraqe amount exceeding the minimum, as may be required by state or federal regulationa goveming activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is ihe greater. The insurance carrier providing the insurance shall be chosen by Burruwer suUject tn appro~ al by Ixnder, pm~~ided, that such appruval shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner proeideci under parakraph'L hereof or, if not paid in such manner, by Eiorrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shaU have the right to hold the policies and rnnewale thereof, and Borrower ehall pmmptly fumish to ixnder all renewal noticea and all receipts of paid premiuma. In the event of lose, Borruwer shall give pmmpt notice to the insurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. f Unless I.ender and Borrower otherwiae agree in writing, inaurance proceeda shall be applied to reetoration or repair of the Property { ~ damaged, provided auch reatoration or repait is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such E restoration or repa'u ie not economically feusible or if the aecurity of this Mortgage would be impaired, the insurance proceeda shall be applied ; to the sums aecured by thia Mortgage, with the e:cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if I3orrower fails to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier of~ers to settle a claim for s insurance benefite, Lender ie authorized to collect and apply the inaurance procreds at Lender's option either to restoration or repair of the Property or the aums aecured by thie Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any auch appiication of proceeds to principal ehall not e:tend or poatpone the due y date of the monthly inatallmente referred to in paragraphs I and 2 hereof or change the amount of such insLallments. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and intereet of Borrower in and to any inaurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquiaition shall paes to Lender to the extent of the sums secured by this ~ Mortgage immediately prior to auch eale or aoquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the r pmviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage ie on a unit in a rnndominium or a planned unit development, Borrower ahall petform all of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the bylawa and regulationa of the condominium or planned unit development, and conatituent documents. It a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of such rider ahall be incorporated into and ahall amend and supplement the co~enants and a[sreements of this Mortgage as if the ~ rider wern a part hereof. ~ ty, pe greem rtgage, or if any ~ 7. Protection of Lender•s 3ecuri If Bonower faila to rform the oovenants and a enta oontained in Lhie Mo action or prooeeding is commenced which materially affects Lender'e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or prooeedings involving a bankrupt or decedent, then I.ender at Lender s option,upon ~ notice to Borrower may make euch appearances, disbnree auch euma and take euch action ae is neceeeary to protect Lender e interest, including, but not limited to, diabureement of reasonabte attorney's fees and entry upon the Property to make repaira. If Lender required ~ moztgage insurance as a rnndition of mal~ing the loan aecured by thie Mortgage, Borrower shall pay the premiume required to maintain - euch ine~uance in effect unW euch time as the requ'uement for anch ine~uance terminatee in aocordance with Borrower'e and Lendele ~ written ment or a licable Law. Borrower ehall rtgage insurance remiuma in the manner rovided under agree pp pay the amount of al) mo p p paragraph 2 hereoL ~ " Any amounte diabursed by Lender persuant to thia paragraph 7, with intereet thereon, shall become additional indebtedneae of Rorrower eecured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounta shall ~e payable upon : notice from Lender to Borrower reqnesting payment thereot and shall bear intereet from the date of diabnrsement at the rate payable from time to time on outetanding principal under the Note unlesa peyment of interest at auch rate would be contrary to applicable law. in which r:~ s~ event euch amounte ahall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ehafl k? require Lender to incur any expenee or take any action hereunder. ~ ~ BODK ~ PAGF V(.V - ~ ~ ~ ~ w LL~ ; ~ - _ ~ z.~. ~ y ~ C . -Y~ 1 ~ Z +'hS'£ .F~-£ £ ~ ~ . ~a- ~r.~~^~ s~`~~": v'is'= t ~i. . w ~'~a'~ . ~ _ .