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HomeMy WebLinkAbout0503 ,r Borrower and I,ender coveoant and agree as followe: 1. Payment o[ Principal and lntereat. $orruwer ehaU promptly pny when due the principal of and intereat on the indebtedne~s evider?ced by the Note, prepayment a~d latecha~ges as provided i~ the Note, and the principal of and intereat on any Future Advancea aecured by thia Mortgage. 2. ~tnds for Taxee and Ineursnce. Subject to applicpble law or t~ a written waiver by l.ender, E3orrower ahall pay to l.ender un the day monthly ittstallmenta of principal and interent are payable under the Note, until the Note ia paid in full, a sum (herein "h unde") eyual to one twelRh of the yearly taxea nnd asseasmenta which may attai~ priurity over this hiorigage, And grourtd reots un the Piroperty, if any, plua o~e- twelfth of yearly premium installments for hazard insu~ance, plus onelwelRh ofyearly premiun~ installments for murtguge insurunce, if any, all aa reasonably eatimated initially and firom time to time by I.ender on the basis of assesaments and bills ~nd reasonuble estimntea thereof. The fi~nds ehsll be held in an inatitution the depoaite or accounta of which are inaured or guaranteed by a Federal or State agency (including Lender if L.ender ia auch an institution). I.ender ehall apply the Funde to pay aaid taxes, ussesamente, ineurance premiuma and ground rente. l.ender may not charge for eo holding and applyi~g the r~nde, analyzing eaid account, or verifying and compiling said as8esaments and bille, unleas Lender paye Borrower intereat on the ~nds and applicable taw permits Lender to make auch a charge. E3orrower and Lender may agree in writing at the time of execution of thia Mortgage that intereat on the Funds shall be paid to Borrower, and unleas euch agreement ie made or applicable law requirea auch intereat to be paid, Ixnder ahaU not be required to pay Borrower any intereat or earninge on the ~nda. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahuwing creditei and debita to the Funds and the purpoee for which each debit to the Funds was made. The Funds are pledged us additional eecurity for the suma secured by this Mortgage. . ' If the amount of the ~nda held by Lender, together with the future monthly instaltmenta of Funds payable prior to the due datea of tpxes, aeseesmente, inaurance premiums and ground rents, ehall exered the amount required to pay said taxes, assessmenta, inaurance premiuma and ground rents as they fall due, such exceaa shall be, at Borrower's option, either promptly repaid to Borrower or ctedited to Borroweron monthly instaUmenta of ~nde. If the amount ot the Funds he{d by Lender shaU not be aufficient to pay tauee, assesaments, insurance . premiume and ground rents as they fall due, Borrovyer shall pay to Lender any amount necessary to make up the de6ciency within 30 days from the date notice ia mailed by [,ender ta Bonower requeating payment thereof. . Upon payment in fuil of all auma eecured by thia Mortgage, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, I.ende~ ahall apply, no later than immediately prior to the sale of the Property or ite acquisition by Lender, any Htinda held by I.ender at the time of application as a credit againat the suma secured " by this Mortgage. ' 3. Application of Payments. Unless applicable law provides otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by l,ender first in payment of amounts payable to Ixnder by Borrow•er under parttgraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, nnd then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, as.sessments and other rharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, 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 ahnl! promptly fumish to l.ender all notices of amounta due und'er thia paragraph, and in the event Borrower sha0 make payment directiv, Bormwer shall promptly furnish to Lender receipts evidencing such payments, Borrower sFall promptly discharge nny lien which has priority over this Mortgage; provided, that Borrower ehaU not be required todiacharge any such lien ao lung as Borrower shAil agree in writinR to the payment ottheobligation secured by such lien in a manner acceptable to Ler.der, or sha11 in good faith contest such tien by, or defend enforcement of such lien in, legal procc~i•dings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Inenraace. Borrower ahall keep the improvementa now existing or hernafter ererted on the Property insured against loss by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and for such periods as Lender may requirn; provided, that Lender ahal! not require auch coverage 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 the greater. The insurance carrier providing the insurance shali be chosen by Horrower subject to appro~•al by Lender, provided, that such approval shall not be unreasonably withheld. All pmmiums on insurance policies shall be paid in the manner provideci under paragraph `l hermf or, if not paid in such manner, by E3orrower making payment, when due, direMly to the insurance carrier. All insurance policiea and renewals thereof shall be in form acceptable to Lender and sliall include a standard mortgage clause in favor of and in form acceptable to Lender_ Lender ehall have the right to hold the policies and renewals thereof, and Bonower shall promptly furnish to ixnder all renewal noticea and all receipta of paid premiums. In the event of loas, Born~wer shall give pmmpt notice to the insurance carrier and Lender. Lender may make proof of loes if not made promptly by Borrower. " ~ Unlesa Lender and Borrower otherwiae agree in writing, insurance proceeda ahall be applied W restoration or repair of the Property damaged, provided auch reatoration or repair ia economically feasible and the security of this Mortgage is not thereby impaired. If auch restoration or repair is not economically feasible or if the security of this Mortgage wouid be impaired, the inaurance proceeds ahall be applied io the aums aecured by thie Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Boaower, or if Borrower fails to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carriet offers to settle a claim for ~ insurance benefits, Lender ia authorized to collect and apply the insurance pra~eeds at I.ender s option either to restoration or repair of the Property or the sume secured by thia Mortgage. Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shall not extend or poatpone the due date of the monthly installmente referred to in paragraphs 1 and 2 hereotor change the amount of auch installments. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pasa to Lender to the eatent of the auma secured by this Mortgage immediately prior to such aale or aoquisition. 6. Preeervation and Maintenanceof Property; Leaseholds; Condominume; Planned Unit Developmenta. Borrower shall keep the Propetty in good repair and shall not rnmmiE waste or permit impairment or deterioration of the Property and shall rnmply with the proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage ie on a unit in a rnndominium or a planned unit development, Borrower ahall perform all of Borrower e obligationa under the declaration or covenants creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the rnndominium or planned unit development, and constituent documenta. If a oondominium or planned unit development rider ia executed by Borrower and recorded togeiher with thia Mortgage, the oovenants and ~ agreements of such rider sha11 be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrower faile to perfarm the oovenante and agreements contained in thie Mortgege, or if any aMion or proceeding ia commenced which materially affecie Lender's interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, code enforcement, or arrangemente or proceedinge involving a banlwpt or decedent, then Lender at I.ender'e option,upon notice to Borrower may make such appearances, dieburee auc6 sums and take auch action as ia neceeaary to protect Lender'e intereet, ~ incloding, but not limited to, diebureement of reaeonable attorney e feee and entry upon the Property to make repaire. If I.end~ required n mortguge ineurance as a condition of making the loan aecnred by thie Mortgage, Borrower ahall pay the premiume reqnired to maintain ~ such inenrance in effect until such time as the requirement for auch inaurance terminateg in accordance with Borrowei e and Lender'e ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner provided under ~ P8re8raPh 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph 7, with intereet thereon, ahali become additional indebtedneae of ~ = Borrower secured by thie Mortgage. Unless Borrower and Lender agree to other tem~s of payment, auch amounte ehali be payabte upon ~ notice from Lender to Borrower requeHting payment thereot, and ehall bear intereet from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereat at such rate would be contrary to applicable law, in which event euch amounts aha11 bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph ehall ~ require Lender to incur any expenae or take any action hereunder. ~ ~ - ~ ~ ~ ~~~K294 ~~f 50~ . . ~ ~ _ _ - - - = h ~ ~ ~ ~ ~ Y - ~ ~ , f ~ ~ - ~ ~ ~ ~ ~ , ~~~~~a~ - ar';~c'~.~5.~'~..`-s+,~..°a.+-~- f:.~'.'~-r~~"x':~`r;....~r.. ._.,'.~'u~~'_'t ~