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HomeMy WebLinkAbout0817 . ; ~ ~ I Borrower a~d l.ender covenant and agree as followa: 1. Peyme~t of Principal and lntereet. Aorn,wer ahaU ptomptly psiy when due the principal of and intereat on the indebtednexe evidenced by the Note, prepayment and late charges as provided io the Note, and the principal of and interest on any F'uture Advancea xecund by thia Morigage. . 2. Funds tur Ta:es and lneurance. Subject to applicuble law or b a writlen waiver by I.ender,l3orruwer ehall puy to I.ender un the day monthly inatallmenta ot principal and intereat a~e payable under the Nute, unti) the Note is paid in full, a aum (herein "F unda") eyual to one twelfth of the yearly taxee and asaessmenta which mny atlain prio~ty over thia Mortgage, and ground rents on the t'ruperty, i[any, plua onP twelRh of yeariy premium inataUments for hazard insurance, plus onetwelfth of ye:?rly premium inatallments for murtgage insurance, if any, aU as reaeonably estimated initiaUy and from time to time by l.ender un the busis of ~?aseasmentx and bills and reasoniible estimatess thereuf. The Funde shall be held in an inetitution the deposita or accounte of which are ineured or guaranteed by a Federal or State agency (including l.ender i! I.ender ia auch an inatitution). l.ender shall apply the Funde to pay said tsxes, aaseaxmenta, inaurance premiuma and ground rente. l.ender may not charge for eo holding and applying the I~nde, analyzing aaid account, or verifying and compiling said aaseasmenta and billa, unless I.ender paya Borrower intereat on the Funds and applicable law permits Lender t~ make such a charge. Borrower and Lender may agree in writing at the time of execution of thia Mortgage that interest on the F unda shalt be paid to Borrower, and unleas auch agreement ie made o~ applicable law requirea such intereat to be paid, Lender ehall not be reyuired to pay F3orrower any interest or earninge on the F~nds. L.ender shall give to Borrower, without charge, an annual accountiog of the Funda ahawing credita and debita lo the Funde and the purpoee for which each debit to the Funda was made.l'he Funds are pledged as additional security for the aume secured by this Mortgage. If the amount of the F~nda held by l.ender, together with the future monthly installmenta of Funda payable prior to the due dates of taxes, aeeesementa, inaurance p miuma and ground rents, shall excred the amount required to pay anid taxes, asaessmenta, insurance premiume and ground rents as ttie}~11 due, auch excess shall be, at BoiTOwer's option, either promptly tepaid to Borrower or credited to Iiorrower on monthly instaUmente of ~nda. If the amount of the Funds held by I.ender shall not be sufficient to pay taxea, asaesaments, inaurance premiuma and ground renta as they fall due, Botrower ahaU pay to Lender any amount necessary to make up the deficienr~~ within 30 days from the date notice ia mailed by Ixnde~ to Borrower requesting paytnent thereof. Upon payment in full of all sums aecured by this Mortgage, Lender ahall promptly refund to E3orruwer any funds held by [.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than imme~liately prior to the sale of the Property or ita acquiaition by Lender, any FLnds field by I.ender atthe time of application as a credit aKainat the sums secured by this Mortgage. . . 3. Applieation of Paymenta. Unlesa applicable law -provide~ otherwise, all payznents received by I.ender under the Note and paragraphe 1 and 2 hereof shali be applied by Lender first in payment of amounts payable to Lender by E3orrow•er under paragraph 2 hereot, then to interest payable on the Note, then lo the principal of the Note, and then to inte~st and principal on any Future Advances. 4. Chargea; Liens. Eiorrower shall pay all taxes, as.4essments and other charges, fines and im~x~sitions af tributahle tu the Property w•hich may attain a priority over this Mortgage, and leasetiold ~ayments or ground rents, if any, in the manner pn~vided under paraKraph Y hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the p:i~~ee thereof. t3orn,wer shall promptty furnish to I.ender all notices of amountts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing auch payments. E3orrower shall promptly discharRr any lien which ht?s priority o~~er this htortgage; provided, that E3orrower shall not be required todischarge any such lien so long as E3orrower shall agree in writinK to the payment of theobligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enformment of such lien in, le~al procecYiings - which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof. Hazard Inaurance. Borrower shall keep the improvements now existing or hernafter erected on the Property insured against loss by fire, hazards included wit,~in the term "eatended coverage," and auch other hazards as I.ender may require and in such amounta and far such periods as Lender may tequire; pmvided, that Lender shall not require such coverage amount exceeding the minimum, as may berequired by state or federal re~lationa goveming activitiea of Lender, or that amount of coverage required to pay the sums secured by this MortKage, whichever is the greater. The insurance carrier providing the insurance shall t?e chosen by Bom~wer suhject t~? approval by I.ender; pm~•ided, th:~t such appr.~~•al i shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner pn,eideci under paraKr:iph 2 here~d or, if ~ not paid in such manner, by E3orrower making payment, when due, directl~ to the insurance carrier. I A11 insurance policies and renewals thereof ahall be in form acceptable to Lender and shall include a standard mortgage ciause in fa~•or of ~ and in form acceptable to Lender_ L.endershall have theright to hold the policies and renewala thereof, And f3orrower shall promptly furnish to ; i.ender all renewal noticea and all receipta of paid premiuma. In the event of losa, Borruwer shall give prompt notice to the insuranm carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ [Jnlesa I.ender and Borrower otherwise agree in writing, insurance procceds shall be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economicaUy feasible and the security of this Mortgage is not thereby impaired. If such. restoration or tepair ie not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the suma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if I3orrower fails to j rnspond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier offers to settle a claim for ; insurance benefite. [.ender is authorized to collect and apply the insu~ance proceeds at Lender's option either to reatoration or repair of the ~ Property or the sums aecured by this Mortgage. ~ Unieas Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not extend or postpone the due date of the monthly instsllments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments_ If under paragraph 18 ~ hereof the Property ie acqnired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda ' thereof resulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or aoquieition. ~ 6. Preservation and Maintenance of Property; Leaseholds; Condomiaume; Planned Unit Developmente. Borrower shall keep a the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the 5' provisions of any lease if this Mc?rtgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform aU of Borrower's obligatione under the declaration or covenants creatingor governing the condominium or planned " unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documents_ If a ~ condominium or pianned unit development rider is executed by Borrower and recorded together with thia Mortgage, the aovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the - ridet wece a part hereof. x 7. Protection ot Lender'e Security. If Borrower faile to pertorm the oovenante and agreements oontained in thie Mortgage, or if any F action or prooeeding ie commenced which materially affects Lender a intereat in the Ptoperty, including, but not limited to, eminent domain, ineolvency, oode enforoement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lendei a option,upon ' notice to Borrower may malce auch appearancee, diaburee auch eams and take auch action ae ie necesaary to protect I.ender's intereet, a including, but not limited to, diebureement of reasonable attomey'a feee and entry upon the Property to make repaire. If Lender required mortgage inaurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain euch ineurance in effect until euch time se the requirement for euch ineurance terminates in accordance with Bonower e and Lendei a - written agreement or applicable I.aw. Borrower eha11 pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof_ My amounte disbureed by Lender persuant to this paragraph 7, with interest thereon. ehall beoome additional indebtednesa of Borrower secured by thia Mertgage. Unleee Borrower and Lender agree to other terme of payment, auch a~nounte ahall be payable upon notice from Lender to Borrower requeHting payment thereof, and shall bear interest fmm the date of diebureement at the rate payable from - time to time on outetanding principal under the Note unleas paya~ent of interest at euch rate would be oontrary to applicable law, in which ~ event auch amounte ahall bear intereet at the higheat rate permiesible under applicable law. Nothing contained in thia paragraph 7, shali ~ require Lender to incur any expenae or teke any action hereunder_ ~ ~ ~ ~ = gooK294 PACE 817 Ys - - _ _ s _ - t~ ~ : , . . -f - ; ~ .e~u.w ~~~~."~`rtst~~~~'~SS"e`~.T _ "aE'aE~'('~~^_T..'~'r.'Yr_~