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HomeMy WebLinkAbout0869 1 i ' Borcower and Lender covenant and agree aa followe: _ 1. Psyment ot Princ~pal artd Intereet. Borrower ahall promptly pay when due the principal of and intetest on the indebtednesa evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal otand inte~eat on any Future Adva~cee eecured by this Mortgage. 2. ~unde for Taxes and Insurance. Subject to applicable Inw or to a written waiver by I.ender, Borrower ahall pay to [.e~der on the day monthly inatallments of principal and interest are payable unde~ the Note, until the Note is paid in full, a sum (herein "Funde") equal to one twelRh of the yearly taxes and assesamenta which may attain priority over this Mortgage, and ground rents on the Propeirty, if any, plus one- twelflh of yearly premium inatatlments fo~ hazard inau~?nce, plus onetweifth ofyearly premium inatullme~ta for mortgAge inaurunce, if any, all ae reaso~ably estimated i~itialiy and from time to li~r,e by l.ender on the basis of nxaessments nnd billa and reaso~able estimates thereof. The Fl?nde ehall be held in en inatitution the depoeite or ac~ounts oi which are inaured or guaranteed by a Federal or State agency (including I.ender if Lender is auch an institution). l.ender ahall apply the Funds to pay said taxes, aasessments, insurance premiuma and ground rente. I.ender may not charge for ao holding and applying the Ftinda, analyzing said account, or verifying and compiling aaid aseesamente and bills, unleea L.ender paye Borrower interest o~ the Funda and applicable law permita I.ender to meke auch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that intereat on the F~nda ahall be paid to Borrower, and unlesa such agreement is made or applicable law requires such intereat to be paid, Lender ahall not be required to pay Eiorrower any interest or earninqa on the Funda. Lender ehall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debite to the Funda and the purpose for which each debit to the F~nda was made. The Funds are pledged as additional aecurity for the aume secured by this Mortgage. . If the amount of the fi~nde held by Lender, tagether with the future monthly inatallments of Funds payable prior to the due datea of taues, asaessmente, insurance premiums and ground rents, shall eacaed the~ amount required to pay said taxea, assesementa, insurance premiums and ground rents as t2~ey fap due, auch e:cess ahall be, at Borrower'a option, either promptly repaid to Botrower or credited to Borrower on monthly inetallmenta of ~nde. If the amount of the Funds held by L,ender ahaU not be ~ufficient to pay taxes, aeaesaments, inaurance pmmiums and ground rente ae they fall due, Borrower ahall pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of all aums aecured by thie Mortgage. l.ender shall promptly refund to Borrower any funds held by I.ender. lf under peragrnph 18 hereof the Property ia sold or the Property ia otherwise acquired by Lender, Lender shall apply, no later than immeiliately prior to the sale of the Property or ite acquisition by L.ender, any Funds held by Lender at the time of application as a credit againet the sume secured by thia Mortgage. 3. Application of Paymenfs. Unless applicable !aw providex otherwise, all payme~ts received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounts payabie to Lender by Eiorrower under patagraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Futurn Advances. 4. Chargea; Liens. Borrower shall pay all taxes, assessments and other chnrges, fines and impoaitions attributable to the Property which may attain a priority o~~er this Mortgage, and teusehold payments or ~und renLs, if any, in the mannzr provided under paragraph 2 hereof or, if not paid in such manner, by I3orrower making payment, when due, directly to the payee thereo[. I3orrower shall pzomptly furnish lo Ixnder xll noticea of amounts due under this paragraph, and in the event Borrower. shaU makc payment direc~tly, Borrower ahall promptly furnish to (xnder receipts evidencing such paymenta. Borrower shall promptly discharge any lien w hich has priority over this Mortgage; pro~•ided, that Borrower shall not be required to discharge any such lien so long as Borrower sh811 agree in writing to the payment otthe obiig~~tion secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordeCend enforcement of such lien in, legal proceedings which operate to ptevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured against loss by 6re, hazarda inclt~ded within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such eoverage amount exceeding the minimum, as may berequired by atate or federai regulati~ns governing aMivities of Lender, or that amount of coverage required to pay the sums aecured by this Mortqage, whichever is the greater. ~ The ir.surance carrier providing the insurance shall be chusen by Borrower subject to approval by I.ender, pro~•ided, that such appro~~a1 shaU not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under par~~raph 'l hereof or, if not paid in sach manner, by E3orrower making payment, when due, directiy to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clauae in favor of ' and in form acceptable to Lender. I.ender shall have the right to hold the policiea and mnewals thereof, and Borrower ahall promptly furniah to i i.ender all renewal noticea and all receipta of paid premiums. In the eveni of loss, Borrower ahall give prompt notice to the insurance carrier ( and Lender. Lender may make proof of loss if not made promptly by Borrewer. ; Unleas Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to resWration or repair of the Property damaged, provi¢ed auch restorstion or repair is econuu~ically feasible and the security of this Mortgage is not thereby impaired. If auch ~ reatoration or repair is not economically feasible or ii the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the sams aecured by thia Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier offera to aettle a claim for ~ insurance benefits, Lender ia suthorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the auma secured by thie Mortgage. ~ ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not extend or postpone the due ~ date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments_ If under paragraph 18 hereof the Property ia acquired by [.ender, all right, title and interest of Borrower in and to any insurance poliriea and in and to the prceeeda " thereof resulting ftom damage to Property prior to the sale or acquisition ahall pass to Lender to the eztent of the suma secured by this ~ Mortgage immediately prior to such sale or soquieition. ~ 6. Preservation and Maintenance of Property; Leaeeholda; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impuirment or deterioration of the Property and shall comply with the provisiona of any lease if thie Mortgage is on a leasehold. If thia biortgage ia on a unit in a condominium or a planned unit development, ; Borrower shall perform all of Borrower e obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documents. If a $ rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and • ~ aqreementa of euch rider ahall be incorporated into and shall amend and supplement the covenanta and agreements of this MortgaRe as ifthe rider were a part hereof _ 7. Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenants and agreemente contained in thie Mortgage, or if any action or proc~eeding ia commenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangements or proceedinga involving a baokrupt or decedeat, then Lender at Lender'e option,upon ° notice to Borrower may mal~e euch appearancee, diaburee auch aume and take such action as ie neceaeary to protect Lender's intereet, including, but not limited to, dieburaement of reasonable attorney'e fees and entry upon the Property to make repairs. If Lender required `s mortgage inaurance as a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiume required to maintain . such ineurance in effect until auch time ae the requirement for such inaurance terminatea in ac~t?rdance with Borrower'e and Lender's written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance pre~niums in the manner provided under - paragraph 2 hereof. = Any amounfs diabursed by Lender perauant to thia paragraph 7, with internat thereon, ehall beoome additional indebtednese of - Borrower eecured by thie Mortgage. Unlees Borrower and Lender agree to other terme of payment, such amounta ahall be payable upon - notice from [.ender to Borrower requeeting payment thereof, and ahall bear interest from the date of disbursement at the rate payable from _ time to time on outstanding principal under the Note unleee payment of interest at euch rate would be oontrary to applicable Iaw, in which event euch amounta ahall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragreph 7, shall require Lender to incur any expenee or take eny action hereunder. , ~ .ti 4 ~ f . ~ ~ _ - - - - _ ~ : - ~ ~ ~~t ~ = r ~ = r ~ ~ ~ : ~ ~ f < ,f ~`~~,~~a~rc~.~.. s~• . . _ su~`~``c~~~~