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HomeMy WebLinkAbout0878 ' ~ Horrowe~ and l.ender covenant and agree as followe: 1. Paymeat o! Principel and Intereat. Borrower ahall promplly pay when due the principat of and intereat on the indebtedneas evidenced by the Note, prepayment and late charges as provided in the Note, and the pri~cipal of and intereat on any ~ture Advancee secured by this Mortgage. 2. ~nds for Ta:es and l~aurance. Subject to applicable law or to a written waiver by I.ender, E3orrower shall pay to l.ender on the day rtionttily itietallmente of principal and intereat are payable unde~ the Note, u~til the Note ia paid in full, a aum (herein "H unds") equal to one twelfth of the yearly taxes and asseaement8 which may. attain priority over this Morlgege, and ground re~ts on the Pruperty, if any, plua one twelRh of yearly premium inatallmenta for hazard inaurance, plusonetwelRh ofyearly premium installmenta for mortgage insurance, if any, aU as reasonably eetimated initially and from time to ti~rie by Lende~ on the basia of aasesamenta nnd bills and reasonable eatimatea thereoL . The FLnda shall be held in an inetitution the depoeita or accounts of which are inaured or guaranteed by a Federal ar State agency (including Lendet if Lender ia auch an institution). Lender ehaU apply the Funda to pay said tazes, aeseasmenta, ineurance premiuma and ground renta. Lend~ mayr not charge [or eo holding and applying the Ftinds, analyzing aaid account, or verifying and compiling said aseesaments and billa. unleas I.ender paya Borrowe~ intereat on the Fti?nda and applicable law permits Lender to make auch a charge. Borrower and Lender may egree in writing et the time of e:erution ot this Mortgage•that interest on the Ftinds shall be paid to Borrower, and unless such agreement ie made or applicable law requirea such interest to be paid, I.ender shall not be required to pay Borrower any inteceat or eaminga on the Flinde. i.ender ahaU give to Borrower, without charge, an annual accounting of the Funds ahowing credite and debita to the Funde and the purpoee for which each debit to the Funda waa made. The Funde are pledged as additional aecurity for the aums eecured by this Mortgage. • ' . ' If the amount of the ~nda held by Lender. together with the future monthly installmenta of ~ unds payab{e prior to the due datea of taxes, seaeasmenta. inaurance premiums and ground renta, shall e:cx~d the amount required to pay said taxea. asaesamente. insurance premiuma and ground rents as they fall due, such exceae shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of Ftinds. If the amount of ?he Funde held by Lender ehall not be eufficient fo pay taxea, asaesamente, insurance premiuma and gmund rents as they fall due, Borrower shall pay to Lender any amount neceeaery-to make up the deficiency within 30 days from the date notice is mailed by I.ender to Borrower requesting payment thereof. . Upon payment in full of all aums eecared by thia Mortgage, I.ender shall prompdy refund to E3orrower any funds held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ita acquieition by L.ende~, any Fl?nds held by Lender at the time of application as a credit against the suma secured by thia Mortgage. 3_ Application of Paymente. Unl.ess applicable law provides otherwiae, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ehall 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 of the Note, and then W intereat and principal on any Future Advances_ 4. Charges; Liena. Borrower ahall pay all taxes, asseasments and other charges, fines nnd imEwsitiuns attribulable to the Propert~• which may attain a priority over this Dlortgage, and leasehold paymenta or ground rnnts, if any, in the manner provided under paraqraph'2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Bormwer shall promptly fu: nish to lxnder all noticea of amounts due under this pAragraph, and in the event Borrower shal! make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required W discharge any such lien so long as Borrower ahall agrec in writing to the payment of the obligAtion secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which opetate to prevent the enforcement of the lien or forfeiture of the Property or any part thereuf. 5. Hazerd Insurance. Borrower ahall keep the improvements now exiating or hereafter erected on lhe Property insured against loss by fire, hazarde included within the te?~A "extended coveraqe," and euch other hazards as Lender may requim and in such amounts and for such periods as Lender may require; provided, that Lender ahall not require such coverage a~nount exceeding the minimum, an may be required by state or federal rngulationa governing activities of L.ender, or that amount of coverage required to pay the aums secured by this Mo;tgage, whichever ia the greater. ~ The insurance carrier providing the ineurance ahall be chosen by Borrower subject to approvai by l,ender, pmvided, that such approvai shall not be unreasonably withheld_ All pmmiuma on inaurance policies snall be paid in the manner provided under paraRraph `l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. ; All in9urance policiea and renewals thereof ehall be in form acceptable to Lender and shall include a standard mortgage clause in favor of ~ and in form acceptable to Lender. I.ender shall have the right to hold the policies and renewals thereof, and Borrower shall prom ptly fumish tn ; i.ender aU renewal noticee and all receipte of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance carrier ; and Lender. Lender may make proof of loes if not made prompdy by Borrower. c Unleea Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property damaged, provided such restoration or repair ia economically feasible and the aecurity of thie Mortgage ie not thereby impaired. If such + mstoration or repair is not economically feasibie or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall b~ applied ~ to the eums secured by this Mortgage, with the ezcesa, if any, paid to Borrower. lf the Property ie abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daya from the ~ate notice ia mailed by Lender to Borrower that the inaurance carrier otTers to settle a claim [or g ineurance benefite, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the aums eecured by this Mortgage. ~ Unleas I.ender and Borrower othetwise agree in writing, any auch application of proceeda to principal shall not extend or postpone the due ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of auch installments_ If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, tide 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 aoquiaition shall pass to Lender to the e=tent of the sums secured by this ~ Mortgage immediately prior to such sale or acqaiaition. ~ 6. Preeervation and blsintenance of Property; Leaseholde; Condominume; Planned Unit Developments. Borrower ehall keep '3 ~ the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ E3orrower shall przform all of Botrower's ob7igations under the declaration or rnvenante creatingor governing the condominium or planned unit development, the by-lawa and regulatior.a of the condominium or planned unit development, and constituent dceuments. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and agreements of auch rider shall be incorporated into and shall amend and supplement thecovenanta and agreements of thia Mortgage as if the _ rider were a part hereof. _ 7. Protection of Lender's 9ecurity. If Borrower faile to perform the oovenante and agreementa rnnteined in thie Mortgage, or if any ~ action or proceeding ie commenoed which materially affecte I.ender a intereat in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or arrangements or pmceedinga involving a banlwpt or decedent, then Lender at Lender'e option,upon notice to Borrower may malce aach appearancee, diaburee euch aums and take auch action es is neoeseary to protect I.endei e intereet, = including, b~ not limited to, diabureement of reaeonable attorney e feee and entry upon the Property to make repaire. If Lender reqaired - mortgage insurance se a rnndibion of making the loan secured by thia Mortgage, Borrower shall pay the premiums requind to maintain i such ineurance in effect nntil euch time as the requirement for euch inearance terminatee in accordance with Borrower'e and Lender'e written agreement or epplicabk Law. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. . ' Any amounte diabureed .by I.ender perauant to thie paragraph 7, with intereat thereon, ahall beoome additional indebtedneae of Borrower secured by this Mortgage. Unlesa Borrower and Lender agree to other terme of payment, such amount8 ehall be payable upon = notice irom Lender to ~3orrower requeeting payment thereof, and ahall bear intereet from the date of diebursement at the rate payable from time to time on outetanding principal under the Note unless payment of interest at auch rate would be contrary to applicable law. in which - event auch amounte ehall best interest at the highest rate permiasible under applicable iaw. Nothing contained in thia paragraph 7, ahall require Lender to incur any expenee or take any ection hernunder. R~ o p . ~ _ euox2g4 PqCf 8 = 77 ~ _ _ ~ __..~T_~ - - i_ _ - ~ - - h _ - ~ . _ ~ _ J~-~~~`~.~~