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HomeMy WebLinkAbout0499 . Borrowe: and L,endes covenant and agree as follows: . 1. Payment ot Principal a~d lateres~ Borrower shall promptly pay when due the principal of and intereat on the indebtedneea evidenced by the Nots, prepayanent and late cha~ges as pmvided in the Note, and the principal of and interest on ar?y PLture Advances sNCUred by eh;s MoreBage. ~ 2 Ptitnds for Tases and Insuranoe. Subject to applicable !aw os to a writtrn waiver by lxnde~, Borrower shall pay to l.ender on the day monthly installme~ta of principal and intereat are payable under the Note. uritil the Note is paid in fult, a aum Iherein "Funds") equal to one twelfth of the yea~ly taxes and assesamenta which may attain priority over thie Mortgage, and ground rents on the Property, if any. plua one twelfth of yearly premium installments for hszard inaurance, plua onatwelfth o[yearly premium installments for mortgage insurance, if any, all aa reasonably estimated initially and from time to time by I.ender on the basis of aasesaments and biUa and reasonable eatimatea thereof. The F1nds shall be held in an inatitution the deposits or accounta of which are ineured or guaranteed by a Federal or 3tate agency (including l.ender if Lender is such an inatitution). I.ender ehali apply the Funda to pay eaid taxee, aeeeeaments, insurance psemiuma and ground rente. Lender may not charge for so holding and applying the Ftinds, analyzing said account, or verifying and compiling esid aesesamenta and billa, unleea Lender pays Borrower intereat on the ~u?da and applicable law permits Lender to make auch a charge. Borrower and L.ender may agn~e in writing at the time of e:ecution of thia Mortgage that intereat on the Funde shall be paid to Borrower. and unless si~ch agrcement is made or applicable law requiree such interest to be paid, I.ender ahaU riot be required to pay Borrower any interest or ' earninga on the Funds. I.ender ahall give to Borrower, without charge, an annual accounting of the Funde ahowing credite and debite to the ~nds and the purpoee for which each debit to the Ftinda wae made. Tl~e Fande are pledged as additional aecurity for the aume secured by this Mortgege. _ . If the amount of the ~nda held by I.ender, together with the future monthly inetallmente of Funde payable prior to the due datea of tauee, ase~ementa, inaurance premiuma and gronnd renta, ehall exrted the amount required to pay said taxee, aaseaemente, ineurance premiums and ground rents as lhey fall due, auch exceee ehap be, at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly installmepts of Flinde. If the amount of the Fti?nde held by Lender ahall not be aufficient to pay taxea. aseesementa, insnrance premiums and ground renta aa they fall due. Borrower ahaU pay to Lender any amount neceaeary to malce up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requesting payment thereof. . Upon payment in full of all auma secured by thia Mortgage, Lender ehall promptly rnfund to Borrower any funds held by Lender. If under paragreph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, l.ender shalt apply, no later than immediately prior to the eale of the Property or its aoquiaition by Lender, any ~nda held by Lender at the time of application as a credit againat the suma secured by this Mortgage. • ~ 3. Applieation of Paymenta. Unleas applicable law provides otherwise, all paymente received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounta payable to I.ender by Borrow er under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advanc~es. 4. Chargea; Liene. Borrower shall pay all taxes, assessments and other charges. fines and impoaitions attributable to the Property which may attain a priority over this Mortgage, and ~easehold paymenta or ground rents, if any, in the manner provided~?nder paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the ~ayee thereof Borrower shall promptly furniah to I.ender all notices of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish tp [.ender receipts evidencing such puymenta. Borrower shaU promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be tequired to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of su~h lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuranc~. Borrower ahall keep the unprovementa now exiating or hereafter erected on the Property insured against losa by fire, hazards included within the term "extended coverage," and auch other hazards as Lender may require and in euch amounts and for such ' periods as Lender may require; provided, that Lender shall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulations goveming activitiea of Lender. or that amount of coverage required to pay the sums secured by this Mortgage, whichever ie the greater. 77ie insurance carrier providing the insurance shall be chosen by E3orrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All pmmiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender sha11 have the tight to hold the policiea and renewals thereof, and Borrower ahaU promptly furnish to i.ender s11 renewal noticee and all receipta of paid premiuma. In the event of loas, Bornower ahall give prompt notice to the inaurance carrier I and Lender. Lender may make proof of losa if not made promptly by Borrower. - - ! Unlese Lender and Borrower otherwine agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property i damaged, provided snch reatoration or repair ia economically feasible and the secarity of thie Mortgage ie not thereby unpaired. If auch ! reatoration or re air is not economicall feasible or if the eecuri ot this Mo ~ p y ty rtgage would be impaired, the ineurance proceeda ahall be applied p to the aums eecured by thia Mortgage, with the eacesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to.Lender within 30 days from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for ~ inaurance benefite. Lender ie authorized to collect and apply the insurance proceeds at Lender's option either to restoration or rnpair of the y ; Property or the sums secured by thie Mortgage. E Unlees Lender and Borrower otherwiee agree in writing, any auch application of pmeeeds to principal shall not extend or poatpone thedue ' ~ date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatalimente. If under paragraph 18 hereof the Property is aoquired by Lender, aU right, title and interest of Borrower in and to any inaurance policies and in and to the proceede thereof reaulting fiom damage to Property prior to the eale or aoquisition ehall paea to Lender to the e:tent of the anms aecured by this Mortgage immediately prior to auch sale or aoquiaition. ~ 6. Preaervation and Maintenance of Property; Leaeeholda; Condominume; Planned LDnit Developmente. Borrower shall teep the Property ia good repair and ehall not commit waste or percnit impairment or deterioration of the Property and ehall comply with the provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower seall perform all of Borrower e obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnetituent documents_ If a condominiiun or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and agreements of auch rider shall be incorporated into and ahall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection of I.ender's Security. If Borrower fails to perform the oovenante and agreements oontained in this Mortgege, or if any action or pmceeding is commenced which materially affects Len~f~ intereat in the Property, including, but not limited to, eminent domain. a insolvency, oode enforcement, or arrangementa or pmccedings i~lolving a bank~~ or deoedent, then Leader at Lender s option,npon ~ notice b Borrower may make euch appearances, diaburee euch eams and tate such action as ia neceeaary to protect i.endei a intereat, ~ incl~ing, b~ not limited to, disburaement of reasonable attorney's fees and enbry upon !he Pcoperty to mske npaiie. If I.ender required mortgage ineurance aa a rnndition of making the loan ee~cured by thie Mortgage, Borrower shall pay the prcmiums required to maintain ~ euch ineurance in effect nntil snch time se the requirement for such ineurance terminatee in aocordence with Borrower's and Lender's ~ writtea agreement or applicabk Law. Borrower ehall pay the amount of aA mortgage insnrance premiums in the manner.provided under ~ paragraph 2 hereoL - ~ Any amounta diaburaed by Lender pereuant to thia paragraph 7, with interest thereon, ehall beoome additional indebtednees of ~ ° Borrower sxured by thia Mortgage. Unless Borrower and I.ender agree to other terme of payment, auch amounts ehall be payable upon ~ notice irom Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of disbnraement at the rate payable ~om time to time on oatstanding principal under the Note unless payment of interest at auch rate would be oontrary to applicable iaw, in whic6 ~ event such aawunte shall bear intereet at the highest rate permieaible under applicable law. Nothing contained in thia paragraph 7, shall require Lender to incur any eupenae or take any action hereunder. ~ ~ ~GRr295 P~rE '498 . . ' - _ . ~ - - - - s _ - ~ { ` :a