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HomeMy WebLinkAbout0527 Bonower and Leader covenant and agree aa followc 1. Paymeat o! Priacipal sad Iaterea~ Borrower shall pmmptly pay when due the ptincipal oi and intereat on the indebtednees evideACed by the NoLe. prepayment and late charges as provided in the Note, and the principel of and intereat on any ~Lture Advances aecured by thi~ Matge~e. 2. P~nds for Tesea and Iasuraace. SubjeR to applicable law o~ to a written waiver by l.ender, Borrower ahall pay to Lender on the day monthly installmenta of principal and intereat are payable unde~ the Note, until the Note ie paid in full, a aum (herein "Funds") equal to one twelRh of the yearly taues and assessments which may attain priority over thie Mortgage, and ground ~enta on the Property, if any, plua one twelfth of yearly premium installmenta for hazard inaurance, plus onc~twelRh of yearly premium i~atallments for morigage inaurance, if any, all aa reasonably eatimated initially and [rom time to time by l.ender on the basia of aseeeamente and billa and reasonable estimatea thereof. 'l~e I~tnda ehaU be held in aa institution !he deposits or accounte of which are ineured or guaranteed by a Federal or State agency (including I.ender if I.eader ia such an inatitution). Lender ahall epply the ~nds to pay said taxes, sesessmenta. inaurance premiums and groand rents. Leader mayr aot charge for eo holding aad applying the I~nds, analyzing eaid account, or verifying and oompiling said asseesments and bills, unlese l.ender paye Borrower intercat on the ~nde and applicable law permita I.ender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgege that interest on the ~nde ahall be paid to Borrower, and unlesa euch age+eement is made or applicable law requires euch intereat to be paid. Lender ehall not be required to pay Borrower any interest or earnings on the fl~nds. Lender shall give to Borrower, without charge, an annual aocounting of the Funde ahowing credita and debita to the Ftinds and the purpose for which each debit to the I~nda waa made. The Funde are pledged as additional eecurity for the aume secured by this Mortgage. If the amount of the FLnda held by I.ender, together with the future monthly inatallments of Funda payable prior to the due dates of ta~ces, aseessmeats. insurance premiume and ground rente. shall exezed the amount required to pay said taxee, aseeeamenta. insurance premiume and ground rents as they iall due, such e:ceae ahall be. at Borrower e option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallments of Funds. If the amount of the Funda held by I.ender ehall not be sufficient to pay tazea, asaesamenta, inaurence premiums and grouad rents aa they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 daya from the date notice ia mailed by Lende~r to Borrower requesting payment thereof. Upon payment in full of aU euma eecured by this Mortgage. l.ender ahall promptly refund to Borrower any funde held by Lender. If under paragrsph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender. l.ender shall apply, no later than immediately prior to the sale of the Property or ite aoquisition by Lender, any Ftinde held by Lender at the time of application as a credit againat the aume eecured by thia Mottgage. 3. Applie.etioa of Paymente. Unlesa applicable law providea otherwise, all paymenta received by I.ender under the Note and paregraphs 1 and 2 hereof shall be applied by Lender firet in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to interest paysble on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liens. Borrower shall pay all taxes; asacssments and other chargea; finea and impoaitions attribatable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any. in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due ander this paragraph, and in the event Borrower shall malce payment directly, Borrower shall prompUy furniah to I.ender receipts evidencing auch payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; peovided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a mann~ aooeptable to I.ender, or shal! in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineureace. Borrower shall keep the improvementa now e~iating or hereafter erected on the Property insured against losa by fire, hazards included within the term "eactended coverage, ' and auch other hazards se Lender may require and in auch amounts and for such periode as Lender may require; provided, that Lender ahall not require auch ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, . whichever ia the greater. 'I~e insurance carri~ providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unteasonably withheld. All prnmiums on insurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if . not paid in such mann~, by Borrower making payment, when due, direMly to the insurance carrier. All inaurance policies and renewals thereof ahail be in fotm acceptable to Lender and shall include a standard mortgage clause in favor of ~ and in form acceptable to Lender_ Lender shall have the righE to hoid the policies and renewals thereof, and Borrower shall promptly [urnish to ! i.en~er all renewal noticee and all receipts of paid premiuma. In the event of loss, Bormwer shaA give prompt notice to the insurance carrier ! and Lender. Lender may make proof of loas if not made ptomptly by Borrower. . ~ Unlese Lender and Borrower otherwise agree in writing, inaurance pmceeds shall be applied to restoration or rnpair of the Property ~ dameged, provided such restoration or repair ie economically feasible and the aecurity bf thi8 Mortgage is not thereby impaired. If such ~ reatoration or repa'u is not economically feaaible or if the eecarity of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the aume secured by Wia Mortgage, with the eacesa, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offera to settle a claim for ~ insurance benefits, I.ender is authorized to collect and epply the inaurance proceeda at Lender's option either to reatoration or repair of the Property or the sume eecured by thie Mortgage. y Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahall not e:tend or poatpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 hereof the Property is aoquired by Lender, all right. title and intereat of Borrower in and to any inaurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or soquieition ahall pasa to Lender to the e:tent of the auma eecured by this Mortgage immediately prior to such sale or aoquieition. - 6. Preservatioa and Maintenance of Property; I.easeholde; Condominums; Planned Unit Developmente. Borrower ahali keep ~ the Property in good repair and ahall not rnmmit waste or pemait impairment or deterioration of the Property and ahall oomply with the ; pmvisione of any leaee if this Mortgage ie on a leasehold. If thie Mortgage ie on a unit in a oondominium or a planned unit development. ~ Borrower shall pertorm all of Borrower e obligations under the declaration or covenanta creatingor governing the condominium or planned unit developmen~ the by-lawa and regulationa of the condominium or planned anit development, and conatituent documenta. If.a condominium or planned nnit development rider ie e:ecuted by Borrower and recorded together with this ;Vlortgage, the oovenante and ~ agteements of auch rider ahall be incorporated inlo and ahall amend and aupplement the covenants and agreementa of thia Mortgage as if the ~ rider were a part hereof. 7. Protection of Lender'~ 3ecurity. If Borrowez faila to perform the ooveaante and agreemeata oontained in this Mortgage. or if any ~ actioa or prooeeding is aommenced which mat~erially affects I.ende~s interest in the Property. inclndin~, but not limited to, eminent domain, ~ insolvency. oode eaforoement, or anangements or proceedings involving a banlaupt.or deoedent, then I.ender at I.ender's option,upon ~ notice to Bo~rrower may make snch appearances. diaburse such sams and ta1~e wch action as is ncoeeeary to protect Lender's intenst, ' inclnding, bat not limited to, disburaement of reaeonable attomey.'a teee and entry upon the Property to ma1~e repairs. If I.ender required ~ mortgage insnranoe as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiume required to maintain ~ auch insnrance in e~fect antil snch time as the reqairement for snch inanrance terminatee in aocordance wifh Borrower's and Lender's ~ writtm agreement or applicable Law. Borrower shall pay the amount of all mortgege inaurance premiums in the manner provided under ~ paraeraph 2 hereof. ~ Any amounte disbnrsed by Lender pereuant to this paragraph 7, with intereet thereon, shall beoome additional indebtednees of Bor[owet ~ecnred by thia Mortgage. Unlees Borrower and I.ender agree to other terms of paytnent, snch amounts ahall be payable upon ~ notioe from Lendtr to Borrower requesting 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 unleas payment of interest at such rate wonld be oontrary to applicabie law, in which ~ ev~t snch amounta shall bear interest at the higheet rate permiesible und~ applicable law. Nothing oontained in this paregraph ahall # reqnire Lender to incur any e:penae or take any actioa hereunde~r. 1 ~ - : ~~Rr 295 ~,,v~ ~ 5?5 ~ - - - _ _ ~ _ - - - - - ~