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HomeMy WebLinkAbout0531 Borrower and L.ender covenant and agree as follows: 1. Payment o[ Priaclpul and I~terest. Eior~ower shall promptly pay when due the principal ot and interest oa the indebtedneas evidenced by the Note, pnpayment ar~d late charges as pmvided in the Note. and the principal of and iatenat on any Ftitnre Advancee secured by this Mortgage. 2. Fltnd~ tor Ta~ce~ aad Ineurance. Subjecl to epplicable law or to a writte~ waiver by I.ender, E~,irower ehall pay to Lender on the day monthly iiutallmenta of principal and interese are payable under the Note, unW the Note ia paid in full, a aum (herein "Funds") equal to o~e twelfth of the yearly t~es and asecesmenta which may attain priority ove~ this Mortgage. and ground rents oa the Property, if any. plua one twelRh of yearly premium inslallmenta for hazard insurance, plus onetwelRh ofyearly premium inatallmenta for mortgage inaurance, if any, all es reasonably estimated initielly and from time to time by I.ender on the baais of asseasments and biUa a~d reaeonable eatimatea thereof. The FLnds shall be held ia an institution the deposita or acoounta of which an inaured or guaranteed by a Federal or State agency (including l.enda if Lender is auch aa inetitution). I.ender ahaU apply the ~nds to pay said ta:es, aaseaamenta, insurance premiume and ground rents. Lender may not charge for s~ holding and applying the Funds, analyzing said aocounR or verifying aad compiling eaid seaessmenta and bills. unleea Lender pays Borrower intereat on the ~nds and applicabk law penaits Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of thia Mortgage that interest oa the ~nds ehall be paid eo Borrower, and unless such agreemeat is made or. appGcable law requires auch inltrest to be paid. I.enda shall not be required to pay Borrower any intereet or earnings on the FLnds. Lender shall give to Borrower, withont charge, an annual accouating of the Funda ahowing credita and debita to the Funds and the purpoee for which each debit to the Funda waa mc?de.'llie Funds are plcdged aa additional secwrity for the sume eecured by thia Mortgage. If the amount of the Funda held by Lender, together with the future monthly installments of Funda payable prior to the due dates of taxes. aeaessmenta, ineutance premiuma and ground renta, shal! ~o2ed the amouat required to pay eaid ta:ea, assessments, insurance premiuma and gr.ound rents as they fall due, euch e:cees ahall be. at Borrower'a option, either prompdy repaid to Borrowrr or credieed to $orrower on monthly inetallmenta of FLnds. If the amount of the Funds held by Lender ahaU not be sufficient to pay ta:ea, asseeamenta, insurance premiume and gro~u?d rente ae they fall due, Borrower shall pay to Lender any amount nereseary to make up the de6ciency within 30 days from the date notice is mailed by Lender to Borrower requesting payroent thereof. Upon payment in fnll of all eums eecured by thia Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.eader. Lender shall apply, no Iater than immediately prior to the sale of the Property or ite aoquisition by Lender, any ~nds held by Lender at the time of application as a credit againat the auma secured by this Mortgage. 3. Application o[ Paymeate. Unleas applicable law providea otherwise. aU paymenta received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the NoEe, then to the principal of the Note, and then to intercat and principel on any Fut~ue Advances. 4• Charges; Liena. Borrower shall pay all taxes, assessments and other chargea. finea and impoeitions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Bor~ower shall pmmpUy furnish to [.ender all notic~ of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Born~wer shall prompdy 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 to disch arge any such lien so long as Botrowcr shall agree in vrriting to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or ac~y part thereof. 5. Hazard Insurance. Borrower ehall keep the improvemente now e:iating or hereafter erected on the Property inaured againat loas by fire, hazarda included within the term "e:tended coverage,^ and euch other hazarde as l.ender may require and in such amounte and for such periods as Lender may require; pmvided. that Lender shall not require auch ooverage amount exceeding the minimu~n, es may be required by atate or federal regulatione goveming activitiea of Lender, or that amount of coverage reqnired to pay the auma secured by thia Mortgage, whichever is the greater. The insuranee carrier providing the insurance shall be chosen by E3orrower snbject to approval by Lender, provided, that such approval sha11 not be unmasonably withheld. All premiums on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrawer making payment, when due, directly to the insurance carrier. All inearance poliries and renewale thereof shall be in form acoeptable to [.ender and shall include a standard mortgage claaee in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policiee and rnnewala thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipte of paid premiums. In the event of loss, Borruw~r shall give prompt notice to the insurance carrier ' ~ and Lender. Lender may make proof of loss if not made pmmpdy by Borrower. 4 Unlese Lender and Borrower otherwiee agree in writing, insurance proceeda shall be applied to restoration or repair of the Property ! damaged, provided auch reetoration or repair ia economically feasible and the eecurity of thie Mortgage ie not thereby impaired_ If such I reatoration or repair is not economically feaeible or if the security of this Mortgage wonld beimpaired, the insurance proceeda ahall be applied i co the auma eecured by tl~is Mortgage, with the e:cess, if any. paid to Borrower_ If the Property is abandoned by Borrower. or if Borrower faila to j respond to Lender within 30 daya from the date notice ie mailed by Lender. to Borrower that the insurance carrier offera to aettle a claim for ~ inaurance benefita, Lender ie suthorized to rnUect and apply the insurance proceede at Lender'e option either to restoration or repair of the Property or the eums eecured by thie Mortgage_ ~ Unless Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahall not estend or poatpone the due date of the monthly installmenta refetred to in pamgrapha I and 2 hereof or change the ama~nt of such installmenta. If nnder paragraph 18 hereof the Property ie aoquired by Lender. all right, title and interest of Borrower in and to any inanrance policiea and in and to the proceede thereof resulting hom damege to Property prior to the eale or acquisitioo shall paes to Lender to the eztent of the snma eecnred by this Mortgage immediately prior to snch sale or aoquieition. _ 6. Preservation and Maintenance otProperty; Leaeeholds; Condominums; Planned Unit Developments. Borrower ehal! k~ep the Property in good repau and ahaU not rnmmit waete or permit impairment or deterioration of the Property and ehall comply with the pmvieione of any lesee if this Mortgage is on a leasehold. If this Mortgage ia on a anit in a oondominium or a planned unit development, Borrower ehall perform all of Borrowerb obligationa under the declaration or covenante creatingor gov~ning the condominium or planned ~ unit development, the by-lawe and regulationa of the rnndominium or planned anit developmeat, and oonatituent documents. If a ~ coadominium or planned unit development rider ia ezecuted by Borrower and reoorded together with thie Mortgsge. the oovenants and agreemente of ench rider shal! be incorporated into and ahall amend and supplement the rnvenanta and agrrements of thia Mortgage as if Lhe rider were a part henwf. 7. Protettion of Lender's 3ecurity. If Borrow~ fails to perform the ooveaanta and agreements oontained in thia Mortgege, ar if an,y action or prooeeding is commenced which materially affecte Lendei's interest in the Peopaty. inclnding, but not limited to, eminent domain, insolvency. oode enforoement, or arrangements or pmoeedings involving a bankrnpt or deoedeat, thm I.ender at I.endds option,npon notice to Borrower may~ make such appearances. disbnrse such eums and take snch action as is neoe~sasy to protect I.ender s interes~ - ~ ~ inclnding, b~ not limited to, disbursement of reaaonable ettorney's fees and eatry upon the Proptrty to make npairs. If Lender reqnired - mortgage inaurance ae a condition of making the loan eecnred by this Mortgage, Borrowe: shall pay the preminms reqnired to maintain snch inauranoe in ei~ect nntil anch time as the reqnirement for anch inenrance terminates in aooordanoe with Borro~ra'e nnd Leadar's ~ writtea agreement or applicable Law. Borrower sha11 pay the amount of all mortgage insuranoe premiums in the manner provided under paragraph 2 heeeof. ~ ~ Any amoants siisbareed by Lender perauant to this PsragraPh 7. with interest thereon, shall beoome additional indebtednesa of t Borrower sec~red by thie Mortgage. Unleee Borrower and Lender agree to oiher terms of paym~t, aach amonnts shall be payabk npon ' notice from Lender to Borrower requesting payment thereof, and shall bear intereN from the date of diabursement at the rate payable from time to time on outstanding principal under the Note nnlese payment ot intereed at sach rate woald be oontrary Lo applicable law. in which event auch amounta ehall bear intereat at the higheat rate permissibk under applicabk law. Nothing ooatained in this paragraph 7, shall reqnire I.ender to incvr any e:pense or tske any action hereunder. ~ ~ 'T sooK ~5 ~acE ~ 53~ ~ ~ ~ , : '°'~~a ~ e.. - .