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HomeMy WebLinkAbout0603 , . • .~.M • . • . ~ ,r Borrower and L.ender covenant and agree as fullows: 1. Peyment ot Principal and Intereet. Borrower ehall pmmptly pay when due the p?~ncipal of and intereat on the indebtedneas evide~ced by the Nota. prepayment a~d late chargea ae provided in the Note, and the principal of and interest on a~y F`uture Advances eecured by this Mortgage. 2. Ptinds for T~sses and lneurance. Subject to applicable law or to a written waiver by l.ende~, Ho~ower ahall pay to I.ender on the day monthly inataUmenta o[principal and i~terest are payable under the Note, until the Note ia paid i~ fuU, a eum (herein "F~nda") equal to on~ twelfth of the yearly taxee and asseeaments which may attain priority over this Murtgage, and ground renta ot? the Property, if any, plus one twelfth of yearly premium inatallmenta for hazard inaurance, plua onetwelfth ofyearly premium installmenta for mortgage insurance, if any, all aa reaeonably eetimated i~itially and from time to time by I.ender on the baaia ot nssesaments and billa and reusonabte estimatea thereof. The ~Lnds shall be held in an institution the deposits or aocounta oi which an insured o~ guaranteed by a Federal or State agency (including Lender if I.ender is such an inatitution>. I.ender shall apply the Funda to pay eaid ta:es, asaesaments, inaucance premiums and ground rents. I.ender may not charge for so holding and epplying the F~nda, analyzing said account, or verifying and compiling eaid aeeesame~t8 and bille, unleas l.ender pays Borrower intereat on the F~nds and applicable law permite I.ender to malce such a charge. Borrower and I.ender may agree in writing at the time o[ eaecution of this Mortgage that intereat on the Funde ehall be paid to Borrower, and unlesa such agreement ie made or applicable law requir~ auch intereat to be paid, Lender ehall ~ot be required to pay Borrower any intereat or earnings on the ~nds. I.ender ahall give to Borrower, without charge, an annual accounting uf the Funds ahovring credite and debita ta the Funda and the purpoee for which each debit to the ~nds was made. The Funda are pledged aa additional eecurity for the sums eecured by this blortgage. lf the amount of the ~tnde held by Lender, together wi•.h the future monthly inetallmenta of Funde payable prior to the due dates of ta:es, assesamente. insurance premiuma and ground rents. ahall excaed the amount mquired to pay said taxes, assesamenta, inaurance premiums and ground rents as they fall due. auch excese ehall be, at Borrower s option, either promptly repaid to Borrower or credited W Borrewer on monthly installmenta of ~nds. If the amount of the Funds held by Lender ahall not be sufficient to pay taxes, aseeasmente, insurance premiums and ground rente ae they fall due, Borrower ahall pay fo Lender any amount neceeeary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of al! auma eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 heceof the Property ie sold or ihe Property is otherwine acquired by Lender, Lend~er ahalt apply, no later than immediately prior to the sale of the Property or ite acquieition by L.ender, any fi~nda held by Lender at the time of application se e credit againat the auma secured by thia Mortgage. 3. Application of Payments. Unlesa applicable law provides otherv?iee, all paymenta received by L.ender under the Note and paragraphe 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by i3orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and thea to intereat and priaoipal on aay I~ture Advancea_ 4. Gharges; Liens. Borrower shnll pay all taxes, s~.4sessmenta and other charges, finea und impo„~ions attributable b the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any,ln lhe manner provided under paragraph 2 hereof or, if not paid in such manner, by Aorrower making payment, when due, directly to the payee thereof. Borrov?er shall promptly furnish to I.ender ; all notices of amounts due under this paragraph, and in the event Borrower shal) make payment directly, t3orrower ahall promptly fumish to ' Lender receipta evidencing such payments. Borrower ahaU promptly discharge any lien which has priority over this Mortgage; provided, that f3orrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal praredings which operate to prevent the enforcement of the lien or forfeiture ot the Property or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the improvementa now exiadng or hereafter erected on the Property inaured againat losa by fire, hazards included within the term "extended coverage," and ~uch other hazards as I.ender may require and in such amounta and for such r ori~?da wa T srndPr may tequire; 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 amnunt of ooverage required to pay the sutns aecured by this Mortgage, whichever ia the greater. The insurance carrier prowiding the insurance shall be chosen by Borrower subject to approval by I.ender, pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by I3onower making payment. Mhen due, direcdy to the insurance carrier. All inaurance policiea and renewals thereof ahall be in fotm acceptable to Lender and shall include a atandard mortgage clause in favor of and in form acceptable to I.ender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid prnmiuma. In the event of lose, Borrower shall give prompt notice to the inaurance carrier ' and Lender_ Lender may make proof of loes if not made promptly by Borrower. ~ Unless L.ender and Borrower otherwise agree in writing, insurance proceeda shall be applied to reatoration or repair of the Property ~ damaged, provided snch restoration or repau ia economically feasible and the security of this Mortgage is not thereby impaired. If such j reatoration or repair ie not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeda shall be applied ~ to the euma secared by this Mortgage, with the exceHS, if any, paid to I3orrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to L.ender within 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefite, Lender is authorized to collect and apply the insurance ptoceeds at Lender's option either to restoration or repair of the ~ Property or the sums aecured by this Mortgage. . ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal aha{I not e:tend or postpone the due ~ date of the monthly instaliments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the aums eecured by this Mortgage immediately prior to such sale or aoquisition. 6. Preaervation and Maintenance of Property; Leaseholds; Coadominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provieions of any lease if this Mortgage is on a leasehold. If thia Mortgage is on a unit in a condominium or a planned unit development, Borrower ahali perform all of Borrower g obligations under the declaration or covenanta creatingor governing the condoroinium or planned ~ unit development, the by-Iawa and regulationa of the condominium or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider is e:ecuted by Borrower and recorded togethet with thia Mortgage, the oovenante and agreementa of such rider ahaU be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection of Lender's Security. If Borrower faila to perforw the wvenante and agreemente oontained in thie Mortgage, or if any ~ action or proceeding is commenced which materielly affecte Lender a intereat in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangementa or proceedinge involving a bank:upt oY deoedent, then Lender at Lender.'e option,npon ' notice to Borrower may make auch appearanoes, disburse auch eums and taice such action es is neceesary to protect Lender's interes~ including, but not limited to, diebureement of reaaonable attorney e feea and entry upoa the Property to make repaire. If Lender required ~ mortgage ineurance ae a cc?ndition of making the loan secured by thia Mortgage, Borrower ehall pay the premiume required to meintain ~ such ineurance in effect until snch time ee the reqnirement for snch inaurance terminatee in accordance with Borrower'a ~nd Lendds ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiuma in the manner provided undez ~ paregreph 2 hereof. - . ~ Any amounts diabureed by Lender perauant to thia paragraph 7. with intereet thereon, ehall beoome additional indebtedneea of ' Borrower aecured by thie Mortgage. Unlese Borrower and Lender agree to other terma of payment, auch aRiounte ehell be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shell bear interest from the date of diebursement at the rate payahle from . ~ time to time on outetanding principal under the Note unleas payment of intereai at such rate would be rnntrary to applicable law, in which F ~ event auch amounte ehall bear intereat at the higheat rate permiaeible under appiicable law. Nothing contained in thie paregraph 7, shall require Lender to incur any ~pense or take any action hereunder. ~ ~ ~ ~ ~ a~x 2~6 P~~ 60i ? ~ . . . ; ~ . ~ _ _ : : - _ , ~ _ : ~ . ~ : _ _