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HomeMy WebLinkAbout0611 t ~ . . . Borrower and I.ender rnvenant and agree as follows: - ~ 1. Paymeal o! Principal and I~terest. Borrower ehall promptly pay when due the principal of and interest on the indebtedneas evidenced by the Note. pnpayaaent and late char~es as pmvided i~ the Note. and the principal of and intereat on any ~ture Advances secu~ed by this Mortgege. 2. F1nds for Tase~ and lneurance. Subject b applicable law oc to a writlen waive~ by l.ender, Borrower ehall pqy to l.cnde~ on the day monlhly installmenta of principal and intereat are peyable under the Note, until the Nate ia pnid in fuli, a sum (herein "~nde") equal to one- twelith oi the yearly tauee and asereaments which may attain priority over thia Mortgage, and ground tenta on the Property, if any, plue one twelfth of yearly premium inatallments [or hazard i~surance, plua onetwelfth of yearly premium ir?atulimenta for mortgage ina~rance, if any, all aa reaeonably eatimatetl initially and from time to time by I.ender on the basia of aseeesinents a~d billa and reasonable estimates thereof. The FLnds shall be held in en institution the deposits or aooounta of which ara inaured or guaranteed by a Federal or State agency (inciuding I.endet if L.endet is such an institution). Lender ahall apply the ~?nda to pay said taxea, aeeeeaments, inauranoe premiuma and ; g?round rents. Lend~ may not charge for so holding and applying the F`unds, analyzing eaid account, or verifying and compiling eaid assessment8 and bills, unlesa Lende~ psys Borrower interest on the F~nds and applicable law permita Lender to make such a charge. Borrower and Lender may ag~ee in writi~g at the time of e:ecution of thia Mortgage that interest on the Funds ehall be paid to Borrower, and unleas ' such agreement is made os epplicable law requiree such intereet to be paid, Lender shall not be required to pay Borrower any intee+e~t or ` earninga on the Funde. Leader shall give to Bortuwer, without charge, an annual acoounting of the Funds showing credita and debits to the Funds and the purpoae [or which each debit to the ~r.ds wae made. The Funde are pledged aa additional aecurity tor the sums aecured by this Mortgage. Iithe amount of the ~nds held by l.ender. together with the future monthly installmenta of Funda payabte prior to the due datea of taxea, easeeaments. inaurance premiuma and ground rente, shaU e:c~ed the amount required to pay aaid ta:ea, asseasments, ineurance premiuma and gmund rente as they fall due. such ~ceae shall be. at Borrower s option. either promptly repaid to Borrower or credited to Borrower on - monthly inatallmente of ~nde. If the amount of the Funda held by Iender ahall not be eufficient to pay taxee, assesamenta, inaurance 4 premiuma and ground renta as they tall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by [.ender to Borrower requeating payment thereof. Upon payment in fuli of all aums eecured by thie Mortgage, Lender ahall pmiuptly refund to Borrower any funde held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender. L.ender shall apply, no later than immediately prior to the sale of the Property or its aequiaition by Lender, any ~Lnda held by I.ender at the time of application as a credit againat the aume eecured by thia Mortgage. ' • ' 3. Applieation of Peyments. Unlesa applicable law providea otherwiae, all payments received by l.ender under the Note and paragraphe 1 and 2 hereof ehall be applied by I~nder firat in payment of amounts payabte to Lender by Borrower under paragraph ? hereof, then to interest payable on the Note, then to the principal of the Note, and ihen to interest and principal on any Future Adv~~. 4. Charges; Lieas. Borrower shail pay all taxes, assessments and other charges. finea and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold puyments or ground rnnta, if any, in the manner provided under paragraph'2hereof or, if not paid in auch manner, by E3orrower making payment, when due, directly to the pa~ ee thereof. Borrower ahall promptly furniah to Lender : all notices of amounts due under this paragraph, and in fhe event Borrower shall make p~yment directly, BorroN er ahall promptly furnish to I.ender receipts evidencing auch payments_ Borrower shi?ll promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge any such lien sc~ long as Borrower shall Agree in writing to the pnyment of the obligation secured by such lien in a manner accepisible to Lender, or ahall in good faith contest such lien by, or de[end enfurcement of sach lien in, lc~al proceedings which operate to prevent the enlorcement of the lien or forfeiture ot the Property or any part thereof. 5. Hazard lnsurance. Borrower shall keep the improvements now eaiating or hereafter erected on the Piroperty insured againat loas by fire. hazards included within the term "e:tended coverage," and such other hezards as Lender may require and in auch amounts and for euch ~ periodA as Lender may require; provided, that Lender shall not require such ooverage amount eaceeding the minimum, as may be required by t atate or federal regulationa governing activitiee of Lender, or that amount of coverage required to pay the aums aecnred by this Mortgage, i whichever ie the greater. ' The insurance carrier providing the insurunce ahatl be chosen by Borrower subject to approval by Ixnder, provided, that auch approval j shall not be unrnasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph `L hereof or, if ` not paid in such manner, by Borrower making payment, Nhen due, directly to the insurance carrier. All inaeuance policiea and renewale thereof ahall be in form acceptable to Lender and ahall inciude a standard mortgage clauae in favor of and in form acceptabie to Lender. Lender ahall have the right to hold the policies and renewala tkereof, and Borrower ahall promptly furnish to i.ender all renewal noticea and sll receipts of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insurance carrier , and I.ender. Lender may make proof of loss if not made promptly by BoTrower. ~ Unless Lender and Borrower otherwiae agree in writing, inaurance proceeda ahall be applied to restoration or tepair of the Property damaged, provided such restoration nr repair ia economically feasible and the aec~uity of this Mortgage is not thereby impaired. If such _ ~ reatoration or repair is not economicaUy feaeible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied { to the auma secured by this Mortgage, with the ezcesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ reapond to Lender wethin 30 daye from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to eettle a claim for ` ineurance benefits, Leader is suthorized to collect and apply the inaurance proceeda at Lender's option either to reetoration or repair of the Property or the suma secured by this Mortgage. Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e:tend or postpone the due date of the monthiy inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of euch inatallmente. If under paragraph 18 hereof the Property ia aoquired by I.ender, all right, title and interest of Borrower in and to any ineurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the eale or acquiaition ahall paea to I.ender to the extent of the eums secured by this ° : Mortgage immediateiy prior to such sale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmente. Borrower shali keep the Property in good repair and ahall not commit waste or permit impairment or deLerioration .of the Property end ahall comply with the i 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, Borrower shall perform all of Borrower's obligationa under the declaration or covenanta creatingor goveming the condominium or planned ; unit development, the by-laws and regulationa of the oondominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider ie executed by Borrower and ternrded together with thia Mortgage, the oovenatzta and agteementa of auch ridet shall be incorporated into and ahall amend and supplement the covenants and agreements of this Mortgage as if the ± ~ rider wem a part hereof 7. Protection of I.eader's 3ecurity. If Borrower faile to perform the o~venante and agreemente rnntained in thie Mortgage, or if any action or proceeding ia commenced which materially affecta Lender e intereet in the Property, including, but not limited to, eminent domain, ~ insolvency, aode enforcement, or arrangements or prooeedings involving a baniorupt or decedent, then I.ender at Lender's optioa,upon notice to Borrower may malce such appearances. dieburae snch eume and take such action aa is neceesary to protect Lender's intereet, ~ including, but not limited to, disbureement of reaBOnable attorney's [eee and entry upon the Property to malce repaiis. If Lender required r mortgage insurance aa a condition of making the loan eecured by thia Mortgag~ Borrower ehall pay the premiums required to meintain ~ snch inenrance in ei'fect until anch time as the requirement for such inaurance terminatee in aa~ordance with Borrower's and Lender's ~ written agreemeat or apDlicable Law. Borrower shall pay the amount of all mortgage iaeurance premiume in the manner provided under j ~ paragraph 2 hereof. i Any amounte disburaed by Lender persuant to thia paragraph 7, with interest thereon, ehall beoome additional indebtednese of ~ Borrower eecured by this Mortgege. Unlese Borrower and Lender agree Lo other terms of payment, auch amounta shall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear interest from the date of diebursement at the rate payable ~om time to time on outetanding principal under the Note unless payment of intereet at auch rate would be oontrary to applicable law, in which ; i event euch amounte ahal) bear intereet at the higheet rate permieaible under applicable law. Nothing oontained in thie paragraph shall ~ require I.ender to incur any e~cpense or take any- action hereunder. ~ ~ ~ ~ a~o~ 296 Q~~ 609 ~ ~ ; ~ f - _ ~ 4 1 ~ ~'x . L _ . . , . r .