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HomeMy WebLinkAbout0690 ~ ~ . . ~ ; ti,'• f3orrower and l.ender covenant a~d aQree ae follows: • 1. Payment of Principal and lntereet. Borrower shall promptly pay when due the principal of and interest on the indebted~eae evidenced by the Note, prepayment and late charges as pmvided in the Note. end the principal of and intereat o~ any FLture Advancee secured by this Mortgage. 2. FLnde for Taxee a~d Ineurance. Subject to applicable law or to a written waiver by l.ender, I3orrower ahall pay to l.ender on the day monthly installmente of principal and intemat are payable under the Note. until the Nole ia paid in full, a aum (herei~ "~tnds") equal to one twelfth of the yearly taxee and aasesamenta which may attain priority over ihia Mortgage, artd ground rents on Ihe Property, if any, plua one twelRh of yearly premium inatallmenta [or hazard inaurance, plua onetweiRh o[yearly premium inatallments for mortgage ineurance, if any, all as reaeonably eatimated initially and from time to time by l.ender on the basie of aeaeaamenta and billa and reaaonable estimatee ihereof. The I~nde shall be held in en inatitution lhe depoeita or aocouMs oi which are inaured or guaranteed by a F'ederal or Stste agency (including l.ender if l.ende~ ia such an inetitution). L,ender ehall apply the Funde to pay said taxes, assesaments, inaurence premiuma and ground rents. Lender may not charge for eo :~olding and applying the F~nds, ar?alyzing said account, or veiifying and compiling eaid aeaeasmenta and bills, unleas l.ender paye Borrowerintereet on the F~?nda and applicable law permite Lender to make such a charge. Borrower and Leader may agree in writing at the time of e:ecution of thia Mortge8e that inter~t on the Ftinda ahall be paid to Borrower, and unless such agreement is made or applicable law requires auch interest to be paid, Lender shnll not be required to pay Borrower any intereat or earnings on the ~nde. Lender ahaU give to Borrower, without charge, an annual acoounting of the ~nds ahowing credita and debits to the Funde and the purpose for which each debit to the ~?nde was made.'[7ie Funde are pledged ae additional eecurity for the anms eecured by thia Mortgage. . lf the amount of the F~nda held by Lender, together with the future monthly installments of Funda payable prior to the due datea of taxea. aseessmente, insurance premiuma and ground rents, ahall ea[c+~ed the amount required to pay said ta:ee, aaeeasmenta, insurance premiums and ground renta ae they fall due, euch e:cees ahall be. at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of Fl~nds. If the amount of the Funda held by Lender ahall not be aufficient to pay tauea. eeaeasments, ineurance premiuma and ground renta as they fall due, Borrower shall pay to Lender any amount neceesary to make up the deficiency within 30 daye from the date notice is mailed by Lender b Borrower requeating payment thereof. Upon payment in full of all auma secured by this Mortgege, Lender ehall promptly refund to Borrower any fiinds held by I.ender_ If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, Lender ahall apply, no leter than immediately prior to the sale of the Property or ite acquisition by l.ender, any F~nda held by I.ender at the time of application as a credit againet the aums secured by this Mortgage_ 3. Applieation of Payments. Unlese applicable law providea otherwise, all paymenta received by I.et?der under the Note and paragraphs 1 and 2 hereo[ shall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable 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, assessments and other charges, fines and impoxitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shaU promptly furnish to I.ender all notices of amounts due und~ this paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing such paymenta. Borrower ahaU promptly diacharge any lien which has priority overthis Mortgage; provided, that Borrower shall not be required to discharge any such lien so lonq as Borrower shail agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to Lender, or shall in good faith enntest such lien by, or defend enforcement of such lien in, legal proreedings which operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now e:iating or hereafter erected on the Property insured againat loss by fire. hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in such amounta and for auch periods se Lender may require; provided, that Lender shall not requim euch ooverage amount e:ceeding the minimum, as may be required by state or federal regulations governing activitiea of Lender, or that amount.of coverage tequired to pay the suma eecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Iiorrower subject to upproval by Ixnder, pm~~+ded, 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 Borrower muking payment, when due, directly to the insurance carrier. All insurance policiea and rnnewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clauee in favor of and in farm acceptable to Lender. I.ender shall have the right to hold the policies and tenewals thereof, and Borrower shall promptly furnish to I` i.ender all renewal notices and all receipta of paid premiuma_ In the event of losa, Borruwer shall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loss if not made prompdy by Borrower. Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeda ahall be applied to rnatoration or repair of the Property ~ damaged, provided auch restoratian or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the suma secured by thie Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to aettle a claim for inaurance benefits, I.ender ie authorized to collect and apply the inaurance proceeds at Lendei s option either to restoration or repair of the Property or the aums secured by this Mortgage. Unleas Lender and Borrower otherwise agree in writing, any auch application of prooeeds to principal ahall not extend or postpone thedve date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. If nnder paragraph 18 hereof the Property ia acquired by Lender, all rig6t, title and interest of Botrower in and to any inaurance policiee and in and to the proceeda thereof resulting hom damage to Property prior to the sale or acquiaition ehall paea to Lender to the extent of the siuna eecured by this Mortgage immediately prior to such sale or soquieition. 6. Preaervation and Maintenance of Property; Leaseholda; Cflndominuma; Plaaned Uni! Developments. Borrower ahall keep the Property in good repair and ahall not commit waste or permit unpairment or deterioration of the Property and ehall rnmply with the proviaions 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 shall perform all of Barrower'a obligations under the declaration or covenants creatingor governing the ~ondominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent dceumenta. If a oondominium or planned unit development. rider ia execuced by Borrower and recorded together with thia Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agireemente contained in this Moitgage, or if any action or proceeding ie rnmmenced which materially affecte Lende~a interest in the Property, including, but not limited to, eminent domain. ineolvency, oode enforcement, or arrangements or proceedinge involving a bankr~pt or decedent, then I.ender at Lender's option,apon ~ notice to Borrower may make sach appearancea, dieburee snch sume and take euch action as ie neoeeeary to protect Lend~'s intezest, - ~ inclading, bnt not limited to, disbureement of reaeonable attorney e feee and entry upon the Property to make repairs. If Lender required mortgage ineurance as a condition of malung the loan secured by thia Mortgage, Borrower ehall pay the premiums required to maintain ~ euch inearance in effect until euch time ae the requirement for such insurance terminates in accordance with Borrowei e and Lender's written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. - My amounte dieburaed by Lender perauant to thie paragraph 7, with interest thereon, ehall beoome additional indebtednees of ~ Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terms of payment, auch amounta ahall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahail bear interest from the date of diebureement at the rate payable 5rom ~ time to time on outstanding principal under the Note unleae payment of interest at auch rate wonld be oontrary to applicable law, in which - ' event such amounta ahall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in this paragraph ehall ~ require Lender to incur any expense or take any action hereunder. ~ ~ ; ~ "soo~ 296 f::cE 68~ ' ~ . . ~ ~ ~a ~ - g~ ~ Y ~ ~_~~K ~~z- . ~ _ ' _