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HomeMy WebLinkAbout0705 ~~~~I + I• ~ ? Borrower and l.ender covenant and agree as followe: . 1. Paymenl ot Prittcipal and Interest. Borrower ehall prompUy pay when due the principal of and interest on the indebted~esa evidenced by the Note. prepayment atid late chargee as provided in the Note, and the principal of and interest on any Fliture Advances secured by this Mortgage. ~ 2 Etinds for Teueo a~d Insurance. Subjecl to Applicable law or to a written waiver by I.ender, l3orrower ahall pay to l.ende~ on the day monthly inatallments of principal and i~te~st are payable under the Note, until the Note is paid in full, p sum (herein "Funds") equal to one tweltth of the yearly taxea and aaseesmenta which may attain priurity over thie Mortgage, and ground re~ts un the Pmperty, if any, plue one twelfth of yearly premium installments for hazard inaurance, plus onetwelfth of yearly premium installments for mortgage ineurance, if any, all aa reasonably estimated initially and from time to tirr~e by I.ender on the basie of asaeasmenta and billa and reaso~able estimatea thereof. 'l~e fi~nde ahall be held i~ an institution the deposite or accounta oi which are insured or guaranteed by a Federal or State age~cy (including Lender if l.ender is such an inatitution). Lender shall apply the Funda to pay said taxea, asseaements, insurance premiuma and ground rents. Lend~ may not charge tor eo holding and applying the ~nda, analyzi~g said account, or verifying and compiling said asse~aments and bills, unleas Lender paye f;orrower intereat on the ~nds and applicable law permite I.ender to mare euch a charge. Borruwer and I.ender may agree in writing at the time of execution of this Morigage that intemet on the Funda shall be paid to Borrower, and unlees such agreement ie made or applicable law requirea euch intereat to be paid, l.ender ahall ~ot be required to pay t3orrower any intereat or earninge on the fi~nda. Lender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credite and debite to the Funda and the purpose for which each debit to the Funda was made. Tfie Funde are pledged as additional eecurity for the eums eecured by this Mor~gage. If the amount of the Fl~nde heid by l.ender. together with the future monthly inetaUments of Funda payable prior to the due dates of taxes, asaeesmenta. insarance premiums and ground rents, ahaU e:czed the amount required to pay exid taxee, assesamenfs, inaurance premiums and ground rents as they fall due, euch exceee aha:l be, at Borrower a option, either promptly repaid to SoiroweT or credited to Borrower on moathly inetallments of Flinde. If the amount of the Funde held by L.ender ehall not be aufficient to pay ta~cee. aseeaamenta, inaurance premiums and gi^ound rents as they fall due, Rorrower shall pay to Lender any amount ne~.~easary to make up the deficiency within 30 days from the date notice ie mailed by i.ender to Borrower requeating payment thereof. Upon payment in full of all sums eecund by this Mortgage. I.ender ehall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwiae acquired by l.ender, I.ender ahall apply, no later than immediately prior to the aale of the Property or ita acquiaition by Lender, any Ftinda held by l.ender at the time of epplication as a credit againat the aums secured by this Mortgage. 3. Application of Paymenta. Unlesa applicable Iaw providea otherwise, all payments received by Lender under thr Note and paragraphs 1 and 2 hereof shall be applied by L.ender first in payment of amounts 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 tu interest and prinripal on any Future Advancea. 4. Charges; Liens. Borrowershall pay aU taxes, assessmeots und otherchargea, finea and impo~itions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground renta, 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 thereot Borruwershall promptly furnish to l.ender all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment directly, Borrower shall promptly furnish to l.ender receipts evidencing such payments_ tiorrower shall promptly discharge any lien which has priority ov~r this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as tiorrower shall aqree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or ahall in good fnith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvementa now exiating or hereafter erected on the Property inaured againet loss by fire, hazarda included withih the term "e:tended rnverage," and auch other hazarde as Lender may require and in auch amounta and for auch periods as Lender may require; provided, that I.ender ahall not require auch rnverage amount e:ceeding the minimum, as may be required by state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the sume secured by this Mortgage, whichever is the greater_ The insurance carrier providing the insurance shall be chosen by Borrower aubject to approval by I.ender, provided, that such approval shaU'not be unreasonably w~thheld. 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 making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form acceptable to I.ender. l,ender ahall have the right to hold the policiea and renewals themof, and Borrower ahall promptly furnish to i.ender all renewal noticea and all receipts oi paid prnmiums. In the event of loss, Borruwer ahall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made pmmpdy by Borrower. ! Unieae Lender and Borrower otherwiae agree in writing. insuiance proceeds shali be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically [easible and the security of this Mortgage is not thereby impaired. If auch ! restoration or repair is not economically feasible or if the security of thie Mortgage would be impaired, the insurance proceeda shall be applied ~ to the aums secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ; reepond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to setde a claim for ~ ineurance benefite, Lender is authorized to collect and apply the insurance proceede at Lender.a option either to~restorataon or repair of the Property or the sums aecured by this Mortgage. Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not extend or poatpone the due date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. If under paragraph 18 hereof the Property ie aoquired by Lender, all right, tide and interest of Borrower in and to any inaurance policie- and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquisition shall pasa to I.ender to the e:tent of the aume secured by this Mortgage immediately prior to auch sale or aoqluaition. 6_ Preservation and Maintenance of Property; Leasehotds; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply writh the provieiona of any lease if this Mortgage ia on a leasehold_ If this Mortgage is on a unit in a mndominium or a planned unit development, Borrower ahall perform ali of Borrowei s obligations under the declaration or covenants creatingor gacverning the condominium or planned unit development, the by-laws and regulatione of the condominium or planned w?it development, and conetituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenante and agreements of such ridPr shall be incorporated into and shall amend and supplement thernvenanta and agreements of this Mortgage as if the rider were a part hereof. - 7. Protection of I.ender's 3ecurity. If Borrower fails to perform the oovenante and agreement8 contained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender s intereet in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangementa or proceedii?ge involving a bankrupt or decedent, then Lender at Lendei s option,upon ~ notice to Borrower may make euch appearances, diaburse such eums and take auch action as ie ncoeseary b protcct I.endei e intereet, including, bat not limited to, disbareement of reaeonable attorney a. fees and entry upon the Property to mal~e npaire. If I.ender req~ired ~ mortgage insurance as a condition •of maicing the loan secured by thie Mortgage, Borrower ahall pay the premiums required to maintain ~ such ineurance in effect until auch time ae the requirement for such insurance terminatee in accordance with Borrower'e and I.ender's ~ written agreement or epplicahle I.nw. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner pmvided under ~ paregraph 2 hereof. ~ My amounts diBburaed by [.ender persuant to thie paragraph 7, with intereet thereon, aha11 become additional indebtednees of ~ Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terme of payment, euch amounts ahall be payable upon ~x ~ notice from Lender to Borrower requeating payment thereof. and shall bear intereat frnm the date of disbureement at the rate payable from , time to time on outetanding principal under the Note unlese payment of intereat at such rate would be oontrary to applicable law, in which ~ event auch amounta ehall bear intereHt at the highest rate permisaible under applicable law. Nothing contained in thia paragraph 7, ahall ~ require Lender to incur any ezpenee or teke any action hereunder. ~ i . ~ ~~256 P,~ 7 ~ t~ ~ ~ - ~ ~ - - - _ _ r ~ y_. i ~ ~~u g ~ _ . ~