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HomeMy WebLinkAbout0206 Borrower and l.ender rnvenant and agree as follows: 1. Paymeat of Principal an~ Intereet. Borrowe~ ahall promptly pay when due the principal of and i~tereat o~ the indebtedneea evidenced by the Note, prepayment atid late chargea as provided in the Note, and the principal af end intereet on any I~ture Advancea secured by thia Mortgage. ~ . 2. FtindH !or Teuces and lneurance. Subject to applicable law or to a written waiver by Lender, E3orrower ahall pay to l.ender on the day monthly inatallments of pRncipal and interest are payable under the Note. until the Note is paid in full. a eum (herein "F~?nde") equal to one twelN? of the yearly taxes and araeseme~ta which may attain priorily over this MortgeRe, a~d ground ~ents on the Pmper/y. if any. plua one twelfth of yearly premium inatallme~ts for hazard inaurance, plua onetwelRh o~yearly premium inatallmente for mortgage iaeurance, if any, aU as reasonably estimated initially and firom time to time by Lender on 1he basis of assessme~ta and bille und reasonable eatimafes thereof. The ~Lnds ahaU be held in an institution the depoeits or accounts of which are insured or guf?ranteed by a Federal or State agency (including Lender if Lender is such an inatitution). I.ender shall epply the ~Lnde to pay said taxee, aeeeasme~ts. inaurance premiuma and ground nnfs. Lender may not charge for so holding and applying the FLnds. analyzing said account, or verifying and rnmpiling said seaeesme~te and bills. unleae Lender peya Borrower interest on the ~nds and applicable law permits I.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of esecution of this Mortgage that intereat on the Ftinda ahall be paid to Borrower, and unleas auch agreement is made or appUceble law requires auch i~terest to be paid, Lender shall not be required to pay Borrower any i~tereat or earninge on the ~nda. Lender ahall give to Borrower, without charge, an annual accounting of the ~nds ahowing credits and debita to the Funde and the purpoae tor which each debit to the ~nde wae made.'11~e Funds are pledged as additional security for the sums aecured by this Mortgage. If the amount oithe FLnda held by Lender, together with the future manthly inetallments of ~ada payable prior to the due datea of tazee, asseaementa. insuranoe premiume and ground renta, ahall exc~ed the amount required to pay eaid ta:ea. aaeeesmenta, inaurance premiums and ground renta as they fal! due, euch ea~cese shall be, at Botrower a option, either prompdy repeid to Borrower or credited to Borrower on monthly inatellments of I~nds. If the amount of the l~nds held by Lender ahall not be eufficient to pay tazee, asseeamenta, inaurance premiuma and g?ound reata as they fall due. Borrower ahall pay to Lender any amount necesaary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requeating payment thereof. Upon payment in full of all suma secured by thia Mortgage, Lender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by L.ender, Lender shall apply, no later than immediately prior to the eale of the Propecty or ite soquiaition by I.ender, ~ny Ftiu?da held by Lender at the time of application ae a credit againat the auma secwred by thie Mortgage. ~ 3. Application of Payments. Unlese applicable law provides otherwise, all paymenta received by Lender under the Nute and paragraphe 1 and 2 hereof ahaU be epplied by Lender Sret in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, thea to intereat payable on the Note, then to the principal of the No~e, and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower shall pay sli taxes. assesaments and other charges, fines and impositione attributable to the Property which may attain a priority over this Mortgage~ and leasehold payments orground rents, if any, in the manner provided under paragraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrower shaU promptly furnish to Lender all noticea of amounts due under thia paragraph, and in the even~ Borrower shall make payment directly, Borrower shall promptly turniah to Lender receipts evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long es Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender. or ehall 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 any part thereof. ~ 5. Hazard Insuraace. Borrower shall keep the improvemente now e:ieting or hereafter erected on the Property inaured against losa by fire, hazarda included within the term "eztended coverage," and auch other hazards as I.ender may require und in such amounta and for such periods ae Lender may require; pmvided, that I.ender ahall not ~equire such ooverage amount exceeding the minimum, as may be required by atate or federal regulatione goveming setiviti~ of I.ender. or Lhat amount of coverage required to pay the auma secured by this Mortgage, whichever ia the greater. ' ~ The insurance carrier praviding the insurance shall be chasen by Aorrower subject to approval by I.ender, provided, that such approval i shall not be unreasonably withheld. All premiums on insurance policies shalt be paid in the manner pmvided under paragraph 2 hereof or, if _ ' not paid in such manner, by Borrower making payment, when due, directly to the inaurance carrier. f All inaurance policies and renewals thereof shall be in form acceptab]e to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. i.ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly fumish to i.ender all renewal noticea and all receipfa of paid premiuma_ In the event of losa, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender mgy make proof of losa if not made promptly by Borrower. Unlesa Lender and Borrower otherwiae agree in writing, inaurance proceeds ahall be applied to reetoration or repair of the Praperty ' damaged, provided such reatoration or rPpair ia economically feaqible and the eecurity of this Mortgage ia not thereby impaired. If such reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds ehall be applied, ~ to the aume eecured by this Mortgage, with the ea~cese, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ ~ respond to Lender withia 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier oPfers to setde a claim for ~ insurance benefits, Lender is authorized to rnllect and apply the inaurance proceede at Lender's option either to restoration or repair of the ~ ; Property or the aums secured by thia Mortgage. ~ Unlesa Lender and Borrower otherwiee agree in writing, any such application of proceeda to principal ahall not eutend or poatpone the due ' date of the monthly inataUmenta-referred to in paragrspha 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 p hereof the Property is aoquired by Lender, all right, tiUe and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof resulting from-demage to Property prior to the sale or aaquisition ehaU paes to Lender to the eatent of the aume eecured by this ? Mortgage immediately prior to euch eale or aoquiaition. ~ t 6. Preaervation and Maincenance of ProQeny; Leaaeholde; Condominume; Plsnned Untt Developmente. Borrower ehall keep i ~ the Property in gaod repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the ; provisiona of any lesee if thie Mortgage ie on a leasehold. If this Martgage is on a unit in a oondominium or a planned unit development, ~ ~ Borrower ehall pedorm all of Borrower's obligations under the declaration or rnvenanta creatingor governing the condominium or planned ~ unit developmenk the by-laws and regulationa of the condominium or planned unit development, and oonatituent documents. If a ~ rnndominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the wvenante and g agreementa of auch rider ahall be incorporated into and ahall amend and supplement the covenants and agreementa of this Mortgage ae if the ~ tid@r wCTC a ~8r~ ~fE~ieof - - - i ~ 7. Protection ot Lender's Secnrity. If Borrower fails to perform the oovenants and agreemente contained in thie Mortgege, or if any ~ action or proceeding ia commenced which msterially afferts Lende~e intereet in the Property, including, but not limited to, eminent domain, insolvency. oode enforcement~ or arrangements or pmc~edings involving a bankrupt or deoedent, then Lendet at L,ender's optioa,upon ~ notice to Borrower may malce such appearances, diaburee auch anms and take such action as ie neoeaeary to protect I.ender's intereat~ ; including, but not lunited to, disbureement of reaeonsble attorney's fees and entry upon the Propedy to ma1~e repaira. If Lender required mortgage insurance ea a condition of mating the loan secured by thie Mortgage, l3orrow~ shall pay the preminms required to maintain ~ auch inenranoe in effect nntil ench time as the requirement for euch ineurance terminates in acoor~ance wit6 Borrower's and I.ender's ` written agreement or applicable I.aw. Borrower ahall pay the amount of all mortgage insurance premiume in the manner provided under ' t paregraPh 2 hereof. ~ My amounte diebureed by Lender pereuant to thia paragraph 7, with intereat thereon, ehall beoome additional indebtednese of Borrower aecured by thia Mortgage. ~Unleae Borrower and Lend~ agree to other terma of payment, such amounts ahall be payable upon ~ ~ notice from I.ender to Borrower requeeting payment thereof, and shall bear intereat from the date of diabureement at the rate payable from ~ ; time to time on outstanding principal under the Note unlese payment of intereet at auch rate would be oontrary to applicable law, in which # ~ event such amounta ehall bear intereat at f.he higheet rate permisaible under applicable law. Nothing contained in thie paragraph ehall ~ ~ require Lender to incur any expenee or take any action hereunder. ~ ~ - 3 • ~ ~ 800~( ~7Q PAtE ~OtJ 4 ' ~ i - ~ ~ i ~e~w ~5 r~ 1 - ~ _ ~ . ~I .~fi" ~ 3~'t - . a '~l"~ . . 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