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HomeMy WebLinkAbout0256 . ~ - Borrower end l.eqder covenaat and a~ree as tollows: 1. Payment ot Peiacjpal wad Intereot. Borrov?er shall pmmptly pay when due the principal oi and inter~t on the indebtedneaa evidenced by the Nots. prepaymeat and late charges aa provided in the Note, and the principal of and interest oa any Flrture Advancee eecured by thi~ Most~a~s. 2 PLnds for Te~ea wnd laaurance. 3ubject to applicable law or b a written waiver by I.ender, Borrower ahaU pay to l.ender on the day monthly installments of principal and inte~eat are p~yable under the Note. until the Note ie paid in fult. a sum (herein "F`unds") equal to one~ twelfth of the yearly taxe8 and aeseaements which mqy attain priority over thia Mortgage, and ground rnnta on the Ptoperty. if any, plua one- twelRh of yearly pnmium inatalln~ents for hazard ineura~ce, plw onetwelfth otyearly premium inetallmenes for mortgage ineurence. if any, all ae reaeo~ably eatimated initially and trom time to time by Lender on the baais of aaeesementa and bille and reaaonable estimatee thereof. The PLuda ahaU be held in aa institutioa the deposita or secounts of which tue inaured or guaranteed by a Federal or 3tate agency (including Lenda if Lender ia euch an inatitutio~). I.ender shall epply the Funda to pay eaid tsxes. asseeaments, inaurance premiuma and ground nnts. Lend~ may aot charge for so holding and applying the PLnda, analyzing said account, or verifying and oompiling eaid assesaments and bills. unleoe Lender pays Borrower interest on the F~nds and applicable law permita Lender to make such a charge. Borrowes end Lender may agree in writing at the time of e:ecution of this Mortgage that inter~t on the I~nds ahall be paid to Borrower. and unleas such a~reement ie made or appticable law reqwres such interest b be paid. Lender ehaU not be required to pay Borrower any interest or eerninga oa the flu~ds. I.ender shall give to Borrower, without charge, an annual ecoountitrg of the Funds ahowing credita and debits to the ~nds and the purpose fo~ wkich each debit to the ~nds wae made. The F~nds are pledged es additional aecurity for the aums eecured by this Mortgaga. , If the amount of the Phnda held by I.ender, together with the fnture monthly inatallments of ~nda payable prior Lo the due datea of ta~ces, aseeasmenta. ineuranoe premiums and ground rents. shall eacaaed the amount required to pay 8sid te:es. aseeeaments~ inaurance preaniume and ground renta as they fal! due. such e:aeee ahaU be. at Borrower e option, either pmmptly repaid to Borrower or credited to BormW,er an monthly inatallments of F~ds. If the amouat of the I~inds held by Lender ahaU not be aufficient b pay t~es, aesesaments, inauranoe premiuma and ground renta ae they fall due, Borrower ehall pay to Lender any amount neceeaary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeating payment thereof. Upoa payment in full of all sums secured by this Mortgege, Lender shall promptly refund to Borrower any funde held by L.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by Lender, Lender ahaU apply, no later than immediately prior to the sale of the Property or ite aoquisition by Lender, any F1nde held by I,ender at the time of application as a credit egainat the sums eecured by thie Mortgage. 3. Applicstlon of Paymente. Unleas applicable law provides otherwise, all payments rec~ived tiy Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firet in payment of amonnb p`gyable to I.ender by Borrower under paragreph 2 hereof, then to inLer~t payable oa the Note. then to the principal of the Note, and.then to interest and principal on any Future Advancea 4. Charges; Liena. Borrower ahall pay all tazes, aasessme~ta and other charges, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leatehold patymente 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 thereof. Borrower ehall promptly furniah to Lender all notices of amounta due under this paragraph, and in the eveot Borrower ahall make payment directly, Borrower ahall promptly [urniah to L.ender reoeipts evidencing such paymente. Borrower shall promptly diecharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any auch lien ao long ai+ Borrower shall agree in writing ta the payment of the obligation aecured by such lien in a manner sooeptable to Lender, or ehall in good taith conteat auch lien by, ordefend enforcement ofsuch lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeitur+e of the Property or any part thereof 5. Hezard Insurance. Borrower shall keep the improvements now eziating or hereafter erected on the Property insured agaiast losa by fire, hazarde iacluded within the term "e:tended coverage." and euch other hazards as I.ender may require and in auch amounta and for such periods as Lender may require; pmvided, that Lender ahall not require auch ooverage amount e:ceeding the minimum, es may be required by state or federal regulationa governing activitiea of Letider, or that amount of coverage required to pay the suma secured by this Mortgage, ~hi~hexer ia Lh~ gr¢at~r. The inaurance carrier providing the insurance ahall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unrea~onably withheld_ All premiums on inaurance 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 insurance policiea and renewals thereof ahall be in form acceptable to I.ender and ahaU include a etandard mortgage claaee in favorof and in form acceptable to Lender. Lender ehall have the right to hold the policies and renewala thereof, and Borrower ahallprompUy furnish to i,ender all renewal aoticea and all receipte of paid prenniume. In the event of loas, Borrower ahaU give prompt notice to the inaurance carrier end I,ender. Lender may malce proof of loss if not made promptly by Borrower. ' Unleaa I.ender and Borrower otherwise agree in writing, inaurance proc~eeeda shall be applied to reatoration or repair of the Property ! damaged, provided auch reatoration or repair ie economically feaaible and the security of this Mortgage ia not thereby impaired. If euch ! reetoration or repair ie not economicaUy feasible or if the eecnrity of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ ; to the suma secured by thie Mortgage, with the ezcesa, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to ; reepond to Lender within 30 daye from the date notice ia mailed by I.ender to Borrower that the inaurance carrier offere to eeWe a claim for - 'E ineurance bene6ts, Lender ia authorized to collect and apply the inaurance pmceeda at Lender a option either to restoration or repair of the ~ ~ Prop~ty or the eums aecared by thie Mortgage. E Unlees Lendrr and Borrower otherwiae agree in writing, any such appUcation of proceeds to principal shall not eztend or poatpone the due € date of the monthly instatlmente re[erred to in paragraphe I and 2 hereof or change the amount of anch installmenta. If ander paragraph 18 ~ ~ heieof the Property is aoquired by Lender, all right, tide and interest of Borrower in and to eny ineurance policies and in and to the proceeda i ~ thereof reealting from damage to Property prior to the aale or aoquisition ahall paae to Lender to the eztent of the suma eecured by thia ; Mortgage immediately prior to auch aale or aoquisition. i ~ 6. Preservation and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmenta. Borrower ahall keep ~ the Property in good repair and ahall not oommit waste or permit impairment or deterioration of the Property and ahall oomply with the r ~ provisione of any leaae if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a aondominium or a planned unit development, 1 Borrower shall perform all of Borrower's obligatione under the deciaration or covenanta creatingor governing the oondominium or planned ~ unit development, the by-laws and ~regulationa of the condominium or planned unit development, and oonatituent documente. If a ~ condominium or planned unit development rider is e:ecuted by Borrower and recorded tagether with thia Mortgage. the oovenente and K agreementa of such rider ahall be incorporated into and ahall amend and aupplement the covenanta and agreements of this Mortgage as if the ~ rider were a part hereof ~ 7. Protection of I.ender's Security. If Barrower feile to perform the oovenants and egreements oontained in this Mortgage, or if eny E ~ action or prooeeding is oommenoed which materially affects Lender's interest in We Property, iacluding, bnt not limited to, eminent domein. f ~ insolvency. oode eaforoement~ ot anangeanenLs or proc~eedings involving a banlmrpt or deoedent~ then I.ender at Lender's option.upon ~ notioe to Borrower may make such appearanoes. disbnrse auch sums and take snch action as is neoe~sary to pmtect I,ender's iaterest, indoding. but not limited to, disbureemeat of reasoaable attorney's fees and entry upon the Property to malce repairs. If I.end~ reqnired ` mortgage iasurance as a condition of mating the loan secured by this Mortgage, Borrower shall pay the premiume required to maintain ` ench insurance in effect antil euch time as the requirement for such insnrance tenninates in aooordance with Borrower's and I.endds ; written agreement or applicable Law. Borrower shaU pay the amount of aU mortgage ineurance premiume in the mann~ ~ ParagrePh 2 hereof. - provided nnder My amoants disbursed by Lender perauant to this paragraph 7, with interest lhereon, shall beoome additional indebtedness of ~ Borrower ~ecuted by thie Mortgage. Unlesa Borrower end Lender agree to other ttrms of payment, anch amoante ahall be payable upon ~ ~ notice irom Lender to Borrower requeeting payment thereof, and shall bear intesest from the date of disbursement at the rate payable from ~ ~ time to time on outstanding principal under the Note unlees payment of intereat at anch rate would be aontrary to applicable law, in which ~ T event such amounts ehall bear intereat at the highest rate permiesible under applicable law. Nothing contained in this paragrsph 7. ehall ~ ~ require I.ender to incur any ~penee or take any action hereunder. ~ ~ 5 " a°oc~ ~ z~ ~ ~ - r ~ ~ ~ , ~ ~ :~-c,s,w ~ ' £~,Y q . ~ . 9r '~'r+,~% I .s.,~, C.S~F~'~~* ~"Lry ~ ~S _ s _c u. Y.