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HomeMy WebLinkAbout0906 Borrower and I.ender covenant and agree as follows: 1. Payment ot Prlncipel and Intereat. Horrower ahaU promptly pay when due the pri~cipal of and intemst on the indebtedneea evide~ced by the Note, prepeyment and late charges as provided in the Note, and the principal of and inte~est on any fliture Advancea secured by this Mortgage. • 2. ~nda for Trucea and Ineurance. Subject to applicable law or to a writte~ waiver by l.ende~, t3orrower ehall pay to I.ender on the day monthly inatallmente of principal and interest are payable under the Note, until the Note ia paid in full, a sum (herein "~nds") equal to one twelfth of the yearly taxee and aseesamente which may uttain priority over this Mortgage, and ground renta on the P~operty, if any, plus one • twelfth o[yearly premium instaUmenta for hazard inaurance, plua onetwelfth of yearly premium installmenta for mortgage insurance. if any, +Il ae reaeonably eatimated initially and from time to time by l.ender on the baais of aeseeamente and billa and reaaonable eetimates thereof. The FLnds shaU be held in an institution ihe depoaits or accounts of which are insu~ed or guaranteed by a Federal or State agency ~ (including l.ender if l.ender is auch an institution). Le~der shall apply ihe Funds to pay said taxea, aesesements, insurance premiuma and giround cents. I.ender may not charge for so holding and applying the ~nds, analyzing said account, or verifying and compiling esid aasessmen ta and bills, unleas I.ender pays Bormwer intereat on the Funda and applicable law permite [.ender Lo make auch a charge. Borrower and I.ender may agree in writing at the time of execution ot this Mortgage that interest on the I~Lnds ahall be paid to Borrow er, and unlesa euch agrcement is made or applicable law requires such interest to be paid, I.ender shall not be required to pay Borrower any interest or earnings on the ~nda. l.ender ehall give to Borrower, without charge, an annual accounting of the fl~nda ahowing credies and debits to the Funds and the purpose for which each debit to the P1u?de was made.'l~e Funde are pledged as additional eecurity for the swns eecured by thia Mortgage. ~ If the amounL of the FLnds held by I.ender, together with the future monthly inataliments olFunda payable prior to the due datee of t~es, aeeesaments. inaurance premiuma and ground renta. ahaU e:c2ed the amount required to pay said Laxea, aaeeaements, inaurance premiyms and ground renta as they fall due, auch e:cesa shall be. at Borrower's option, either promptly repaid to Borrower or c•~edited to Borrower on mo~thly instalimenta of Elinds. If the amount of the Funde held by Lender shall not be aufficient to pay taxes, aeseeaments. ineurance • premiwns and ground rente as they fall due, Borrower shaU pay to I.ender any amount neceaeary to make up tlie deficiency within 30 days from the date notice ia mailed by L.ender to BoTrower requeeting payment thereof. . Upon payanent in full of ell sums eecured by thia Mortgsge, Lender shull prompUy refund to Borrower any fuads held by I.ender. If under paragreph 18 hereof the Property is aold or the Property is otherwiee acquired by Lender, Lende~ shall apply, no later than immediately prior • to the sale of the Property or ite aoquieition by I.ender, any Ftinda held by Le~der et the time of application ae a credit againat the sume eecnred by thia Mortgage. 3. Application ot Payments. Unlese applicable law provides otherwiee. aU paymenle received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender firat in payment of amounte payable to Lender by Borrower under paragraph 2 heceof, then to interest payable on the Note, then to the prinripal of the Note. and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower shall pay all taxes, assesementa and other chargea, fines and impoaitions 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 mating payment, when due, directly to the payee thereot Borrower shall promptly furnish to Lender all notices of amounts due under thia paragraph, and in the event E3orrower shall make payment directly, E3orrower shall promptly furnish to l.ender receipte evidencing such paymenta. Borrower shall promgtly discharBe any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any such lien ao long as E3orrower ahali ngree in writing to the paymentof the obligation aecured by such lien in a manner acceptable to Lender, orshall in good faith conteat such lien by,ordefendenforcrmentofsueh lien in.legal proceedings which operate to ptevent the enforcement of the lien or forteiture of the Property or any part thereof. ' 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ineured against loas by fire, hazarde included within the term "e:tended rnverage," and auch other hazards se Lender may require and in such amounte and tor auch periods as Lender may require; provided, that I.ender shall not require such rnverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activitiea of l.ender, or that amount of coverage requioed to pay the aums secured by this Mortgage, whichever ia the greater. The insurance carri~v providing the insurance ahall be chosrn by E3orrower subject to approva! by I,ender, provided, that such approval ahaU not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under para~aph 2 hereof or, if not paid in auch manner, by Borrower makinq payment, when due, directly to the insurance carrier. All inaurance policies and renewale thercwf shall be in form acceptable to Lender and ahall include a etandard mortgage clause in favor of and in form acceptable to Lender. Lender ehall have the righ~ to hold the policies and rnnewals thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipta of paid premiums. Ia the event of losa, Borrower shall give pmmpt aotice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly by Borrower. I Unless I~nder and Borrower otherwiee agree in arciting, ineurance procecds shall be applied to restoration or rrpair of the Property ` damaged, provided such restoration or repair is economicaUy feasible and the security of thie Mortgage ia not thereby impaired_ If auch ~ restoration ~ repair is not economically feasible or if the eecurity of this Mortgage would be impaired. the insurance proceede shall be applied _ j to the sums eec~ued by thia Mortgage, with the ezcess, if anY. paid to Borrow~. If the Property ie ebandoned by Borrower, or if Borrowes faila to f respond to Lender within 30 days from We date notice ia mailed by Lender to Borrower that the insurance carrier offe~a to eettle a claim for j ineurance benefifa, Lender is authorized to collect and apply the inaurance proceede at Lender'a optioa either to reatoration or repair of the ~ Property or the suma eecured by thie Mortgage. Unleae Lender and Bormwer otherwise agree in writing, any such applicagon of proceeds to principal shali not extend or poatpone the due date of the monthty installmenta referred to in paragrapha 1 and 2 hereof or change the amouat of auch installmente. If nnder paragraph 18 hereof the Property is acquirPd by I.ender, all right, tide and interest of Borrower in and to any inanrance policies and in and to the proceeds thereof reaulting from damage to Property prio: to the sale or aoquiaition shall pase t~o I.ender to the eztent of the eums eecured by this Mortgage immediately prior to such 8ale or aaquiaitioa. . ~ 6. Preeervation and Maintenance of Property; Leaseholda; 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 ead ahaU oomply with the provieions of any lease if this Mortgage is on a leaeehold. If this Mortgage ie on a unit in a wndominium or a planned unit development, _ Borrower shall per[otm all of Borrower's obligatione under the declaration or rnvenanta creatingor governing the condominium or planned unit development, the by-laws and regulationa of the oondominium or planned unit development, and oonstituent documents. If a ~ condominium or plannxd unit development rider is eaecuted by Borrower and recorded together with thia Mortgage, the oovenanfa and ` agreementa of auch rider shall be incorporaLed into and ahall amend and supplement the covenanta and agreementa of ttiia Mortgage ae if the ~ rider were a part hereof. ~ 7. Ptotedion ot Lender'~ Security. If Borrower fails to perform the aovenante and agreements oontained in this Mortgage, or if any action or pmoeeding is oommenoed which materially affecta Lende~s interest in the Propaty. including, bnt not limited to. eminent domain, ' insolveacy. oode mforcement~ or arrangements or proceedinga involving a benimipt or deoedent, then Lender at I.ender's option.npon ~ r_stioe.to Barmwer may make snch appearance~, disburse such swns and take snch action as is neceseary to protect Lende~s int~es~ ~ inclnding, but not limited to, disbursement of ressonable attorney's fecs and entry upon the Propeity to malce npain. If Leader reqnired mortgage inaurance as a oondition of malung the loan secured by this Mortgage. Borrow~ shall pay the preminms reqnired to maintain ~ ench insnrance in effect nntil sach time as the requirement for snch insurance terminates in aooordanoe with Borrowe~'~ and I.endd~ ~ written agrcement or applicable Law. Borrowrr shall pay the amount of ell mortgege inauranoe premiuma in the manner p~ovided nnder ~ peragraph 2 hereof. Any amonnta disbursed by Lender persuant to thia parag~raph 7, with intereat thereon, shall beoome additional iadebtedness of - , ~ Borrower secnred by this Mortgage. Unless Borrower and Lender agree to oth~ terms of payment, such amounta ahall be peyable upon ~ notica fmm I.ender to Borrower requesting payment thereof, and ehaU bear iaterest from the date of disbnrsement at the rate payable from time to time on outatanding principal under the Note unless payment of interest at auch rate would be oontrary to appliceble law, in which ~ eveat suc6 amoants shall bear intereat at !he higheat rate petmieeible under applicable law. Nothing contained in this paragraph 7, ahall ~ requin Laider to incur any ezpense or take any action hereunder. ~ ~ ~~~K 299 . . ~ 4Q~ ~ . ~ . , .