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HomeMy WebLinkAbout0047 Boerower and Lender covenant and agree aa follows: 1. Paywent ot Prir~cipal and Interest. Borrowe~ shall promptly pay when due the principal of and interest on the indebtedaeas evidenced by the Note, prepayment and late chergee as provided in the Note, and the principal of and interest on any FLture Advancee secured by thia Mort~age. 2. I~Lnds [or Twtea and Ineurance. Subject to applicable law or to a written waiver by l.ender, Borrower ahall pay to Ix~der on the day monthly installmenta of principal a~d intereat are paypble under the Note, until the Note is paid in full, a sum (herein "Fti?nda") equal to one twelRh of the yearly taxes and aaseaemeota which may attain priority over this Mortgage, and ground re~te on the Property, if any, ptue one- twelfth of yearly premium installments for hezard i~aurance, plus onetwelRh ofyearly premium installments fo~ mortgage insurance, ifany, all as reaeonably estimated initially and from time to time by I.ender on the basia of aeaeae~nenta and bille and reasonable eatimates thereof. The FLnda shall be held in an inetitution the deposita or accounta of which are insured or guarantsed by a Federal or State agency (including Lender if l.ender is auch an institution). I.ender shall apply the Funda to.pay eaid taxes, asse8aments, ineurance premiuma and ground rents. Lender mayr not charge for w_ holding and applying the ~nds, analyaing said account, or verifying and rnmpiling aaid aeseeementa and bills, unl~a [.endFr pays Borrower intereet on the Fl?nds and applicable law permita Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the ~nda ahall be paid to Borrower, and unlees such agreement is made or applicable law requirea auch interest to be paid, Lender shall not be required to pay Borrowe~r any interest or earnings on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funde showing credits and debits to the Ftinda and the purpose for which each debit to the ~nda wae made.'11~e F'unds are pledged aa additional eecurity for the sums secured by this Mortgage. ~ ~ If Lhe aaaount of the Flinda held by I.ender, tagether with the future monthly installmenta of Funds payable prior to the due dat~ of tezes, aseeeamenta. iasurance premiums and ground rents, shall ezezed the amount required to pay said taxea, aasessmente, ineuiance premiume and ground rente as they fall due, such e~cceea shall be, at Borrower's optioA, either prompdy repaid to Borrower or credited to Borrower on monthly inetallmenta of Ftinds. If the amount of the F'nnda held by I.ender ahall not be aufficient to pay t~ea, aeaesamente, ineurance premiuma and ground rents as they fall due, Borrower shall pay to Lender any amount neceesary to make up the deficiency within 30 daye from the date notice ia mailed by Lender w Borrow~ reqneating payment thereof. Upon paywent in full of all sums eecured by thia Mortgage, Lendershall promptly refand to Borrower any funds held by Lender. Uunder paragraph 18 hereof the Property ia eold or the Property ie otherwise acquired by Lender. I.ender ahall apply. no later than immediately prior to the saie of the Property or its aaquiaition by l.ender~ any Flinda held by Lender at the time of application as a credit againat the suma secured by this Mortgage. • 3. Application ot Paymente. Unless applicable law provides otherwiee. all paymenta received ~y Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea Charges; Liena. Boirower ahall pay all taxes, asaessments and other chargea, finea and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold p~ymenta or ground rente, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dire~Mly to the payee thereof. Borrower ahall prompUy furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower ahall promptly fumish to Lender receipts evidencing auch payments. Borrower shap promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any such lien so long as Borrower ahall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith oontest such lien by, or defend enforcement of such lien in, legal proceedings , which operate to prevent the enforcement of the lien or fo~feitur~e of the Property or any part thereof ~ 5. Hezard Ineurance. Borrower ahall keep the impmvements now existing or hereafter erected on the Property insured against losa by fire, hazarde included within the term "extended coverage," and euch other hazards as Lender may require and in auch amounts and for such periada as Lender may require; provided, that I.ender ahall not require such o~verage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of rnverage required to pay the auma eecured by thia Mortgage, whichever is the greater. The insurance carrier providing the inaurance shal) be chosen by Borrower subject to approval by Lender, provided, that such approval ahall not be unreasonably withheld. All pmmiums 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 dae, direcily to the insurance carrier_ . All inaurance policiea and renewals thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form ecceptable to Lender: Lender shall have the right to hold the policies and rnnewals thereof, and Borrower shall pmmptly fumish to i.ender all renewal aoticee and all receipte of paid premiume. Ia the event of loss, Bormwer ahall give prompt notice to the inswance carrier i and Lender. Lender may make proof of loss if not made prompdy by Borrower. ' Unless Lender and Boriower otherwiae agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property ~ damaged, provided auch restoration or repair is economically feasible and the eecurity 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 insurance proceeda shall be applied ~ to the sums secured by thie Mortgage, with the eacesa, if any. paid to Borrower. If the Propedy is abandoned by Borrower, or if Borrower faile to 't reapond to Lender withia 30 daya from the date notice is mailed by I.ender to Borrower that the inaurance carrier offera to eettle a claim for ~ inaurance benefita, Lender is authorized to coUect and apply the insurance proceeda at Lender's option either W restoration or repair of the ~ Property or the suma eecured by thia Mortgage. ~ Unleas Lendet and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not eatend or poatpone the due ~ date of the monthly installmente referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 ~ hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any insurance poliries and in and to the proceeds ~ thereof reaulting from damage to Property prior to the eale or acquisition shall pass to Lender to the extent of the aums secured by thia ~ Mortgage immedistely prior to auCh sale or soquisition. ~ 6_ Preservation and Msintenance otProperty; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep ~ the Property in good repa'u and ehall not commit waste or pertnit impairment or deterioration of the Property and shall comply with the provieione of any leaee if this Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform al! of Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned ~ unit developmen~ the by-laws and reguletiona of the condominium oi planned unit development. and oonstituent documenta. If a ~ rnndominiam or planned unit development rider is e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and ~ agreementa of such rider ahall be incorporated into and shali amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. • - ~ 7. Protection o! Lender'e Security. If Borrower faila to perform the oovenante and agreemeata oontained in this Mortgage, or if any action or pr~oceeding ie commenoed which materially affecte Lender e intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcemeut, or arrangementa or procxedings involving a banlwpt or decedent, then I.ender at Lender's option,npon ~ notice to Borrower may make such appearancee, dieburee such aume and take auch action as ie neceesary to protect Lender'e inteeres~ r' including, but not limited to, diebursement of reaeonable attorney's fees and entry upon the Property to make repairs. If L.ender reqniied mortgage ineurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiume reqnired to maintain - anch ineurance in efiect nntil such time ae the requirement for auch inanrance terminatee in aoc:ordance with Borrower's and I.ende~s ; writiea agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance preminme in the manner provided under ~ paragraph 2 hereof. . My amounte disbureed by Lender pereuant to thia paragraph 7, wit6 intereet thereon, ehall beoome additional indebtednees of Borrower secured by thie Mortgage. Unleea Borrower and Lender agree to other terms of payment, auch amounte ehall be payable upon j Vs notice from Lender to Borrower requeeting payment thereof, and ehall bear inlerest from the date of diebureement et the rate payable from I time to time on outstanding prinripal under the Note unleee payment of interest at auch rate would be oontrary to applicable law, in which i, event such amounte ehall bear interest at the higheet rate permiasible under applicable law. Nothing rnntained in thie paragraph 7, ahall s~ require I.ender to incur any ezpenae or take any action hereunder. C R ' ~w~ p~:~~ 301 ~a~~~ 4? ~ ~ . . ~ - r: ~ ~ . ~ _ : 1 4 A~~' 3 , ~ . _ . . _ . _....-..~.r' . . . . ' _