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HomeMy WebLinkAbout0524 Bor?rower a~d I.ender cove~ant and agree ae fullowa: ' 1. Payment ot Principal and lntereet. Borrower ahall pmmptly pay whrn due the principal of and interest on the indebtednexe evidenced by lhe Note, prnpayment and latecharges se provided in the Note, and the principal of and intereat on any ~ture Advancea secured by this Mortgage. 2. ~nds for Taxea and Ineurance. Subject to appl~cable law or b a writte~ waiver by I.ender, Horrower ahuU pay to I.ender un the day monthly inatallmente of principal and interest are payable unde~ the Note, until the Note ia paidi~ full, a aum (herein "Funda") equal to one twelfth of the yearly taxea und asse3smenta which may attain priurity ove~ this Mortgage, pnd ground re~ts on the Pruperty, if any, plua o~e twelfth of yearly premium inataUmente for hnzard inaurance, plus unetwelfth of yearly premium inatallmentel [or mortgage inaurt~nce, if any, all as masonably eaiimateci initially and from time to time by I.ender on the.basis uf paseasmenta and billa and reusu~able estimatea lhereot. The ~nds ahall be held in an institution the depoaife or accounte of which are ineured or guaranteed by a Fede~al or State age~cy (including Lender if l.ender is euch an institution). L.ender ehall apply the Funds to pay eaid taxea, asseasmenta, inaurance premiums and ground rnnte. Lender may not charge for eo holding and applying the ~nde, analyzing said account, or verifying. and compiling said aesesaments and bills, unleaa I.ender paye Borrower intereat on the 1~linde and applicable law permite I.ender to make auch a charge. Borrower and I.ender may agree in writiog at the time of execution of thia Mortgage that intereat on the Ftinda ahall be paid to Borrower, and untea8 euch agreement ie made or applicable law requirea auch intereat to be paid, l.ender ehall not be required to pay Borrower any intereat or earnings on the Fti?nde. l.ender shall give to Borrower, without charge, an annual accounting otthe Funds ahowing credits and debita to the Funde and the purpoee for which each debit to the F1nde waa made. The ~nda are pledged as additiona! security for the sume eecured by this Mortgage. If the amount of the Ftinda held by l.ender, together with the future mo~thly inatallmenta of Funds payable prior to the due datea of taxea, asaessments, inaurance premiuma and ground rents, shall excaed the amount required to pay eaid taxes, assessmenta, insurance pmmiums and ground renta as they fall due, such e:cese ahall be, af Borrower a option, either pmmptly repaid to Borrower or credited to Borrower on monthly inetallmenta of ~nds. If the amount of the Funds held by L.eader shall not be aufficient to pay taxes, aeseasments, inaurance pre~niums and ground rents as they fal) due, Borrower ehall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums eecured by this Mortgage, Lender ahall prompdy refund to Borrower any funds held by L,ender. If under paragraph 18 hereof the Property is aold or the Property ie otherwise acquired by I.endert Lender ahall apply, no later than immediately prior to the sale of the Property or ita acquiaition by Lender, any ~Lnda held by I.ender at the time of application as a credit againet the auma secured by thie Mortgage. 3. ~lpplication ot Paymente. Unleas applicable law pmvides otherw~ee, all paymenta received by l.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firxt in payment of amounta ppyable 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 interest and principal on xny Future Advancea. 4. Chargea; Liens. Borrower shall pay all taxes, assessmenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if nof paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender all notices of amounts due under thia paragraph, and in the event Borrower shaU make payment directiy, Boreower shall promptly fumish to Lender receipts evidencing such payments. Iiorrower shall promptly discharge any lien whichfias priority overlhis Mortgage; pm~•ided, that Borrower shall not be rnquirecl to discharge any such lien so long as Borrower shall aRree in writing to the payment of the obligation secured by such lien in a manner aeoeptable to Lender~ or shall 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. Hazerd Inaurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured againat loss by fire, hazarda included within the term "eztended coverage," and auch other hazards as Lender may require and in such amounfs and for such periods as Lender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing adivities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, pmvided, that such appro~•al shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvideci under paragraph 'L hermf or, if not paid in such manner, by Horrower making p:?yment, when due, directly to the insurance carrier. All insurance policies and rnnewals thereof ehall be in form acceptable to Lender and ahall include a standard mortgage clause in fa~ or of and in form acceptable to L,ender. [.ender shall have the right to hold the policies and renewals thereof, and E3orrower shall promptly fumish to i.ender all tenewal notices and all receipta of paid premiums. In the event of lass, E3orruwer shali give prompt notice to the insurance carrier ! and I.ender. I.ender may make proof of loss if not made promptly by Borrower. k Unlesa Lender and Borrower otherwiee agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ! damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ie not thereby impaired_ If such ~ restoration or tepair ie not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the auma secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier ofters to settle a claim for 4 ineurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to reatoration or repair of the ~ Pmperty or the aums aecured by this Mortgage. _ ~ Unlesa Lender and Botrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpc?ne the due ~ date of the monthly instalimenta referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquiaition shall pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to anch sale or acquieition. 6_ Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmenta. Borrower shall keep s the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligations under the declaration or covenants creatinqor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnstituent dceumenta. If a ~ rnndominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage aa if the rider were a part hereof. ~ 7_ Protection of Lender'e 3ecurity. If Borrower faile to perform the oovenante and'agreemente contained in thiH Mortgage, or if any - action or proceeding ie commenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enforcement, or arrengemente or proceediage invoiving a bankrupt or decedent, then Lender at Lender e option,npon < notice to Borrower may make euch appearancee, dieburee such eume and take euch action as ie necessary to protect Lender's inteceat, ~ including, but not limited to, diebureement of reseonable attorney'e feee and entry upon the Property to make repairs. If Lender required k mortgage insurance as a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiume required to maintain ' euch insurance in effect nntil auch time as the requirement for auch ineurance ter~ninatea in accordance with Borrower e and Lender's ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inewance premiume in the manner provided ursder paragraph 2 hereof. ~ Any amoante dieburaed by Lender pereuant to thie paragraph 7, with intereet thereon, ehall become additional indebtednesa of Borwwer eecured by thie Mortgage. Unleae Borrower and Lender agree to other terma of payment, such amounte ahall be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from ~ time to time on outatanding principal under the Note unlese payment of interest at such rate would be oontrary to appiicable law, in which ~ event auch amounte ehall bear intereet at the higheet rate permiesible under applicable law. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any expenae or take any action hernunder. ~ ~ ` Gkr~ B~'rJQ1 `~r.E c~24 ~ ~ a ~ ' ~ ~ ' _ .:.,r ~ „s~,r - ' - y _ ti ~n'~i' p 5 ) y- ,~"st.s' - ~ 1"' ~ r~~,.i zyS .L' _ '~.Y"^ S y}' w ~ V ` ~ ~ ~ ' ~a'_ ~ .s . ' ' . ' _