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HomeMy WebLinkAbout0688 Borrower and Le~des covenant and a~ree as followo: 1. Payiaent o[ Principal snd lntereat. Borrowe~ ehall promptly pay when due the prirtcipal ot and intereet on the indebtednese evide~ced by the Note, prepayment atid late charges as provided i~ the Note, and the principal of and intereat on any FLture Advancea secured by this Mortgage. 2. Ftitpda for Tases and lasurance. Subject to applicable law or to a written wai~ er by l.ender, f3or~ower ahall pay to I.ender on ihe day monthly installmenla of principal and intereet are payable u~der the Note, until the Note ia paid in full, a sum (herein "FLnds") equal to one twelfth of the yearly taxes and assesementa which may attain priority over thie Mortgage, and gcound renta on the Prope?ty, if any, plua onc~ twelfth of yearly premium irtatallmenta for hazard inaurance, plua enetwelRh of yearly premium inatallments for mortgage inau~ance, if any, all as ceaeonably eatimated initially and from time to time by l.ende~ on the basis of asseasmente and b~la and reasonable estimatea thereot. 1Ue Fltnds ahaU be held in an inatitutio~ the depoaita or aocounts of which an insured or guarantced by a Federal or State agency (including Lender if I.ender is such an inetitution). Lender ahall apply the Funda to pay said ts:es. easeaamente, inaurance premiuma and [tmund nnts. Lender may not charge for so holding and appiying the fi~nda, analyzing eaid account, or vetifying and compiling said aeaesaments and bille, unleea Lender pays Borrowe~ interest on the Flinda and appliceble law permita I.ender to make such a charge. Borrower and Leader may agree in writing at the time of e:ecution of thia Mortgage that intereat on the ~nde shaU be paid to Borrower, and unleae such agreement ia made or applicable law requires auch intereet to be paid. Lender shall not be required to pay Borrower any intereat or egrnings on the I~1?nds. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing credite and debite to the Funds and the purpoee for which each debit to the ~Lnds was made. 9'he F`unda are pledged as additional aecurity for the sums aecured by thia Mortgage. ~ If the amount of the flinde held by I.ender, together with the future monthly installments of Funda payable prior to the due datea of taxee, aesessmeats, insurance premiuma and ground renta, ahall e:c+ted the amount required to pay said taxea, asseesmenta, inaurance premiuma and ground rents as they fall due, euch exceae ahap be, at BorTOwer a option, either prompdy repaid to Borrower or credited to Borrower on moathly installments of ~1nds. If the amount of the Funde held by I.ender ahall not be aufficient to pay taxea, aseeasments, insurance premiuma and ground rents ae they fall due, Borrower ahall pay t~o Lender any amount necesaary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payanent in full of all wma eecured by thie Mortgage. Lender shall promptly refund to Borrower any tunda held by Lender. If under paragraph 18 hereof the Property is sold or the Property ie otherwiee acquired by I.ender. I.ender shaU apply, no later than immediately prior to W e sale of the Property or ite aoquiaition by I.ender, any ~nda held by I.ender at the time of application ae a credit against the sums eecured by this Mortgage. 3. Application of Payments. Unleeb applicable law provides otherwise, all paymenta received by Lender' under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firet in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to intee~eet payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advancea. 4. Chargea; Liena. Borrower shall pay all ta:ea. asseaementa and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenLs or ground renta, if any, in the manner provided under paragraph 2 hereofor, if not paid in auch manner, by Borrower making payment, when due. directly to the payee thereof. E3orrower shall promptly furnish to Lender nll notices of amounta due under thia paragraph, and in the event Borrower shall make payment direcdy, I3orrower shall promptly furnish to I.ender receipts evidencing such paymenta. Borrower ahall promptly discharge any lien which ht?s priority over this Mortgage; provided, that f3orrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secnred by such lien in a manner acceptable to Lender, or shall in good faith conte~t such lien by, ordefend enforcementofsuchlien in, legal proceedings which opezate to prevent the enforcement of the lien or forfeiturz of the Properiy or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Property insured against loss by fire, hazards included within ~he term "eztended ooverage," and euch other hazards as Lender may require and in auch amounta and for such periods se Lender may requin; provided, that Lender ahall not require each ooverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of I.ender, or that amount of rnverage required to pay the suma secured by this Mortgage, whichever is the greatez. The inaurance carrier providing the insurance shall be chosen by Borrower subjeM to approval by Lender, pmvided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All inauranoe policies and renewale thereof ehall be in form acceptable to Lender and ahall include a standard mortgage clauee in favor of and in form aoceptable to Lender. Lender shall have the right to hold the policiea and renewala thereof, and Borrower shall prompdy furnish to i.ender all renewal noticee and a11 reoeipts of paid ptemiums. In the event of lose, Borrower ahall give prompt notice to the insurance carrier and Lender. Lend~ may make proof of losa if not made prompUy by Berrower_ Unlese I.ender and Borrower otherwise agree in writing, inaurance proceeds ahall be applied to restoration or repair of the Property f damaged, provided such restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. if such ~ mstoration or rPpair is not economically feseible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the same eecneed by thia Mortgage, with the e~ceas, if anY, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to i respond to Lender wifhin 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier offere to eettle a claim for insurance benefita. Lender is suthorized to collect and apply the inaurance proceeds at Lender's option either to reatoration or repair of the ! Property or the euma eecured by this Mortgage. g, y pp p p pal shall not extend or postpone the due ' Unlesa Lender and Borrower otherwiee agree in writin an anch a lication of roceeds to rinci ~ date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 k hereof the Property is aoquiied by I.ender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceede ~ thereof reaulting fiom damage to Property prior to the eale or aoquiaition ahall paes to Lender to the e:tent of the euma secured by thia ~ :4iortgage immediately prior to such eale or acquisition. ~ 6. Preaervation and A~aiatenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waate or permit impairment or deterioration of the Property and ahall comply with the proviaions of any lease if thie Mortgage is on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, f3orrower ehall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the rnndominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the covenante and ~ agreementa of auch rider ehall be incorporated in W and ahall amend and aupplement the covenanta and agreementa of thia Mortgage as if the ~ rider were a part herEOf. ~ T. Protection of I.ender's Securtty. If Borrower faila to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or proceeding is rnmmenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domein, ~ insolvency. cwde enforcement, or arraagementa or proceedings involving a bankrupt or decedent~ then Lender at Lender a option,upon ~ notice to Bonower may ma1~e auch appearances. disbnree auch sums and take ench action ae is necessary to pmtect Lender'e interee~ E inclnding, bat not lianited to, disbureement of reasonable attorney'e feee and entry upon the Property to make repairs. If Lender required mortgage insarance ae a condition of making the loen secured by this Mortgage, Borrower shall pay the premiums required to maintain - euch inaurence in effect nntil snch time as the requirement for snch ineurance terminatee in aocordance with Borrowez'e and Leadei's written agreement or applicable I~w. Borrower shaU pay the amount of all mortgage inaurance premiume in the manner provided under ; PeregrePh 2 hereof. ' My amounts diaburaed by Lender persuant to thie paragreph 7, with intereet thereon, shall beoome additional indebtednees of - Borrower secured by this Mortgage. Unleee Bonower and Lender agree to other terma of payment, euch amo~ults ahall be payable npon ~ notice from Lender to Borrower requeating payment thereof, and shall bear inlerest from the date of diebureement at the rate payable from ~ time to time on outetanding principat under the Note unless payment of intereat at euch rate would be contrary to applicable law, in which ~ event auch amounte shall 'bear interest at the higheat rate permieeible under applicable law. Nothing contained in this~aragraph 7, ehall ~ ; require Lender to incur any e:penee or take any action hereunder. ~ . . '~A i 2 BQUr r sr,c _ ~ ° ~ 341 688 . ~ ~ ~ . ~ ~ * ~ _ - - ~ . ~ ~ ~ _ _ ~ t _ _ Y.., , . _ _