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HomeMy WebLinkAbout0716 Borrower and linder covenat~t and a~rre as follows: 1. PelYmcat ot Principal end Intereat. Borrower ehall promptly pay when due the principal of and intereat on the indebted~esa evide~ced by the Note, prepayment and late charges as provided in the Note, and the principal of and intereat o~ any Fl~ture Advancea secured by this Mortgage. 2. Ftitada for T~e~ and Inaurance. Subject to applicable law or to a written waiver by l.ender, Borrower ehall pay to I.ender on the day mo~thly inatallments of principal and intereat are pavable under the Note, until the Note ia paid in full, a aum (herein "Funda") equal to one twelRh of the yearly taxes and asaessmenta which may attain priority over thie Moctgage, and ground reata on the P~operty, if any, plue onc twelfth of yearly ptemium instaUmrnts for hezard inaurance, plua on~twelfth ofyearly premium inatallmentB for mortgage inaurance, if any, all as reasonably eetimated initiaUy and from time to time by I.ender o~ the baeis of asseeamenta and bills a~d reasonable estimatea thereof. 'I'he Fl~nds ahall be held in sa inetitutioa the deposits or eccou~ts of which are~inaured or guaranteed by a Federa! or State agency (including I.er?der if Lender is such aa institution). I.ender shall apply the ~nde to pay said taxea, aeeeesments, inaurance premiuma and ground nnts. Lender mey not charge for so holding and applying the ~nds, analyzing eaid account, or verifying and compiling said asseeaments and bills. ualess I.ender pays Boaower interest on the Ftinda and applicable law permits l.ender to make euch a charge. Bor~ower and Leader may agree in writing at the time of e:ecution of this Mortgage that intereet on the Fl~nda shall be paid to Borrower, aad unleas such agreement ia made or applicable law requirea such intereet b be paid, I.ender ahall not be required to pay Borrower eny interest or earninga on the ~nds. Lender ehall give to Borrower, without charge, an annual acoounting of the ~nda ahowing credite and debits to the Flu~ds and the purpoee for which each debit to the Funda wae made. The Funde are pledged ae additionai eecurity for the aume eecured by thie • Mortgage. If the amount of the FLnda hdd hy Lender, together with the future monthly inatallmenta of Funds payable prior to the due datea of t~es, aaseeamenta. inaurance premiums and ground renta. ahall ex~ted the amount required to pay said taxea. asaessments, insurance premiume and ground reata as they fall due, such exceas ehaq be, at Bo~rower a aption, either pmmpdy repaid to Borrower or credited to Borrower on monthly instaUments of ~nds. If the amonnt of the Funda held by Lender shall not be aufficient to pay ta:ea, aeaeasmente, insurance premiuma and ground rente as they fall due, Borrower ehall pay to l.ender any amount neceaeary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Rotrower requeating payment ther~eof. Upon payweat in fiill of all auma secured by thia Mortgage, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by I.eader, Lender ehall apply, no later than immediately prior to the sale of the Property or its aoquiaition by I.ender, any fi~nda held by I.ender at the time of application as a credit againat the aums eecuted by this Mortgage. 3. Application of Payments. Unleas applicable law provides otherwiee. all payments received by Lender under the Note and psragraphs 1 and 2 hereof shall be applied by Lender Frst in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereat payable on the Note. thea to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liens. Borrower ahall pay all taxes, assesaments and other chergea, fines and impositions attributable to the Property which may attain a priority over thi8 Mortgage. and leasehold payments or ground rents, if any, in the manner provided under parugraph 2 heteof or, if not paid in such manner. by Borrower making payment, when due, direcdy to the payee thereof. Borrower shall promptly furniah to Lender all notices of amounta due under thia paragraph, and in the event Borrower shaU make payment directly, Borrower ahall promptly furnish to Lender receipts evidencing euch paymenta. Borrower shall promptiy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation aecured by such lien in a manner acoeptable to Lender, or shall in good faith contest such lien by, or defend 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. Hazard Insurance. Botrower ahall keep the impmvements now existing or hereafter erected on the Property inaured against losa by fire, hazarde included veithin the term "extended coverage," and auch other hazards as Lender may require and in such amounta and for such periods ae Lender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be requirpd by state or federal reguladona governing activitiea of ~.ender. or that amount of rnverage required to pay the eums secured by thia Mortgage. whichever is the greate~r. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by l.ender, provided, that such approval shall not be unreaeonably withheld. Alt premiums 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 due, directly to the insurance carrier. Ail insuranoe policies and renewals thenwf ahall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form aoceptable to L.ender_ I.ender ahall have the right to hold the policiea and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal noticea and all receipts of paid pmmiums. In the event of losa, Bormwer shall give prompt notice to the ineurance carrier and Lender. Lender may ma1~e proof af loss if not made promptly by Borrower. Unless Lender and Borrower otherwiBe agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property damaged, provided euch restoration or repair ia economically feasible and the aeCurity of thie Mortgage is not thereby impaired. If such rnatoration or repair is not eoonomically feasible or if the aecurity of this Mortgage would be impaired, the inaurance procePds ahall be applied to the suma secured by thia Mortgage, with the excess, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower faila to reapond to I.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to eettle a claim for ; insurance benefita, Lender is authorized to rnllect and apply the insurance proceeds at Lendei s option either to restoration or repair of the ` Property or the sume eecured by this Mortgege. ~ Unlees Lender and Borrower otherwiee agree in writing, any auch application of proceeds to principal shall not extend or poatpone the due date of the monthly installmente referred to in paragraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Pmperty ie aoqaired by Lender, all right, tide and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof resulti from ~ ng damage to Property prior to fhe sale or acquisifion ahall pass to Lender to the e:tent of the auma secared by this Mortgage immediately prior to sach sale or soquisition. . . ~ 6. Preservation and Maintenance of Property; Leaseholda; Condominume; Plaaned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahali not rnmmit waete or permit impairment or deterioration of the Property an3 shall oomply with the ~ provisiona of any lease 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 all of Borrower's obligations under the declaration or rnvenante creatingor governing the condominium or planned unit developmeat, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents_ If a : oondominiam or planned unit development rider ia e:ecuted by Borrower and rernrded together with this Mortgage, the oovenanie and agreements of such rider shall be incorporated into and shall amend and su lement the covenants and a ~ pP greements of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot Lender's 3ecnrtty. If Borrower fails to perform the oovenante and agrcenaenta oontained in thie Mortgage. ar if any y action or proceeding is commenced which meterially affecte Lendei e interest in the Property, including, but not limited to, eminent domain, ~ insolvencq. oode enforcemen~ or errangementa or p:vceedings involving a hanim~pt or deoedent, then Lender at Lender e option,upon . ~ notioe to Barrower may make auch appearancee. diaburae anch aums and take such action es is neaeeeary to protect Leader s interee~ a including, b~ aot limited to, diabnreemeat of reesonable attorney's fees and entry apon the Property to malce repairs. If Lender reqnired ? mortgage insurance as a ooadition of making the Ioan eecured by khie Mortgage, Borrower ahall pay the premiuma required.to maintain ' such insurance in effect nntil euch time as the requirement for auch ineurance terminatee in eacordanoe with Borrower'e and Leadels written agreem~t or applicable Law. Borrower ehall pay the amount of a11 mortgage inewance premiume in Lhe mannet provided under ParagraPh 2 hereof. My amounte disbnreed by • Lender persuant to thia paragraph with intereat thereon, ehall beoome additional indebtedneea of Borrowa secared by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounts ehall be payable upon notice from Leader to Borrower requeating payment thereof, and ehaU bear interest from the date of diabureement at the rate payable from ~ time to time on outatanding principal under the Note unlese payment of interest at auch rate would be oontrary to applicable law, in which ~ event auch amounta shell bear intereat at the higlieat rate permisaible under applicable law: Nothing contained in thie paragraph 7~ ehal! ~ reqnire I,ender to incnr any e~cpenee or take any action hereunder. ~ - ~ • c; ~ 30~!~ ~1, Frr~ ~715 ~ ' z ~~'Y ~ _ - - - - ar`~ .~'R ~ - ,w~ k~~ - ' _ _ w«~. . ' ......k_ _ _