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HomeMy WebLinkAbout0899 13oROwe~ and Lender covenant and sgree as folluwe: 1. Payment ot F'rl~cipal snd Interert. Borrower shall promptly pay when due the principal of and intereat on the indebtedneas evidenzed by the Note, prepayment a~d latecharges as provided in the Note, and the principal of end intereet on any Fliture Advancea secured by thia Mortgage. 2. FLnds for Tanee a~d InsuraneP. Subject to applicable law or to s writte~ waiver by I.ender, Eiorrower shaU pay to l.ender on the day monthly installments of principal and intereat are payable unde~ the Note, u~til the Note ie paid in full, a sum Iherein "M unds") equal to one~ twelRh of the yearly taxe8 and a8aessmenta which may attain priority over thie Mortgage, and ground rente on the Property, if any, plua one lwelfth of yeatly premium installments for hazard i~aurance, plue onetwelfth of yearly premium installments [or mortgnge inaurance, if any, all as rnaeonably eetimated initially and trom time to time by l.rnder on the baeis of aaseearue~te and bilUa and reaaonuble eatimatea thereof. The Ftinda shall be held in an inatitution the depoeite or eccounta of which are insured or guaranteed by a Federai or 3tate agency (including I.ender if'I.ender ia such an institution). l.ender ehall apply the Funde to pay aaid tax~, aeseasmepts, ineurenoe premiums and gmund rents. I.e~der may not charge [or so holding and applying the ~nds, analyzing aaid aocount, or verifying and compiling said asseasme~ta and bills, unlesa I.ender pays Eiorrower intereat on the ~nds and applicable law permiLs Lender to make such a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the Funda ahall be paid to Borrower, and unlesa such agrcement ia made or applicable law requires auch in~t to be paid, I.eader ahall not be required to pay Bonower any intereet or earninge on the Flinda. I.ender shall give b Borrower, without charge, an an~ual acoounting of the Funda ahowing credita and debita to the Funde and the purpose [or which each debit to the ~ unda wae made. The Funda are pledged as sdditional.ecurity for the auma eecurPd by thie Mortgage. If the amount of the ~Lnds hetd by I.ender, together with the future monthly installmente of Funda payable prior to the due datea of taxes, aeeeaamente, inaurance premiums and ground rente, ahall exored the amount required to pay said taxea, aaeeaamente, inaurance premiume and ground renf8 ae they fall due, auch ezcees ahall be, at Bmrower a optio~, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenLe of ~nda. If the amount of the Funds held by I.ender shall not be sufficient to pay ta:ee, aseesaments, insurance premiuma and ground renta as they fall due, Borrower shall pay to i.ender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requeating payment Lhereof. Upon payment in full of all eums eecured by this Mortgage, [.eader ahall promptly refund to Borrowe~ any funde held by Lender. If under paragraph 18 hereof the Property ie aold or the Property is otherwiee acquired by Lender, l.ender ahall apply. no later than immediately prior to the sale of the Property or ite acquiaition by l.ender. any Funde held by Lender at the time of application as a rredit against the suma eecured by this Mortgage. 3. Application of Paymente. Unleae applicable law providea otherwiee, all paymente received by l.ender under the Note and paragrapha 1 and 2 hereof shal! be applied by Lender first in payment of amounts payable to I.end r by Borrower uuder paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note. and then to interest and ~rincipal on any Future Advancee. 4. Charges; Lieoe. Borrower ahall pay all taaea, asaesaments and other charges, fines and impoaitions attributabie to the Pioperty which may attain a priority over this Mortgage, and leasehold payments or ground rents. if any, in the munner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptiy fu~niah to Lender all notices of amounta due under thia paragraph, and in the event 13ortower shall make payment directly, E3orrower shaU prompUy furnish to I.ender receipts evidencing such paymenta, Borroveer shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower ahall not be requited to discharqe any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender. or shall in qood faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent ihe enforcement of the lien or forfeiture of lhe Property or any part thereof. 5. Hazard Ineurance. Borrower ahail keep the improvements now exiating or heteafter erected on the Property inaured againat losa by fire, hazarda included within the term "e:tended coverage, ' and e~uch other hazards as Lender may require and in auch amounta and for such periods as Lender may require; provided, that I.ender shall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the aume eecured by this Mortgage, whichever ia the greater. ~ ~ - The insuranee carrier providing the insurance shall be chosen by Bonower subject to approval b} I.ender, provided, that such approval shali not t?e unreascinably withhetd. All premiums un ingurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Rorrower making payment, when due, directly to the insurAnce carrier. All ineurance poliries and renewals thereof shall be in form acceptable to I.ender tind $hall include a standard mortgage clauae in favor of and in form acceplable to Lender. I.ender shall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnish to i.ender atll renewal noticea and all receipSs of paid premiuma. In Ehe event of loas, Borrower shall give prompt notice to the insurance carrier and Lender. L.ender may make proof of losa if not made pmmptly by Borrower. . . Unlesa Lender and Borrower otherwise agrne in writing, inaurance proceeds shall be applied to restoration or repair of the Property• damaged, provided such reatoration or rnpair ia economically feasible and the security of this Mortgage ia not thereby impaired. If auch j reetoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda ahall be applied ~ to the eums eecured by thie Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier oftera to aettle a claim for E inaurance benefita, Lender is authorized to collect and apply the inaurance proceedB at Lender's option either to reatoration or repair of the f Property or the sums aecured by this Morigage. ~ Unleea Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ahall not eatend or poatpone the due date of the monthly inatallmenta referred to in paragrapha I and 2 hereof or change the amount of auch instalimenta. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and interest of Borrovrer in and to any insurance policies and in and to the proceeda ~ thereof reeulting from damege to Property prior to the eale or aoquisition shail paea to Lender to the extent of the sums aecu~ed by this ~ iNortgage immediately prior to such eale or acquiaition. ~ 6. Preservation and Maiatenance 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 and ahall comply with the proviaions of any lease if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform ali of Bortower's obligationa under the declaration or covenante creatingor goveming the rnndominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documente. "If a ; rnndominium or planned unit development rider ia executed by Borrower ar_d recorded together with this Mortgage, the wvenanta and y agreements of such rider ahall be incorporated into and shall amend and supplement the covenants and agreements of thia Mortgage as if the ~ rider were a part hereof. " 7. ProtectIon ot I.eader's Security. If Borrower faile to pertorm the oovenenta and agreemente contained in this Mortgage, or if any ~ ~ action or proceeding ie commenced which materially afferte Lender s intereat in the Property. including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangements or proceedinga involving a banknipt or deoedent, then L.ender at Lendei s option,upon ~ aotice to Borrower may make euch appearancee, diaburee euch eums and talce euch action as ie neceseary to protect Lender's interes~ ~ Y including, but not limited to, diebureement of reasonable attorney's feee and entry upon the Property to make repairs. If Lender required mortgage ineurance as a rnndition of making the loan eecured by thie Mortgage, Borrower sha11 pay the pnrmiume required to maintain euch inenrance in effect until ench time aB the requirement [or such ineurance terminatee in accordance with Borrower s and Lendei a ~ written egreement or applicable Law. Borrower ehall pay the amount of all mortgage iaeurance premiume in the manner provided under paragraph 2 hereof. ~ ~ Any amounta dieburaed by I.ender persuant to thie paragraph with intereet thereon, shall become additional indebtednese of Aorrower eecured by this Mortgage. Unleea Borrower and Lender agree to other terma of payment, euch amounts ehall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and ehall bear intereet from the date of diebureement at the rate payable from t% time to time on outstanding principal under the Note unleas peyment of infereat at auch rate would be oontrary to applicable law, in which ~ ~ event auch amounte ahall bear intereet at the higheet rate permisaible underapplicable law. Nothing contained in this paragraph 7, ehall ~~Y require Lender to incur any expenee or take any action hereunder. ; ~ ~ ~ BeOK W1 F'AGf ~ ~ ~ . ~ _ _ . _ = - ~ ~ ~ _ . ~ : s _ _ e ~ ~ ~ < , s _