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HomeMy WebLinkAbout0914 Borrowe~ and l.ende~ covenant and agree aa fullows: 1. Pwyment ot Pri~cipal and Intereet. Borrowe~ ahall promptly pay when due the principal of a~d intereet on the indebtedneee evidenced by the Note, prepayment and late chargee as provided i~ the Note, and the p~incipal of and inte~eet on any btiture Advancee aecured by this Mortgage. ' 2. I~Lnde [or Tuee and Insurance. Subject to applicable law or to a written waiver by I.e~der, E3orrower ahall pay to I.e~der on the day mo~thly inetallmenta of principal and intereat are payable under the Note, unti! the Note ie paid in full, a aum (herein "Funda") equal to one twelfth oithe yearly taxea and esaesemenfs which may attain priurity over this Mortgage, and ~round rnnta un the P~uperty, if any, plus one twelRh of yearly ptemium inatallmente for hazard inaurance, plue onetwelRh ofyearly premium installmenta for mortgage insurance, i[any. all ae reaeonably e~tiraated i~itiaUy and trom time to time by l.e~de~ on the basia of aaeeaements and bills and reusonable eatimatea thereof. The F'nnda shall De held in a~ inetitution the deposits or accounta of which are inaured or guaranteed by a Federal or State agency . (including L.end~ if I.ende~ is euch an institution). I.ender ehall apply the ~nda to pay eaid taxea, easeeame~te, inaurance premiums and ground rente. l.ender may not charge for so holding and applying the ~nds, analyzing said account, or verifying and compiling said aeaeeamenta and bills, unleae Lender paye Bor~ower interest oa the ~nde and applicable law permita I.ender b make such a charge. Borrower and I.endes mey a~ree in writing at the time of e:ecution of this Mortgage that interest on the FLnde shall be paid to Borrower, and unlesa such agreement ia made or applicable law requir~ such interest to be paid, I.ender shall not be required to pay Borrower any intereat or earninga on the Funda. Lender ahall give to Borrower. without charge. an annual accounting of the Funds ehowing credite and debiia to the ~nda and the purpoee [or which each debit to the Flinda was made. The Funds are pledged as additional security for the euma secured by this Mortgage. - If the amount of the ~Lnds held by Lender, together with the future monthly inatallmente oPFunda payable prior to the due datee of tues, asseeaments. inaurance preraiuma and ground rente. aha11 eac~ed the amount required to pay said taaes, asaeasmenta, inaurance premiuma and ground rente as they fall due, such e:ceee ahall be, at Borrower'e option, either promptly repaid to Borrower or crpdited to Borrower on monthly inetaliments of ~nde. If the amount of the Funds held by I.ender shall not be eufficient to pay taues, aseeeamenta, inaurance premiume and ground rente ae they fall due, Borrower shall pay to Lender any amount neceeeary to make up the deficie~cy within 30 daye from the dqte notice ia mailed by Lender to Borrower requeating payment thereof. ~ Upon payment in full of all sume eecured by this Mortgage. Lender ehall promptly refund to Borrower any funda held by Lender. l[under paragraph 18 hereof the Property ie sold or the Property is otherwise acquired by l.ender, Lender shaU appl, . no later than immediately prior to the sale of the Property or ita acquisition by Lender, any ~nda held by I.ender at the time of application as a credit againet the suma secured by this Mortgage. 3. Application of Paymente. Uniees applicable law providea otherwiee, all paymenta received by Lenrler under the Note and paragrapha 1 and 2 hereof shall be applied by [.ender first in payment of amounts payable to Lender bx Borrower under paragraph 2 hereof, the~ to intereat payable on the Note. then to the principal of the Not~, and then to interest and principal on any Future Advanoea. 4. Chargea; Liens. Borrower shall pay all taxea, assesaments and other rharges, finea and impositions attributable lo the Property which may attain a priority over this Mortgage, and leasehold payments or ground rnnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Aorrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnish to Lender ail notices of amounta due under thia paragraph, and in the evenl E3orrower shall make payment directly, Borrower ahall promptly furnish to [,ender receipta evidencing auch paymenfs. ~iorrower ahall promptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower ahall not be required to diacharge any such lien so long ns Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which opecate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof S. Hazard Inauraiice. Borrower ahall keep the improvementa now exiating or hereafter ere~cted on the Property insured againat losa by fire, hazarda included within the term "extended coverage," and euch other hazards as Lender may require and in such amounta and for auch perioda as I.ender may require; provided, that Lender ahali not require such rnverage amount exceeding the minimum, as may be required by etete or federal regulationa goveming aetivitiee of Lender, or that amount of coverage required to pay the sume secured by thia Mortgage, whichever is the greater. The insurance carrier providing the insurance shal) be chosen by E3orrower subject to appmval by I.ender, pmvided, that such approval shall not be unreasonabiy withheld. All premiums on inaurance 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 inaurance policiea and renewals thereof ahall be in form acceptable W Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender ehall have the right to hold the policies and renewala theteof, and Borrower ahall promptly furniah to i.ender all renewal notices and al) receipfs of paid premiuma. In the event of losa, Bornuwer shall give prompt notice to the inaurance carrier and L.ender. Lender may make proof of loss if not made promptly by Bonower. Unlesa Lender and Borrower otherwiae agree in writing, insurance procceds shall be applied to restoration or repair of the Property damaged, provided auch reatoration or repair is economically feseible and the security of thie Mortgage is not thereby impaired. If auch ` reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied ~ to the aums secured by this Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by Botrower, or if Borrower faila to reapond to Lender wifhin 30 days from the date notice ie mailed by Lender to Borrower that the inaurance carrier of~era to aettle a claim for inaurance benefita, I,ender ie authorized to collect and apply the inauranee proceeds at I.ender s option either to restoration or repaiT of the ~ Property or the aums aecured by this Mortgage. ~ Unless I.ender and Borrower otherwise agree in writing, any such application of pzuceede to principal ahall not extend or poatpone thedue date of the monthly inetallmenta referred to in paragrapha I and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, a11 right, title and interest of Borrowerin and to any insurance policies and in and to the proceeda $ thereof reaulting from damage to Property prior to the sale or acquiaition shall pase to Lender to the extent of the sume secured by thie } Mortgage immediately prior to such sale or aoquiaition. ~ 6_ Preeervation and Maintenance 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 shall rnmply with the ~ provieions of any lease if this Mortgage ie on a leaaehold. If thie Mortgage is on a unit in a condominium or a planned unit devetopment, ~ Borrower shall perform aU of Borrower e obligationa under the declaration or covenante creatinqor governing the condomini~un or planned f unit development, the bylaws and regulationa of the condominium or planned unit development, and oonstituent documents_ If a " condominium or planned unit development rider ia e:ecuted by Bortower and recorded together with this Mortgage, the oovenants and ~ agreemente of euch rider ahall be incorporated into and shall amend and aupplement thecovenanta and agreements of thia Mortqage as if the ~ rider were a part hereof. - ti 7. Protection ot Lender'e Security. If Borrower faila to perform.the oovenanta and agreements oontaine~ in this Mortgage, or if any ; action or proceeding is rnmmenoed which meterially affecte Lender'e intereat in the Property, including, but not limited to, eminent ~main, insolvency, oode enforcement, or arrangemente or proceedings involving a baniwpt or deoedent, then Lender at I.ender's option,upon ~ notice to Borrower may make such appearances. disburse such eume and take snch action ea is neoeseary to protect Lender's inLerest, ~ inclnding, but not limited b, disburaement of reaeonable sttorney'a fees and entry upon the Property to make repairs. If Lender required - mortgage ineurance as a condition of making the loan eecured by thiB Mortgaqe, Borrower ahall pay the premiume reyuired to maintain such insurance in effect until snch time as the requirement for euch ineurance terminatea in accordance with Borrower'e and Lender s. _ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiuma in Lhe manner provided under ~ paragraph 2 hereof. ~ My amounts disbureed by Lender pereuant to this paragraph 7, with intereat thereon, ehall become additionel indebtedneea of " Borrower eecured by this Mortgage. Unleea Borrower and Lender agree to other t,erma of payment, such amounts ehall be payable npon ;r notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of disbureement at the rate payable from ~ time to time on outetanding principal under the Note unleea payment of interest at such rate would be oontrary to applicable law, in which ~ event such amounte ahall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, ahall ~ require Lender to incur any e:penee or teke any action hereunder. ~ ~ ~ ~ B~~r 3U1 914 ~ . ~ ~ - - - ~~r < ~ ~ r°:-.~r~ ' ~ ~ _ . - z - ~ . ~ _ u ~ ~_:r:~ ~ F~~ t _