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HomeMy WebLinkAbout0403 ~ ~ 3 ~ ~ ' , ~ ? . t . , ~ r ~1- 8orrower and I.ender covenant and agree as follows: . 1. Payment ot Principal and Iateres~ Borrower ehall promptly pay when dus the pri~cipal of and interest on the indebtedneea evide~ced by the Note. prepayment and late chargce as provided in the Notr, and the principal otund interes! on any Future Advances aecured by this Mortga~e. 2. PLnde foe Texes and [nsurance. Subject b appficable IAw or to a written waiver by lx~der, &?r~owe~ shall pay to I.ender on 1he day monthly inatallments of principal and interest are payeble under the Note, until the Note ia paid in full, a eum (hereir? "Funde") equal to one lwelRh of the yearly taxes and aaec~ssments which may attain priority over thia Murtgage, and g[ound renta on the Property, if any, plua one~ twelfth otyearly premium inatalirt~enla for hazard inaurance, plus onetwelfth of yea~ly premium inatallments for mortgage insurance, if any, aU as reasonably eetimated initially and from time to time by I.ender on the basis of aseesamente and billa and reaaonnbte eetimates thereot. The ~?nds ehall be held in an institution tha depoaits or accounte of which an inaured or guaranteed by a Federal or Stete agency (including I.ender i[ Lender is such an inetitution). I.ender shall apply the Funda to pay said tazes, aseeasmente, insurance premiuma and ground rents. Lender may not charge for so holdi~g and applying the ~Lnds, analyzing said account, or verifying and compiling said assesamenta and bilis, unleea Lender pays Borrower intereat oa the F~nda and applicable law permite I.ender to make such a charge. Borrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that interest on the Funda shall be paid to Bor~ower, ar~d unlesa each egreement ia made o~ ~pplicable law requires such interest to be paid, l.ender ehall not be required b pay Borrower any intereat or earniags on the Flrnda. Lender ahaU give to Borrower, without charge, an annual acoounting of the Funds showing credies and debits to the P1~nds and the purpoae [or which each debit b the ~nda was made. Tfie Funds are pledged as additional security for the sums eecured by this Mortgage. If the amount of the ~nda held by Lender. tagether with the future monthly installmente of Ftinda payable prior to the due dates of taxes. asaesamepta, ineurance preminma and ground rents. ~}?all ea~ceed the amount required to pay eaid taxes, seseesmenta. ineurance premiuma and ground rents ea they fall dqe. euch excess ahall be, at Borrower e option, either prompdy repaid to Borrower or credited b Borrower on mo»thly installments of F~tnda. If the amount of the Funds held by Lender shall not be eufficient to pay taxes, aseesamenta, ineurance premiums and ground rente ee they fall due. Borrower ahall pay to I.ender any amount nec~easary to make up the deficiency within 30 days - from the dete notice ie mailed by l,ender to Borrower requeating payment thereof. ~ Upon payment in full of all aume eccured by thie Mortgsge, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ie otherwiae acquired by Lender, Lender shall apply, no later than immediately prior ~ b the eale of the Property or ita aoquisition by Lender, any Fl~nds held by Lender at the time of application as a credit againet the auma secured by this Mortgage. 3. Application of Paytnents. Unlesa applicable law providea otherwiee. all paymente received by I.ender under the Note and paragraphs 1 and 2 hereof shaU be applied by L,ender firat in payment of amounta payable to [.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the prinripal of the Note, and. then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower ahall pay all tazes, asaessments and other rhargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, im the manner 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 promptly furniah to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower eha11 promptly furnish to L.ender receipts evidencing such payments. Borrower shall promptly discharge any lien virhich has priority over this Mortqage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the paymenE of the obligation sec~ired by such lien in a mann~ acceptable 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 pari thereof 5. Hazard Insuraace. Borrower ahall keep the improvements now exiating or hernafter erected on the Property inaured againat losa by fire, hazards included within the term "~tended coverage," and auch other hazards as Lender may require and in such amounts and for such periode ae Lender may require; pro~~ded, that I.ender ahall not require such coverage amount e:ceeding the minimum, as may be required by state or federal rPgnlations governing activitiea of [.ender, or that amount of rnverage required to pay the aums secured by this Mortgage. whiche~er ia the greater. ~ The insurance carrier pmviding the inaurance shail be chosen by Borrower aubject to approva) by I~ender, pmvided, thaY auch approval shall not be unreasonably withheld. All ptemiuma on insurance policies shall be paid in the manner provided under pnragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, diiectly to the insurance carrier. All ineurance policiea and renewala thereof shall be in form acceptable to Lender and shall include a etandard mortgage clauae in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policiea and renewals ihereof, and Borrower ahall promptly furniah to i.ender all renewal nodcee and alt receipts of paid premiuma. In the event of loas, Borrower ahall give prompt notice to the insurance carrier and Lender. I.ender may make proof of loas if not made promptly by Borrower. Unleea Lender and Borrower otherwise sgree in writing, insurance proceeds shall be applied to restoration or repair of the Property ! d'amaged, provided such restoration or repair ia economically [easible and the aecurity of this Mortgage ia not thereby impaired_ If such . ~ reetoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the awna secured by thia Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to ' reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to aetde a claim for ineurance benefite. Lender is suthorized to collect and apply the inaurance proceeds at I.ender a option either to restoration or repair of the ~ Prnperty or the aums eecured by this Mortgage. Unlesa Lender and Borrower otherwiee agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue , date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any inaurance policiea and in and to the proceede ~ thereof resulting from damage to Property prior to the aale or aoquisition ehall pase to Lender to the eztent of the auma ecc~ired by thia Murtgage immediately prior to auch aale or aoquisition. 6. Preservation and Maintenance of Property; Leaseholde; Coadominuma; Planned Unit Developmente. Borrower shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisione of any lease if this Mortgage is on a leasehold. If thie Mortgage ia on a unit in a oondomini~un or a planned unit development, Borrower ahall perform all of Borrower a obligations under the declaration or rnvenanta creatingor governing the rnndominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and oonatituent dceumenta. If a oondominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the oovenant8 and ~ agreements of such rider ahall be incorporated into and shall amend and aupplement the covenante and agreements of thia Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Barrower faile to perform the oovenante and agreementa oontained in thia Mortgage, or if any ection or proceeding ie commenced which materially eKecte Lender e interest ia the Property, including, but not limited to, eminent domain, insolvency. aode enforcement, or arrangemente or pmceedings involving a bankr~pt or deoedent, thea Lender at Lender's option,upon ~ aotice to Bvrrower may make auch eppearances. diaburse such eume and take snch action as is neceeeary to protect Lender's interest, _ u?cluding, but not limited to, diebureement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required ~ mortgage insarence as a oondition of maJring the loan eecured by thie Mortgage, Borrower shall pay the premiama required to mainLain ~ such insurance in effect nntil snch time aa the requirement for auch ineurance terminatee in aocordance with Borrower'e and Lende~'s ~ written agreem~t or applicable I.aw. Borrower ehaU pay the amount of all mortgage insurance premiams in the manner provided nnder - ~ paragraPh 2 hereof. ~ ~ Any amounte disbursed by Lender pereuant to thia paragraph 7, with intereet thereon, ahall become additional indebtednese of ~ Borrower eecured by thie Mortgage. Unlees Borrower and I.ender agree to other terms of payment, such amounte shall be payable upon ~ ~ notice from Lender to Borrower requesting payment thereof, and ehall bear interest fiom the date of diabursement at the rate payable from time to time on outstanding principal under the Note unleae payment of interest at such rate would be contrary to applicable law. in which event snch amounta ahall bear interest at !he higheet rate permiesible under applicable law. Nothing contained in thie paregraph shall - require i.endsr to incur any e~penee or take any action hereunder. ~ ~ . 3 goo~ ~03 P~ 402 - ~ 4 ~ _ `~~~s ~~y~ x~~~";~v_ :