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HomeMy WebLinkAbout0407 Borrower and l.ender cove~ant and agree aa [ollows: 1. Paymeat of Principal end Intereat. Eiorrower shall promptly pay when due the principal of and intereat on the indebtedneae evidenced by the Note, prepayment and tate charges as provided in the Note, and the principai of and interest on any F~ture Advancee secund by this Mortgage. . 2. ~utda torTaxes and Insurance. Subject to applicable law or to a written waive~ by l.ender, E3orrower shall pny tu l.ende~ on the day munthly installmenta of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "Fu~da") equal to one twelfth of the yearly tnxea and assessmentn which m~y attain priority over this Mortgaga, and gruund renta on the Yroperly, if any, plus one :welfth of yearly premium inatailments for hazerd inaurance, plua onetv?elfth of yeariy premium inatalimrnta fur murtgt~ge inaurance, if any, all ax reaeonably estimated initially and fram time to tin,e by t.ertder on the bi+sis of osseaementa and bills und reASOnable eatimatea thereof. ~ The Ftinds ahall be held in an institution the deposita or accounts of which are ineured or guaranteed by a Federal or State agency (including L.ender if l.ender is~uch an inetitubioN. Lender shali apply the Funda to pay said ta:ee, aa8esements, inaurance premiume and ground nnta. Leade~ may not charge for eo holding and applyi~g the ~nde, analyzing said account, or verifying and compiling said aseesamenta and bille, unleee [.ender pays Borrower intereat on the Funda and applicable law permite i.ender to make euch a charge. Borrower and l.ender may agree u? writing at the time of execution of this Mortg+ige that intereet on the ~nds ahall be paid to E3orrower, and unleea auch agrcement is made or applicable law requir~ such intereat to be paid, Lender shall not be required to pay Borrower any intereat or earninga on the ~nds. I.ender shall give to Borrower, without charge, an annual accounting of the Funde ahowing credita and debits to the Funde and the purpoae for which each debit to the Funds was made. Tfie Funds are pledged ae additional security for the ewns eecured by this Mortgage. If the amount of the Flinds held by I.ender, together with the future monthly inatallmenta o[ Funde payable prior to the due datea of tazea, asseasmente, insurance premiums and ground rente. shall exered the amount required to pay said taxes. asseasmenta, inaurance premiuma and ground rents as they fall due, euch e:cese shall be, at Bo~rower'a optien, either promptly repaid to Borrower or credited tq Borrower on monthly inatallments of Funds. If the amount of the Funds held by l.ender shall not be aufficient to pay taxea, asseasments, inaurance pr,emiume and gronnd rente as they fali due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date noEice ie mailed by Lender to Borrower requeating payment thereot. Upon payment in full of all aums secured by this Mortga~ce, Lender ahall promptly refund to ~3orrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, I.ender shall apply, no later than immediately prior to the sale of the Property or iLs acquiaition by I.ender, any ~nds held by Lender at the time of application as a credit against the aums aecured by thia Mortgage. ~ 3. Application ot Paymenta. Unlesa applicnble lew provides otherwise, all paymente received by Lender under the Note ~and paragrapha 1 and 2 hereof ahall be applied by l.ender first in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liens. Borrower ahall pay.all taxes, t~ssessments und other charges, fines and impositions attributable to the Property which may attain a priority over thia l1lortgage, and le:~sehold payments or ground rents, if any, in the manner provided under paraECraph `l hereof or, if not paid in such manner, by E3orrower making ppyment, when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all noticex of amounta due nnder thia para(traph, and in the event E~rrower shall make pt~yment directly~ Borrower shall promptly furnish to I.ender receipts evidencing such payments_ Borrower shall prom ptly dixchargr any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge ~ny such lien so long as E3orrower ahall agree in writing to the payment of the obligation securi~d by such lien in a manner acceptable tu Ixnder, or shall in Rood f~ith contest such lien by, ordefend entorcement of such lien in, legal proceedings which operate to prnvent the enlomement oC the licn or forfeitum of the Properly or any part lhereof. 5_ Hazard Ineurance. Borrower shall keep the improvementa now existing or hereafter erected on the Property insured againat loss by fire, hazards included within the term "e:tended coverage; ' and such other hazards ae Lender may requirn and in such amounta and for such periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. - The insurance carrier providing the insurancr shall t?e chosen by Rorrower subject to approval by I.ender, pmvided, that such appruval shall not be unreasonably withheld. All premiums on insurance {wlicies shali be paid in the manner provided under paraKraph'l hermf or, if not paid in auch manner, by Borrower making payment, when due, directly Ya the insurance carrier. All insurance policies and renewals thereotshall be in form acceptuble to Lender and ehall include a standard mortgage clause in favor of and in form acceptable to I.ender. L.ender shall have the right to hold the policies and renewals thereof, and E3orrower shall promptly furniah to i.ender ali renewal noticea and all receipta of paid premiuma. In the event of losa, Borruwer shall give prompt notice to the insurance carrier ~ and Lender_ Lender may make proof of losa if not made prompdy by Borrower. ~ Unleas Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property E damaged, ptovided such restoration or repair is economically feaaible and the security of this Mortgage is not thereby impaired. If auch ~ restoration or repair ie not economically feseible or if the security of this Mortgage would be impaired, the ineurance proceeda shall be applied ~ to the aums secured by this Mortgage, with the exceas, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower fails to ; respond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier ofCers to settle a claim for ~ inaurance bene5ta, Lender is authorized to collect and apply the inaurance prcx~eeds at Lender's option either to restoratio~ or repair of the Property or the aums aecured by thin Mortgage. Unless Lender and Borrower otherwise agree in writing, any such xpplication of proceeds to principal ahall not extend or postpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments_ If under paragraph IS hereof the Prvpetty ia acquired by I.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acqweition shaU pasa to I.ender to the e:tent of the euma secured by this Mortgage immediately prior to auch sale or soquisition. . 6. Preservation and Maiatepance of Property; Leaeeholda; Condominums; Plsnned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the proviaione of any lease if thie Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall pertorm all of Borrower's obligations under the declaration or covenanta creatingor goveming the condominium or planned unit development, the 6y-Iawa and regulationa of the condominium or planned unit development, and conatituent documents. If a oondominium or planned unit development rider is executed by Borrower and recorded together with thie Mortgage, the rnvenante and agreements of such rider shall be incorporated into and s}~ali amend and supplement the covenarits and agreements of thia Mortgage as if the r.der were a part hereof. - 7. Protectioa of Leoder's 3ecurity. If Borrower faile to perform the aovenants and agreements oontained in thia Mortgage. or if any action or proceeding is commenced which materially affects Lender'e interest in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrangementa or proceedinge involving a bankrupt or deaedent, then Lender at Lender'a option,upon ~ notice to Borenwer may make euch appearancee, dieburee euch eume and take euch action as ie neceeeary to pmtect Lender'a interee~ ~ including, but not limited to, diebursement of reasonable attorney'e feee and entry upon the Property to make repaire. If Lender required mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrower ehall pay the premiums required to maintain ~ such insurance in effert until snch time as the requirement for auch ineurance terminates in accordance with Borrower'e and I.ender'e ; written agreeroent or appticabte Law. Borrower ehall pay the amount of all mortgage insurance premiume in the manner provided under r paragraph 2 hereof. ; ~ My amounfw dieburaed by I.ender pereuant to thia paragraph 7, with intereet thereon, ahall become additionai indebtedneee of Borrowez eecured by thie Murtgage. Unleae Borrower and Lender agree to other terme of payment, aurh amounta ehall be payable t~pon ~ notice from Lender to Borrower requeating payment thereof, and shaU bear intemat from the date of dieburaement et the rate payable from ~ time to time on ontstanding principal under the Note unleae payment of intereet at such rate would be rnntrary to applicable law, in which event avch amounte ehail bear intereat at the higheet rate permieeible under applicable law. Nothing contained in thie paragraph 7, ahall , require [.ender to incur any eapense or take any action hereunder. ~ ORnn . 8001( JV~ FAGE 4OV ~ - ~ - - - ~ ~ - " „ ~ • ; ~ ~ _.,s: w~ _ . . _