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HomeMy WebLinkAbout0709 l3orrower and I.ender covenant artd agree as follows: 1. Peyme~t ot Principal and Interest. Borrower ahall prompUy pay when due the pri~cipal of and intereut o~ the indebtednees evider?ced by the Note, prepayment and late chargee ae provided in the Note, and the principal uf and intemet o~ any ~?ture Advancea eecund by thie Mortgage. 2 E~1tnd. for Tauea snd lrteurance. Subjec! to applicable law o~ to a written wai~ er by I.eoder, E3or~ower shall pay to l.ender on the day monthly inatallmenta of principal and interest are payable under the Note, until the Note ie paid in full, a aum (herein "F~~de") equal to ono- f twelRh of the yearly tax~ and aeeesameots which may attain priority ove~ thia Mortgage, a~d ground rente on the Property, if any, plue one- ; twelfth of yearly premium inatallmenta for hazard inaurance, plua onetweltth of yea~ly premium insfallmenta for mortgage ineurance, if any, f all as reaeonabl~ eatimated initially and from time to time by I.ender on the basis of esaesements aod bills nnd renaonuble estimatea the~eoL 3 '11~e FLnds shall be held in an inatitutio~ the deposits or accounts of which are ineured or guaranteed by a i~'ederal or State age~cy ~ (including I.ender if Lender is auch an inatitution). l.ender shall apply the Fuada to pay aaid taxee, aeeesamenta, insurance premiume and ; ground rents. Lende~ m~yr not charge for so holding and applying the Ftinda, aoalyzing eaid account, or verifying and compiling said ; aeeeasments and bills, unless l.ender pays Bo~rower intereat on the FLnda and appticable law permite I.ender to make euch a charge. Borrower and Lender may egree in writing at the time of execution o[ this Mortgage that intereat on the Hl:nda ahall be paid to Borrower, and unlesa such agreement is made or applicable law requires such intereet to be paid, l.ender ahall not he required to pay Borrower any intereat or earnings on the fitnda. l.ender shall give to Borrower. without charge, an annual accounting uf the Funde ahowing credite and debits to the ~ Funda and the purpoee for which each debit to the Funde was made. The Funds are pledged ae additional eecurity for the suma secured by this ~ Mortgage. ~ ` If the amount of the Ftinde held by Lender, togethet with the future monthly installments of Funda payable prior to the due datea oita:ee. ! aeseeamente, ineurance premiuma and ground rente, shall excreci the amount required to pay aaid taxea. assesemente, insurance premiums . 3 and ground rente ae they faU due, auch exceae ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on > monthly installmenta of fi~nds. If the amount of the Funde held by l.ender shall not be eufficient to pay. taxee, asaesamenta, inaurance premiams and ground rente as they fall due, Borrower ahall pay tn Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by L.e~der to Borrower requeating payment thereoL ~ Upon peyment in full of all aums aecured by this Mortgage, Lender ahell promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender,~Lender ahall apply, no later than immediately prior to the eale of the Property or ite soquiaition by Lender, any Funda held by [.ender at the time of application as a credit against the aume eecured . by this Mortgage. . _ 3. Application of Payments. Unlese applicable law provides otherwise, all payments received by Lender under the Note and ! paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to I.ender by Borrower uuder paragraph 2 hereof, ~ then to interest payable on the Note, then W the principal of the Note, and then to interest and principal on any Future Advances_ 4. Charges; Liena. Borrower shall pay all taxea, asseasmenta and other chargea, fines and impositiona attributable to the Property which : may attain a priority over this Mortgage. and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by 8orrower making payment, when due, directly to lhe ppyee thereof. Borrower shull promptly fumieh to I.ender ~ all notices of amounte due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumiah to ! Lender receipte evidencing such payments. Borrower shall promptly discharge any lien which has priority uver this Mortgage; provided, that ; E3orrower shall noi be required W discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by i such lien in a manner acceptable to l.ender, or ahall in good faith contest such lien by, ordefend enforcementof such lien in, legal proceedings which operate to prevent the en[orcement of the lien or forfeiture of the I'roperty or any part thereof_ 5. Hazard Insurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured againat loss by fire. hazarda included within the term "extended rnverage," and euch other hazards as I.ender may require and in such amounts and for such periods as I.ender may require; provided, that Lender shaU not require such coverage amount eaceeding the minimum, as may be required by state or federal regulationa governi~g activitiea of Lender, or that amount of.coverage required to pay the aums aecured by this Mortgage, whichever ia the greater. Tha insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by I.ender, provided, that such :~pproval shall not be unreasonably withheld. All premiums on insurance poticies shall be paid in the m:inner provided under paragr:~ph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. . All inanrance policiea and renewala thereof shal! be in form acceptable to Lender and shall include a atandnrd mortgage ciauae in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notice8.and all receipts of paid premiuma. In the event of losa, Borrower shall give prompt notice to the insurance carrier and Lender. I.ender may make praof of loss if not made promptly by Borrower: Unlesa Lender and Borrower otherwiae agree in writing, inaurance procceda ehall be applied to reatoration or repair of the Property ! daraaged, provided such restoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired. If such ; reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ; to the auma secured by thia Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reepond to l.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to setde a claim for 'k insurance benefite, L.ender is authorized to collect and apply tfie inaurance proceeds at I.ender's option either to reatoration or rnpair of the ; ~ Property or the sume aecured by thie Mortgage. E Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly inetallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, tive and interest of Borrower in and to any insurance poliMea and in and to the proceeds thereof reaulting from damage to Property prior to the eale or aoquiaition shall pasa to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preaervation and Maintenance of Property; Leaseholde; Condominuma; Planned Unit Developments. Borrower ehaU keep - ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the provieions of any lease if thie Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower shall perform atl of Borrower's obligatione under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-lews and regulations of the condominium or planned unit development, and oonatituent documenta. If a condominium or planned unit development rider ia eaecnted by Borrower and recorded together with thia Mortgage, the oovenants and' ~ agreements of auch rider ahall be incorporated int~~ and shall amend and supplement the covenants and agreements of ihia Mortgaqe as if the rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrower faile to perform the oovenants and agreemente eontained in this Mortgage, or if any ~ aMion or proceeding ia commenced which materially affects Lender a intereet in the Property, including, but not limited to, eminent domain. ~ insolvenry, oode enforcement, or arrangementa or pmccedinge involving a banl~rupt or deoedent, then Lender at Lendet's option.upon ~ notice to Borrower may make such appearancee, diaburee such eams and take euch action as ie neoeasery to pmLeet I.ender's interest, including, but not limited to, diabureement of reasonable attorney's fees and entry upon the Property to meke repaire. If Lender requited mortgage ineurance ae a condition of making the loan aecured by thie Mortgage, Borrower ahall pay the premiun~s required b maintain ~ euch insarance in effect nntil euch time as the requirement for such inaurance terminatea in accordsnce with Borrowei s and Lender'e ~ written agreement or applicable I~w. Borrower ahal! pay the amount of all mortgage insurance premiume in the manner provided under ~ paregraph 2 hereof. ~ My amounte diabureed by Lender pecauant to thie paragraph 7, with intereet thereon, ehall become edditional indebtedneee of ' ~ Borrower serured by thia Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounts shall be payable upon ~ notice from Lender to Bor~ower requesting payment thereof, and ahall bear intereat from the date of diebursement at the rate payable hom time to time on outstanding principal under the Note unleee payment of interest at auch rate would be contrary to applicable law. ia which ~ event auch amounts ahall bear intereet at the higheat rate permiesible under applicable law. Nothing contained in thie paragraph ahall ~ require Lender to incur any e:pense or take any action hereunder. ~ ~ ~ ~k O ~ . ' gnJX 3 ~ 3 ~.a,F ~ ~ 708 ~ . ~ _ ~ _ _ - - - - - - _ - ~:v~ - ~ ; - rs . ~