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HomeMy WebLinkAbout0738 Borrowe~ and l.ender covenant a~d agree as followa: 1. Psyment ot Prlacipal aad latereat. Borrower ahell promptly pay when due the principa! of and interest on the indebtedness evidenced by the Note. prepayme~t and lata charges ae provided in the Note, and the principal of and interest on any Future Advances aecured by thia Mortgage. . 2. ~tado for T~ea and Ineuraace. Subject to applicable law or to a written waiver by [.ender, l3orrower ehall pay to l.e~de~ on the day monthly inatallmenes of principal and inte~eat are payeble u~der the Note. until the Note ia paid in fuil. a aum (herein "Funda") equal to one twelfth o[the yearly taxes and asa~easmente which may attain priority over this Mortgage, and ground renta on the Pn~perty, if any, plue one~ twelfth of yearly premium installments for hazard inaurance, plua onetwelfth ofyearly premium ioatallmer?te for mortgage ineurance, if any, all as reasonably estimated initially and firom time to time by I.ender on the basie of seaeeamenta and billa a~d reaaonable eatimatea thereof. '!Ue ~Lnde shall be held in an inatitutioa We deposits or aocounts of which are insured or gueranteed by a Federal or State agency (including Lend~ if Lend~ is such an inetitution). I.ender ahall apply the Funds to pay said ta:es, aeeeeaments. inaurance premiuma and ground nnte. Lender may not chasge for so holding and applying the fl~nds. analyzing aaid account, or veri[ying and compiling said asseeamente and bills, unleea Lender pays Borrovrer interest on the F1?nde and applicable law pera?its I.ender to make auch a charge. Borrower and I.ender m~yr agree in writing at the time of execution of this Mortgage that inter~t on the ~nde shall be paid to Borrower, and, unless • auch ageeement is made or applicable law requires such intereet to be paid. I.ender ehall not be required to pay Borrower any intereat or esrnings on the ~nds. Lender ehaU give to Borrower, without chargr, an annual acoounting of the ~nda showing credits and debits to the ~nds and the purpoee for which each debit to the Funde waamade. The Ftinde are pledged as additional eecurity for the sums eecured by this Mortgage. If the amount of the ~nds held by Lender, tagether with the future monthly instaliments of Funde payable prior to the due dates of taxee. aeeeaements. insarance premiums and ground renta, ehall exa~ed the amount required to pay eaid taxee, seaeeamenta, ineurance premiuma and ground renta ea they fall due. such e:ceas shall be, at Borrower a option, either prompdy repaid to Borrower or credited to Borrower on = monthly iuetallmenta of I~nds. If the amount of the Ftinde held by L,ender shaU not be aufficient to pay tsuea, asseasmente, ineurance ~ premiums and ground nnts se they fall due, Borrower shall pay b I.ender any amount neceaeary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requeating payment thereof. - Upon payment in full of all eums eecured by this Mortgage, I.ender ahall promptly refund to Borrower any funda held by L.ender. If under paragraph 18 hereof the Property is sold or the Property ie otherwiee acquired by I.ender, I.ender ehall epply, no later than immediately prior to the sale of the Property or ite aoquisition by Lender, any ~Lnds held by Lender at the time of applicatiori as a credit againat the euma eecured ; by this Mortgage. 3. Application o! Paymeats. Unleea applicable law pmvidee otherwise. all payments received by ~I.ender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereet payable on the Note, then to the principal of the Note. and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower shall pay all taxes, aseessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payments or ground re~ta, if any, in the manner provided under pars~graph 2 hereof or, if not paid in such manner. by Borrower making payment, when due. directly to the payee thereoL Borrower ahall promptly furnish to I.ender all noticea of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall pmmptly furnish to [.ender receipts evidencing such paymenta. Borrower ahall pmmptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahal! not be required to diacharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a mannet acceptable to Lender, or ahall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings vrhich operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof. 5. Hazard Inaurence. Borrower ahall keep the impmvements now exiating or hereafter erected on the Property ineured against ~osa by fire. hazarda induded within the term "e:tended coverage." and euch other hazards as Lender may require and in such amounts and for such perioda a8 I.ender may reqnire; provided, that Lender ehall not require such coverage amount e:ceeding the minimum, as may be required by state or federal regnlationa governing activities of L.ender. or that amount of coverage required to pay the suma secured by this Mortgage, whichever ie the greater. . • . The inaurance carrier providing the inaurance ahall be chosen by Borrawer subject to approval by [.ender, pmvided, that such approval shall not be unreaeonably withheld. All premiums on inaurance policies shall be paid in the manner provided under paragraph'L hereof or, if not paid in such manner. by $orrower making payment, when due, directly to the insurance carrier. ~ All inaurance policiea and renewals thereof ahail be in form acceptable to I.ender and ahall include a standard mortgage clause in favor of ~ and in form acceptable to I.ender. Lender ahall have the right to hold the policiee and renewala thereof, and Borrower shall prompdy furnieh to i.ender all renewal notioea and all receipta of paid premiume_ In the event of lo~s, Borrower ahall give prompt notice to the inaurance carrier - and Lender. Lender may make proof of losa if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or rnpair of the Property damaged, provided auch reatoration or repair ia economicaUy feaeible and the eecurity of this Mortgage is not thereby impaired_ If auch ! restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the ineurance proceeda shall be applied f to the aums eecdred by thie Mortgage, with the eacese, if any. paid to Borrower. If the Property ie 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 inaurance catriei of~era to setde a claim for ~ insurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or rnpair of the Property or the sume sec~ued by this Mortgage. ~ Uniese Lender and Borrower otherwiBe agree in vvriting, any auch application of proc~eeds to principal ahall not extend or poatpone the due ~ date of the montlily installmente referred to in paragrapha 1 end 2 hereof or change the amount of auch installmenta. If under paragraph 18 . ~ hereof the Property ie acquired by Lender~ all right, tide and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof reeulting from damsge to Property prior Lo the eale or aoquiaition ahall pass fo Lender to the e:tent of the suma secured by thie ~ Mortgage immediately prior to auch eale or acquisition. 6. Preservation and Maintenance of Property; Leaeeholds; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Propedy in good repair and ahall not commit waste or permit impairment or deterioration oi the Property and ahall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligationa under the declaration or covenanta creatingor goveming the condominium or planned unit developmenR the by-lawa and regulationa of the rnndominium or plsnned unit development, and canatituent documente. If a condominium or planned nnit development rider ia executed by Borrower and recorded together with this Mortgege, the oovenante and agreementa of snch rider ahall be incorporated into and shall amend and supplement the covenants and agreements of thia Mortgage asif the rider were a part hereof. ~ Protection of I.ender's Security. It Borrower faila to perform We oovenants and egreemente oontained in thia Mortgage, or if any : ~ action or proceeding ia commenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain, insolvency. oode enforoement, or arrangements or proc~eedinge iavolving a bankrupt or deoedent, then Lender at Lender e option,npon ~ nodce to Borrower may make auch appearances, dieburee such auma and tati.e ench action ae ie neoeaaary to protect I.ender's int~nest, ; inclnding, but not limited to, disbursement of reasonable atbrney'e fees and entry upoa the Property to raake repairs. If Lender required mortgage ineuraace as a rnndition of making the loan secured by thie Mortgage, Borrower ehall pay the premiums reqnired to maintein r anch ineurance in effect nntil ench time as the requirement for such ine~uance terminates in aocordance with Borrower's and Lender's ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiuma in the manner provided under a parsgraph 2 hereof. 4 My amounte diabnrsed by Lender persuant to thia paragraph 7. with intereet thereon, shall beoome additional indebtedneea of ' Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terma of payment, euch amounte ehall be payable upon ~ notice from Lender to Borrower Teqaeeting payment thereof, and ahall bear interest from the date of dieburaement at the rate payable from = ~ time to time on outstanding principal under the Note unlese payment of interest at euch rate would be oontrary to applicable law, in which : event such amounte ahall bear intereet et the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph 7, shall ~ require Lender to incur any e:pense or talce any action hereunder. ~ ~ ~ ~ooK3U3 µA~~ 737 ~ ~ ~ . ~ ~ - - . ~:~~.rtY~ ~ - ~ _ ~ : Y