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HomeMy WebLinkAbout0742 l3orrower and l.ender covenant and agree xs follows: i. Payment of Principal a~d Interest. Borrower shall promptly pay when due the principal of and intereat on the i~debtedneaa evidenced by the Note. prepayment and late charges as provided in 1he Note, and the principal of and interest on any ~ture Advancea secured by thu Mortge~e. 2. F~nds for Ta~tea and Ir?surance. 8ubject to applicable law or to a written waiver by l.ender. Borrower ehpll pay to l.enderon the day monthly ir~etallmenta of principal and i~lereat are payable under the Note, u~til the No1e ia paid in [ull, a sum (herein "Funds") equal to one twelfth of the yearly taxes and asaesements which may attain priority over thie Mortgage, and ~ound renta on the Property, i[any, plua on~ twelfth of yearly premium inatalimenta for hazard inaurance, plus onetwelfth ofyea~ly premium inatalimente for mortg~e insurance, if a~y, all aa reaaonably eatimated initially and from time to time by I.ender on the basia of asseesmenta sod bills und reasonable estimatea thereof. The F~nds shall be held in an institution the deposits or accounts of which are inaured or guaranteed by a Federal or State xgency (includi~g [.ender if L.ender is sach an institution). Lender ehall apply the Funde to pay eaid taxea, esaesaments, inauranoe ptemiutna and ground nnta. I.ender may not charge !or so holding aad applying the FLnds, analyzing said account, or verifying and compiling eaid aeseesmente and bills, unleee I.ender pays Borrower interest on the Funda and applicable law permita [.ender to make such a charge. Borrower a~d I.eader may egree in writing at the titne of execution of thia Mortgage ihat intere8t on the Funda shall be paid to Borrower, and unleas auch agreement is made or applicable law requirea auch intereat to be paid, I.end~ ahall not be required to pey Borrower any interest or earnings on the fl~nds. Lender shalt give to Borrower, vrithout charge, an annual aooounting of the Funds ahowing crediLa and debite to the ~unda sad the purpoee [or which each debit to the ~nda w~a made. The Funde are pledged as additional eecurity for the auma eecured by thia Mortgage. It the amount of the FLnds held by I.eader, togethe~ with the future monthly inatallmente of Funds payabte prior to the duedatee of ta~cea, seseasmenta, inaurance premiuma and ground renta, ahall e:c~ed the amount required to pay esid taxee~ asae8amenta, inaurance premiums and ground rente aa they fall due, such exceas ahall be, at Borrower s option, either pmmptly repaid to Borrower or credited to Borrower on monthly installments of ~nds. If the amount of the Funds held by Lender ahall not be aufficient to pay ta~ceb, seeesaments, insurance premiums and ground rents ae they fall due. Borrower ehaU pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by I,ender to Borrower requesting payment thereof. . Upon payment in fuU of all eums secured by thia MortgaRe, l.ender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ie eold or the Property is otherwiee acquired by Lender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Ftinda held by Lender at the time of application as a credit against the aums eecured by this Mortgege. ~ . 3. Appi~cation of Payments. Unlees appliceble law providea otherwise~ all payments received by Lender under the Note and paragrapha 2 and 2 hereof shall be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, ' then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on nny Future Advances. 4. Charges; Liena. Borrower ahall pay all taxes, aaseeaments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, _ if not.paid in auch manner, by Borrower making payment, when due, dirnctly to the payee thereof. Borrowerahall promptly fumish to I.ender all noticea of amounte due under thia paragraph. and in the event Borrower shall make payment directly, E3orrower shall promptly furniah to Lender receipts evidenring auch paymente. Botrower shal! promptly diecharge any lien which has priurity over this Mortgage; provided, that Borrower shall not be required So diacharge any such lien so long as Borrower ahall agree in writing to the payment of theobligation secured by such lien in a mannet aceeptable to Lender, or shall in good faith canteat such lien by, ordefend enforcement oCsuch lien in, legal proreedinge which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Nazard Insurance. Borrower shall keep the improvemente now e:isting or hereafter erected on the Property inaured againet losa by fire, hazarda included within the term "e:tended rnverage," and such other hazards ae I.ender may require and in such amounta and for such periode as I.ender may require; provided, that Lender shall not requim such ooverage amount e:ceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that atnount of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. . The insurance carrier providing the insurance ahall be chosen by E3orrower subject to approval by I.ender; pmvided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provided under paragraph ~ hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to Lender and ahall inclede a standard mortguge clause in favor of - and in form aoceptable to Lender. Lender shall have the tight to hold the policies and renewale theteof, and Borrower ahall promptly fumish to ` i,ender all renewal noticee and all receipta of paid premiums. In the event of loae, Borrower shall give prompt notice to the insurance carrier and I.ender_ Lender may ma1~e proof of loes if not made promptly by Borrower. . Unlees Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repa'v of the Property ~ damaged, provided such reatoration or rnpair is economically feaeible and the eec~uity of thi8 Mortgage is not thereby impaired. If auch € reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired the ineurance proceeda ahall be applied to the auma eecured by this Mortgage, with the ezeese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 days from the date notice is mailed by L.ender to Borrower that the inaurance carrier oflera to aettie a claim for _ ; inaurance benefita, Lender ie authorized to coltect and apply the inauiance proceeds at L.ender s option either to reatoration or repair of the ~ Property or the sums eecured by thie Mortgage. ° Unless Lender and Borrower otherwiee agree in writing. any such application of proceede to principal ahall not extend or poatpone the due ~ date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of auch inatailmenta. If under paragraph 18 ~ hereof the Property is ecquired by i,ender, all right, title and interest of Borrower in and !o any inaurance policiea and in and to the proceeda ~ thereof reeulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the eztent of the aums secured by this • Mortgage immediately prior to auch sale or aoquiaition. - ~ 6. Preservation and Maintenance otProperty; Leaeeholde; Condominume; Planned Unit Developments. Borrowerahall keep ~ the'Property in good repair and ehall not commit waste or permit impairment or deterioration of the Piroperty and ehall camply with the proviaione of any leaee if thie Mortgage ia on a leaeehold_ It thie Mortgage ig on a unit in a oondominium or a planned unit development, ~ ~ F3onower ahall perform all of Borrower's obligationa under the declaration or oovenanta creatingor governing the condominium or planned unit development, the by-laws and regulatione of the ,condominium or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider ia e:ecuted by Borrowe~ and recorded together with thia Mortgage, the oovenante and ~ aKreements of auch rider ahall be incorporated into and shall amend and supplemenl the covenants and agreementa of thia Mortgageaa if the ~ rider were a part hereof , " 7. Protection of Lender's Securit~. If Borrower faiis to perlorm the oovenante and agreemente contained in this Mortgage. or if any ~ action or proc.eeding ia rnmmenoed which mat~ially affecte Lender's interest in the Property. including. but not limited to, euninent domain, ~ ineolvency. oode enforcement, or arrangemente or proceedinge involving a bankcupt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may make snch appearanoes. disburse such eums and take such action as ie neoeesary to protect Lendet's interest, - incinding, but aot limited to, diabureement of reasonabk attorney'a fe~ and entry upon the Property to make repaira. If I.endez required j mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums reqnired to meintain - euch inearance in effect until such time ae the requirement for euch inearanoe terminatea in evoordance with Borrowei s and Lender's - written agrcement or applicable Law. Borrower shall pey the amount of all mortgage ineurance premiums in the manner provided under - paragraph 2 hereof. _ ~ My amounts disbunsed by Lender persuant to thie paragraph with intereet thereon, ahall become additional indeMednees of ~ Eiorrower eecnred by thia Mortgage. Unlesa Borrower and I,end~ agree to other terme of payment, euch emounts ahall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and ahall bear interest from the date of diebursement at the rate payable from ~ time to time on outatanding principal under the Note unlees payment of intereet at euch rate would be oontrary to applicable law, in which ~ event such emounts ahall bear intereat at the hi hest rete g permisaible under applicable law. Nothing contained in thia paragraph 7, ahell ~ require Lender to incur any e~cpenee or take any action hereunder. ~ ~ ~ BCOr 3U3 741 = ~ ~ . ~ ~ . , . - - - - _ _ - ~ - ~ ~ u.M.y~,~~y " ~..~„r ,~.w~'`,~'~ ~ ~~`Fa"~ K _ . . . . _ . rF