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HomeMy WebLinkAbout2281 Borrower and Lender covenant and agree u.folbws: 1. Payment of Principal sad liatersst. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment sad late charges u provided is the Note. and the principal of sad interest oa say Future Advances secured by Wis Mortgages Z. Fwda tor'1`asea sod Insursuros. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender oa the day . monthly initallmeats of principal and interest are payable under the Note. until the Note is paid is fuQ a sum (hseia "Fund~'~ equal to ones. twelttb of the yearly tares sad asseesmenta which may attain priority ova thin Mortgage, end ground rents oa the Property. itany, Plus one twelRh of yearly pnminm installments for hazard inuurance, Ales one•tweliW of yearly premium irutallments for mortgage iaauraacs, if say, all u reasonably estimated initially and lfom tins to time by Lender oa the basis of aesessments and biW and reasonable estimates thereof. '!fie Fends shall be held is as iastitntioa the deposits or accounts of which are insured or guaranteed by a Federal or State agency (ineludin~ Linda it Lender is aneh an institution). Leader shell apply the Funds to pay said farces, assessments, insurance premiums and Around eats. Lends may not charge for so hokiiag and applying the Funds, analysing said aoeamt, or verifying and compiling said essessarmts sad bills. nnlees Lender pays Borrower interest oa the Fends sad applicable law permits Leader to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage Wat interest on the Fends shall be paid to Borrower. and cakes such agreerneat is made or applicable law requires such interest to be paid. Lender shall not be required to-pay Borrower any interest or earnings oa the Funds. Leader shall glue b Borrower. wiWont charge, an anneal aooounting of flre Funds showing credits and debits to We Fends sad the pnspoes for which each debit to We Funds was made. The Flrnds are pledged u additional security for the sums second by thin Mortgage. Tt the amount of the Fends held by Lends, fogeWs with We future monthly installments of Fends payable prior to the due dates of lases, essesammts, insurance premiums sad ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as Wry fall due, such exoees shall be, at Borrowet~s option, either promptly repaid to Borrower or credited to Borrower on monthly iasWlmenb of Funds. If We amount of the Enacts held by Leader shall not be sufficient to pay taxes, assessments, insurance premiuau and ground ants 8. Wry fall due, Borrower shall pay tD Leader any amount necessary to make uP the deficaenclr within 30 days from We date notice is mailed by Lender to Borrower requesting payment Wenof. - - - Upon payment in fell of all rams secured by this Mortgage, Lender shaA promptly refund to Borrower any fiends held by Linda. Tf ender paragraph 18 hereof We Property is sold or We Property is oWawise acquired by Landes, Lender shall apply. no later Wan immediately prior to the sale of the Property or its aoquisi~ion by Lender, aqy Fends held by Lender at the time of application ss a credit against We Bums secured by this Mortgage. 3. Applk;ation of Payments. Unless applicable law provides oWerwise, all payments received by Lender cedes We Note and Paragraphs 1 and 2 hereof shall be applied by Landes first in payrment of amounts payable to Lender by Borrower seder paragraph 2 hereof, then to interest payable on We Note, Wen to We principal of We Note, and Wen to interest and principal on any Faturs Advances. 1 4. Charges: Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority ova this Mortgage, and leasehold payments or ground rents, if any. in the manner provided uridaparagraph 2 hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall psaaptly furnish to Lender all notices of amounts due Hader this paragraph, and in the event Borrows shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall P~PtiY aischarge any lien which has priority over this Mortgage; Provided, W at Borrows: shall not be required to discharge any such lien eo long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner aooeptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prev~t We enforcement of the lien or forfeiture of We Property ~ any part thereof. 5. Hazard Insuraaoe. Borrower shall keep the improvement now ezisting or hereaRar erected on the Property insured against lose by ~ fire, hazards included within the term "eztended oovsage," and such older hazards u Lends may require and in such amounts and for each } periods u Lender may require; provided. that Lender shell rest require such coverage amount exceeding We minimum, as may be required by state or federal regulations governing activities of Lends, or that amount of coverage required to pay the soma secured by Wiz Mortgage, ~ whichever is We greeter. - 'The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided that acct-i approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by? Borrower making payment, when due, directly to We insurance carrier. 3 All insurance policies and renewals Wereof shall be in form aaoeptable to Lends and shall include a standard mortgage clause in favor ~ and in form acceptable to Lender. Lender shall have the right to hold We policies and renewals WereoL and Borrows shall promptly furnish to lender all renewal notices and all recepts of paid premiums. In We event of loss, Borrower shall give prompt notice to We insurance carrier ~ and Lender. Lender may make proof of lass if not made promptly by Borrower. - Unlees Lender and Borrows: oWerwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property - damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is eat thereby impaired. If such restoration err repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the snnos secured by this Mortgage. wild We e:cees. if any, Paid to Borrower. If We Property is abandoned by Borrower. or if Borrower fails to respond to Lender within 30 days Gro1m the date notice is mailed by Lender to Baarows that We insurance carrier o!I'ers to setae a claim for insurance benefit, Lender is authorised to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ' Property or We sums secured by this Mortgage. Unless Lender and Borrower oWerwise agree in writing, any such application of proceeds to principal shall not extend ur postpone We due i date of the monthly installments referred to in paragraphs I and 2 hereof or change the amount of such installments. If seder paragraph 18 hereof We Property is acquired by Lender, all right. title and interest of Borrower in and to any insurance policies and in and to We proceeds ~ thereof resulting 5rom damage to Property prior to the sale or acquisition shall peas to Lends to We estent of the sums secured by this ~ Mortgage immediately prior to such sale or acquisition. i 6. Preservation and Haintenanoe of Property: Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep ~ the Property in good repair and shall not commit waste ar permit impairment or deterioration of the Property and shall comply wild We i I provisions of any lease if this Mortgage u on a leasehold. If this Mortgage is on a Wait in a condominium or a planned unit development, 1 Borrower shall perform all of Borrows:'s obligations ender the declaration or covenants creatingor governing We oondomininm or planned t unit development, the bylaws and regulations of the condominium or planned Wait development, and oonstitaeat documents. If a ~ ~ condominium or planned unit devebpment rider is ezecuted by Borrower and recorded together wild this Mortgage, We ooveaant and - $ agreements of such rider shall be incorporated into-and shall amend and supplement the covenant and agreement of this Mortgage as if We rider were a part hereof. 7. Protection of Larder's Security. If Borrowur fails to perform We covenants and agreements contained is this Mortgage. or if any action or proceeding is oommeneed which materially aged Leader's interest is the Property. indading, bet not limited to, eminent domain, insolvency. code eatoroemmt, or arrangements or proceedings involving a ban)anpt err decedent, then Leader at Lender's option,npon ! notices to Borrower may make such appearances, dubnne such sums and take each action u is necessary to pr+otet Leader's iatarest, s including, but not limited to, disbursement of reasonable attorne~?'s fees sad entry upon the Property to make repairs. U Lender required mortgage insurance u a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums ngaired to maintain such iruuraace in effect until such time es the requirement for such insurance terminates in aocor+danoe with Borrowds and I.mdei's k F writta agreement or applicable Law. Borrower shall pay We amount of ell mortgage insurance premiums in the manner provided under ' Paragraph Zhereof. - - . Any amounts dubnrsed by Lender persuant to this paragraph 7, wild interest thereon, shall become additional indebtedness of _ Borrower secured by this Mortgage. Unless Borrower and Linda agree to other terms of payment, snc]r amount shall be payable upon notice from Lender to Borrows requesting payment WereoL and shall bear interest from the date of disbursement at the rate payable from i time to time on outstanding principal undo the Note unless payment aT interest st such rate would be contrary to applicable law, is which event such amounts shall bear interest at the highest rate permissible ends applicable law. Nothing oontaiaed in this paragraph 7, shall ~ require Lends to incur any expense or take any action hereanda. i . ~ ~ go~x 3(l~ f~~2277 ~ . a