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HomeMy WebLinkAbout2285 • r Borrower and Fender covenant and agree as tolbws: 1. payment of Principal and Interest. Borrower shall promptly Day when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges u provided in the Note. and the principal of and interest on any I~ture Advances secured by this Mortgage 2 Penile for Taws and Insuraaos. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note. until the Note is paid in full, a sum (ilyrein "Funds'h equal to one• 1 twelRh of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plw oae• twelRh of yearly premium installments for hasard insurance. plw one•twellth of yearly Premium installments for mortgage iruurance, if any. # all a. reasonably estimated initially and it^om time to time by Lender on the basis of assessments and bilb and reasonable estimates thereof. The Ptirnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal os State agency (inducting Leader if Lender is such as institution). Lender shall apply the Funds to pry said taxes, assessments. insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing said sooount, or' verifying and compiling said assessments and ~biW. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrows and Lender may agree in wilting at the time of execution of this Mortgage that interest on the Penile shall be paid b Borrower. sad unless i such agresrnent is made or applicable law requires such interest to be paid. Leader shsA not bs required to pay Borrower any interest w ! earnings on the Pbnds. Lender shall give to Borrower. without charge, an annual aooounting of the Funds showing credits and debits b the Funds and the purpose for which each debit to the Funds was made. The Fends are pledged as additional security for the sumo secured by this Mortgage. If We amount of the Penile hdd by Lender. together with the future monthly irutallmenta of Funds payable prior to the dw dates of taxes, sasessrnents. insmance preminmu and gronad rents. shall ezoeed the amount required to pay said razes, assessnents. insurance premiums and ground rents as they fall due, such excea shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Ftimds. Tf the amount of the Fends held by Lender shall not be sufficient to pay taxes, asseaments. inuurance premiums and ground rants as they fall due. Borrower shall pay to Lender any sorcerer necessary to make rep the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. Upon payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Leader shall apply. no later than immediately prior ; t~ the sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of application w a credit against the sums secured by this Mortgage. 3. Applkation of Paymeata. Unless applicable law provides otherwise. ell payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Leader first in payment of sorcerers payable to Lender by Borrower under paragraph 2 hereof then to interest payable on the Note. then to the prim©pal of the Note. and then to inferrer and principal on aqy Fntnre Advances. 4. Charles; Liens. Borrower shall pay all fazes, assessments and other charges. fines and impositions attributable to the Property which ~ may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the Payee thereoL Borrower shall promptly furnish to Lender all notices of amonnte due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall Promptly discharge any lien which has priority over this Mortgage; Provided, that Borrower shall not be required to discharge any such lien eo long as Borrower shall agree in writir?g to the payment of the obligation secured by such lien in a manner acceptable to Lender. or shall in good faith rnntest such lien by, or defend enforcement of such lien in, legal prooeedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any Part thereof 5. Hazard Insurance. Borrower shall keep the improvements now eziating or haeatter erected on the Property insured against lore by ~ fi re. hazards included within the term "eztended coverage." and such other hazards as Lender may require and in such amounts and for arch periods as Lender may require: provided, that bender shall not require such coverage amount ezceeding the minimum, as may beregnired by } state or federal regulations governing activities 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 insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if 's not paid in anc6 manner. by Borrower making Payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Linder and shall include a standard mortgage clause in favor of ; and in form acceptable to Lender. Leader shall have the right to hold the policies and renewalethereof, and Borrowei shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. Ln the event of lass, Borrower shall give Prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree is writing. insurance Proceeds shall be applied to restoration or repair of the Property damaged, provided arch restoration or repair ie economically feasible and We security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums aeciued by this Mortgage, with the ezcxss, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to - respond to bender within 30 days frrom the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for f insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the sums secured by this Mortgage. • Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not eztend or postpone the due i ~ date of the monthly installments referred to in paragraphs i and 2 hereof or d~ange the sorcerer of arch installments. If under paragraph 18 hereof the Property is acquired by Lender, all fight. title and interest of Borrower in and to any insurancx policies and in and to the proceeds ~ ` thereof resulting from damage to Property Prior to the sale or acquisition shall pass to Lender to the eztent of the some secured by this i ~ Mortgage immediately prior to such sale or acquisition. - S 6. Preservadon and Maintenance of Property;Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep (I the Properly in good repair and shall not commit waste or permit impairment or deterioration of We Property and shall comply with the proviaione of any lease if this Mortgage is on a leasehold. If this Mortgage is on a Wait in a condominium or a planned unit development, Borrower shall perform ell of Borrower's obligations under the declaration or covenants cseatingor governing the condominium or planned ~ unit development, the by-lean and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together wild this Mortgage, the covenants end agnamenta of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained is this Mortgage, or if any ` action or proceeding is eommenoed which materially affects Lenders interest in the Property. including. but not limited to, eminent domain, 4 insolvwcy, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, rhea Lander at Lender's option,npon I notice to Borrower muey make such appearances. disburse such sums and talcs such action w is necessary to pcoted Leader's interest. indading. but not limited to, diabnrsement of reasonable attorney's fees and entry upon the Property to make repair. Lf Leader required mortgage inssrance as a condition of making the loan secured by thin Mortgage. Borrower shell pry the Premiums required to maintain snob insurance in effect until such time as the requirement for such irunrance terminates in aeoordanee with Borrower's and Leaders written agreement or applicable Law. Borrower shall pay the amount of all mortgage inaarancx premiums in -the manner provided under Paragraph 2 hereof: Any amounb disbursed by Leader persnant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrower and Lender agree to other tams of Payment, such amounts shall be payable upon s notice Gone Lends to Borrower requesting Payment thereof, and shall beeir interest from the date of disbnnrement at the rate payable floor time to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law. in which event such amounts shall bear inta+est at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall E require Lender to incur any ezpense or take any action herennde:. t 30GX e)lle3 YAGf 2281 ~ < - - - _ - ,Q~, - _