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HomeMy WebLinkAbout2600 { I .4 . Borrower and Lender covenant and agree as follows: 1. Payment of Priaclpsl arm Interest. Borrower shall promptly pay when due the principal of and intend on the indebtedness ~ evidenced by the Note, prepayment and late charges a• provided in the Note. and the principal d and interest on aqy Fntun Advsnoes secured by this Mortgage. 4. PLnds for Taxes and inatranos. Subject to applicable law or to a written waiver by Leader. Borrower shall pay to Lender on the day monthly ir?stsllments d pindpal and interest are payable under the Note. until the Note is paid is Poll. a sum (herein "Funds'? equal to ones tweUth of the yearly taxes and asseesmeats which may attain priority over this Mortgage. and ground rents oa ilre Psopedy, ff any. plus era twelfth of yearly premium indallmeats for hasard insurances, plus one•twdRh of yearly premium instaUmenta for mortgage insurance, if any. ' cell as reasonably estimated initially sad tran time to time by Lender on the basis of assessments and bilk and reasonable estimates thereof '!bs Footle shaU-bs held in an iaditntioa the depodts or aoooants o[ which are insured or guaraatead by a Federal or State agenry (iadudiag Lender U Lender is arch an institution). Lender'shaU apply the Funds to pay said taxes, anessaneats, insurarras premiums and ' ground rents. Leader may not d~args foe so holding and applying the Fonds, analysing said account, or verifying and compiling said aeseaments and bills„ nnlees Leader pays Borrower interest on the Funds sad applicable law permits Lender b make such a drarge. Borrower sad Leader may agree in writing at the tiros of e:ecntion of this Mortgage that intend on the Funds shall be paid to Borrower. aacludess such agres~nsut is made or applicable law ngnires such interest to bs paid, Leader ahaU not be nquind to pay Borrower any intend or earnings oa the Funds. Landes ahaU give to Borrower. without charge. as annual aeoounting of the Funds ahowiag credits and debits b the Fonda and the purpose for which each debit to the Funds eras made.'lgre Dads an pledged as additional security for the sums secured by this Mortgage. If the amowrt of the Funds held by Leader. together with the futon monthly irrstallmeats of Fonds payable prior to the due dates ottaxes. assessments. iasnrance premiums sad ground rents, shall ezoeed the amount required to pay said taxes. aesessmenta, insurance premiums end ground rents as they fall doe, such e:oen shall be, at Borrower's option. eiWer Promptly repaid co Borrower or credited b Borroweron monthly iruWlments d Pbnds. I[ the amount of We Funds Geld by Leader shall not be sufScieat to pay tares. assesaun~ts, iwurance - pnmiams and ground rata w they tall due. Borrower ahaU pay to Iender any amount necessary to make up the deficiencj? within 30 days from the date notion is mailed by Lender t4 Borrower requesting payment Wereof. Upon payment in Poll dell saaos secured by this Mortgage, Leader shall promptly refund to Borrower any funds hdd by Lender. Ttunder paragraph 18 hereof the Property is sold es the Property le otherwise acquired by Leader, Lender shall apply. no later than immediately prior to the sale d the Property or its acquisition by Leader. any Ponds hdd by Lender at the time of application as a credit agairut the soma secured by this Mactgage. • 3.-Application o! Psyments. Unless applicable law provides otherwise, all payments noeived by Lender undo the Note and paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Leader by Borrower Hader paragraph 2 hereof, Wen to intend payable on the Note, then to We principal of the Note. end then to intend and principal on any Future Advances. 4. Charges; Liens. Borrower ahaU pay all taxes, assessments and other charges. 5nes and impositions attributable to the Property which may attain a psmrity over this Mortgage, and leasehold paymeate or ground ants, if any, in the manner provided under paragraph 2 hereof or. if not paid in each manna, by Borrower making payment, when due. directly to the payee thereof Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly Porniah to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahaU not be required to discharge any such lien so long as Borrower shall ague in writing to the payment of the obligation secured by - anchlien in amanner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings 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 ezistiag or hereafter erected on the Property insured against loss by fire, hazards inducted within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided. that Leader shall not require such coverage amount ezceeding the minimum. as may be required by state or federal regulations governing activities of Leader, or that amount of wverage required to pay the sum_ s secured by this Mortgage, whichever is the grater. 'R~e insurance carrier providing the insurance shall be chosen by Borrower subject b approval by Lender, provided, that such approval shall not be unreasonably withheld. AU premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in arch manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form aooeptab!e to Lender and shall inducts a standard mortgage louse in favor of aced in form acceptable to Lender: Lender shall have the right to hold the policies and renewals thereof,'and Borrower shall promptly fiuniah to fender all r~ewal notices and cep receipts d paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof d loan if nob made promptly by Borrower. - Udees Lender aced Borrower otherwise agree in writing, insurance prooeeda shall be applied to restoration or repair of the Property damaged, provided suds restoration or repair ie economically feasible and We security of this Mortgage is not thereby impaired. If such natoration or repair is Hoc economically feasible or if the aecnrity d this Mortgage would be impaired, the insurance proceeds shall be applied i to the cams secured by this Mortgage.with the e:oees, if any, Paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offer to settle a claim for - j insurance beae5cs, Lender is authorised to eoUect and_ apply the insurance prooeeda at Lendels option either to restoration or repair of the f Property or the sums secured by tlria Mortgage. . Unless Leader and Borrower otherwise ague is writing, any such application of proceeds b principal shall not a:tend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender paragraph 18 hereof the Property is acquired by Lender, all right, title and interact d Borrower in and to any insurance 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 extent of the sums secured by this ~ Mortgage immediately prior to arch sale or aegaisitioa. ~ 6. Preservation and Mainteaanoe of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions d any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in s condominium or a planned unit development, Borrower shall perform all d Borrowels obligations under the dedaration or covenants cr~eatingor governing the oondomininm or planned Wait devdopment, the by-laws and regulations d the condominium or planned unit devdopment, and oonatitnent documents. If a condominium or planned unit development rider is ezewted by Borrower and recorded together with this Mortgage. the ooveoants-and agreements of such rider ahaU be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider wen a part hereof 7. Pr~otedion of Lender's Security. Tf Borrower fails to perform the aoveaanb and agreemen4 oontaiaed in thin Mortgage, or if any. ~ action or proceediagv oommeaoed which materially affects Lendels intend in the Property, inducting, but not limited to, eminent domain. insolvency, Dods enforcement, or arrangements or proceedings invdviag a bankrupt err decedent, then Leader at Leader's option,npon notice to Borrower may make arch appearances. disbnne such arms and tales such action as is necessary to protect Lender's intend, ~ indoding, bat not limited to, diabanement d rewoaabk attorney's fees and entry neon the Property to make repairs. If Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrows: shall pay the premiums required to msintein sadr iruuranoe in effect untU inch-time es the requirement for arch insurance terminates in :ooordance with Borrower's and Leadels written agresa~eat or applicable Law. Borrower shall pry the amount d all mortgage insurance premiums is the manner provided ender paragraph 2 hereof. - Any amormts disbursed by Cantle: perauant to this paragraph with iatenst thereon, shell become additional indebtedneses of E Borrower secured by this Mortgage. Unless Borrower and Cantle: ague to other terms of payment, such amounts shall be payable upon t rwtioe from Lender to Borrower requesting payment thereof, and shall bear interact from the date of diabaresmeat at the rate payable floor time to time on outstanding principal under the Note unlcas payment d interest at such rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall regain Leader to incur any expense or take any action herenader. g ~o~K3o3 ~~E2596 . _ . ~ - _ -