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HomeMy WebLinkAbout0249 I3orrower and l.ender covenant and ag~ee as folluwa: l. Peyme~t of Principal a~d IntoreBt. E3orn,wer ahoU promptly pay when due the principa) oi und interest u~ the indrbtedneda evide~ced by the Note, prepayment and late chargea ae pro~~ded in !he Note, and the principal of and iotereet on any Futurn Advances becured by thie Mortgage. 2. ~nde for Taxes and Ineurance. Subject to applicnble law or to a written waiver by I.endrr, liurruwe~ ahull pay tu lxnder on the day monlhly instaUments o[ principal and interrst are payable unde~ the Note, until the No~e is puid in full, a aum (herein "Funda"1 eyual lo onP twelfth of the yea~ly taxee und uaseaaments which may attuin priority over thia Mortguge, and ground reota un the Pruperty, ilany, plua one twelhh of yea~ly premium installmente for hnzard insu~ance, plua onPtwelfth of yeurly pmmium inatallmenta for mortguge insurance, if any, aU as maaonwbly eatimated inilially and from time to time by I.ender on the basis of e~eaamenis and bilis und reuxonpble eatimatea thereof. ~ The FLnda shall be held in an institution the deposita or accounta of which are ineured or guaranteed by a Federal or State ugency (including i.ender if Lender ia such a~ inetitution). l.ender ahall apply the Funds to pay said taxes, asseeu~ments, insurance premiums and ground rents. I.ender mey ~ot charge [o~ so holding and applyiog the ~nda, analyzing said account, or verifying and compiling said asaesemenCe and bille, unlese I.ender paye Aorrower intereat on the Funda and applicable law permita l.ender to make euch a charge. Borrower and Lender may agree in writing at the time of execution of thie Mortgage thet intereat on the Funde ahall be paid to Fiorrower, and unleas euch agreement ie made or applicable law requirea such intereat to be paid, l.ender shall not be required to pay Borrower any intereat or eaminge on the Funds. l.ender ehatl give to Borrower, without charge, an annual accounting of lhe Funds ahowing credita and debite w the Funda and the purpose for which each debit to the ~nda was made. The Funda are pledged as additional security for the suma xecured by this Mortgage. ' lf the amount ot the F~nda held by l.ender, together with the future monthly inetallmenta of Funda payable prior to the due dates of taxea, assesamente, insurance premiums and ground rents, ahall exc~ed the amount required to pay said taxes, asaeaamenta, inaurance premiumH und ground rents as they fall due, auch ezcess sha116e, at Bo~r~wer e option, either prompdy repaid to Borrower or credited to Borrower on monthly inetalimente of ~nds. If the amount of the Funda held by I.ender shall not be sufficient to pay taxee, aeaeasmenta, inaurance prnmiums and ground renLs as they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upan payment in full of ali aume secured by this Mortgage, I.ender shaU promptly refund to &?rrower any funda held by Gender. If under paragreph 18 hereof the Property ie sold or the Property is otherwiae acquired by I.ender, l.ender ahail apply, no later than immediately prior w the eale of the Property or ite soquisition by Lender, any F~ada held by Ixnder at the time of application as a credit against the suma secured by thie Mortgage: 3. Applieation ot Payments. Unleas applicable law providee otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender firat in payment of amounts payable to l.ender by I;orrower 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; Liens. Borrower ahall pay all taxes, assessments and other cha~ges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner pruvided under paragraph'l herec?f or, if not paid in such manner, by Borrower making payment, whe~ due, directly to the payee thereof. Borrowershall promptly furniah to I.ender all notices of amounta due under thia paragraph, and in the event Borrower shall make payment directly. Borrower shaU promptly furnish to l.ender receipts evidencing auch payments. I3orrower ahall promptly dischargr any lien which has priority over this Mortgage; pmvided, that Borrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, ur defend enforcement of such lirn in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hezard Ineurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property insured against loss by fire, hazarde included within the term "extended coverage; ' and such other hazards as Lender may require and in such amounts and for such periode as Lender may require; provided, that Lender ahull not require such coverage amount exceeding the minimum, as may be required by atate or federal mgulationa goveming activities of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever is the greater. The insurance carrier providing lhe inaurance shall be chusen by E3~rrower subject to approval by I.ender, pn,videcl, that such appro~ ~l shall not be unreasonably withheld. All premiuma on insurance pulicies shaU be puid in the manner provided under paraKraph Y hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof shall be in fonn acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender ahall have the right to hoW the policies and renewals thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipta of paid premiume. In the evrnt of lose, Borruwer ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loea if not made promplly by Borrower. ~ Unlesa Lender and Borrower otherwiee agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ~ ~ damaged, provided auch rnatoration or repair is economically [easible and the eecurity of this Mortgage ia not thereby impaired. If auch ~ restoration or repair ie not economicaily feasible or if the eecurity of thie Mortgage would be impaired, the insurance procei.~ds ahall be applied ~ to the suma secured by this Mortgage, with the e:cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if 8orrower fails to ! respond to Lender within 30 daye from the date notice is mailed by L,ender to Borrower that the inaurance carrier offera to settle a claim tor inaurance benefita, Lender is authorized to collect and apply the insurance procreda at I.ender's option either to restoration or repair of the ~ Property or the euma eecured by thie Mortgage. ~ Unleea Lender and Borrower otherwise agree in writing, any auch application of proceede to principal ahall not extend or postpone the due ~ date of the m~nthl instaliments rnferred to in ara hs i and 2 hereof or chan e the amount of such inatallments. If nnder ara a h l8 i Y P KTgP B P ETr P ~ hereof the Property ie aoquired by l.ender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof ceaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the e:tent of the eume eecured by this ~ Mortgage immedistely prior to euch eale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall comply with the ~ pmvisions of any lease if thie Mortgage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, f3orrower shall perform all of $orrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and conetituent documente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenanta and ~ agreements of such rider ahall 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 I.ender's 3ecurity. If Borrower fails to perCorm the oovenants and agrcemenLe contained in this Mortgage; or if any " action or proceeding ie commenced which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinge involving a baniwpt or deoedent, then Lender at Lender'e option,upon ~ 3 notice to Borrower may make euch appearancee, diaburee euch eume and ta1~e auch action se ie necessary to protect Lender's intereat, including, but not limited to, diebureement of reaeonable attorney'e feee and entry upon the Property to make repairs. If Lend~ required mortgage insnrance a8 a rnndition of making the loan eecured by this Mortgage, ~3orrower shall pay the premiame required to maintain auch ineurance in effect until euch time as the requirement for such insurance terminates in accordance with Borrower'e and Lender s written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under - paragraph 2 hereof. ` My amounte diabureed by Lender persuant to thie peragraph 7, with intereat thereon, shall become additionai indebtedness of Borrower secured by thia Mortgage. Unleae Borrower and Lender agree to other terme of payment, such amounte ehall be payable upon `i notice from Lender to f3orrower requesting payment thereof, and ahall bear intereet from the date of diebnrsement at the rate payable from ;t time to time on outatanding principal under the Note unieea payment of intereet at auch rate would be contrary to applicable law, in which - event euch amounte shall bear intereet at the higheat rate permisaible under applicable law. Nothing rnntained in this paragraph 7, ahal! requ'ue [.ender to incur any expenee or take any action hernunder. a ~a ~ _ ~ ~~~~Rt 3U4 ~ _ 249 !+i ~ _ _ ~ ~ . ~ . ~:_.1+: j Y ~ ~ .~~~e~.~f~~e 'V`S ? ~3 I ~'..Slc ~ & _ = ~J~~~=~~ 4~~~.+~'~. t. . . 6~`- . _ .