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HomeMy WebLinkAbout0672 Borrower and I.e~der covenant and agree as folbwa: 1. Payment ot P~rincipal and Interest. i3orn?wer ahall promptly pay when due the principal of s~d intereat on the indebtednees evidenced by the Notr, psepayment and late chargee as provided in the Note, and the principal of and intereaton any Future Advances eecured by thia Mortgage. 2. Fltnds for Tases and lnauranee. Subjecl to applicable law or to a written waiver by l.ender, E;orrower ahall pay to Ixnder on the day monthly inetallmente of principal and intereat are payable unde~ ihr Notz, until the Notr ia paid in futi, a sum (herein "F~nds") equul to one twelfth of ihe yearly taxee and asseaementa which may attain priority over this Mortgage, and gmund renta on the Property, if any, plus one twelfth of yearly prnmium inatallmente for hazard insurance, plus onetwelfth ofyearly premium inatallmentx for murigage insurance, if any, all ae reasonably estimated iniGally and from time to time by I.ender on lhe baeie of asaessments and billa and reasonable es?imates thereof. 71~e FLnde shall be held in an institution the depoeits or accounts of which are insured or guaranteed by e Federal or State agency (including I.ender if Lender ie such an institution). I.ender ahall apply the Funds to pay said taxes, aeaeeamente, insurance premiume and gronnd rents. I.ender may not charge for so holding and applying the ~nds, analyzing aaid account, or ~verifyiag and compiling said aseessments and bills. unleaa Lender paye Borrower intereat on the Fti?nda and applicable law permite [.eoder to make auch a charge. fiorrower and Lender may agree in wtiting at the time of e:ecution of this Mortgage that intereat on the fi~nds shall be paid to Borrower, and unless such agreement is made or epplicable law requires auch intereet to be paid, I.ender ahali not be required to pay Borrower any intereat or earninge on the ~nds. I.ender shatl give to Borrower, without charge, an annual accounting otthe Funda ahowing credite and debits to the Funds and the pu~pose for which each debit to the ~nda was made. The Funda are pledged as additional eecurity for the aume aecured by thie Mortgage. If the amoant of the ~nda held by Lender, together with the future monthly instxllmenta of Funds payable prior to the due dates of taxee, seseasmenta, inaurance pcemiuma and grc~und renta, ahaU e:c2ed the amount required to pay said taaes, asaeasmenta, inaurance prnmiucna and ground rente sa they fall due, auch excesa shall be. at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly inatallments of Funde. If the amount of the Funde held by Lender shall not be sufficient to pay taaee, asaesementa, insurance premiume and ground reate as they fall due, Borrower ahall pay to l.ender any amount necessary to make up the deficiency within 30 days from the dale notice ia mailed by Lender to Borrower requesting payment thereot Upon payment in full of all sums eecured by this Mortgage, Lender shall pmmptly refund to Borrower any funds held by Ixnder. If under paragreph IS hereof the Property is aold or the Property is othenvise acquired by I.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or itsacquisition by Lender, any ~Lnda held by I.ender at the time of application as a credit againat the auma secured by this Mortgage. 3. Applieation of Paymente. Unless applicable !aw provides otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shaU be applied by Lender first in payment of amounte payable to Lender by Borrower under p,~ragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liena. Borrower ahall pay a11 taxes, assessmenta and other chargea, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rnnts, 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 thereof. Borruwer shall promptly furnish to I.ender all notices of amounta due under :his paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to I.ender receipts evidencing auch payments_ Borrower shall promptly discharge any lien which has priority over this A'Iortgage; provided, that E3orrower shall not be required b discharge any such lien so long as 13orrower shall agree in writing to the paymentof theobligntion secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend 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 improvementa now exiating or hereafter erected on the Property inaured against loss by fire, hazarda included within the term "extended coverage; ' and such other hazards ae Lender may require and in auch amounta and for such periods as Lender may requirP; provided, that I.ender shall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums aecured by this blortqage, whichever is the greater. The insurance carrier providing the inauranc2 shall be chosen by 13orrower subject tn approval by I.ender, pmvided, that such appro~~al shall not be unreasonably withheld. All premiums on inaurance policies shall be paid in the manner pmvided under paragr~ph 'l hereof or, if not paid in such manner, by Rorrower mxking payment, when due, direcdy to the insurance carrier. All insurance policies and renewala thereof ahall be in form acceptable to I.ender and ahall include a standard mortgage clause in favor of ! and in form acceptable to Lender. L.ender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all renev~al notices and all receipta of paid premiums. In the event of loas, Borrower shall give prompt notice to the insurance carrier i and Lender_ Lender may make proof of loas if not made promptly by Borrower. j Unleea Lender and Borrower otherwiee agree in writing, insurance proceeda ahall be applied to reatoration or repair of the Property t damaged, pmvided such reetoration or repair is economically feasible and the security of this Mortgage ia not themby impaired. If such ~ rnetoration or repair ie not economically feaeible or if the security of thia Mortgage would be impaired, the insurance proceeds shall be applied to the euma secured by this Mortgage, with the excess, 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 offers to setde a claim for inaurance benefita, Lender ia authorized to collect and apply the inaurance proceeda at Lender's option either to restoration or repair of the s Property or the aums aecured by this Mortgage. ~ ~ Unless Lender and $orrower otherwiee agree in writing, any auch application of proceeds to principal ahall not extend or postpone the due ~ date of the monthly inetallments referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquiaition aha?1 pass to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to snch sale or acquisition_ 6. Preservation and Meintenance of Property; Leaseholde; Condominuma; Pianned Unit Developments. Borrowerahall keeg ~ the Property in good repair and ahali not commit waste or permit impairment or deterioration of the Properiy and shall comply with the ~ pmviaione of any lease if thia Mortgage is on a leasehold. If this Mortgage ie on a unit in e rnndominium or a planned unit development, ~ Borrower shall perform all of Borrower a obligationa under the declaration or covenanla creatingor governing the condominium or planned unit development, the by-lawe and regulations of the condominium or planned unit development, and constituent documenta. If a ~ condominium or planned unil development rider ia e:ecnted by Borrowec and recorded together with this Mortgage, the oovenanta and ~ agreements of auch rider ahall beincorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. - 7. Protection ot Lender'e Securtty. If Borrower faila to perform the oovenante and agreemente contained in thie Mortgage, or if any - action or proceeding ia commenced which materially affecte Lender a interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforc~ement, or arrangementa or proceedinge involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may mate euch appearancea, dieburee such aums and take anch action as is neceasary to prot~ect Lender'a interest, ~c inclnding, bnt not limited to, diebureemeat of reaaonable attorney's feee and entry upon the Property to make repaire. If Lender required ~ mortgage ineurance as a rnndition of making the loan secured by thie Mortgage. Borrower ehall pay the premiuma required to maintsin euch ineurance in effect until euch time ae the requirement for auch ineurance terminatea in accordance with Borrower's and Lender's written egreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiume in fhe manner provided under '-i paragreph 2 hereof. ~ My amounte diebureed by Lendet pereuant to"thie paragraph with intereet thereon, ehall bec.~ome additional indebtedneae of F; Borrower secured by thie Mortgage. Unless Borrower and Lender agree to other terma of payment, auch amounta ahall be payable upon - notice from Lender to Borrower requeating payment thereof, and shall bear intereet from the date of diabureement at the rate payable from ~ time to time on outetanding principal under the Note unleae payment of intereet at such rate would be contrary to applicable law, i~ which ~ event euch amounta ehall bear intereat at the highest rate permiasible under applicable law. Nothing contained in thie paragraph 7, ahali ~ require Lendez to incur any expenae or take any action hereunder_ ~ n ~ ~ _._,,,3U5 _ e71 ~ . ~ ~ ~ ~