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HomeMy WebLinkAbout0181 Borrower and Lende~ covenant and agree as follows: l. Payment o! Principal and Intereet. Borrower shatl promptly pay when due the pri~cipal of and intereat on the indebtedneea evide~ced by the Note, prepayment and late chargc+a as provided i~ the Note, and the principal of and interest on any Fliture Advances scruted by this Mortgage. 2. Ftitnda [or Taxes and Ineurance. Subject to applicable law or to a written waiver by l.ender, Borrower ehall pay to t.ender on the day monthly inataltments of principal and intereet are payable under the Note, until the Note ia paid in full, a aum (herein "F unde") equal to one twe1M of the yea~ly taxes and asseasments which may attain priority over thie Mortgage, and ground rents on the Property, if any, plus one twelfth of yearly pmmium inatallmenta for hezard ineurance, plua onetwelRh of yearly premium inatatlmenta for mortgage insurance, if any, all as reasonably eatimated initiaUy and from time to time by I.ender on the basia of assessmenta a~d bills and ~easonable estimatea thereof. The ~unds shaU be heW in an inetitution the depoeits or accounts of which are inaured or quaranteed by a Federal or State agency (including l,ender i[ Lender ie euch an institution). I.ender ahall apply the Funda b pay said taxee, assesamenta, insurance premiums and ground rente. I.ender may not charge for eo holding and applying the ~nds, analysing aaid account, or verifying and compiling said asaeeemenfa and bitls, unleee l.ender peye Borrower intereet on the ~nde and applicable Iaw permite I.ender to make auch a charge. Borrower and Iender may agree in writing at the time of execution of thie Mortgage that interest on the F~nde ahall be paid to Borrower, and unlese auch agreement ie made or applicable law requires such intereet to be paid, I.ender shall not be required to pay Borrower any interest or earninga on the I~nda. L.ender ehaU give to Borrower, without charge. an annual accounting of the Funda ahowing credite and debite to the Funde and the purpoae for which each debit to the Funda wae made. 7'he Funde are pledged se additional security for the aums eecured by this Mortgage. If the amount of the ~nde held by I.ender, together with the fab~re monthly inatallments of Funda payable prior to the due datea of laxea, aeaeesments, inaurance premiuma and ground rente, shall ezcaed the amount required to pay said taxea. assesaments, ineurance premiuma and ground rente ae they fall due, euch excese shall be, at Borrower's option, either pmmptly repaid to Borrower or credited to Borrower on monthiy installments of fi~nds. If the amount of the Funda held by l.ender shaU not be sufficient to pay taxes, asseasmente, inaurance premiuma and ground rents ae they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 daye from the date notice is mailed by Lender to Borrower requeating payment thereof. Upon pay~nent in full of all auma eecured by this Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie aold or the Property ia otherwise acquired by Lender, I.ender shall apply, no later than immedistely prior to the sale of the Property or ita acquisition by Lender, any Fl~nda held by L.ender at the time of application as a credit against the suma secured by thie Mortgage. 3. Applieation o! Payments. Unleea applicable law providea otherwiae, all payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of amounta payable to I.ender by Borrower under patagraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advancee. 4. Chargea; Liene. Borrower ehall pay all taxes, 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 thereof. Borrower shall promptly furnish to i.ender aU notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Botrower shall promptly furnish to Lender receipta evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legai proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shtill keep the improvementa now exiating or hereafter erected on the Property inaured against loss by fire~ hazarde included within the term "e:tended coverege,° and euch other hazards as Lender may require and in such amounts and for such periode as I.ender may require; provided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activitiea of Lendet, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever ia the greater. The inaurance carrier providing the insurance ahall be chosen by Borrower subject to approval by I.ender, provided, that such approval ahall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner pmvided under parxgraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directly to the insurance carrier. All insurance policieH and renewals thereof shall be in fortr? acceptable to I.ender and shall include a atandard mortgage clause in favor of and in form acceptable to I.ender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower ehall promptly furniah to i.ender all renewal notices and all reoeipts of paid premiuma. In the event of losa, Borruwer ahall give prompt notice to the inaurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. Unlese Lender and Borrower otherwiee agree in writing, inaurance proceeds ahal! be applied to restoration or repair of the Property damaged, provided auch restoraEion or repair is economically [easible and the security of thie Mortgage is not thereby impaired. If auch restoration or repair is not economically feaaible or if the eecurity of thie Mortgage would be impaired, the insurance proceeds ahall be applied to the euma secured by thia Mortgage, with the e:cesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 daya from the date notice ia mailed by Lender to Bor:ower that the insurance catrier offers to aettle a claim for inaurance benefite, I.ender ie authorized to rnllect and apply the inaurance proceeds at Lender s option either to restoration or repair of the E Property or the suma eecured by thie Mortgage. ~ Unleas Lender and Borrower othztwise agree in writing, any such application of proceeda to principal ahall not extend or postpone the due ~ date of the monthly inetallmente referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallrnenis. If under paragraph 18 hereof the Property ia acquired by Lender, all right, tide and intereat of Borrower in and to any insuranoe policiea and in and to the proceeda ~ thereof reeulting from damage to Pro i petty prior to the aale or aoquiaition ehall paea to Lender to the extent of the auma secured by thie ; Mortgage iinmediately prior to auch eale or aoquiaition. ~ 6. Preeervation and Maiatenance of Property; Leaseholde; Condominume; Planned Unit Devetopments. Borrower ahall keep ( the Property in good repair and ahall not rnmmit waete or permit impairment or deterioration of the Property and shall comply with the E provieiona of any lease if thie Mortgage ie on a leaeehold. If this Mortgage ia on a unit in a condominium or a planned unit development, f ~iorrower shall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the by-lawe and regulations of the condominium or planned unit development, and conatituent documente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the covenanta and ~ agreements of auch rider ahali 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'e Security. If Borrower faila to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or prooeeding ie commenced which meterially af~ecte Lendefe interest in the Property, including, but not 6mited to, eminent domsin, ~ ineolveacy. oode eaforcement, or arrangements or proceedings involving a bankrupt or dece~ent, then Lender at Lender'e option.upon ~ notice to Borrower may make euch appearanc~s, disburee such anme and take euch artion as is neceesary to protect Lender's intezest, ~ including, but not limited to, diebarrement of reaeonable attorney'e feee and entry upon the Property to make repairs. If Lender required mortgege ineurance ae a rnndition of making the loan eecured by thia Mortgage, Borrower ehell pay the premiume reqnired to mainisin euch insurance in eftect until euch time ae the requirement for anch inaurance terminates in aooordance with Borrower'e and Lender e written egreement or applicable I.ew. Borrower ehall pay the amoun! of all mortgage ineurance premiume in the manner provided under paragreph 2 hereof. My amounte diebursed by Lender pereuant to this paragraph 7, with intereet thercon, ehall become additional indeM~edneea of Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terma of payment, euch amounte ehall be payable upon ' notice from I.ender to Borrower requeeting peyment thereot, and shali bear interest from the date of disburaement at the rate payable from ~ time to time on outatanding principal under the Note unleea payment of intereet at euch rate would be oontrary to applicable law, in which ~ event auch amounta ehall bear intereet at the highest rate permisaible under epplicable law. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any expenee or take any action hereunder. ~ ~ ! . ?{~kr~U9 181 ~ ~ ~ ~ ~_,~z ~ .,~"R~~P "yr,s~F~..'~'"c ~ r.~,.ar~r° .."K ,n~. z,$'r'~ ~,i ~ f ~ , 1n~t~~. ~~3„ ..ai_ ~ ,F` "r~">. ^aa;~'_. . . ~ . . . . .