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HomeMy WebLinkAbout0408 Borrower and Irnder covenant and agree as followa: l. Psyment o[ Principel and Interest. Bor~ower ahall promptly peiy when due the principal of and i~tereat on the indebtedneea evidenced by the Note, prepaxment and late chargee ae provided in the Note, and the principai of and interestun any F~ture Advances aecund by this Morigage. 2. ~nde for Ta~tea and Ineurance. Subject la applicable law ur tu a wntten waiver by l.ender, f3orrower ahall pay to I.ender on the day monthly installmenta otprincipul and intereat are payable under the Note, until the Nute ia paid in full, a sum Iherein "Funda"1 equal to one twelfth of the yearly taxea and asseasmenta which may attuin priority over this Mortgnge, and ~ruund ~ents un the Pruperly, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium instA) Imenta tor morlgi~ge insurunce, if any, all as reasonably estimated initiaily and fi~om time tu tin~e by I.ender on the basie of nssessments and billa ~nd reasunable c~timr~tes thereof. The Funds ahaU be held in an institution the deposita or accounte of which are ineured or quaranteed by a Federal or State aKency iincluding Lender if l.ender is such an institution). Lende~ shall ppply the Funda to pay said taaee, asseaxme~te, inaurance prnmiuma and gtnund renta. t.ender may not charge for eo holding and applying the Funde, analyzing said accuunt, or verifying and compiling eaid aesesamenfa and biUs, unlesa Lender paye BoROM er intereat on the Funda and applicabie law permita I.ender to make auch a charRe. I3oROwe~ and l.ender may agree in writing at the time of execution of thia Mortgage that intereat on the Hlinds ahall be paid to Borrower, and unleas auch agreement ia made or Hpplicable law requires such intereet to be paid, I.er.der ahall not be required to pay Burrower any interest or earnings on the ~nda. Lender ahall give to E3orrower, without charge, an annual accounting of the Funds ahoc'ving credite, and drbits to the Funda and the purpose for which each debit to the Flinda was mude. The Funds are pledged as additionAl aecurity for the aums secured by this Mortgage. If the amount of the Funde held by lxnder, together with the future monthly instaliments of Funds paynble prior to the due dates of taxes, asseasmente, insurance premiuma and ground tents, ahall exc~d the amount rrquired to pay aa+id taxea, assesssmenta, inaurance premiume and gmund rnnte as they fall due, auch exceae ahall be, af f3o~TOwer a option, eilher prompdy repaid to E3urrower or credited to &?rrower on monthly inetallmenta of Funde. If the amo~nt of the Funde held by I.ender ahall not bo aufficient to pay ttixes, assessments, inaurance premiums and ground renta as they faU due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency v~lthin 30 days fmm the date notice ie mailed by I.ender to Borrower reyuesting payment thereof. Upon payment in full of aU suma secured by thia Mortgage, Lender ahall promptly refund to 13orrower any funds held by l.ender_ If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, l.ender shall apply, no later than immediately prior to the eale of the Property or its acquiaition by Lender, any Funds held by l.ender at the time of application ns a credit ngainat the sums secured by thie Mortgage. 3_ Application of Paymente. Unless applicable law provides otherwise, all payments received by I.ender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender fimt in payment of amounts payable to I.ender by Borrower under paraKraph 'L hereof, then to interest payable on the Note, then to the principal ot the Note, and then to intemst and principal on any F uture Advances. 4. Chargea; Liens. Borrower shall pay all taxes, asseasments And other charges, fines and imEx?sitions attributable tu lhr 1'mperty which may attain a priority over this Mortgage, and leasehold payments orgmund renls, if any, in the manner pruvided under par.?Kraph'L hereof or, if not paid in such manner, by Bortower making payment, when due, dirertly to the paycr ihercr~C Rorn~w•er,h:~ll prumptly furnish to lA~ndrr all notices of amounts due under this paraqraph, and in lhe event Borrower shall make payment dirc~-tly. )turro~ser shall promptly furnish to I.ender receipts evidencing such payments. t3orrower shall prompdy discharge any lien w•hich has priurity o~•er this Mony;uge; pm~•ided, that Borrower shaU not be required to discharge any such lien so long as ~rrowrr shall agree in w ritinK tu the payment uf the uhliKatiun secun~l b~• such lien in a manner acceptable to Lender, or shal! in good faith contesl such lien by, ordefe~d rnfi~rcemenc ~~f such li~•n in, lt~al procc~dinKs which operate to prevent the enforcement of the lien or forteiture of the Propert~ or any part ther~~~f. 5. Hazard Inaurance. Borrower ahall keep the improvements now exiating or here:?fter erected on the E'ruperty insured against luss by fire, hazards included within the term "extended coverage; ' and ~uch other hazarda as I.ender may requirr and in such amounts:~nd fur such periode as Lender may require; provided, that I.ender shall not requim such coverage amount exceeding the minimum, us ma~y be required by state or federal regulationa governing activitiea of I.ender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever ie the greater. The inaurance carrier providing ihe insurance shall be chusen by Borrower subject u~ appruval by 1 wmdc~r, pru~•idt~~. th:rt such appru~•al shall not be unreasonably withheld. All premiums on insuranre policies shall be paid in the m:innrr pruvid~ri undf•r yarc~Kraph 'L h~•rcr~f ur, if nut paid in such manner, by Borrower making payment, when duP, dirrctly tu the incurance carrier. A11 ineurance policies'and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgageclause in favor of vnd in form acceptable to Lender. Lenderahall have the right to hold the policies and renewnls thereof, :ind I~rrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid ptemiuma. In the event of loss, E3orruwer shall give prompt notice to the insurance carrirr and Lender. Lender may make proof of loss if not made promptly by &?rrower. i Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Yroperty ~ damaged, provided such reatoration or repair ia economically feasible and the security of this Mortgage is not thereby impaired. [f such ~ reatoration or repair is not economically feasible or if the security of this Mortgage would b~ impaired, the inaurance proceeds shall be applied to the aums aecured by this Mortgage, with the excesa, if any, paid to E~rrower. If the Property is abandoned by Bonower, or it E3orrower faila to t reapond to I.ender within 30 daya from the date notice is mailed by l.ender to Borrower that the insurance carrier offers to settle a claim for ~ inaurance benefite, Lender is authorized to collect and apply the insurance proceeds at [.ender's option either to resturation or repair of the ~ Property or lhe aume eecured by this Mortgage. r Unlesa I.ender and Borrower otherw-ise agree in writing, any auch application of procei~ds to principal shall not extend or postpone the due ~ date of the monthly installmente referred to in paragraphe 1 and 2 hereof or change the amount of such inatallments. If under paragraph ltc j hereof the Property ie acquired by Lender, all right, Utle and intereat of 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 ahaU pasa to Lender to the extent of the suma secured by this ~ Mortgage immediately prior to euch sale or acquieition_ z 6. Preeervation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developmenta. Rorrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Yroperty and ahall rnmply with the proviaione of any lease if thie Mortgage ia on a leasehold. I[ this Mortgage ie on a unit in a condominium or a planned unit development, Iiorrower ahall perform all of E3orrower a obligations under the declaration orcovenanta creatinRor Qoverning the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and conatituent documents. If a c-ondominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the covenanta and ~ ~Kreementa of such rider shall Le incorporated into and shall amend and xupplement the rovenants and aKreementa of this Mort}~aKe as if the rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Bortower faile to perform the oovenante and agreemente contained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender'e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then I.ender at I.ender'e option,upon notice to Borrower may make euch appearancee, dieburse euch aume and take euch action ae ie necessary to protect Lender'e interest, ~ including, but not limited to, diebureement of reaeonable attomey'e feee and entry upon the Property to make repaire. If Lender required mortgage ineurance ae a condition of making the loan eecured by this Mortgage, Borrower ehall pay the premiume required to maintain ; euch inaurance in effect until euch time ae the requirement for euch ineurance terminatea in accordance with Borrower'e and Lender e _ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. ' My amounte disburaed by Lender pereuant to this paragraph 7, with intereet thereon, ehall becrome additional indebtedneae of ~ Rorrower eecured by thie Mortgage. Unlesa Borrower and Lender agree to other terme of payment, auch amounta ehall be payable upon notice from Lender to Borrower requesting payment thereof, and ahal) bear intereat from thP date of diabursement at the rate payable from ~ time to time on outstanding principal under the Note unleae payment of intereet at auch rate would be rnntrary to applicable law, in which ~ event euch amounta ehall bear intereet at the higheat rate permiBeible under applicable law. Nothing contained in thie paragraph 7, ehaU ~ require Lender to incur any expenee or take any action hereunder. a ~ ~ ` ''~J~~. ~U~ 40F ~ ~ ~ p ~ ~ . . . - : ~ ~t3^A ~ . . . i C .~^:-t l~ ~F ~-u_~ f~ ~ '1"'~ 'e' ...f.`s'«:= { °kr'..~~t$ ~ ~,:r sz.