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HomeMy WebLinkAbout1001 Borrower and l.ender covenant and agrc~e as folluws: 1. Peyment of Principal and Intereet. Born~wer ahaU promptly pt?y when due the p~ncipal of And interext un the indebtedness evidenced by the Note, prepayment and Intechargrs as provided in the Note, and the principal of and interest on any ~1ure Advnncea aecured by thia Mortgage. 2. Fltnde for Taxee and Ineurance. Subject to upplicnble li?w ur to a wrilten waiver by Ixnder,l3oROwer xhall puy tu l.ender o~ the day monthly ina!allmenta of principal and intereat are payable under the Note, until the Note ia puid in full, u sum lherein "F unda"1 eyual to one twelflh of the yearly tiuces nnd i?aseasmenta which may attnin priority over this I~lortguge, and gruund rents on the F'roperty, i[any, plus on~ twelfth of yearly premium installments for hazard insurance, plus onE?twelfth of yearly premium inatnllments for murtgage insurnnce, if any, al! aa rnasonably eatimated initially and from time to ti~r~e by l.ender on the bnais ot nasessmenta und bills and ~ensonable estimates thereot. The FLnde ehall be held in an inetitution the depoaite or accou~ta of which are inaured or guaranteed by a Federal or State age~cy yincluding i.ender if l.ender is auch an institution). l.ender shall apply the Funds to pay eaid taxes, usseaaments, insurance premiume and ground rente_ l.ender may not charge for eo holding and applyi~g the H~nds, analyzing eaid account, or verifying and compiling said aeaessmente a~d bills, unleas I.ender paya Borrowerintereat on the Funda and applicable law permits l.ender to make auch a charge. Korruwer and Lender may agree in writing at the time of execution of thia Mortgage that interest on the Funde ahull be pxid to Borrower, and unless auch agreement is made or applicable law requirea ~uch intereat to be paid, I.ender ahall not be required to pay E3orrower any interest or earninga on the ~nde. I.ender ahaU give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debita to the Funda and the purpose for which each debit to the Funds wae made. The Funda are pledged as additional security [or the sums secured by this Mortgage. If the amount of the F~nda held by [.endet, together with the futurn monthly inatallmenta of Funds payable prior to the duc dates of taxes, assesamenta, inswance premiums and ground mnts, shall excxd the amount required to pay said taxes, assessmenta, inaurance premiuma and ground renta as they fall due, euch excesn ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installmenta of Ftinds_ If the amount of the Funds held by Lender shall not be sufficient to pay taxes, asseasments, insurance premiuma and ground renta as they fall due, Borrower shall pay fo I.ender any amount necessary to make ap the deficiency within 30 days from the date notice is mailed by Lender to Bonower requesting payment thereof. Upon payment in full otall sume eecured by this Mortgage, [.ender shall promptly refund to Borrower any funds held by I.ender_ If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by l.ender, any Funds held by I.ender at the time of application as a credit againat the suma secured by this Mottgage. 3. Application of Paymente. Unlesa applicable law pmvidea otherwise, all payments received by Lender under the Note and paragraphe t and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lender by Botrower under paragraph 2 hereof, then to interest payable on the Note, then to the prinripal of the Note, and then to interest and principal on any Future Advances_ 4. Chargea; Liens. Botrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Pn~periy v?hich may attain a priority over this Mortgage, and leasehold payments or ground mnts, iCany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Born?wer shall promptly furnish to I.ender aU notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such paymenta. E3orrower shall promptly dischargr any lien which h:~s priority over this Mortgage; provided, thxt E3orrower shall not be required to discharge any such lien so long as Borrowershali agree in writing to the payment of throbliKation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, IeRal procecdings which operate to prevent the enforcement of the lien or forfeiture of the Froperty or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the impmvements now exiating or hereafter ere~:ted on the Proprrty insured against lo.sa by fire, hazarda included within the term "e:tended coverage; ' and xuch other hazards as Lender may require and in such amounts and forsuch periods se Lender may tequirn; provided, that Lender shall not require euch coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower sabject to approval by l.ender; pro~~idecl, that such approvai shall not be unreasonably withheld. All premiums on insurance policies shall be paid in ti~e manner pmvidecl under paraKraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard morigage clause in favor of and in form acceptable to L,ender_ Lender shall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and ail receipta of paid premiuma. In the event of loss, Borruwer shall give pmmpt notice to the insurance carrier and Lender. Lender may make proof of losa if not made promptly by Borrower. i Unlesa Lender and Borrower otherwise agree in writing, ineurance proceeds shall be applied to restoration or repair of the Property i damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such ; restoration or repair is not economically feasible or if the secnrity of this Mortgage would be impaired, the insurance proceeds shall be applied to the suma secured by this Mortgage, with the excesa, if any, paid to Borrower_ If the Property is abandoned by Borrov? er, or if Borrower fails to respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for i inaurance benefita, Lender is authorized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair of the ~ Property or the sums secured by this Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal shall not extend or postpone the due ~ date of the monthly inatallments rnferred to in paragraphs 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest 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 shall pass to Lender to the extent of the suma secured by this ~ Mortgage immediately prior to auch sale or aoquieition. 6_ Preservation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmenta. Borrower shall keep ~ the Property in good repair and shal) not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahail perform all of I3orrower's obligationa under the declaration or covenants creatinKor governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constitueut documenta. If a ~ condominium or planned unit development rider is executed by Bonower and recorded together with this Mortgage, the covenants and ~ agreements of such rider shall 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 Lender'e Security. If Borrower faile to perform the oovenante and agreemente rnntained in thie Mortgage, or if any ~ action or proceeding ie commenced which materially affects Lendei e intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrengementa or proceedinge involving a bankrupt or decedent, then Lender at Lendei e option,upon ~ notice to Borrower may make ench appearancee, dieburee euch eums and take auch action ae is neceeeary to protect Lender'e intereet, 3 including, but not lunited to, diebureement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required mortgage inaurance aa a condition of making the loan aecared by thie Mortgage, Borrower ahalf pay the premiume required to maintain euch ineurance in effect until auch time se the requirement for such inaurance terminates in accordance with Borrower'a and Lendet'e - written agreement or epplicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ~ My amounte diabureed by Lender persuant to thia paragraph 7, with intereet thereon, shall become additional ir?debtedneae of ~ Borrower eecured by this Mortgage. Unleae I3orrower and Lender agree to other terms uf payment, auch amounte ahall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diabursement at the rate payable from ~ time to time on outstanding principal ander the Note unleae payment of interest at auch rate would be contrary to applicable law, in which ~ event euch amounte ehall bear interest at the highest rate permisaible under applicable law. hothing contained in thie paragrnph 7, shall ~ require I.ender to incur any eapense or take any action hereunder. ~ 7 ~ i ~ ~ ,F~ ~Uy ; 1000 ~ . ~ ~ ~ : . ~y ar. -4~..^Cr~ ~ } ~ ~ _ g ~