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HomeMy WebLinkAbout0812 [3orrower a~d l.ender covenant and agree ae followa: l. Payme~t o! Principal and Intereet. Aorrowe~ ahall prompUy pay when due the principal of und inte~eat on the indebkdneae evidenced by the Note, prepayment and lstechargea as provided in the Note, and the principal af and intereaton any ~ture Advuncea secured by this Mortgage. 2. PLnde tor Taxea and Ineurance. Subject to applicable law or to a written waiver by l.ender, I3orrower ehall pay to [.ender on the day monthly inatallmente of principal and intereat are payable under the Note, until tAe Note is paid in full, a sum (herein "Funds") equal to one twelfth of the yearly taxea and assesaments which may attain priority over this Mortgage, and gruund renta on the Properiy, if any, plua one twelfth of yearly premium inatallmenta for hazard inaurance, plus onetwelfth ofyearly premium inataUmenta for mortguge insura~ce, if any, ull as reasonably eatimated iniually and from time to tirne by I.ender on the basis otnasessments and billa and reasonable estimatea thereof. The ~nds shall be held in an institution the deposite or accounta of which are inaured or guaranteed by a Fede~al or State agency (including I.ender if Lender ia such an institution). Lender ahall apply the Funde to pay said taxes, asaesamenta, ineurance premiuma and groun~renta. Lender may not charge for eo holding and appiying the ~nda, analyzing aaid account, or verifying and compiling said aeaeaemenls and bills, unlesa l.ender paya Borrower interest on the Funds and applicable law permita I.ender to make auch a charge. Borrower and Lender may e?gree in writing at the time of execution of thie Mortgage that interest on the ~Lnd3 ahall be paid to Borrower, and unlesa such agreement ia made or applicable law requirea auch intereat to be paid, Lender ehaU not be required to pay Borrower any internat or earnings on the FLnda. Lender ahall give to Borrower, without charge, an annual accounti~g of the ~nd~ showing credita and debits to the Funda and the purpoae for which each debit to the Funda was made. The Funda are pledged se additional eecurity for the suma secured by this Mortgage. If the amount of the F~nde held by l.ender, together with the future monthly instxllments of Funds payable prior to the due dates of ta~ces, aesesamente, inaurance premiums and ground rents, ahall excred the amount required to pay said taxes, asseasments, insurance premiums and ground rents as they fall due. such excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monlhly'inetallmente of Funde. If the amount of the Funds held by I.ender ahall not be sufficient to pay ta:es, aseesaments, inaurance prEmiume and ground rente as they fall due. Borrower ahall pay to I.ender any amount neceasary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. ' Upon payment in full of ali aume aecund by this Mortgage, I.ender ahall prompdy refund to Borrower any funds hetd by [.ender. If under paragraph 18 hereof the Property ia sold or the Properiy is otherwise acquired by Lepdor. I.ender ahail apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the auma secured by this Mortgage. - • : . ' r 3. Application of Paymente. Unlesa applicable law providea-oiberwiaq•all pay~nente,tle~ived by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by I.ender first in payment of amo nte paya~le.~A I~e~ ~iorrower under paragraph 2 heteof, then to intereat payable on the Note, then to the principal of the Note; an~'~en ~o intereat an'8 principal on any Future Advancee_ 4. Chergee; Liens. Bormwer ahall pay all taxes, assesamenta and otTier charges,~fipea ~ttil it»poiJl~id~s 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 prompUy furnish to I.ender aU notices of amounta due under thia paragraph, and in the event E3orruwer shul) make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such payments. Borrower shal) promptly discharge any lien which has priority over this Mortgage; provided, that I3orrower ahaU not be required todischarge any such tien so long as Borrower shall aRree in writing to the pa~•ment of theobligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, ordefend enforcement otsuch lien in, legal prceeedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thermf. 5. Hazard Inaurance. Borrower nhall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "eatended coverage," and such other hazards ae Lender may require and in aurh amounts and for such periods as I.ender may require; provided, that Lender shall not require such coverage amount eaceeding the minimum, as may be required by state or federal regulations goveming aclivities 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 E3orrower subject to approval by l.ender, pro~•ided, that such approval shail not be unreasonably withheld. All prnmiums on insurance policies shull be paid in the manner pmvideci under p:~rs~graph 2 hereof or, if not paid in suct~ manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policieB and renewala thereof ahall be in form acceptable to Lender and ehall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the poticies and renewals thereof, and Borrower shall promptly furniah to ?.ender all rnnewal notices~[nd all receipta of paid premiuma. In the event of lose, Born~wer shall give prompt notice to the inaurance carrier ! and Lender. Lender may make proof of loss if not made prompdy by Borrower. ` Unleas [.ender and Borrower otherwise agree in writing, insurance proceeda shall -be applied to restoration or repair of the Property ; damaged, provided auch reatoration or rnpair is economically feasible and the aecurity of this Morigage ia no2 thereby impaired: If such ~ restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeda shall be applied ~ to the aums aecuted by this Mortgage, with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrov` er, or if Borrower faila to respond to I.ender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier otl'ers to settle a claim for inaurance benefita, L.ender ie authorized to collect and apply the insurance proceeda at Lender'a option either to restoration or repair of the ; Property or the sums aecured by this Mortgage. ; Unless Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shall not extend or poatpone the due c date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Penperty is aoquired by Lender, all right, title and intereet of Borrower in end to any inaurance policiea and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquisition shall pasa to Lender to the extent of the sume secured by this ~ ;~(ortgage immediately prior to auch sale or acquisition. ~ 6. Preeervation and Maintenance of Property; Leasehotda; Condominuma; Planned Unit Developmente. Borrower ahall keep ; the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the z provieiona 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 ahaU perform all of Borrower'e obligations under the declaration or coven~nta creatingor governing the condominium or planned • unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documents_ If a s condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenanta and agreements of such rider shall be incorparated into and shall amend and supplement the covenanta and agreementa of this Mortgage as if the ~ ~ rider were a pari hereof. ~ 7. Protection ot Lender's 3ecurity. If Borrower faile to perfarm the oovenants and agreemente contained in this Mortgage, or if any action or proceeding ie commenced which materially affecte Lendei e interest in the Property. including, but not limited to, eminent domain, - ineolvency. eode enforcemen~ or arrangemente or proceedinga involving a banim~pt or deoedent, then Lender at I.ender's option,upon ; notice to Borrower may make auch appearancee; disburee euch aume and take euch action ae ie necessary to prot,ect Lender'a intereat. including, but not limited to, disbureement of reaeonable attomey's fees and entry upon the Property to make repairs. If Lender required _ mortgage insurance ae a condition ot making the loan aecured by this Mortgage, Borrower ehell pay the premiume required to meintain a euch ineurance in effect until euch time aa the requirement for euch inaurance terminetee in accordance with Bonower e and Lender'e i written agreement or applicable Law. Borrower ehall pay the amount of all mortgege ineurance premiume in the manner provided under # paragreph 2 hereof. My amounte diabursed by Lender persuant to thie paragraph 7, with intereat thereon, ehall beoome additional indebtedneea of ~ Borrower secured by thie Mortgage. Unleee Borrower and l.ender agree to other terma of payment, euch amounte ehall be payable upon s notice from Lender to Borrower requesting payment thereof, and ehall bear intereet from the date of dieburaement at the rate payable trom . ~ time to time on outetanding principal under the Note unlees payment of interest at euch rate would be contrary to applicable law. in which event such amounts ahall beat intereat at the highest rate permiaeible under applicabie law. Nothing rnntaineci in thia paragraph 7, ahall ~ require Lender to incur any e:pense or take any action herennder. ~ ~ ~ . - 3~~, r 310 =A~_ ~12 s R • ' ~ i /