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HomeMy WebLinkAbout0824 Borrower and l.e~der covenant and agree as followe: 1. Payment ot Principal and Interest. Borrower shall promptly pay when due the principal of and intereet on the indebtednesa evidenced by the Note. prepayment and late chargea aa provided in the Note, and the principal ot and interest on any ~ture Advancee aecured by thie Mortgage. 2. ~nds for Ta~ces and lneuranee. Subject to applicable law or to a written waiver by I.ender, Borrowershall pay to l.ender on the day monthly inatalimente of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "~nde") equal to one twelfth of the yearly taxea and asseasments which may attxin priority over thia Mortgage. and gmurtd rents on the Yroperty, if a~y, plua une twelfth of yearly prnmium inatallments [or hazard inaurance, plua onetwelRh of yearly premium instalimenta for mortgage insurance, if any, :?11 as reaeonably estimated initially and from time to tia,e by l.ender on the basia of nasessments and billa ~nd reasonnble eatimatea the~eof. The ~nde shall be held in an institution the depoeita or accounts of which are insured or guaranteed by a Federal or State agency ~including Lender if Lender ia such an inetitution). Lender ahall apply the Funda to pay eaid taxes, asaessments, insurance premiuma and ground rents. L,ender may not charge for eo holding nnd applying the Funda, analyzing said account, or verifying and compiting eaid assesamente and bills, unlese I.ender pays Borrowe~ intereat on the ~nds and applicable law permite l.ender to make auch a charge. Borrower and Lender may agree in writing at the time of execution of thie Mortgage that interest on the Funds shall be paid to Borrower, and unleas auch agreement ia made or applicable law requirea auch intereat to be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the Ftinda. L.ender shall give to Borrower, without charge, en annual accounting of the Funds showing credita and debite to the Funda and the purpose for which each debit to the ~nds was made. The Funda are pledged as additionai security for the auma secured by this ~ Diortgage. If the amount of the F~nda held by [.ender, together with the futum monthly inatallmenta of Funde payable prior to the due datea of taxea, asaesements, insarance premiums and greund rents, ahal! excred the amount required to pay said taxea, asaesamente, inaurance premiums and ground rents us they fall due. such e:cess ahall be, at Borrower's option. either prompdy repaid to Borrower or credited to Borroweron monthly inatallme~te of ~nde. If the amount of the Funda held by Lender ehall not be eufficient to pay taxes, aaeeesments. inaurance pre~niuma snd ground renta ae they fall due, Borrower shaU pay to Lender any amount neceasary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Eiorrower requesting payment f~hereoL Upon payment in full of all aums aecured by thia Mortgage, Lender ehall ptomptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is eold or the Property is otherwiae acquired by Lender, l.ender ahall apply, no later than immediately prior to the sale of the Property or its aoquisition by Lender, any Funds held by Lender at the time of application ae a credit against the aums aecured by thie Mortgage. 3. Application of Payments. Unlesa applicable law provides otherwiee, all paymenfs received by Lender under the Note and paragraphs 1 and.2 hereof shall be applied by Lender firat in payment of amounts payable to Lender by f3orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principsl on any Future Advances. 9. G harges; Iaens. E3orrower ahall pay all taxes, assessments and other charges, fines and impoaitions attributable to the Property which m ay attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to I.ender :~It notices of amounta due under this paragraph, and in the event Aorrower shall make payment directly, Borrower shall promptly turnish to nder receipts evidencing auch payments. Borrower shal! promptly discharge any lien which has priority over this Mortgage; provided, that f iorrower shall not be required to discharge any such lien so long as i3orrower shall agree in writing to the payment of the obligation secured by ;uch lien in a manner acceptable to Len~fer, or shall in good faith contest such lien by, or defend enforcement ofsuch iien in, legal preceedinge ~ti•hich operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvementa now existing or hernafter erected on t' Property insured against losa by fire, hazards included within the term "extended coverage," and xuch other hazards aa Lender may requirn and in such amounta and for such periods as Lender may require; provided, that I.ender ahall not require auch coverage amount exceeding the minimum, aa Rsay be required by state or federal rngulations governing activitiea of Lender, or that amount of coverage reyuired to pay the aums aecured by this Mortgage, ' whichever is the greate~. . ~ The insurance carrier providing the insurance shall be chosen 6y Borrower subject to approval by I.ender, provided, that such approval ~ ~hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under par:~graph 2 herer~f or, if n~~t paid in such manner, by I3orrower making payment, when due, directly to the insurance carrier. ` All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of ~ and in form acceptable to Lendet. I.ender ahaU have the right to hold the policies and renewala thereof, and Borrower ahall promptly furnish to ; i.ender all renewal noticea and all receipte of paid pmmiuma. In the event of losa, Borruwer ahall give prompt notice to the insurance carrier ` and Lender. Lender may make proof of losa if not made promptly by Borrower. 4 Unleas L.ender and Borrower otherwiae agree in writing, insurance prooeeds shall be applied to reetoration or rnpair of the Property ~ damaged, provided such restoration or repair is economically feasible and the aecurity of thie Mortgage is not thereby impaired. If such ~ s restoration or tepair is not economically feaeible or if the security of thie Mortgage would be impaired, the inaurance proc~eeds ahall be applied ; to the auma eecured by this Mortgnge, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respor.d to I.ender within 30 daye hom the date notice is mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for ~ insurance bec?efite, Lender ie authorized to collect and apply the inaurance proceeds at Lendei s option either to restoration or repair of the ~ Yreperty or the aums aecured by this Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or poatpone the due ~ date of the monthly inetallmente referred to in paragraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 ~ hereof the Property is acquired by Lendet, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeda ~ chereof reaulting from damage to Property prior to the sale or acquisition shall pass to I.ender to the extent of the aums secured by this ~ ~iortgage immediately prior to auch eale or acquieition. g 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ` proviaione of any leaee if this Mortgage ia on a leseehold. If this Mortgage ie on a unit in a rnndominium or a planned unit development, g Borrower shall perform all of Borrower's obligations ander the declaration or covenants creatingor governing the condominium or planned ~ ?nit development, the by-laws and regulatione of the condominium or planned unit development, and rnnstitaent documents. If a condominium nr planned unit development rider ia executed by Borrower and recorded together with thi9 Mortgage, the oovenanta and r aQreementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if Lhe - rider were a part hereof. = 7. Protection ot Lender'e 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thie Mortgage, or if any action or proceeding ie commenced which materially affecle Lendei a intereat in the Property. including, but not limited Lo, eminent domain, _ ineolvency, oode enforcement, or arrangemente or proceedinge involving a hankrupt or decedent, then I.ender at I.ender'e option,npon notice to Borrower may malce auch appearanoes, diaburee auch sume and take euch action ae is neceeaary to protect Lendei e interest, ~ including, but not limited to, diebursement of reaeonable attorney'e feee and entry upon the Property to malce repaira. If Lender required % mo a e insurance ae a condition of malcin the loan eecared b this M rt8 8 g y ortgage, Borrower ehall pay the premiums required to maintain ~ euch insurance in effect antil euch time ae the requirement for euch ineurance terminatee in aocordance with Borrower e and Lende~e + : written egreement or epplicable Lew. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner providcd under 1 ~ paragraph 2 hereoL " - My amounte dieburaed by l.ender pereuant to thie paragraph 7, with intereet thereon, ehall beoome additionai indebtednees of ~ ~ E3orrower eecured by thie Mortgage. Unleae Borrower and L.ender agree to other terme of payment, euch amounte ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and shall bear intereat from the date of diebursement at the rate payable from ~ ~ time to time on oatetanding principel under the Note unleae payment of interest at auch rate would be oontrary to applicable law, in which j event ench amounta ahall bear interest at the higheet rate permieeible under applicable law. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any e:pense or take any action hereunder. ~ e : _ ~ 3r~r'!! 310 °al;~ $~4 :i