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HomeMy WebLinkAbout1010 E3orrower and l.ende~ covenant and agree aa follows: _ 1. Payment of Principai and Interest. Borrower ehall promptly pay when due the principal of and intereat un the indebtedneae evidenoed by the Note, prepeyment and late chargee ae provided in the Note, and lhe principal of aod intereet on any Future Advancea secu~ed by lhis Mortgage. 2. ~nda for TeYee and lneurance. Subject to applicable law or to a written waiver by I.ender, Born~we~ shall pay to l.ender on the day monthly insLallments ot principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "H~nde") equal to one~ twelRh of the yearly taxes and asaes»ments which may atttiin priority over this Mortgage. and ground renta on the Pruperty. iiany, plus one- tweltth of yearly premium installmenta for hazard inaurance, plus onetwetfth ofyearly premium installments for mortgage inaurance, if any, all aa masonably estimated initially and from time to time by l.ender on the basis of assesaments and billa and reasonable eatimates ihereof. The Flinda shall be held in an institution the deFwsits or accounte of which are inaured or guarantc~ed by a Federai or State agency (including L.ender if Lender ie auch an inetitutiun). l.ender shall apply the ~u~ds to pay said taxea, aeeesaments, inaurance premiume and ~round renta. Lender may not charge for eo holding and applying the ~nde, analyzing eaid account, or verifying and compiling xaid aseeasmenfs and bilte, unleas Lender paye Borrower interest on the Funds and applicable law permite L.ender to make auch a charge. f3orrower and L.ender may agree in writing at the time ot execution of thie Mortgage that intereat on the ~nds ahall Le paid to Borrower. and unlesa euch egreement ia made or applicable law requiree auch intereat to be paid, Lender ahall not be required to pay Borrower any intereet or eaminga on the ~nde. I.ender shall give to 8orrower, without charge, an annual accounting of the Funde showin~ credita and debits to the Funda and the purpose for which each debit to the Funda was made. The Funds are pledged a8 additional security for the suma eecured by this ` Mortgage. If the amount of the ~Lnda held by Lender, together with the future monthly inatalimenta of Funds payable prior to the due datee of ta:es, aseessments, iasurance premiums and ground renta, shall excaed the amount required to pay aaid taxes, aseesaments, ineurance premiums and ground rents as they fall due, euch exceas shall be, at Boirower's option. either prompdy repaid to Borrower or rredited to $orrower on monthly installmenta of Funda. If the emount of the Funds held by l.ender ehall not be sufficient to pay taxes, aaseasmenta, insurance premiuma and ground rents as they fali due, Borrov`er shall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by l.ender tn I3orrower requesting payment thereof. Upon payment in full of all aume secured by this Murtgage, Lender ehall promptly refund to Eiorrower any funde held by l.ender. If under paragraph 18 hereof the Property is sold or the Property ie otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the sale of the Property or its acquiaition by Lender, any ~'unda held by I.ender at the time of application as a credit against the suma secured by thie Morfgage. 3. Application of Paymente. Unlesa applicable Iaw providea otherwise, all payments received by l.ender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender first in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and princinal on any Future Advances. 4. Charges; Liens. Bocrower ahall pay all taxes, asseasments and other rharges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payment$ or ground rents, if t~ny, in the manner provided under pazagraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, direcdy to the payee thereof. Borrowershall promptly furnish to l.ender all noticea of amounta due under thia paragreph, and in the event I3orrower shall make payment directly, Borrower shall promptly furnish to Ixnder receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that ~3orrower shal! not be required to discharge any such lien so long as I3orrower shall agree in writing to the payment of the obliqation secured by ~uch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ingurance. Borrower shall keep the improvementa now existing or hereafter erected on the Property inaured against loss by fire, hazarda included within the term "e~:tended coverage," and tuch other hazards as Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender shall not reyuire such rnverage amount exceeding the minimum, as may be required by state or federal mgulations governing adi~~tiea of Lender, or that amount of coverage required to pay the sums secured by lhis Morigage, ; whichever is the greater. i The insurance carrier providing the insurance ahall be chusen by Borrower subject to approval by Ixnder, pro~~ided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shal! be paid in the manner provided under paragraph 'L hereof or, if ~ not paid in such manner, by I3orrower making payment, when due, directly to the insurance carrier. E All insurance policiea and renewale thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of ~ and in form acceptable to Lender. Lender shali have the right to hold the policies and renewaEs thereof, and Bonower shall pmmpdy fumish to s ixnder all renewal noticea and all receipts of paid premiums. In the event of loss, Borrower shall gire prompt notice to the insurance carrier ~ and Lender. Lender may make proof of losa if not made promptly by Borrower. ~ Unleas I~ender and Borrower otherwiee agree in writing, inaurance proceeds ahall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired. If such r reatoration or repa'v is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the auma eecured by this Mortgage. with the excese, if any, paid to E3orrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ reapond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier oft'ers to eetde a claim for ~ insurance benefits, I.ender is authorized to collect and apply the insurance proceede at Lender'8 option either to restoration or rnpair of the ~ Property or the eume eecured by this Mortgage_ Unlese I.ender and Borrower otherwiae agree in writing, any such application of proceeds to principal ehali not extend or poatpone the due ~ date of the monthly installmente refernd to in paragrapha 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, tide and interest of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or acquieition ahall pass to Lender to the e:tent of the suma secured by this ~ Mortgage immediately priot to euch eale or aaquiaition. ~ 6. Preaervation and Maintenance of Property; Leaeeholds; Condominuma; Plenned Unit Developmente. Borrower ehall keep ~ the Property in good repair and shall not commit waate or permit impairment or deterioration of the Property and ahall comply with the _ ~ pmvieions of any lease if thie Mortgage ia on a leasehold. If this 1lfiortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower ahall perform all of $orrower's obligations under the declaration or covenants creatingor goveming the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documents. If a ~ rondominium or planned unit development rider is executed by Boaower and recorded together with thie Mortgage, the oovenante and k== agreements of such rider shuil be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider wete a part hereof. ~ 7. Protection ot Lender'e 3ecurity. If Bormwer faila to perform the oovenante and agreements oontained in thie Mortgage. or if any - action or proceeding ie rnmmenced which materially affecte Lendei a intereat in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or anangemente or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon ' notice to Borrower may make auch appearancee, dieburse auch eume and take auch action as is neceaeary to protect Lender'a intereat, inclnding, but not limited to, diabureement of reaeonabie attorney a fces and entry upon the Property to make repaira. It Lendes required mortgage inaurance ae a rnndition of making the loan eec~red by thie Mortgage, Borrower ehall pay the premiume required to maintain ~T~ euch ineurance in effect until euch time sa the requirement for euch inaurance terminatee in acxordance with Borrower'e and Lender's - written agreement or applicable Law_ Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragreph 2 hereof. My amounte diebureed by Lender perauant to thia paragreph 7, w~th intereat thereon, ehall become additional indebtedneae of `s Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, such amounta ehall be payable npon - notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of diebureement at the rate peyable from = time to time on outetanding principal under the Note unleas payment of intereet at euch rate would be oontrary to applicable law, in which event auch amounte ahai) bear interest at the hi~heet rate permiesible under applicable law. Nothing contained in thie paregraph shall r~quire I.ender to incur any expenee or take any action hereunder. ~ . ~ ~ ~k~310. ~ ~ ~~j~~~• J~.:1010 . . ~