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HomeMy WebLinkAbout0640 Borrower and I.et?der covenant and agree as follows: 1. Paymeat ot Prlncipal and Intereet. Borrower ehall promptly pay when due the principal of and interest on the indebtedneae evidenced by the Note, prepeyment and late charges as provided i~ the Note, and the principal of and intereet on any Futu~e Advancee aecured by this Mortgage. 2. Ftinde tor T~uces and Inaurance. Subject to applicable law or to a written w aiver by i~ender, Borrower ahal l pa~ to l.ender on the day monthly installmente of principul and intereat are pt~yable under the Note, until lhe Note ie paid in full, a aum (herein "F~nde") equal to one- twelfth ot the yearly taxea and asaessments which may attain priority over thie Mortgage, and ground renta on the Property, if any, plua ane~ twelfth o[yearly premium inatallmenta for hazard inaurance, plua onetwelRh ofyearly premium installmenta for mortgage insurance, if any, all as reasonably eetimated i~itially and from time to tirne by l.e~der on the basie of asseasments and bille And reasonable estimatea thereof. The FLnds ahall be held in an inatitution the depoeits or accounts of which are inaured or guarante~d by a Federal or State agency (inctuding Lender if Lender is euch a~ inetitution). i.ender ehall apply the Funda t.o pay said taxes, assesemente, ineurance prnmiume and ground nnta. I.ender may not charge for eo holding and epplying the F~nde, analyzing said account, or verifying and compiling eaid eeeesemente and billa, unleea Lender pays Borrower intereat on the ~nda and applicable law permita i.ender to make euch a charge. Borrower and I.ender may agree in writing at the tune of e:ecution of thia Mortgage that interest on the Ftinde shall be peid to Borrower, and unleas euch agrcement ia made or applicable law requires auch intereat to be paid. Lender ahall not be required to pay Borrower any interest or earninge on the FLnda. Lender ehall give to Borrower, without charge, an annual accounting of the Funds showing csedite and debita to the Fl~nde and the purpoee for which each debit to the ~nda was made. The Funda are pledged as additional eecurity for the auma secured by this Mortgage. If the amount of the fi?nds held by Lender. together with the future monthly inetallments of Funda payable prior to the due datee of taaes, a8eeaementa. inaurance premiuma and gr+ound rente. ahall exczed the amount required to pay said taxea, aeseaementa, insurance premiums and ground rents ae they fall due, such e:cess shall be, at Borrower a option, either promptly repaid to Borrow~ or credited to Borrower on monthly installmente of ~nde. If the amount of the Funda held by I.ender ahall not be aufficient to pay ta~cea, assesamente, insurance premiume and ground rente as they fall due, Borrower shM! pQy to Lender any amo~ifit`riec~ary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in fiill of all euma secured by thie Mortgage. Lender ehall promptly refund ta.~ ~Yer any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property ts otl~er'wiee acquired by Lender, Leride~ s}i~apply, no later than immedietely prior to the sale of the Property or ita acquieition by Lender, ar~yrI~nds held by Lender at the time of a{itllic'~ a credit against the aums secured by this Mortgage. . 3. Application of Payments. Unleae applicable~law providea otherwiee, all paymenta recei ed by I.ender under the Note and paragrapha 1 and 2 hereof shall be applied by [.ender first in payment of amounfe payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Borrower ahall pay a11 taxes, asaessments and othercharges, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground renta, 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 promptly furniah to I.ender all notices of amounta due under this paragraph, and in the event Borrower shall make payment directly, f3orrower shall promptly furniah to I.ender receipts evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any such lien so long as Borruwer ahall agree in writing to the payment of the obiigation secured by such lien in a manner aeceptable to L.ender, or shall in good failh contest such lien by, ordetend enforcementof such lien in, legal proceedinqa which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL ~ 5. Hazard Insurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property inaured againat lose by fire, hazarda included within the term "extended coverage," and auch other hazar~s as Lender may require and in such amounts and for such periods aa Lender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be required by ~tate or federal regulationa governing activities of I.ender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ia the greater. The inaurance carrier providing the inaurance shall be chosen by I3orrower subject to approval by I.ender, pruvided, that such approval shall not be unreaeonably withheld. AU premiums on insurance policies shall be paid in the manner provided under paraQraph 'L hereof or, if not paid in sueh manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to l.enderand ahall include a atandard mortgageclauae in favorof and in form acceptable to Lender. Lender ahaU have the right to hold the policiea and renewale thereof, and Borrower shall promptly fumiah to i,ender all renewal noticea and all receipta of paid premiume. In the event of lose, Borruwer shall give pmmpt notice to the insurance carrier ' and Lender. Lender may make proof of loss if not made prompdy by Borrower. i Unleas Lender and Borrower otherwiee agree in writing, inaurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided auch restoration or repair ia economically [easible and the eecurity of this Mortgage ia not thereby impaired. If such reatoration or repair is not economically feasibie or if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied E to the eums eecwed by this Mortgage, vvith the e:ceae, if any, paid to Borrower. If the Property ie abandoned by Borrowe*, or if Borrower fails to respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier ot'fers to settle a claim for ; insurance benefite, Lender is suthorized to collect and apply the insurance proceeda at Lendei a option either to restoration or repair of the ~ Property or the sums sec~red by thie Mortgage. Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceede to principal ahail not extend or postpone the due ~ date of the monthly inetallmenfs referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of Borrower in and to any ineurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquiaition ahaU pass to Lender to the eatent of the suma secured by this ~ Mortgage immediately prior to euch eale or aoquiaition. ~ 6. Preeervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower sha11 keep ~ the Property in good repair and ehall not commit weate or permit impairment or deterioration of the Property and ahall comply with the ~ proviaiona of any lease if thie Mortgage ia on a leseehold. If thie Mortgage ie on a unit in a oondominium or a ptanned unit development, ~ f3orrower ehall perform all of E3orrower'e obligatione under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituent documente. If a * condominium or planned unit development rider ia executed by $orrower and recorded tugether ~with thia Mortgage, the oovenants and ~ aqreementa of such rider shall be incorporated into and shall amend and supplement the covenants and a~eements of this Mortgage as itthe = rider were a part hereof ~ 7. Protection of Lender's 3ecurity. If Borrower faila to per[orm the oovenante and sgreements contained in this Mortgage, or if any action or procee~ing ia commenced which materially affecte I.ender's intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangements or proceedinge involving a bankrupt or dee~edent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such auma end ta1~e ench action ea ie necesaary to pmtect Lender i interest, - including, but not limited to, diabureement of reseonable attoroey'e fee~a and entry upon the Property to malce repeirs. If Lender required ~ mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrower ahall pay the preminms required to maintain ~ euch insarance in effect until euch time as the requirement for auch insurence terminatee in accordance with Borrower's and Lender's ~ writien agreement or applicable I~w. Borrower ahall pay the amount of all mortgage insurance premiuma in the manner provided under ~ paragraph 2 hereof. ~ My amounfe diebureed by Lender pereuant to this paragraph 7. with intereet thereon, ahaU beoome additional indebtednese of ti E3orrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terme of payment, such amounte shall be payable upon ~ notice from Lender to Borrower requeedng payment thereof, and ehall bear intereet from the date of disburaement at the rate payable from time to time on outatanding principel under the Note nnlese payment of interest at auch rate would be oontrary to applicable law, in which ~ ~ event such amounte ahall bear intereet at the higheet rate permieaible under applicable law. Nothing rnntained in this paragraph 7. shall ~ require [.ender to incur any expenee or take eny action hereunder. ~ ~ ~ S ? `.311 639 ~ ,