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HomeMy WebLinkAbout0845 . ~ Borrower and Lender covenant and agree as foltows: 1. Payment of Pri~clpal and Iatereet. Borrower shall promptly pay when due the principa! of end intereat on the indebtodneas evidenced by the Note, prepayme~t and late charges as provided in the Note, and the principal of and intereat on any F~ture Advances secured by this Mortgage. 2. fi~nds for Teuces and lnsuranoe. Subject to applicable law or to a written waiver by I,ender, E3oe~rower ehall pay to l.ender on the day monthly installments of principal and intereat are payable under the Note, until the Note is paid i~ full, a sum (herein "~nds") equal to one twelRh of the yearly ta~c~ and aasessments which may eiLtain priority over thie Mortgage, and ground rents on the Property, if any, plus ont twelRh of yearly premium installmenta for hezard insurance, plus onetwelfth of yearly premium inatallments for mortgage inaurance. if any, aU as reaeonably estimated initially end from time to time by Lender on the baais of asseasmenta and billa and masonable estimatea thereof. 'Rie Phnds s~all be held in an institution the deposita or aocounts of which are inauted or guaranteed by a Federal or 3tate agency (including l.ender if I.ender ia such an inatitution). Lender ehal) epply the Funda to pay said taxea, asseasments, ineurance premiums and ground rents. Lender may not charge for eo holding and applying the Funds. analyzing said account, or verifying end rnmpiling eaid aesessments and billa, unless I.ender pays Bocrower interest on the ~nds and applicable law permita I.ender to make such a charge. Borrower and Lender may agoee in writing et the time of execution of this Mortgage that interest on the FLnda ahel! be paid to Borrower, and unless such agreement is made or applicable law requiree auch intere~et to be paid, Lender shall not be required to pay Borrower any intereat or earninge on the Funds. Lender shall give W Borrower, withouf cherge, an annual accounting of the Funde showing credita and debite to the F~ada and the purpoae for which each debit to the fi~nds was made. 7~e Fu~da are pledged as additional eecurity for the sume secured by this Mortgege. If the amount of the ~nds held by Lender, together with the future monthly inatallmente of E~nds payable prior to the due dates of t~es, aasesaments, inaurance premiuma and ground rents. ehall e:oeed the amount required to pay eaid taxes, aseessmente, ineurance premiuma and ground rente as they fall due, auch e:cese ehall be, at Borrower'a option, eithe~ promptly repaid to Borrower or credited to Borrower on moaWly inatallments of PLnde. If the amount of the Funde held by Lende~ ahall not be sufficient to pay taxe8, aseesaments. insurance premiums and gronnd rents as they fell due, Borrower ahail pay to Lender any amount neceseary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of all eums eecured by thia Mortgage, I.ender ehall prompUy retund to Borrower eny funde held by I.ender. If under ~:~i~j:Z: ::::;Zi.Jl Lf:E i'~j~^cTj ie e0i3 'uT'uac i?vj~ci~j ie vii~ci ~iteC uCyiiZic3 iifi iei~uci, irUUB~ e?lidil ~fp})ly, nu iaierii?en immedisieiy prior to the sale of the Property or ita soquieition by Lender, any Funda held by Lender at the time of application as a cndit againstthe sums secured by thie Mortgage. 3. ApplieaUon of Payments. Unleae applicable law provides otherwiee, all payments received hy Lender under the I~ote and paragrapha 1 and 2 hereof shall be applied by I.ender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereot then W intereat payable on the Note, then to the prinripal of the Note, and then to interes! and principal on any Future Advances_ 4. Charges; Liena. Borrower shall pay all taxes, aasesaments and other chargea, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or grou nd rents, i f any, in the manner provided under paragraph 'l hen~f or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly fumiah to ixnder all notices of amounts due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to I.ender receiptes evidenring such paymente. Borrower ahall promptly discharge any lie~ which has priority over this Mortgage; provided, that ; Borrower ahall not be required to discharge any such lien ao long as Borrower shaU agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedinga which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof. 5. Hazerd Inaurance. Borrowet ehall keep the improvemente now existing or hereafter erected on the Property ineured against losa by fire, hazarda included within the term "eYtended coverage," and euch other hazards aa Lender may require and in such amounts and for euch periods as I.ender may require; pmvided, that Lender ahall not require such aoverage amount e:ceeding the minimum, ae may be required by etate or federal regulatione governing activities of I,ender. or that amount of rnverage required to pay the sums secured by this Mortgage, whichever is the greater. ' The insuranee carrier providing the inaurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval ! ahall not be unreaeonably withheld_ All premiums on insurance policies shall be paid in lhe manner provided under par~raph 2 hereof or, if ~ not aid in such manner, b Borrower makin ; P Y g payment, when due, directly to the insurance carrier. All inaurance policiee and renewals thereof ehall be in form acceptable to Lender and shall include a atandard mortgage clause in lavor of ! and in form acceptable to Lender. Lender ehall have the right to hold the policiea and rnnewals thereof, and Borrower shall promptly furniah to ' ~ i,ender all renewal notices and all receipta of paid prnmiuma. In the event of loss, Borrower ahall give prompt notice to the inaurance carrier ~ and Lender. Lender may ma1~e proof of losa if not made prompdy by Borrower. ~ Unless Lender and Borrower otherwiee agree in writing, insurance proceeda shall be applied to restoration or repair of the Property ~ damaged, provided euch restoration or repair ie economically feasible and the eeeurity of this Mortgage ia not themby impaired. If auch ~ reetoration or repair ie n~t economically feaeible or itthe eecurity of thia Mortgage would be impaired. the insurance proceede ehall be applied to the eums secured by this Mortgege, with the e:cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ` reapond to Lender within 30 daya trom the date notice ie mailed by I.ender to Borrower that the inaurance carrier ofiera to aettle a claim for ! inaurance benefite, I.ender is authorized to rnllect and apply the insurance proceeds at Lender'e option either to restoration or repair of the ~ Property or the eums aec~red by thie Mortgage. Unleae Lender and Borrower otherwiee agree in writing, any such application of proceeds to principal shall not extend or poetpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of such inatallments. If under paragraph IS hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceede thereof reaulting from damage to Property prior to the sale or aoqu~aition ahall pase to Lender to the extent of.the suma eecured by thia ¢ Mortgage immediately prior to such sale or aoquisition. ~ ~ 6. Preaervation and Maintenance of Property; Leseeholde; Condominuma; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ provieiona of any lease if thia Mortgage ie on a leasehold, If thie Mortgage ie on a unit in a condominium or a planned unit development, " Bvrrower ehall perfurm all of Iiorrower e obiigationa under the declaration or covenanta creaiingor governing the condominium or planned ~ unit development, the by-lawe and regulatione of the condominium or planned unit development. and conetituent dceumenLs. If a a rnndominium or planned unit development rider ia executed by Borrower tind recorded together with thia Mortgage, the oovenanta and ~ agreements of such rider shall be incorporated into and shall amend and aupplement thecovenants and agreementa of this Mortgage as if the rider wern a part hereof. ~ 7. Protection of Lender'~ Security. If Borrowe~ fails to perform the wvenants and agreements eontained in this Mortgage. or if any ; action or proceeding is commenced which materially affecte Lender s inter~t in the Property, including, but not limited to, eminent domain. ' insolvency. aode enforcement, or arrangements or pmoeedings involving a bankrupt or deoedent, then Lender at Lender s option,upon ~ notice to Borrower may make euch appearanoes, diaburee such eume and take such action as is neoeasary to protect Lender's intaest, t including, but not limited to, disbureement of reasonable attomey'a feea and entry upon the Property to make repairs. If Lenda reqnired € mortgage ineurance as a oondition of making the loan eecured by this Mortgege, Borrower ahall pay the premiums required to maintain ~ such inearance in effect until such tune as the requirement for euch ineurance terminatea in aocordance with Borrower's and Lender a = written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurence premiums in the manner provided under paragraph 2 hereof. - My amounts diebureed by Lender persuant to this paragraph 7, with intereet thereon, ehall become additional indebtednese of Borrower eecured by thia Mortgege. Unleae Barrawer and Lender agree to other terms of payment, auch amounte ehaU be payable upon ~ notice from Lender to Borrower requeeting paymenl thereof, and ehall bear interest from the date of diabureement at the rate payable trom ~ time to time on outetanding principal under the Nute unless payment of intereat at auch rate would be oontrary to applicable law, in whic6 ~ event such amounta ahall bear interest at the higheat rafe permiaeible under applicable law. Nothing rnntained in this paragraph ahall ~ require Lender to incur eny e:penee or take any action hereunder. ~ ~ : ~ E ~ , g~ ~~11 ; . Y, ~ 844 :