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HomeMy WebLinkAbout1137 . ~ Borrower and l.ender covenant and agree aa fotlowa: 1. Payme~t of I'riacipal and Interest. Borrower ehall promptly pay when due the principa) of and intercat on the indebtednesa evidenced by the Note, prepayment and late chargee ae pmvided in the Note, and the principal of and intereat on any Future Advancee eecured by this Mortgage. 2. Fltnds for Ta:er and lneurance. Subject to applicabie law or to a written waiver by lxnde~, E;orrower ehall pay to t.ender on the day monthly inataltments of principal end intereat are payable under the Note, until the Note ia paid in full, a eum ~herein "Funde") equal to one twelfth of the yearly taxes and aeaeasments which may eltain priority over thie Mortgage, and ground renta on the Property, if any, plue one twelfth of yearly premium inetallmenta for hezard inaurance, plua onelwelfth ofyearly premium instullmente for morigage insurance, if any, all as reasonably estimated initially and from time to time by I.ender on the basie of pasesamenta a~d bills uod reusonnble eatimatee thereof. The ~nds shall be held in an institution the deposita or accountB of which are inaured or guaranteed by a Federal or Stafe agency (including I,e~der if Lender ie auch an institution). Lender ahall apply the Funde to pay said taxea, assesementa, ineurance premiuma and ground rents. Lender may not charge for so holding and epplying the Funds, analyzing eaid account, or verifying and compiling eaid aeaesamente and bills, unleas Lender pays Borrower intereat on the Funds and epplicable law permit~ I.ender to make auch a charge. Borrower and Lender may agree in wriung at the tune of e:ecution of thia Mortgage that intereet ori the Funde shall be paid to Borrower, and unlese euch agreement is made or applicable lew requiree auch interest to be paid, I.ender ehall not be required to pay Borrower any interest or earninga on the ~nds. I,ender ahall give to Borrower, without charge, an annual acoounting of the Funde ahowing credite and debite to the ~nda and the purpoee for which each debit to the Funda was made. The Funda are pledged as additional aecurity for the awna eecured by thie Mortgage. If the amount of the ~nda held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due dat~ ottaxea, aeaeeaments. inanrance premiuma and ground renta, ahaU exc~ed the nmou~t required to pay said taxes. asaeasmenta, ineurance premiuma and ground renta as they fall due, auch exceas shall be, at Borrower a option, either promptly rapaid to Borrower or credited to E3orrower on monthly installmente of ~nds. If the amount of the Funde held by Lender ehall not be eufficient to pay tauee, asaesements, inaurance premiume and ground renfs as they fall due, Borrower ahall pay to Lender any amount neceasary to make up the de6ciency within 30 days • from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full otall sums aecured by !3s Mortgage, Lender shsD: ~r~:r.~;.y r~f:;.-.d ta Sarrower sny 3unds neid'oy i.ender. ti under paragraph 18 hereof the Property ia sold or the Property ie otherwise acquired by Lender, I.ender ehal! apply, no later than immediately prior to the eale of the Property or ite acquiaition by Lender, any ~nde held by Lender at the time of application as a credit against the aumB secured by thie Mortgage. 3. Application ~ of Paymente. Unleae applicable lew providea otherwise. all paymentu received by I~ender under the Note and paragraphs 1 and 2 heerof ahall be applied by Lender firxt in payment of amounta payable to l.ender by E3orrower under paragraph 2 hereof, then to interest payable on the Note, ttien to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; Liene. Borrowershall pay aU taxes, assessments and othercharges, fines and impoxitions altributable to the Property which may attain a priority over thie Mort{;age, and leasehold payments orground renta, i[any, in the manner providcd underparagraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly fumish to l.ender all notices of amounta due under thia paragraph, and in the event I3orrower shall make payment directly, Borrower ahall promptly fumiah to Lender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable lo Lender, or shaU in good faith contest such lien by, ordefend enforcement of auch lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereof. - 5. Hazard Insurance. Borrower ahall keep the improvemente now exiating or hereafter erected on the Property inaured against loss by fire, hazarda included within the lerm "extended coverage," and e~uch other hazarda as Lender may require and in such amounts and for such periode se Lender may require; provided, that Lender ahall not requirn such eoverage amount exceeding the minimum, as may be required by state or federal regulations goveming activitiea of Lender, or that amount of coverage required to pay the aums secnred by this Mortgage, whichever ie the greater. The insurance ~rrier providing the inaurance ahall be chosen by Borrower aubject to approval by l,ender, provided, that such approval shall not be unreasonably withheld. Al! premiuma on insurance policies ahall be paid in the manner provided under paraRraph 2 hereof or, if not paid in such manner, by Borrower making puyment, when due, directly to the insurance carrier. All insurance policiea and renewala thereof ehall be in form acceptable to Lenderand ahall include a standard mortgaqeclause in favor of and in form acceptable to Lender. Lender shal! have the right to hold the policiea and renewale thereof, and E3orrower ahall promptly furnish to ~ i.ender all renewal notices and al! receipta of paid premiume. In the event of loss, Bornower shall give prompt notice tu the inaurunce carrier I and.l.ender. Lendet may make proof of loes if not made promptly by Borrower. ~ Unless I.ender and Borrower otherwiee agree in writing, insurance proceeda shall be applied to reatoration or repair of the Property i damaged, provided auch reetoration or repair is economically feasible and the eecurity of this Mortgage ie not thereby impaired_ If such i restora~ion or repair is net economically feasible or if the eecurity of this Mortgage would be impaired, the ineurance proceeda ahall be epplied E to the auma eecured by thia Mortgage, with the excees, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to reHpond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for ~ inaurance benefite, Lender ie authorized to collect and apply the ineurance proceeda at Lender's option either to reatoration or repair of the f Property or the sums eecnred by thia Mortgage. € Unlese Lender and Borrower otherwiee agree in writin an such a luation of roceeds to nnci 1 ahaq not extend or postpone the due ~ & Y PP P P~ pa date of the monthly inata11mente retemd to in paragrephs 1 and 2 hereof or change the amount of auch inatallments. if under paragraph 18 hereof the Property ia aoquired by I.ender, all right, title and intereat of Borrower in and to any inaurance policiea and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acqweition shall paes to Lender to the e:tent of the sume secured by thia ' ~ Mortgage immediately prior to auch sale or aoquiaition. g 6. Preaervation and Mainteaance of Property; I,eaeeholds; Condominume; Planned Unit Developmente. Borrower aha11 keep e the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and shall comply v~~th the ' proviaions of any lease if thie Mortgage ie on a leaeehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrawer ahal) perform all of Borrower e obligationa under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and reguletiona of the rnndominium ur planned unit development, and conatituent dceumente. It a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mottgage, the oovenanta and ~ agreementa of auch rider ahall be incorporated into and shall amend and supplement the covenanta and agreementa of thie Mortgage as if the rider were a part hereof. = 7. Protection ot Lender's Security. If Borrower fails to perform the wvenanLe and agreemente contained in this Mortgege, or if any Y action or proceeding ia commenced which materially affecta Lender s interest in the Property~ including, but not limited to, emineat domain. ~ ineolvency. oode enioroement, o: errangementa or proceedings involving a banlcrupt or decedent, then Lender at Lender'e option,upon ¢ notice to Borrower may make euch appearanoea, disburee auch eume and ta1~e such action as is neceasary b protect Lendez's intereat, ~ including, but not limited to, disbursement of reasonable attarney's lees and entry upon the Property to make repairs. If Lenda required f mortgage ineurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiume required to maintain ~ auch inanrance in effect until euch time as the requirement for euch insurance terminates in accordance with Borrower'e and I,ender'e ~+~ritten agreement or applicable Law. Borrower shall pay the amount of all mortgege ineurance premiume in the manner provided under peragraph 2 hereof. ; My amounte diebursed by Lender pereuant to thie paragraph 7, with intereet thereon, ahall become additional indebtedneas of = BoTrower secured by this Mortgage. Unleaa Borrower and Lender agree to other terms of payment, auch amounta ehal) be payable up~n ~ notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of diabursement at the rate payabie from ~ time to time on outatanding principal under the Note unless payment of intereet at auch rate would be contrary to applicable law, in which event euch amounte shall bear interest at the highest rate permieaible under applicabie law. Nothing contained in this paragraph 7, ehall ~ require Lender to incor any expense or take any action hereunder. ~ . - 9~~K ~ac_1~~ ~ ° k 311: ~ ~