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HomeMy WebLinkAbout1151 Horrower and I,ender covena~t and agree as followa: 1. Payment of Principal and Interest. Borrower ahaU promptly pay when due the p~ncipal of and intereet on the indebtedness evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal of and intereet on any Future Advancee aecured by thie Mortgage. 2. Ftitr?da for Tues and Insurance. Subject to applicable law or to a written waive~ by I.ender, f3orrower ehall pay to Lender on the day monthly installmenta of principal and intereat are payable under the Note, until the Note is paid in full, a sum (herein "Ml~nds") equal to one twelRh o[the yearly taxee and asaessmenta which may attain priority over this Mortgage, and ground tents on the Property, if any, plus one twelRh of yesrly premium inatallmenta for hazard insurance, plus onetwelfth ofyearly premium inatallments for mortgage i~surance, i[any, all ae reaeonably eetimated initially and from lime to lirne by l.ender on the bnaie of i+eaesements and billa and reasonable eatimatee thereof. The Fl~nds ahall be held in an institution the deposite or accounts of which are ineured or guaranteed by a Federal or State agency (including I.endrr if I.ender ia auch an inatitution). Lender ahall apply the Funda to pay said taxes, asaeaements, inaurance premiums nnd gruund renta. I.ender mqy not charge for eo holding and applying the Funde, analyzing eaid account, or veri[ying and compiling said assesamente and bills, unleas I.e~der pays Borruwe~ intereat on the Ftinds and applicable law permite I.endec to make such a charge. Borrower and I.ender may agree in writing at the time of execution oi this Mortgage that intereat on the ~nda ahal[ be paid to Borrower, and unleea auch egreement is made or applicable !aw requires such intereat to be paid, Ixnder ehall not be required to pay Borrower any interest or earnings on the Fl~nda. Lender shaU give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debits to the • Funda and the purpoee for which each debit W the Funda was made. 77~e Funde are pledged as additional security for the eume secured by this Mortgage. If the amount of the Ftinda held by I.ender, together with the future monthly instalimenta of Funda payabie prior to the due datee of taxea, aseeeamente, inaurance premiums and ground renta, ahall exc~zed the amount required to pay said txxee, aeecssmente, ineurance premiuma and ground rente aa they fall due, euch .excesa shall be, at Borrower a option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallments of Funde. If the amount of the Funds held by Lender sha11 not be sufficient to pay taxes, asseasmente, insurance premiuma and geound rente ae they fall due, Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 daya from the date nnti~ u mwilsri hy lon~ior en R......,.,P. ~.,,....~~ing payment thereof. Upon payment in fiill of all aums aecured by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie eold or the Property is otherwiae acquired by Lender, Lender ahall apply, no later than immediately prior to the aale of the Praperty or its acquiaition by Lender, any Funda held by I.ender at the time of application se a credit againet the suma secured by this Mortgage. 3. Appliestion ot Paytqents. Unlesa applicable law provides otherwise, all peyments received by I.ender under the Nate and paragrephe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by l3orrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea. 4: Chargee; Liens. E3orrowerahall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner pruvided under paragraph 2 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 all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly turnish to l,ender receipte evidencing such payments. Borrower shall promptly discharge any lien which has priority nver thia Mortgage: provided, that E3orrower ahall not be required to discharge any such lien so long as Born?wer ahall agree in writing to the payment of the obligation secured by such lie~ in a manner acceptable to Lender, or shal) in good taith contest such lien by, ordeirn~ rnfurcrmentof such lien in, ic~al proceedinga which operate to prevent the enforcement of the lien or for[eiturn of the Property or any part thereof. ' 5. Hazerd Insurance. Borrower shall keep the improvements now exieting or hernafter erected on the Property inaured againet loss by fire, hazarde included within the term "extended coverage; ' and such other hazards as L,ender may require and in such amounta and tor auch periods se Lender may require; pmvided, that Lender ahall not require such coverage amount exceeding the minimum, as may be required by state or federal regulationa guverning activitiea of Lender, or that amount otcoverage required to pay the aums secured by this btortqage, whichever ia the greater. The insurance carrier providing the insurance shail be : hosen by F3orrower subject to approvnl by l.ender, pm~•ided, that such approval shall not be unreasonably withheld. All premiuma on insurance policies shall be paid in the manner provici~ri under paraKraph 2 hereof or, if not paid in such manner, by Borrower makinq payment, when due, directly to the inaurance carrier. ~ All inaurance policies and renewals thereof ahall be in form acceptable to l.ender and ahall include a atandard mortgage clause in fa~nr of and in form acceptable to Lender. I.ender ahall have the right to hold the policies and rnnewale thereof, and Barruwer shail promptly furnish to i.ender al! renewal notices and all rece~pts oi paid premiuma. In the event of loss, Borruwer shall qive prompt notice to the inaurance qrrier and I.ender_ Lender may make proof of losa ii not made promptly by Borrower. ~ Unless Lender and Borrower otherwiBe agree in writing, insurance proceeda ahall be applied to reatoration or repafir of the Property damaged, ptovided such reatoration or repair is economically feasible and the aecurity of thia Mortgage is not thereby impaired. If auch I restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeda ahall be applied ~ to the auma eecured by this Mortgage, with the e:ceae, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daye from the date notice ia mailed by Lender to Borrower that the inaurance carrier oiPers to aettle a claim for ; insurance benefita, Lender ie suthorized to collect and apply the insurance proceeda et Lender's option either to restoration or repair of the ~ Property or the sume eecured by this Mortgage. " ~ Unlesa Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ahaU not extend or postpone the due ` date of the monthly ineteilmenta referred to in paragraphs I and 2 hereof or change the amount of auch inatallmente. If under paragraph lA ~ hereof the Property ia acquired by Lender, all right, title and interest of Borroner in and to any insurance policiea and in and to the proceeds ~ thereof resulting from damage to Property prior W the eale or acquieition ahall paae to Lender to the extent of the aums eecured by this ~ Mortgage immediately prior to auch sale or aoquisition. ~ ~ 6_ Preeervation and Maintenence of Property; Leaseholds; Condominums; Planned Unit Developmenta. Borrower ehaU keep ~ - the Property in good repair and ahall not commit waste or permit impairment or deteriatation o[ the Property and shall comply with the F proviaiona of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ E3orrower ahall perform all of Borrower e obligationa under the declaration or covenante creatingor governing the condominium or planned ; unit development, the bylawa and regulationa of the condominium or planned unit development, and conetituent documents. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded togetheT with thie blortgage, the oovenanta and ~ agreements of auch rider shall be incorporated into and eha11 amend and aupplement the cocenanta and agreements of thie Mortgage as if the rider were a part hereoL ~ 7. Protection ot Lender's 3ecurity. If Borrower faila to perform the oovenants and agreemente contained in this Mortgage, or if any - action or proceeding ie commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, § ineolvency. oode enforoement, or arrangemente or proceedinge involving a bankr~pt or deoedent, then Lender at Lendei e option,upon ; notice to Bormwer may malice such appearances, diaburee such aums and take auch action as is neoessary to protect Lender'r intereat, ; including, but not limited to, diebursement of reasonable attorney'e feee and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan eecured by thie Mortgege, Borrower shall pay the premiums required to maintain ~ ; euch ineurance in effect unti! euch time as the requirement for such insurance terminatea in accordance with Borrower'e and Lende~s writien egreement or applicable Law_ Borrower ehall pay the amount of all mortgage inemance premiume in the manner provided under , paragTaph 2 hereof. My amounte diebnreed by Lender persuant to this paragraph with interest thereon, ehall become additional indebtedness of Borrower secured by thie Mortgage. Unless Borrower and Lender a~ree to other terme of payment, euch amounte ehall be payable upon ' notice from Lender to Borrower requesting payment thereof, and ehall bear intereet from the date of diabureement at the rate payable from ' time to time on outetanding principal under the Note unless payment of intereat at euch rate would be oontrary to applicable lew, in which ~ event euch amounte ahall bear internet at the highest rate permiseible under epplicable law. Nothing rnntained in thie paregreph 7. ahall ; require Lender to incur any e:penee or take any aMion hereunder. a ~ ~ € - 90~r ?AC:1~~~ ~ ~