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HomeMy WebLinkAbout2276 Borrower and I.ender covenant and agree as folbwa: 1. Payeaerit of Principal and lnt~+reet. Borrower shall prompUy pay when due the principal of and intereat on the indebtedneas evidenced by the Note, prepayment and late chargee as provided in the Note, and the principal of and intemat on any ~ture Advancea secured by this Mortgage. 2. I~nde torTwceo and lnsuranee. Subject to applicable taw or to e written wuiver by l.ender, E3orn,wer ahull pay to [.ender on the day monthly installmenta of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "Funda"? equal to one twelfth of the yearly taxes and asseasments which may attain priorily over thia Mortgage, and grcwnd rents on the i'roperty, if any, plus one twelBh of yeatly premium inatallmenta fo~ hazard ioaurance, plua onetwelfth of yearly premium inatallments for mortguge inaurance, if any, all as reaaonably eatimated initiapy and from time to time by I.ende~ on the baais of aezsessmente nnd bilis and reusonahle estimatea thereof. The P~nds ahall ba held in an institution the depoaits or aceounte of wl~ich are insured or ~aranteed by a Fecieral or State agency (including I.ender if I.enda ia auch an inatitution). Lender ahall apply the Funds to pay said taxes, seseasments, inaurance premiuma and ground ~ente. I.ender may not charge for so holding and applying the Funda, analyzing eaid account, or verifying and compiling eaid seeeasment8 and bills. unleae Lender paye Aorrowe~ intereat on the Funda and applicable law permits I.ender to ~nke auch a charge. Borrower and Leader may agree in writing at the time ote:ecution of thia Mortgage that intereat on the Fl~nde shall be paid to Borrower, and unleas euch agccement ie made or applicable law requirea auch interest to be paid, I.ender ahall not be required to pay l3orrower any intereat or earaings on the ~nds. Lender ahall give to Borrower. without charge, an annual accounting of the Funda ehowing credite and debits to the Funds and the purpose for which each debit to the ~nda was made. The Funds are pledged as additional security for the eums eecured by thie Mortg9ge. If the amount of the fi~nda held by L.ender, together with the [utuce monthly inetallmenta of Funda payable prior to the due dates of txxes, asaeeamenta, inaurance premiuma end ground rents, shall exczed the amouot required to pay said taxee, asseasments, insurance premiuma and ground renLs as they fal) due. euch e:ceae ehall be, at Borrower'e option, either promptly rnpaid to Borrower or credited to E3orrower on monthly installmente of FLnds. If the amount of the Fund,s held by I.ender shall not be aufficient to pay taxea, assesamenta, inaurance premiums and ground rents ae they fall due, Borrower ehall pay to Lender any amount neceseary to make up the deficiency within 30 daya firom the date notice ia mailed by I.ender to Borrower requesting payment thereoL Upon payment in full of aU eume secured by thie Mortgage, L,ender ahall promptly refund to Borrower any funda held by lxnder. [f under paragraph 18 hereof the Property is aold or the Property ie otherwise acquired by [,ender, l.ender ahall apply, no later than immediately prior to the eale of the Propetty or ita acquisition by I.ender, any Funda held by l.ende~ at the time of application as a credit againat the sums aecured by thie Mortgage_ 3. Appiieatlon of Payments. Unlees applicable law provides otherwise, all payments received by Ixnder under the Note and paragraphs 1 and 2 hereof ahaU be applied by Lender firet in peyment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest ar.~ ;:.-:r.cipal on any Future Advancea. 4. Chargee; Liena. Borrower shall pay all taxes, assessments and olher charges, fines and impositions attributable to the Prr~periy which may attain a priority over this Mortgage, and leasehold payments or ground rents, if ~ny, 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 thermf. RormNer shall promptly furnish to I.ender all notices of amounte due under this paragraph, and in the event Eiorrower shall make payment directly, FSorrower shnll promptly furnish to I.ender receipis evidencing auch payments. $orrower shall prompfly discharge any lien which has priority over this Mortgage: provided, that Borrower ahall not be required to discharge any such lien so long as E3orrower ahal! agree in writing to the puyment of the obliKation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by; ordefend enfomement of such lien in, legal procredinKa which.operate to prevent the enforcement of the lien or forfeiture of the Properfy or any part thereof. 5. Hazard Inaurance. Borrower ehall keep the improvemente now existing or hereafter erected on the 1'roperty insured against loss by fire, hazae+da included within the term "e:tended rnvera~e," and euch other hazards as Lender may require and in such amounta and for auch periode as Lender may require; provided, that I.ender ahall not require such coverage amount exc~eding the minimum, as may be required by state or federal regulations governing activities of l.ender, or that amount of coverage required to pay the aums secured by this Mort{tage, whichever ie the greate;. The insurance carrier providing the insurance shall be chosen by Korrower subject tu approva) by I,ender, pn?vidrd, that such approval shall not be unreasonably withheld. All premiums on insurance poticies shall be paid in the manne, pn?vidcri under paraKraph `l hrreof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. ' All inaurance policies and renewale thereof shall be in form acceptabie to Lender and shaU include a etandard mort~age clauae in favur of and in form acceptable to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Kurrower ahall promptly furnish to i.ender all renewal noticea and all receipta of paid pmmiums. In the event of loas, Bortuwer ahall give prompt notice to the insurance camer i and L.ender_ Lender may make proof of loas if not made promptly by Borrower_ ~ Unlese Lender and Borrower otherwiae agree in writing, insurance proc~eeds ahall be applied to rnetoration or repair ot the Property ! damaged, provided euch reatoration or rnpair ie economically feasible and the eecurity of this Mortgaqe is not thereby impaired. If such ~ reatoration or repeir ia not economically feasible or if the eecurity of thie Mortgage would be impaired, the inauranceproceeda shall be applied ~ to the auma eecured by this Mortqage, with the e:cese, if any, paid tc Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to reapond to I.ender wiLhin 30 days from the date notice ie mailed by Lender to Bomr~wer that the inaurance carrier ofiera to aettle a claim for ! inaurance benefita, Lender is authorized to collect and apply the insurance prooeeda at L.ender s option either to reatoration or repair of the E Property or the auma eecured by thie Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or poatpone the due ~ date of the monthly installmenta referred to in paragrapha 1 and 2 hereof orchange the amount of such installmente_ If under paragraph l8 hereof the Property ie acquired by Lender, all right, title and interest of Borrower in and to any ineurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or aoquisition ehall pasa to Lender to the e:tent of the aums aecured by this Mortgage immediately prior to auch eale or aoquisition. 6. Preservation and biaintenance of Property; Leaseholde; Condominuma; Planned Unit Developmente. Bonower shall keep ~ the Property in good repair and shall not rnmmit waete or permit impairment or deterioration of the Property and shall comply with the ~ provisione of any lease if thie Mortgage ia on a leasehold. If this Mortgage ie on a unit in a condominium or a planned unit development, ; E3orrower shall pertorm all of Borrowei e obligationa under the declaration orcovenants creatinRor governing the condominium or planned unit development, the byIawa and regulatione of the condominium or planned unit development, and constituent documents_ If a ~ condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thia i4lortgage, the wvenants and ~ agreements of auch rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mort~age as if the ~3 rider wern a part Lereof. ; Protection ot Lender's 3ecarity. If Borrower faile to perform the oovenante and agreementa rnntained in thie Mortgage, or if any r action or proceeding ia rnmmenced which materially affecte Lender's interest in the Propetty, including, but not limited to, eaunent domain, ~ ineolvency, oode enforoemen~ or arrangements or proccedings involving a banknipt or deoedeat, then Lender ei I.ender'e option.upon ~ notice to Borrower may make euch appearances, diaburae euch anms and take auch action aa is neceeeary to pmtect L.ender's interest, ~ including, but not limited to, diebureement of reasonable attorney'e feea and entry upon the Property to make repaira. If I.ender required mortgage inaurance ae a condition of making the loan aecured by thie Mortgage, Borrower ahall pay the premiums required to maintain ; such inenrance in effect antil euch time sa the requirement for such ineurance terminates in accordance with Borrower e and Lender'e ~ writien agreement or applicable I$w. Borrower shaU pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ~ My amounte diabureed by Ir_nder persuant to thia paragraph 7, with intereet thereon, ehall become additional indebtedness of ~ Borrower secured by thie Mortgage. Unlesa Borrower and Lender egree to other terme of payment, auch amounts ahall be payable upon s notice from Lender to Borrower requesdnq payment thereof, and ehaU bear intereat from the date of dieburaement at the rate payable from ~ time to time on outstanding principal under the Note unleae payment of intereat at euch rate would be contrary to applicable law, in which event euch amounte ehaU bear intereat at the higheet rate permiseibie under applicablr law. Nothing contained in thie paragraph ahall ~ require Lender to incur any expenee or tske any aMion hereunder. ~ - _ ; ~ ~ ~~`.311 -22~5 , .