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HomeMy WebLinkAbout2280 ' ~ ; ~ ; Borrower and I,ender covenant and agree es follows: 1. Payment ot PriACipal end Interes~ Borrower shall promptly pay when due the principal of and intereat oq the indebtedneea evidenced by the Note, prepayment and late charges ae provided in the Note. and the principal of and intereet on any fi~ture Ad~~ancee aecured by chis Mortgage. 2. PLnde for Tase~ and In~uraace. Subject to applicable law or to a written waiver by l.ender, Bor~ower ehall pay to l.ender on the dayr month~yr irutallmenta of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "I~`unde") equal to on~ } twelRh of the yearly taxes and asae8ements which may attain priority over thie Mortgage. and ground renta on the Propedy, if any, plua one f twelfth of yearly premium installmenta for hazard insurance, plue onetwelRh ofyearly premium inatallmenta for mortgage inaurance, i[any. all aa reaeonably eetimated initially and from time to time by I.ender on the baeia of assesamenta and billa and reasonable eatimatea thereof. ; 'l~e l~nds ahap be held in an inatitution the depo~sits or accounta of which are inaured or guaranteed by a Federal or Stete agency (including Lender if I.ender is such an inatitution). I.ender shaU a?ply the Funda to pay said taxea. aaseaementa, insurance premiums and ground rents. Lendar may not charge for so holding and applying the fl?nds, analyzing said account, or verifying and compiling eaid aseesaments and biAs, unlees L.ender pays Borrower interest on the I~nds and applicable law permits L.ender to make such a charge. Bonower and I.ender me~y agree in writing at the time of e:ecution of this Mortgage that interest o:~ the ~nde ehall be paid to Borrower, and unlese each agreement is made or applicable law requires such intereat to be paid. I~nder shall not be required to pay Borrower any intereat or earnings oa the ~nds. L.ender shaU give to Borrower, without charge, an annual acoounting of the Funds ahowing credita and debita to the Funds and the purpoee for which each debit to the ~nda wae made. The Funds are pledged as additional eecurity for the sume eecured by this Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly inatallments of Funde payeble prior to the due datea of taxee, ess~sments, inauranoe premiume and ground renta, ahall ea[eaed the amount required to pay eaid taxea. asseasments, insurance premiuma and groand rente as they fall due, such ezcese ahall be, at Bonower'e option, either prompdy repaid to Borrower or credited b Borrower on monWly inetallmenta of P1~nda. V the sinount of the P~nde held by Lender ahaU not be aufficient to pay taxea, aseesaments, insurance premi~ms and ground renfa as they fall due, Borrower ahall pay to I.ender any amouat neoeesary to make up the deficiency within 30 daye from the date notice ia meiled by Lender to Borrower requesting payment thereof. Upon payment in fitll of all eums aecured by this Mortgage. I.ender ahall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Propetty ie sold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property ot ite aequisition by I.ender. any ~nde held by I.ender at the time of application as a credit against the suma secured by this Mortgage. , 3. Application of Paymeate. Unleas applicable law providee otherwiae, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then b intereet payable on the Note. then to the principal of the Note, and then tu intereat and principal on any Future Advancea. 4. Charges; Liena. Borrower ahall pay all taxea, assessments and other chargea, 6nes and impositions attributabte to the Property which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or. if not paid in auch manner, by Borrower malcing payment, when due, directly to the payee thereot. Borrower shaU proinptly furniah to Lender all noticee of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrowe: shall prompdy furniah to Lender reoeipts evidencing such paymente. Borrower ahall promptly discharge any lien which has priority over thia Mortgage; provided, that - Borrower shall not be required to discharge any auch lien so long as Borrower shall agree in writing to the payment of theobligation secuied by such lien in a munner acceptabie to l.ender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. " 5. Hazard Ineurance. Borrower shall keep the improvementa now e:ieting or hereafter erected on the Propert~ insured against losa by fire, hazarda included within the term "eztended coverage," and auch other hazards as I.ender may require and in auch amounte and for such periode as Lender may require; provided, that Lender ehall not require such ooverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever is the greater. The inaurance carriez providing the insurance shall be chosen by Borrower aubject to approval by I.ender, provided, that such appmval shall not be unreasonably withheld. All premiums on insurance policies shali be paid in the mannrr provided under paragraph 2 hereof or, if nut paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiee and renewala thereof ahall be in [orm acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form aoceptabte to I.ender. I.ender ehall have the right to hold the policiea and renewals thereof, and Borrower ahall prompdy fumiah to I i.ender all renewal noticea and all receipta of paid prerniuma. In the event of lose, Borrower ahall give prompt notice to the inaurance carrier I and Lender. Lender may ma1~e proof of loea if not made pmmptly by Borrower. ~ Unless Lender and Borrower otherwiee agree in writing, insurance proceeda ehall be applied to reatoration or repair of the Property ~ damaged. provided auch reebration or repair is economically [easible and the eec~uity of this Mortgage is not thereby impaired. If auch E reatoration or repair ie not economicaliy feaeible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda ehall be applied ! to the sume aecuted by thia Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to setde a claim for ~ insurance benefite, Lender ie authorized to collect and apply the insurance proceeds at Lender'n option either to restoration or repair of the ~ Property or the ewna sec~red by this Mortgage. Unlese I.ender and Borrower otherwise agree in writing, any auch application of proceede to principal shall not eutend or poatpone the due date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of such installments_ If under paragraph 18 hereof the Property ie aoqnired by Lender. all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof resulting from damege to Property prior to the sale or aoquisition ahall pase to Lender to the extent of the aume secured by this ~ Mortgage immediately prior to euch eale or aaquisition. ¢ 6. Preservation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Bor~ower ahall keep ~ the Property in good repair and ahall not commit weate or permit impairment or deterioration of the Property and ahall comply with the ~ provieione of any lease if this Mortgage is on a leaeehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower'a obligationa under the declaration or covcnante creatingor governing the condominium or planned unit development, the bylawe and regulatior?e of the condominium or planned unit development, and constituent documents. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ aqreementa of such rider ahall be incorporated into and ahall amend and aupplement the covenants and agreementa of this Mortgage as if the $ rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrower faile to perform the oovenents end agreemente oontained in this Mortgage, or if any ~ action or proceeding is commenoed which materially effects Lendei s interest in the Property, including, bnt not limited to, eminent domain. ~ insolvency. oode enforaement, or arrangemente or pmceedings involving a banl~pt os deoedent, then I.ender at Lender's option,upon s notice to Borrower may make such appearances, disburee euc6 sums and take anch action ea is ne+oeasary to protect Lender s intereet, ~ inclading, but not limited to, disbursement of reasonable attoroey'e feee and entry upon the Property to make repairs.lf Lender required mortgage insurance ae a condition of making the loan eec~red by thie Mortgage, Borrower ahall pay the premiums required to maintain ~ ench insurence in effect until euch time ea the requirement for such ineurance terminatee in accordence with Borrower's and Lender'e written agreemeat or applicable Law. Borrower shall pay the amount of all mortgege ineurance premiume in the manner provided under z P8~8Ph 2 hereof. . x My amounte diabursed by Lender pereuant Lo thie oaragraph with interest thereon, ehall become additional indebtedness of ~ Borrower secured by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounta ehall be payable upon ~ notice trom I.ender to Borrower requeeting payment thereof, and ahall bear interest from the date of diebureement et the rate payable from ~ time to time on outatanding principal under the Note unless payment of interest at auch rate would be contrary to applicable law, in which ~ event anch amounts aha11 bear intereat at :he higheat rate permiseible under applicable lew. Nothing contained in this paragreph 7, shall require Lender to incur any expenee or take any a~ttion hereunder. ~ . . 1 ~ ~ . ~ `_~~~1i ~~~_2279 ' x