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HomeMy WebLinkAbout2579 Borrower and I.ende~ covenant a~d agree as followe: 1. P~ymettt ot Principal aad lnterea~ Borrower shall promptly pay when due the principal of and i~tereet on the indebtednesa evideneed by the Note, prepayment and letecharge8 as provided in the Note, and the principal of and intereat on uny ~ture Advances aecured by this Mortgage. Z. F~nds [or Teu~es and Insuraace. Subject to applicable law or to a written waive~ by Lende~, Borrower ahall pay to Lender on the day monthiy inatallmenta of principal and intereet are payable under the Note, unW the Note is paid in full, a sum (herein "~?nde"> equal to one- twelRh of the yearly taxes and aseessme~ta which may ettain priority over this Mortgage, and ground renta on the Property, if any. plue one- Lwe1Rh of yearly premium insta!lmenta for hazard insurance. plue onetwelRh ofyearly premium instaUmenta for mortgage inaur~nce, if any, all as reasonably eetimated initially and from time to time by l.ende~ on the basis of asaesamenta and bills and resisonable estimatrs thereof. The flu~ds ahall be held in an inatitution the depoaits or accounta of which are inaured or guaranteed by a Federal oT State agency (including I.ender if Lender ia such an inatitution). I.ender ahall apply the Ftinda to pay said taxes, aeseasmenta, iueurance premiuma and ground renta. Lender way not charge for so holding and epplyiag the Ftinde, analyzing said account, or verifying and compiling esid aseesementa and bills. unlesa L.ender pays Borrower intereat on the ~nds and applicablelaw permita I.ender to make such a charge. l3orrower and Lender may agree in writing at the time of eYecution of this Mortgage that intereat on the Funda shall be paid to Borrower, and unlesa auch agreement ia made or applicable law requiree auch intereat to be paid. I.ender ehall not be required to pay Borrower any intereat or earnings on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credita and debite to the Funds and the puspoee for which each debit to the Funde was made. The Funda are pledged as additional aecurity for the suma secured by thie Mortgage. If the amount of the F~nde held by Lender. together wilh the future monthly inetallmente of Funds payable prior to the due datea of taxea. aesesemeate, inaurance premiuma and ground rente. ahall exc~red the emount required to pay esid taxea, eaeesamenta, inaurance premiuma and ground rente se they fall due, euch excess ahall be, at Boirower a option, either promptly repaid to Borrower or rredited to Borrower on monthly inetaUmente of ~Lnds. If the amount of the Funds held by I.ender ahall not be aufficient to pay taxea, asaeasments, insurance premiume and ground renta as they fall due, Borrower ehall pay to LgA~r~ny-~~OH~sary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower~qMestiAg:~lymenl4tiereof Upon payment ia full of all aums aecured by thie Mortgage. I.enden~661k~k~ol~und tu~ ~wer any funds held by l.endec lf under paragraph 18 hereof the Property is sold or the Property is otherwise acquyced by I.1~l~e~~r s~1a11 a~ply, no later than immediately prior to the sale of the Fr~perty or ite aoquisition by Lender, ~yr I~nds held by l.end@r $t,~ y~oaef appiicatfbn'aa a credit against the sums secured by thia Mortgage. . . ,r.~.: - 3. Application of Payments. Unlesa applicable .law provides otherwise~ afl payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firs~t in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all ta:es, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, 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 thereot. Bormwer shall promptly furnish to Lender all notices of amounta due under this paragraph, and in the event Botrower shall make payment directly, E3ormwer shall promptly furnish to Lender receipta evidencing such payments. Borrower shaU promptly discharge any lien which has priority over thisMortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahall agree in v+rriting to the payment of the obiigation secured by such iien in a manner acceptable to L.ender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enfotcement of the lien or forfeiture of the Property or any part thereof. 5. Hazerd Insurance. Borrowet shall keep the improvementa now exiating or hereafter etected on the Property insured against loss by fire, hazarda included within the term "e:tended rnverage," and euch other hazards as L.ender may require and in such amounta and forsuch periods ae Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as m~y be required by state or federal regulationa governing activitiea of Lender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever ia the greater. The inaurance carrier providinq the insurance shall be chosen by Borrower subject to approval by Ixnder; pn?vided, that such approval shall not be unreasonably withheld. All premiums on ineurance policies shall be paid in the manner pn,vided under paraRraph 2 hereof or, if not paid in such manner, by ~3orrower makinq payment, wherr due, directly to the insurance carrier. ~ All inaurance policies and renewale thereof ahall be in form accepiable to Lender and shali include a atandard mortgage clause in favor of ' and in form aoceptable to I.ende*. Lender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ i.ender all renewal noticea and aU receipte of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier ~ and I.ender. Lender may make proof of loss if not made promptly by Borrower_ ~ Unlese Lender and Borrower otherwiee agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided euch restoration or repair ie economically feasible and the eecurity of this Mortgage ie not thereby impaired. If such ~ reatoration or repair is not economicaily feaeible or if the security of this Mortgage would be impaired, the inaurance proceeds ahall be applied j to the aums aecured by thia Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier ott'era to settle a claim for ~ insurance benefita, Lender is authorized to collect and apply the inaurance proceede at I.ender s option either to reatoration or repair of the Property or the aume eec~red by this Mortgage. ~ Unless Lender and Borrower otherwiee agree in writing, any such application of proceeds to principal ahall not extend or postpone the due date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Propetty ie acquired by Lerider, all right, tide and intereat of Borrower in and to any inaurance policies and in and to the proceeds § theteof reaulting from damage to Property prior to the sale or soquisition ehall paas to Lender to the extent of the sums secured by this Mortgage immediately prior to such eale or aoquisition. 6. Preservation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaione of any lease if thie Mortgage ia on a leaaehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligations under the declaration or covenante creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent dceumente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mnrtgage, the oovenants and ~ agreements of such rider shall be incorporated into and shall amend and aupplement the covenanta and agreemenla of this Mortgage as if the _ rider were a part hereof. u 7. ProteMion ot Lender's 3ecurity. If Borrower faila to perform the oovenante end agreementa oontained in thie Mortgege, or if any ~ action or proceeding ie commenced which materially effects Lender s intereat in the Property, including, but not limited to, eminent domain, ~ insolvency, oode enforcement, or arrengementa or proceedinge involving a bankrupt or deoedent, then Lender et Lender'a option,upon ~ notice to Borrower may make euch appearanoea, diaburee such eame and take auch action aa is neceaeary to protect L,ender'e interest~ R including, but not limited to, disbureement of reseonable attorney'e feee and entry upon the Property to make repaire. If Lender required mortgage insurance ae a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiume required to maintain i anch inaarance in effect until such time as the requirement for auch ineurance terminatee in accordance with Borrower'e and Lendela ; written agreement or applicable Law. Borrower shall pay the amount of all mort~rage ineurance premiuma in the manner provided under paragraph 2 hereof. My amonnte diebureed by Lender perauant to thie paragraph with intereet thereon, ahal! become additional indebtednese of a Borrower secnred by thie Mortgage. Unleee Borrower and Lender agree to other terma of payment, euch amounte ahall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ahall bear intereat from the date ot diebureement at the rate payable from ~ time to time on outetanding principal under the Note unieae payment of interest et euch rate wo~~ld be oontrary to applicable law, in which event auch amounte ahall bear interest at the higheat rate permiaeible under applicable law_ Nothing contained in thia paragraph 7, shall require Lender to incnr any eupenae or take any aMion hernunder_ ~ ~ ~ ;:`r31i ;2577 ~ ~ - ~