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HomeMy WebLinkAbout0905 Borrower and I.ender covenant and a~ree as follows: 1. PaYment of Principal and Iaterest. Borrower ahall promptly pay when due the principal of and intereat on the indebtedne$s evidenced by the Note. prepayanent and late charges as provided i~ the Note, and the principal of and intereat on any ~ture Advancea secured by this Mortgage. 2. F~nds for Tues and Inauranoe. 3ubject to applicable law or to a written waiver by I.ender, Borrower ahall pay b l.e~der on the day monthly installments of principal and interest are payable under the Note. until the Note ia paid in full, a sum (herein "Fti?nda") equal to on~ twelRh of the yearly tax~ and asseeaments which may attain priority over this Mortgage. and grou~d renta on the Property. if any, plua one~ tweltth of yearly psemium installments for hazard inaurance, plue onetwelRh of yearly prer~ium inatallments fur mortgage ineurance, if any, ~ aq as reasonably eetimsted initially and from time to time by I.ender on the baeie of aaeesaments and billa and rea8onable eatimates thereof. ~ 7~e I~nds ahall be heM in an inatitution the depoeits os accounte of which are ineured or guaranteed by a Federal or State agency (including I.endet if I.ender ie auch an inatitution). l.ender ehall apply the ~nde to pay eaid taues. aesesaments. inaurance premiums and gmand rents. Lender me~y not charge for so holding and applying the ~Lnds, analyzing eaid accoun~ or verifying and compiling said esseeaments and bills. unleea Lender pays Borrower intereat on the ~nda and applicable law permita Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that interest on the F1nda shall be paid to Borrower. and unleea such agreement ia made or applicable law requires such interest to be paid. [.ender ahall not be required to psy Borrower any intereat or earnings on the Fl~nds. Lend~ shall give b Borrower. without charge, an annual acoounting of the ~nde ahowing credite and debits to the fi~nds and the purpoee for which ~ch debit b the ~nda waa made. The fi~nda are pledged as additional eecurity for the auma eecured by thie Mortgage. If the amount of the Ftinds held by Lender. together with the future monthly inetallmenta of Funda payable prior to the due dates of tauea, esseasmenta, ineurance premiuma and ground rents, ehaU exazed the amount requind to pay esid texea, aseeeaments, ineurance premiume and ground rente as they fall due. auch e~cese ahall be, at Borrower'e option, either promptly repaid b Borrower or credited to Borrower on monthly inatallmenls of Phads. If the amount of the Funds held by Lender ehall not be eufficient to pay taxea, seeeesmente, ineurance preauums and ground rent8 as they fall due. Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the dafe notice ie ma~iled by Lender to Borrower requesting payment thereof. ~ Upon payment ia fi~ll of all auma eecured by thia Mortgage. I.ender ahall pmmpUy refund to Borrower any funde held by Lender. If under paragraph 1$ hereof the Property ia eold or the Property is otherwiee acquired by Lender, I.ender shall apply, no later than immediately prior to the eale of fhe Property or ita soquisition by Lender, any F~nda held by Lender at the time of application ae a credit against the swns secured by this Mortgage. 3. ApplicaNon ot Payments. Unlesa applicable !aw provides otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then b interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanoes. 9. Chargea; Liens. Borrowerahall pay all taxea, assessmenta and other charges. fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments orground rents, 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 thereof. Borrower ahall prqmptly furnish to Lender all notic~ of amounta due under thia paragraph, and in the event Borrower shall make payment directly. Borrower ahall promptly furniah to I.ender reoeipts evidencing auch payments. Borrower ahall promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ahaU not be required to discharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5.. Hazar~= '.~duran~ Borrower shall keep the impmvea~enta now euiating or hereafter erected on the Property inaured againat loss by fire. hazards included withia the term "~tended coverege, ' and Such other hazards as Lender may require and in such amounta and for such periods as Lender may require; pmvided, that Lender ahall not require auch ooverage amount exceeding the minimum, as may be required by atate or federal regulations governing activities of Lender. or that amount of coverage required to pay the sums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the inaurance shall be chosen by Borrower subject to appmval by Lender, provided, that such approval ahall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ All inaurance policiea and renewale thereof ehall be in form aoceptable to Lender and ehall include a standard mortgage clause in favor of and in form acceptable to I.ender. Lender ahall have the right to hold the policiea and renewals thereof, and Botrower shall prom ptly furnish to i.ender all renewal notices and all teceipte of paid premiuma. In the event of losa, Borrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loea if not made pmmptly by Borrower. j Unlese I.endet and Borrower otherwiee agree in writing, insurance proceeda shall be applied to rnatoration or repair of the Properiy ~ damaged. pmvided such reatoration or repair is economicaUy feasible and the security of this Mortgage ia not thereby impaired. If snch ~ restoration qr repair is not economically feaeible or if the eecurity of this Mortgage would be impaired the inaurance proceeds ahall be applied ~ to the aams aecured by thie Mortgage. with the e:cesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offera to setde a claim for ' E inaurance benefite, Lender is authorized to collect and apply the ineurance proceeda at Lendei s option either to reatoration or repair of the E Property or the suma eecured by this Mortgage. Unleea Lender and Borrower otherwise agree in writing, any auch application of proceeds to principal ehall not extend or postpone the due date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of euch inetallmenta. If under paragraph 18 hereof the Property is aoquired by Lender, all right, tide and interest of Borrower in and to any inanrance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or aoquieition ehall pass to I.ender to the extent of the suma secnred by this Mortgage immediately prior to such eale or aoquiaition. 6. Preeervation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrovrer ahall keep the Property in good sepair and shall not commit waete or permit impairment or deterioration of the Property and aha11 rnmply with the provieions of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower e obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndomininm or planned unit development, and conetituent documente. If a ~ condominium or planned unit derelopment rider ia executed by Borrower and recorded together with thia Mortgage, the oovenants and agreemente of such rider shall be incorporated into and ahall amend and supplement the covenanta and ugreements of thie N3ortgage as if the rider were a part hereof. ~ 7. Protection of Lender'e Security. If Borrower fails to pertorm the oovenanLe and agreementa oontaiaed in thie Mortgage, or if any ~ artion or proceeding is commenoed which meterially affects Lender's intereet in Lhe Property, including, but noL limited to, eminent domain, ~ ineolvency, aode enforcement, or arrangemente or prooeedinge involving a bankrupt or deoedent, then Lender at L,ender'e option,upon ~ notice to Borrower may make anch appearances, dieburee euch sums and take auch action as is aeoeaeary to protect Lendei s interest, ~ including, bnt not limited to, diabureement of reaeonable attorney'e feea snd entry upon the Property to make repaire. If Lender reqnired j mortgage insurance ae a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiums rPquired to maintain ~ euch insurance in effect until such time as Lhe requirement for such insurance terminatea in accordance with Borrower e and I.endela ~ written agreement or applicable Law. Borrower ehall pey the amount of all mortgage insurance preminma in the manner pmvided under e ParsBraph 2 hereof. ~ My amounte diebureed by Lender pereuant to thie paragreph 7, with interest thereon, ehall become additional indebtedness of ~ Borrower eecvred by this Mortgage. Ualeea Borrower and Lender agree to other terme of payment, euch amounte ahall be payable upon notice from I.ender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note unlesa payment of interest at auch rate would be oontrary to applicable law, in which ~ event such amounte shall besr intereat at the higheat rate permiseible under applicable law. Nothing contained in thie paragraph 7, ehall require Lender to incur any expenae or take any action hereunder. ~ - s.;'~~312 racE 90:3 ~ ~ : _ _ _