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HomeMy WebLinkAbout0922 r Borrower and I.ender covenant and aRree aa follows: ~ 1. P~ymeat ot Principa?1 and Iatere~~ Borrower shall pmmptly pay when due the principal o! and intereat on the indebtedness evidenced by the Note, prepayment and late charg~ as pmvided in the Notr, a~d the principal of and intereat on a~y Fnture Advancea eecured by this Mortgage. 2. Flwds for Taues and I~teurance. Subject to applicable law or to a written waiver by Lender, Eiorrower shall pay to l.ender on the day mo~thly installmenta of principal and ir.tereat are payable under the Note, until the Nole ia paid in full, a sum (herein "Funde") equal to one- twelfth of the yearly taxes and asaessments which may attain priority over this Mortgage, a~d ground rents on the Property, if any, plua onc tweltth of ytarly premium instalimenta for hazard i~surance, plus onetwelfth of yearly premium installments for mortgage inaurance, iCany, all as reasonubiy eatimafRd initially and from time ta tiR~e by l.ender on the basis of assessmenla and bills And reaso~able estimatea thenwf. The P1?nds ahall be held in an institution the deposits or accounta ot which are insured or gua~anteed by a Federal or State agency (including Lender if Lender is such an inatitution). l.ende~ ahall apply the Funda to pay said taxes, aeaesamente, inaurance pmmiums and ground rente. L.er?der may not charge for so holding and epplying the Fu~ds, analyzing said account, or verifying and compiling said aseeeamenta and bills, unless Lender pays Borrower inteceet on the FLnds and applicable law permits Lender to make auch a charge. Borrower and I.ender may agree in writiag at the time of eaecution of thia Mortgage that intereat on the ~nda ahall be paid to Borrower, and unleas such ag~eement is made or applicable law requiree such intereet to be paid, Lender ehaU not be required to pey Borrower any intereat or earnings on the Ftinds. Lender ehall give to Borrower, without charge, an annual accounting of the Funda showing credita and debita to the Funds and the purpose for which each debit to the Funda was made. The Funds are pledged as additional security for the aums aecnred by this . Mortgage. If the amount of the ~Lnda held by Lender. together with the future monthly inatallments of Funds payable prior to the due datee of ta~ces. aeeeeaments, ineurance premiuma and ground rrnta, ahall excaed the amount required to pay seid taxes, assessmente, insurance premiuma and ground renta as they fall due, such excees ahall be, at Bonower s option, either prompUy repaid to Borrower or credited to Borrower on monthly installments of FLnds. If the amount of the Funda held by [xnder shall not be aufficient to pay taxes, asaesamenta, inaurance premiuma and ground renta aa they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by Lendec to Borrower reques~ing payment thereof. Upon payment in full of all sume aecured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ia otherwise acquired by Lender, [.ender shall apply, no later than immediately prior to the sale af the Property or its aoquiaition by Lender, any ~nds held by l.ender at the time of application as a credit against the sums secured by thie Mottgage. ' 3. Application ot Paymente. Unleas applicable law provides otherwiae, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in pt~yment of amounts payable to l.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 and principal on any Future Advances. 4. Charges; Liena. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or gmund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower makinq payment, when due, directly to the payee thereof. Borrower shall promptly furnish to [.ender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, I3ormw er sh~ll promptly furnish to I.ender receipts evidencing such payments_ E3orrower sh:tll prompUy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be requirecl to discharge any such lien so long as Bom?wer shall aKree in writing to the payment of theobiigation secured by such lien in a manner acceptable to Lender, or shall in ~ood faith contest such lien by, or defend enforcement of such lien in, legal proccedings which operate to prevent the enforcemenl of the lien or furfeiture of the Property or any part thereof. 5. Hazard Insueance. Borrower shall keep the improveme:~ts now existing or hereaRer erected on the Property insured aQainat loss by fire, hazards included within the term "extended coverage," and such other bazards as Ixnder may reyuire and in such amounts and for such periods as l.ender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortg~+ge. The inaurance carrier providirt~ the insuran~r shull t~e ehusrn by liurr~~Her wbject to appru~~al by I.ender, pn?vided, that such approval shall not be unreasonably withheld. All premiumc un insurance p~~liciew shall i?e paid in the m~nnPr pru~•idc~l under paraKraph'l hereof or, if not paid in such manner, by E3orrower making payment, when due, dirrctly tu the insurancr carrier. All insurance policies and renewals thereof shall be in form acceptable to l.ender xnd shall include a standard mortgageclause in favor of and in form acceptable to Lender. Ixnder shall have the riQht to hold the prdicies and renewals thereof, and Borrower shall promptly turnish to ; i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of toss if not made pmmptly by Borrower. Unlese Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied io restoration or repair of the Property ~ damaged. provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shal) be applied to the aums aecured by this Mortgage, with the excess, if any, paid to E3orrower. If the E'roperty is abandoned by Borrower, or if Borrower fails to ~ respond to L.ender within 30 days from the date notice is mailed by I.ender tu I3orrower that the insurance carrier oKers to aettle u claim for inaurance benefita. Lender is authorized to collect and apply the insurance pn~ceeds at I.ender s option either to restoration or cepair of the Property or the sums secured by this 6lortgage. Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly inataliments referred to in paraRraphs 1 and 'L l~ereof or change the amount of such installments. It under paragraph IS hereof the Property is acquired by [.ender, all right, title and interest ot Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the xale or acqwsition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. PreBervation and Maintenanceof Property: Leaseholde; ('ondominums: Planned Unit Developmenta. f3orrowershall keep the Property in good repair and shal) not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on teasehold. lf this MnrtK~Ke is on a unit in a condominium or a planned unit development, ~ Borrower shall pertorm all of Borrower's obliqations under the declarution or covenants c•reatinKor govern~ng the condominium or planned unit development, the by-laws and reQulations of the condominium or. planned unit development, and constituent documenta. If a condominium or planned unit development rider is executed by Borrower and recorded ti~ether with this Mortgage,.the covenants and aKreements of such rider shal) be incorporated int~? and tih:~ll amend and supplement the covenants and agreements of this MorLgage as if the rider were a part hereof. 7. Proteetion of Lender's 3ecurity. If Borrower fails to perform the rnvenante and agreements contained in this Mortgage, or if any ~ action or proceeding ie rnmmenced which materially affecte Lender's intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinge involving a bantrupt or decedent, then Lender at I.ender'e option,upon notice to Borrower may make auch appearances, diaburee euch auma and take such action ae is necessary to protect I.ender'~ intereet, ~ including, but not limited to, diabureement of reasonable attomey's [eee and entry upon the Property to make repaire. If L,ender required ~ mortgage ineurance as a condition of making the loan aecured by this Mortgage, Borrower ahall pay the pre~niume required to maintain ~ euch insurance in effect until such time ae the requirement [or such insurance terminatee in accordance with Borrower's and Lender e J written agreement or applicable I~w. Borrower shall pay the amount of all mortgaqe ineurance premiuma in the manner provided under ~ paragraph 2 hereof. I ~ Any amounte diebursed by Lender pereuant to thie paragraph 7, with intereat thereon, ahall become additional indebtednees of ~ E3orrower secured by thie Mortgage. Unlese Borrower and Lender agree to othPr terma of payment, auch amounte ahall be payable upon notice from Lender to Borrower requeating payment thereof, and shall bear intereat from the date of dieburaement at the rate payable from ~ time to time on outetanding principal under the Note unleae payment of intereet at such rate would be rnntrary to applicable law, in which e event aueh amounta ahali bear interest at the highest rate permisaible under applicable law_ Nothing contained in thie paragraph ehall ' require Lender to incur any expenae or take any action hereunder. ~ i ~ a ~ 312 F~,U~ ~2Q -1 - ~ ~ . ~ _ _ _ - .~r_____. _4 _ _ _ . _ - ~ . _ ~