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HomeMy WebLinkAbout1140 Borrower aAd Lender covenant and agree ae folbws: 1. Payinent of Pripclpal and laterea~ Aorrower ehall pmmptly pay when due lhe principal of and intereat on the indebtedneae evidenced by the Note, prepayment and late chargea aa provided in the Note, and the principal of and interest on any F1~ture Advancee secured by this Mortgage. 2. I~Lnds !or Tazes and Insurunce. Subject to applicable law or to a written waiver by I.ender, E3orrower ahall pay ta I.ender on the day monthly installmenta of principal and interest are payable under the Note, until the Note ie paid in full, a eum (herein "FLnda"1 equa! to on~ ~twelfth of the yearly taxee and asaesamenta which may attain priority over this Mortgage, and ground rnnts on the Property, if any, plua one~ twelRh of yearly premium installmente for hazard insurance, plus one-twelRh of yearly premium installmenta for mortgage inaurance, if any, aU aa reasonably eatimated initially and trom time to time by I.ender on the basis of assessmenta and billa nnd reasonable estimates thereof. The FLnds ehall be held in an institution the deposite or accounts of which are inaured or guaranteed by a FedeTal or State agency (including I.ender if Lender ie auch an inetitution). I.ender shall apply the Funds to pay eaid taxea, asseasmente, inaurance premiums and ground tente. Lender may not charge for so holding and applying the Funda, analyzing said account, or verifying and compiling eaid aea~emente and bille, unleea Lender pays Borrowe~ interest on the Funds and applicable law permite I.ender to make auch a charge. Borrower and I.e~der may agree in writing at the time of eaecution oi thia Mortgage that intereat on the Funda ehall be paid to Borrower, and unleee auch agreement ia made or applicable law requires auch intereat to be paid, Lender ahall not be required to pay Bormwer any intereat or earnings on the ~ds. Lender shall give to Borrower, without charge, an annual aceounting of the Funda ahowing credite and debits to the F~nds and the purpose for which each debit to the Funde was made. The Funda are pledged as additional eecurity for the auma secured by thie Mortgage. If the amount of the ~Lnda held by Lender. together with the tuture monthly inatallmenta of Funds payable prior to the due dateabf taxea, aseeeaments, inaurance premiums and ground rente, ahall excxd the amount required to pay said taxea. asseasmente, insurance premiuma and gmund rents as they fall due, such e:c~ese shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmente of FLnde. If the amount of the Funde held by I.ender ehall not be aufficient to pay taxes, easessments, inaurance premiums and ground tents ae they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower iequesting payment thereof. Upon payment in full of all auma eecured by this Mortgage, Lender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Peoperty or its aoquiaition by Lender, any F unda held by I.ender at the time of applicalion as a credit againat the sums eecured by this Mortgage. 3. Applieation of Paymente. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragjraphs 1 and 2 hereof ehall be applied by L.ender firat in payment oCamounts payable to l.ender by Borrowet under paragraph 2 hereof, then to interest payabie on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Borrower shall pay all ta~ces, aesessmenfs and other charges, fines and impositions attributable to the Property which may atfain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the man ner provided under paragraph 2 hereotor, if not paid in such msnner, by Borrower making payment, when due, directly to the payee thereof. Burrowershall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event I3orrower shall make payment directly, Borrower shall promptly furnish to t.ender receipts evidencing auch payments. Borrower ahall promptly dischnrge any lien which has priority over this Mortgage; Rrovided, that • l3orrower ahall not be required to discharge any such lien so long as Borrower ahall aRree in writing to the payment of the obligation secured by such lien in a mannet acceptable to I.ender, or shall in good faith conlest such lien by, ordefend 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 ahall keep the improvements now existing or hemafter erected on the Property inaured againet loss by fire~ hazards included within the term "extended coverage," and auch other hazards as [.ender may require and in such amounta and for such periods as L.ender may require; provided, that Lender shall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulations governing acti~itiea of Lender, or thaf amount of coveTage required to pay the aums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the inaurance shall be chasen by E3orrower subject to approval by Ixnder, provided, that such approval ~ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraKraph 2 herevf or, if not paid in such manner, by Borrower making payment. Nhen due, directly to the insurance carrier. All inaurance policiea and renewala thereof sha11 be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in torm acceptable to Lender. Lender ahall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to i.ender all renewal notioea and all receipts of paid premiums. In the event of loss, Borruwer ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. ' Unless Lender and Bortower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided such matoration or repair ia economically feasible and the secnrity of this Mortgage is not thereby impaired. If such ! reatoration or repair ie not economically feseible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the suma eecured by thie Mortgage. with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to reapond to I.ender within 30 days from the date notice is mailed by Lender to Borrower that the inanrance carrier of~era to aettle a claim for ~ insurance benefite, Lender is authorized to collect and apply the inaurance proceeda at I,ender s option either to restoration or rnpair of the ! Property or the aums secured by this Mortgage. Unless Lender and Borrower otherwiae agree in writing, any such application of pra.~eeda to principal ahall not extend or postpone the due date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 hereof the Property ia aaquired by Lender, al) right, title and interest 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 acquisition ahall pasa to Gender to the eutent of the auma secured by this Mortgage immediately prior to such sale or soquieition 6. Preeervation and Maiatenance of Property; Leaeeholde; Condominume; Planned Unit Developmenta. Borrowerahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the pmvisions of any lesse if thie Mortgage ie on a leasehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower'a obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-Iawe and regulationa of the condominium or planned unit development, and constitnent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and ~ agreements of auch rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. 7. Protectioa of Lender's Security. If Borrower faile to perform the oovenants and agreemente contained in thie Mortgage, or if any ~ action or proceeding ie commenced which meterially affecte I.endei e intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enEorcemen~, or arrangementa or proceedinge involving a banlwpt or decedent, then L.ender at Lender's option,upon ~ notice to Bormwer may make such appearanoee, diaburee euch euma and take auch action ae ie ne~oesaary to pmtect I.ender e intereet, ~ including, but not limit4d to, diabureement of reseonable attorney'a feee and entry upon the Property to make repeirs. If Lender required £ mortgage ineurance ae a condition of making the loan eecured by thie Mortgage, Borrower ahall a the remiuma = P Y P re9nired to mainteiit ; euch inenrance in effect until auch time ae the requirement for euch ineurance terminatee in accordance with Borrower e and Lende~e y writfen agteement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiume in the manner provided under ~ paragreph 2 hereot. ~ My amounts diebureed by Lender pereuant to this paragraph 7, with intereat thereon, ahall become additionel indebtednese of ~ Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terme of payment. euch amounts ehal) be payable upon ~ notice from LendeT to Borrower requeating payment thereof, and ehall bear intereet from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unleas payment of interest at auch rate would be oontrary to applicable law, in which event such emounte ehall bear intereat at the highest rate permisaible under applicabir law. Nothing coniained in thie paragraph 7, ahall ~ require Lender to incur any e:penee or take any action hereunder. ~ 5 ~ . ~ ~~:K:312 F~~~~1138 , ~_w_... , ~