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HomeMy WebLinkAbout2898 . ' a w Bor~o~ver and Lender oovenant and a~ree as follovr~: 1. P~ment o! Principal aAd Iaten~t. Botrower ahall promptly peY when due the principal of aad intereat on the indebtednee~ evidenad by the Note, prepayment and late charge~ as provided in the Note, and tha principal of and inte~ton any ELture Advancee securad by thi~ Mort~eQe. Z. Ptiutd~ foe Teuces and In~ur~noe. Subject to applicable law or to a written waiver by Lender. Borrower ahall p~y to Lender on the day monthly installmenfa of prinapal and intersat are payable under the Note. until the Note ia paid in full, a aum (herein "F`unda") equal to ons twelRh of the y~rly tasea and eskssmenes which may attain priorily over thia Mortgaee, and ground rtnta on the Propedy. itany, plus ont • twelfth of yedrly prennium installmenta for hasard inaurance. plus onetweltth of yearly premium installments [or mortgage inaurance, if any. all as nasonably eatimated initially and firom time to time by Lender on the basis of aseeeaments and billa and reasonable eetimatee thereof. The P1~nds shaU be held in en institutioa the deposits or aocounts of which an inaured or guaranteod by a Rederal or State agency • (includin~ I.endar it Leader u sach an institution~ Lender ahall apply the Ftinda to pay aaid ta:es. asseasments. inaurance premiuma and ground teats. Lender may not charge fa~ w holding and applying the Flinds, analyzing esid accoun~ or verifying and compiling said asaessmenfa and biW. unleas Lender payn Borrower inte~eat on the F1nde and applicable law permita Lender to make such a charge. Borrower and I.~der may agree in writinB at the ticne of execution of thia Mortgage that intereat on the FLnda shall be paid to Borrower. and unless such e~raement is made or applicable law requires auch intereat to be paid. Lender shall not be required b pay Borrowa any intereat or earain~ on the P1~nd~. Lend~ ahall give to Borrower. without charge. an annusl accounting of the Fuads ahowing credits and debits to the Funds aad We purpwe for which esch debit to the Flinds waa mede. The Funds are pledged as additional eecurity for the suma eecured by thu MortQage. If We amount oithe Pbnds held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due datee of taxes. ~ aasessments. insuranoe premiuma and ground rente. ehall exczed the amount required to pay eaid taxea. asseesments, inauranoe premiums and gronnd rents aa they fall due. such excesa ahail be. at Bo~tower s option, either pmmptly repaid b Borrower or credited to Borroweron monthly instaUaneats of PLads. If the amount of the Funds held by Lender ahall not be sufficient to pay taues, asseasmente, inaurance preminms and gronnd nnta as they fall due. BorroweT shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereoL Upon payment in full of ail suma secnred by Lhis Mortgage, I.ender shall pmmptty refund to Borrower any funda held by Lender. If under paregraph 18 henof the Property ia sold or the Property ia otherwiee acquired by Lender. Lender ahall apply. no later than immediately psios to the aale of the Prope~rty or its aoquisition by Lender, any ~nda held by Lender at the time of application aa a credit againet the aums aecured by thia Mortgagg. . 3. Applicadon of Paymeats. Unleas applicable law provides otherwiae, all paymenta reoeived by Lender under the Note and paragraphs 1 and 2 hereof ahall be epplied by Lender firet in payment of amounta 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 intereat and principal on any Future Advances. 4. Charges; i.iens. Borrower shall pay all taxes, asaessments and other churges, fines and impositions attributable to the Property which may ~ttain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or. if not paid in such manner, by Borrower making payment, when due, directty to the payee thereof. t3orrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borroveer shall make payment directly, Borrower shall promptly furnish to Lender reoeipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner aceeptable to l.ender, or shall in good faith iv~ntest such lien by, ordefend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Bortower shall keep the improvements now existing or hereaRer erected on the Property insured againat loss by fire, hazards included within the term "extended coverage; ' and such other hazards as l.ender may require and in such amounta and for euch periods as Lender may require; pmvided, that Lender shall not requirn that the amount ot such coverage exceed that amount of coverage required to pay the suma secured by this Mortgage_ ~ " The insurance carrier providing the insurance shall be chosen by E3~rrower subject ta approval by lyender, provided, that such approval shall not be unreasonably withheld. All premiums on insuranm p~~licie~ shall be paid in the manner provided under paragraph 2 hereof or, if not paid in sueh manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptabie to Ixnder and shall include a standard mortgage ciause in favor of and in form acceptable to Lender. l.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~ i.ender all renewal noticea and all receipts of paid pmmiums. In ihe eveut of loss, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. , ` Unleae Lender and Borrower otherwise agree in writing, inaurance proceeds ahall be applied to restoration or repair of the Property ~ damaged, provided such reetoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If auch ~ reatoration or repair is not economicaUy feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the aums eecured by this Mortgage, with lhe excess, if any, paid to Borrower. I f the Property is ubandoned by Borrower, or if Borrower fails to ' reapond to Lender within 30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier ofl'era to settle a claim for inaurance benefite, I.endeT is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Propedy or the auma eecured by this Mortgage. Unlees I.ender and Borrower otherwise agee in writing, any such application of proceeds to principal shall not extend or postpone thedue date ot the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatalimente. If under paragraph 18 • hereof the Property is acquired by L.ender, all right, title and interest of Borrower in and to any inaurance policiee and in and to the proceeds thereof reeulting from damage to Property prior to the sale or acqu~sition shali pass to Lender to the extent of the suma secured by this 3 Mortgage immediately prior to such eale or acquisition. 6. Preeervation and Maintenance of Property; Leaseholds; Condorr~inums; Planned Unit Developmente. Bonowerahall keep ' the Property in good repair and ahall not commit waste or peTmit impairment or deterioration ot the Property and shall comply with the proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, Borrower ahal) perform all of Borrower's obligations under the declaration or covenanta creatingor govern~ng the condominium or planned unit development, the bylawa and regnlationa of the condominium or planned unit development, and conatituent documente_ If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ageeements otsuch rider shall be incurporated into and shal! amend and supplement the covenants and agreements of thia Mortgage as if the rider were a part hereof ` 7. Protection ot Lender's 3ecurity. If Borrower faila to perform the oovenante and agreements contained in this Mortgage, or if any ~ ~ action or proceeding is rnmmenced which materially aifecte Lender'e intereat in the Property, including, but not limited to, eminent domain. ~ ~ ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then [.ender at Lender'e option,upon noticx to Bormwer may make auch appearencer, disburee euch aums and tske such ection ae ia necessary to protect I.ender's interest, ~ inclnding, but not limited to, diebursement of reaeonable attorney e feee and entry upon the Property to make repairs. If Lender required ~ mortgage instuance as a condition of making the loan secured by thia Mortgage, Borrower ahall pay the premiums required to maintain euch ineurance in effect until euch time as the requirement [or auch inaurance terminatee in accordance with Borrower's and Lendds written agreeinent or applicable I,ew. Borrower ehall pey the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereof. My emounte disbureed by Lender perauant to thia paragraph 7, with intereat thereon, ahall become additional indebtedneea of Borrower secured by thie Mortgage. Unleee Borrower and Lender agree to other terms of payment, such amounta sha11 be payable upon notice from I.ender to Borrower requeeting payment thereof, and ahall bear interest from.the date of d'u+bureement at the rate payable firom time to time on outstanding principal under the Note unlees payment of intereat at such rate would be contrary~o applicable law, in which ~ event sueh amounts sha1) bear interest at the higheat rate permiaeible under applicable law. Nothing contained in this psragraph shall require Lender to incur any expense or take any action hereunde=. ~ 1 s ~ . ~ ~ ~ a~~K 312 ~A~E 289~ , ~ ~ ~ a.Y.: x ~ . r ~ _