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HomeMy WebLinkAbout0532 - .i . ~t Borrower and Lender covenant sad agree a• folbws: 1. Payaeeat of Priac[pal sad Interbat. Borrower shall promptly pay when dos the principal of and interest on the indebtedaees evidsrroed by tM Nob, pnpaymeat and bb drarges as provided in tM Note. and Weprindpal of and intereston nay l?lrtnre Advances secured by this Mortgage. 4. IlMada far{ Tazea sad Loanraaoa 8ubjed b applicable law oe b a written waiver by I.ender, Borrower shall pqy to I.mder on We der monthly ins4lhnept of principal and interest an payable Hader the Nob. until the Note is paid is Lu11. a sum (herein "P~nds'7 equal to oaa twelfth othee yearly taxes and assaament which may attain priority over this Mortgage, and around rent on the Prope:tyr, itany. plea ors twelfth of yearly premium installment for basard insnranos, plus onstwelfth ofYearly premium installment for mortgage irunrar?ce, if any. all v reasonably estimated initially and frrom time to time by Lends on the basis of aesessment and bills and reasonable estimates thereof Tbs I+tiads shall be bald is an iastitntion the depodt ere aoooant of which ors insured or guaranteed by a Federal err Stab agengr (indading Leader U Lander is such as institution). Lender ahaU apply the Fbads to pay said fazes. assesanen4. iasuraooe premiums and ground rent. Lender may not drarge foe so holding and applying the Plrrrds, analysing said acootmt, or verif5ring and compiling said aaseswneab and biW, anlea Leader pays Borrower interest ~ the fiends and applicable law permit Lender to make such a charge. Borrower `and Leader may agree in wilting at the time of eseeution of thin Mortgage that interest on the Pbnds shall bs paid to Borrower, and nnlas sock agreement is mrids or applicable law requires ~ interest to bs paid. Leader shall not bs required b pay Borrower any interest oe earuinga on the I~rrds. Leader shall give to Bo;rower. without diarge, an annual aooonnting of the F1~nds showing credits and debit to the Fhrids and the parpws for which each debit b the Ptimds was made. The Fends are pledged as additional securtb? for the sums secured by this Mortgage. Tf the amount of the 1?ends held by Linder, together with the future monthly installment of Ftirnds payable prior to the due dates of lases, aaessments. insurance premiums and ground rent, shall esoeed We amount required to pay said fazes. assesasents, insurance premiums and ground rent as they tall due. such setae shall be. at Borrowers option, either promptly repaid to Borrower or credited to Borrower on monthly installment et Fends. if the amount of the Fends held by Leader shall not bs snfficieat to pay taxes, aaeameats, inanrancs premiums and ground rent as they fill due, Borrower shall pay to Lender any amount neoasary to make uP the deficiency within 30 days from the dal notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in Bill doll rams secured by this Mortgage. Leader shell promptly refund b Borrower any funds held by Linder. U~ade: paragraph 18 hereof the Propergr is add err the Property is otherwise acquired by Leader, Leader shall apply, no later than immediatelq prior to the sale e[ the Property or it aogniaition by Lender,any Fends held by Linder attbe time of application as a credit against the armsa secured by this Mortgage. 3. Appaieatioa of Payasenta. Unless applicable law provides otherwise, all payment received by Lender ender the Nob and paragraphs 1 and 2 hereof shall bs applied by Lender first in payment of amount payable to Linder by Borrower nods paragraph 2 hereof; then b interest payable oa the Note, then to the principal of the Nob, and then to interest and principal on any Fetore Advances. 4. Charges; Liana. Bo:rowershaU pay all texts, assessment and other charges, Saes and impositions attributable to the Property which may attain a priority ova this Mortgage. and leasehold payment or ground rents, if any. in the manner provided under Paragraph 2 hereof or, if not paid in such manna. by Borrows making payment, when due. directly to the payee thereof Borrows shall promptly fnraiah to Leader all notices of amount due under this paragraph, and in the event Borrows shall make payment directly. Borrows shall promptly furnish b Leads receipt evidencing such payment. Borrower shall promptly discharge aqy lien which bas priority ova this Mortgage; provided, that Borrower shall not be required to discharge any arch lien so long as Borrows shall agree in writing to the paymentof the obligation secured by arch lien in a manna sooeptable to Lends. or shall in good fanth contest such lien by, or defend enforcement of anch lien in, legal proceedings which operal to prevent the enforcement of the lien or forfeiture of the Property or any part thereof: - 5. Hazard Insnraaoe. Borrows shall keep the improvement now existing or hereafter erected on the Property inanred against lava by fire. hazards indnded within the tam "esterrded coverage." and such oths hazards as Lender may require and in each amount and for such periods as Lender may require; Provided. that Lender shell not require such coverage amoaat ezceediag the minimum, as may be required by state or federal regulations governing activities of Leads, or that amount of coverage required to pay We sums secured by this Mortgage, whidrew is the greater. The inwrance carries providing the insurance shall be d~osen by Borrows subject to approval by Lender, provided, Wat each approval shall not be unreasonably witbadd. All preminma on insurance policies shall be paid in the manner provided ands paragraph 2 hereof or, if - not paid is such manna, by Borrows making Payment, whin due. directly to the insurance carrier. All insurance policies and renewals thereof shell be in form acceptable to Lends and shall include a standard mortgage douse in favor of and in form eeoeplable to Linder. LendershaU have thesight to hold the policies and renewals thereof; and Borrower shall promptly fnrniah to fends all renewal notices and all receipt of paid premiums. In the event of lea. Borrows shall give prompt notice to the insurance carrier and Deader. Lends may make proof of toes if not made promptly bq Borrower. Unless Leader and Borrows otherwise agree in writing. insurances proceeds shall be applied to restoration or repair of the Property damaged, Provided ouch restoration er repair is economically feasible and the eecnrity of this Mortgage is not thseby impaired. If such restoration err repair is not eoonomicallq feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the soma secured by this Mortgage. wild the e:cea, if any. Paid to Borrows. If the Property is abandoned by Borrows, or if Borrows fait to respond to Lends within 30 days from the date notice is mailed by Leader to Borrows that the insurance carries offers to settle a daim for insurance benefit, Lender is authorized to collect and apply the insurance proceeds at Lender's option eitba to restoration or repair a[ the Property err the rams secured by this Mortgage. Unless Linder and Borrower othswise agree in writing, any such application of proceeds to principal shall not eztmd or postpone the due dot of the monthly inslaAment referred to in paragraphs 1 and 2 hereof or drange the amount of sack inatllmeat. Tf ands paragraph 18 hereof the Property is aognired by Leader, all right, title and iatered of Borrows in and to aaq insurance policies and in and to the proceeds thereof rearlting from damage to Property prior to the sale or acquisition shall pea to Leads to the eztent of the sums secured by this Mortgage immediately Prior to sndi sale err acquisition. 6. Preservation and iltaintenanoe otP'ropertq; Leaseholtls; Condominnms; Planned Unit Developmen4. Borrower shall keep the Property in good repair and shall red commit waste or permit impairmart or delrioration of the Property and shall comply with the provisions of any lease if this Mortgage is oa a leasehold. If this Mortgage is on a unit in a condominium os a planned unit development. Borrower shall perform all of Bmrowds obligations nods the declaration or covenant creatiagor gowning the condominium or planned nail development, the bq-laws and regulations of the condominium or planned unit development. s~ oonstitnent docomenta. If a condominium os planned snit development rids is a:ecnted by Borrower and reoocded together with this Mortgage, fife ooveaant sad agreement of such rids shall be incorporated into and shall amend and anpplemmt the covenant and agreement of this Mortgage sa if the rids wee a part hereof. 7. Protedios< of Lender's f3ecrrrlq?. If Boerowei fails to perform the ooveaant and apeea?ent contained in this Mortgage, a it any action or proceeding is commenced which materially affects Leader's interest in the Property, indading, bat not limited to, eminent domain, insolvencq. code enforcement, or arrangaaent or proceedings involving a banlanpt err deosdeat, then Lends at Lenderi optionnpon notice to Borrower may make such appearances, disbars such rams and take sorb action as b necessary to protect Ieadee's interest, inducting, bat not limited to, disbursement of reasonable attorney's fees sad entrq upon the Property to make repairs. Tt Lender required mortgage insurance a. a condition of making the lose saonred by this Mortgage, Borrower shall paq the premiums requird to maintain each iruaranos is e[fed until each time a. the requirement for such insnrmoe terminals in riooordaaee with Borrower's and Lenders written agremment err applu:abk Law. Borrower shall pay the amount of all mortgage inaruanoe premiums in the manner provided andar paragraph Z hereof Any amout disbursed by Lender perarmt to this paragraph Z, with interest thereon, shell become additional indebtedrua oil Borrower secured bq this Mortgage. Unless Borrows and. Lends agree to other tams of Payment, such amount shall be payable upon notice from Lender to Borrows requesting payment thereof, and shall bear interest from the dot of dubnnemeat at the rob payable prom time to time on ontdanding priacipell andatr the Not unless payment o[ interest at each rat would be contrary to applicable law, in which event sack amount shall bear inte~st at the highest rat pamiaible ands applicable law. Nothing contained is this paragraph 7. shall require Lender to incur any expense or take anq action hereunder. BODK315 PACE 531