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HomeMy WebLinkAbout0537 . ~ , - _ -P-- - ~ _ _ v. , _ _ Borrows: sad Leader covenant sad agree as folbwa: 1. Pa~aeeat of PrinoiPal sad ltntssee~t. Bocrowsr shall prompt~jr pay when des the principal of and interest on the iadebtednea evidangd by the Kota Prepayment and lab charges as provided in the Nots, and the principal of and inteseat on any Pltture Advances secured by this J~Iortsags Z. Fhnda for Taseis and ltaanraaoe. Subject to applicable law or to a written waiver by Lender, Borrows shall pay to Lends on the day monthly installments of prindpal and interest are pgyabk under the Note. until the Note is paid in full. a sum (herein "Pbnds'~ equal to ans twelfth o[the year~r to:es and asaeamaata whidy may attain priority over this Mortgage. and pround rents on the Peopairty. if any. plus ons twrelRh of yearly premium installments foe hazard insurance, pies one•twe11lh of yearly prettuum .nstallmenb for mortgage insurance, if any. all a. reasonably estimated initialky and liroaa time to time by Lender oa the basis of assessments and bilb and reasonable estimates thereoL 7Ls Fends shall bs held in aJt ipstitution the deposib or mounts of which are insured ~ guaranteed by a Federal or State agency (inducting Leader if Lender is sash an institation~. Leadw shall apply the Funds to pay said taxes, assessments. insurance premiums sad ground teats. Lender mqr not d~arg~ foe so holding sad applying the Funds. analysing said acooant, or verifying and compiling said assessmenb and bills. unless Leader pars Baerower intarwtoa We Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, sad ankw such agtssment is made or applicable law requires such interest 4o be Paid. Lender shall not be requirsd to pay Borrower any interest ~ earnings on the Funds. Leader shall give to Borrower. without diarge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debar to the Funds was tnade.'It~e Funds are pledged as additional security for the soma secured by this Mortgage. Uthe amount of the Funds held by Lender. together wild the future monthly installments of Funds payable prior to the due dates of tares, assessments. insurance premiums and ground tents. shall exceed the amount required b pay said taxes, assessments, insurance premiums and gt+oond teats a. they fall due. such ezoesa shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on moathiy installmenb of Funds. It the amount of We Funds held by Lender shall not be sufficient to pay taxes. assessments, inanranoe premiums and groand rents as they fall doe. Borrower shall pay to Lender andamount necessary to make up the deficiency within 30 days t from the date notice is mailed by Lender b Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is Bold or the Property is otherwise acquired by bender. Lender shall apply, no later than immediately prior to the ells of the Property err its acquisition by Lender, any Irltnds held by Lender at the tune of application as a credit against the solos secured by this Maetgage. - 3. Appliieatba of Payatenta. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereot~ then to interest pgyabk oa the Note. then to the principal of We Note, and then to interest and principal on any Future Advattaes. 4. Charges; Elects. Borrower shall pay all taxes. assessments and other charges, fines and impositions attributable to the Property which may attain a ptiorityover this Mortgage, and leasehold payments orground rents, ifany. in themannerprovided underparagraph 2hereofor, if not paid in each manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly tarnish to Lender all notices of amounts due ender this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender teoeip~Ls tvidencing such payments. Borrower shall promptly discharge any lien which has priority over th is Mortgage; provided, that Borrower shall 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 matuter acceptable to Lender, or shall in good faith contest such lien by, or-defend 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 Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loos by fire. hazards included within the term "p~tended coverage; 'and such other hazards as Lender may require and in such amounts and for such periods as Linder may require; provided, that Lender shall not require that the amount of such osverage exceed that amount of coverage required to pay the some secured by this Mortgage. _ 3 7Le insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; provided, that such approval shall 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. Ail insurance policies and renewals thereof ahal! be in form acceptable to Lender and shall include a standard mortgage douse in favor of and in form aeoeptabk to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices sad 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 toes if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration m repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the cams secured by this Mortgage, with the excess, if any, paid to Borrower. Itthe Property is abandoned by Borrower, or if Borrower fail to respond to La?der within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier olfers to settle a daim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ltttda and Borrower otherwiaeagree in writing, any such application of proceeds toprincipal shall note tend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereolor change the amount of such installments. If under paragraph 18 hared the Property is acquired by I,ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof vaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and llfaintenance of Property; Leaseholds; Cotidotniaums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or prrmit impairment or deterioration of the Property and shall comply with the provisions d any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned oral development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the rnadotninium or planned unit development, the by-laws and regalationa of the condominium or planned unit development, and constituent documents. If a gondotnininm or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the covenants and ' agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgagees if the rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is eommenoed which materially affects Lender's interest in the Property. indading, but not limited to, etiinent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then Lender at Lender's option,opon notice to Borrower may make arch appeasanas, disburse such sums and take such action as is necessary to protect Lender's interest, inducting. bat trot limited to, disbuaement d reasonable attorney's few and entry upon the Property to make repairs. If Lender regained mortgage ituuranee as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in e8ect until such time as the requirement for sack insurance terminates in aooordance with Borrower's and Lender's written agt+eernmt or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof: Any amounts disbursed by Lender pennant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Botrnwer and Lender agree to other terms o! payment, such amounts shall be payable upon notice from Lends to Borrower t+egaesting payment thereof, end shall bear interact from the date of disbursement at the rate payable grata time to time oa outstanding principal ands the Note anlw payment of interest at such rate would be contrary to applicable law, in which event such attannts shall bear interest at the highest rate permissible under applicable law. Nothing oantained in this paragraph shall require Lender to incur any expense or take any action hereunder. 80UK J~5 PACE 536 ~