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HomeMy WebLinkAbout0541 _ ~ _ r _ t .i ~ Borrower and Lender oova?ant and agree a• folbws: I 1. Payrewnt of Principal and Wtirest. Borrower shall pr'omPW? PeJ? whoa due the principal of and intend on the indebtedness ` widenoed by eM Note, prepayment and late charges v provided in the Note. and the prindpal of and interedon any F1~tnre Advances secured by thin Moelgags. Z. Pltada for Ta:as and Insntranos. 8nb)ed to applicable law or to a written waiver by I.ender. Borrower shag pay to Lender on tM day monthly irutalbz?aits of prindpal and interest are payable under the Note, until the Note is paid in full. a sum (herds "Funds'? equal b oaa- twelttib of the y.arb? to:es and asswmsnts wl~iCh may attain priority over thin Mortgage, and ground renb on the Property. itany. plus one twelfth of yearly premium indalbnents for hasard ir?snranoe, piw one~twdfth otyearly preeniam indallmee?b for mortgage iruuranoe, if any, all as rrasoaably estimated initially sad lkom time to time by Lender on the basis of anessments and bills and reasonable estimates thecwL TM Fbnds shall be head in an institution the deposits or accounts of which are iruueed or guaranteed by a Federal or State agency (inducting Lender it Lender is sash as inditutionl` Lender shall apply the Enacts to pay said taxes. asseuaaents. iruuranoe premiums and ground rents. Lender myr not charge fat so holding and applying the Fnrds. analyang said account, or verifying and compiling said _ assessments sad biW, unless Larder pays Borrower interest on tba P1~nds and appligbk law permits Lender to make such a charge.Borrower and Lender may agew in writing at the liras of e:ecntion of this Mortgage that inured on the Pbads shall be paid to Borrower. and unless such agresmeat is made or applicable law regniees such interest to bs paid Leader shall not be required to pay Borrower any intered or earnings on the PLpde. Leader sbaA give to Borrower. wiWont charge. an annual aorountiag of the Funds showing credits and debib to the Fonds sad the purpose for which each debit to the Funds was made.'11ie Funds are pledged as additional.ecar;ty for the sums secured by this anwunt of the Pbads held by.iwnder, tflgether with the future monthly instaUmenb of Finds payable prig to the due dates of taxes, ~ assessments, iasnranee preainms and ground rents. shall exoaed the amount ngaired to pay said takes. assessments. insurance premiums and ground rants as they fall due, arch ezosss shall be, at Borrower's optio0. either promptly repaid to Borrows or reedited to Borrower on monthly iwtaUmenta d Fbnds. 8 the amount of the Fonds heW by Lender shall not be sufficient to pay taxes, assessments, insurance pnmiuau and ground rents s.lhry fall due. Borrower shall PaY to Lender any amount necessary to make rap the defiixency within 90 days from the date notice is mailed by Lender to Borrower requesting pe~yment thereof. Upon piu?asent in full daU sums secured by this Mortgage, Leader shall promptly refund to Borrower say funds held by Lender. uunder paragraph 18 hereof the Propargr is sob or the Property is otherwise soquircd by Lender. Lender shall apply. no later than immediately prior to the sale of the A~operty or its aogaisition by Lender. any Pbnds held by Lender at the time of application as a credit against the sums second by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and Z benof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph Z hereof, then to inured payable on the Note, then to the principal of the Note, and then to interest and principal on any Fntore Advances. 4. Charges; L~tews. Borrower shall pe+y all taxes, assesamenta and other charges. fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments os ground rents, if any, in the manner provided under paragraph 2 heeeof or. if not paid in such manna. by Borrower making Payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrows shall make payment directly, Borrows shall promptly furnish to ~ Lender receipts evidencing such paymenb. Borrows shall promptly discharge any lien which has priority over this Mortgage: Provided, that Borrower shall not be required to discharge any such lien ao bug as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manna acceptable to bender, or shall in good faith rnntest such lien by, or defend enforcement of ouch 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. Borrows shall kcep the irnprovementa now e:iating or hereafter erected on the Property insured against loss by fire„ hazards inducted within We term "extended eovsage," and such other hazards as Lends may require and in each amounts sad for such periods as Lends may require; provided. that Lends shall not require that the amount of such o0vsage exceed that amount of oovsage required to pay the same secured by this Mortgage. The insurance carries providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval - ahall 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 manna, by Borrower making payment, when due, directly [o the insurance carrier. ~ All insurance policies and renewals thereof shall be in form acceptable to Lender and shall indude a standard mortgage clause in favor of and in form aeoeptabk to Lends. Lends shall have the right to hold the policies and renewals thereof, and Borrows shall promptly furnish to lends all renewal notices and all receipts of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carris and Lender. Leads may make proof of loss if not made promptly by Borrows. Unless Lender and Borrows otherwise agree in writing, insurance proceeds shall be applied to reaWradon 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 or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the s~ims secured by thin Mortgage. with the excess. if any, paid to Borrows. If the Property is abandoned by Borrows. or if Borrows fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrows that the insurance carris open to settle a claim for inanranoe benefits, Lends is authorized to rnllect and apply the insurance proceeds at Lender s option eiths to restoration or repair of the Property or the sums secured by this Mortgage. i Unless Lends and Borrows oWerwise agree in writing, any such application of procceda to principal shall not a:tend or postpone the doe ~ date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of sack installments. if ands paragraph 18 hereof the Property is acquired by Lends, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or aoquiaition shall pass to Lends to the extent of the emus secured by this ~ Mortgage immediately prior to such sale or aegnisition. 6. Preservation and Maintenance otl?roperty; Leaseholds; Condominums; Planned Unit Developments. Borrows shall keep the Property in good repair and shall 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 a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrows shall perform all of Borrows's obligations ands the declaration or covenants creatingor gowning the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and coustitnmt documents. U a rnndomininm or planned snit development rids is executed by Borrows and recorded togeths with this Mortgage, the covenants and agreements of such rids shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hseof. 7. Protection of Larder's Security. If Borrows fails to perform the covenants and ti contained in this Mortgage, or it any action or proceeding is oommanced which matsially affects Lenders iatered in the Propsty, including. but not limited to, eminent domain, E inwlvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Fender at Lender's option,apon notice to Borrower may make such appearances, disburse such sums and take sac6 action eu is necessary to Protect Lender's interest, indnding, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required ~ mortgage insurance as a condition of making the loan secured by this Mortgage. Borrows shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in sccordanoe with Borrower's and Lender's written agreement or applicable Law. Borrows shall pay the amount of all mortgage insurance premiums in the manna provided ands paragraph 2 benof. Any amounts dubnrsed by .Lender persuant to this P~tt'raPh 7, with interest thereon, shall become additional indebtedness of Borrower scarred by thy hlatrtg~ge. Unlea Borrows and Lender agree to other terms of payment, each amonnb shall be payable aeon notice from Lends to Borrows requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on ontdanding principal Wads the Note unless payment of intend at such rate would be contrary to appikabk law. in which event such amounts shall bear interest at the highed rate permissible ands appGcabk law. Nothing contained in this paragraph shall require Lends to incur any expense or take any action haennds. gfNJK 315 PacE 540 . _ ~ ~