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HomeMy WebLinkAbout0200 - F _ . ~____~_.,_________._.._r- ___..al-~. . --a_-_ ~ . ~ 2 Borrower and Leader covenant and agree es foporrs: . 1. Parateat opt Principal autd Interest. Borrower chap promptly pay when due the principal of and iatered on the indebtedness evidenced by the Note. prepayment and bts charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. - 2 Faada for'lYuter and Iaanraaoe. 3nbjed to applicable law or to a written waiver by I.ender. Borrower chap pay to Lender on the day monthly irrstalbnants of principal and interest are payable under We Note. until We Note is paid in full, a rum (herein "Funds'? equal to one twelfth of tM yearly taxes and aaessmertts which maj? attain priority over this Mortgage. and ground rents on the Property. if any. Plus one• twelRh of yearly praaium imeteJlments foe hazard insurance, plus ome•twelilh of yearly premium installments for mortgage insurance, itanq, all as reaawdabty estimated initialb and truss time to time by Lender on the basis of assessments and bpb and r+easoaable estimates thereof. . 1bs Fr.nds sbap bs held is an institution the deposits or aooounts of which are insured os guarantees oy a i•eserai or date +ytw~~-y (including Lender if Lender i. such an institntionl. Leader shall apply the Funds to pay said truces, aeseeements, iruiurance premiums and ground rite. Lender may not charge for so holding and applying the Funds. analysing said account, or verifying and compiling said Rssessareats and hips, nnlen Lender pays Borrows: interest on the Funds and applicable law permib bender to make such a charge. Borrower ~aad Leader may agree in writing at tke time of execution of this Mortgage that interest on the Funds chap bs paid to Borrower. and unless ouch agreement is made os applicable law requires each interest to be paid, Leader shag not be required-to pay Borrower any interest or earnings oa 8ie Funds. Lender shall give to Borrower, wittront charge. an annual sooounting of the Runde showing credits and debits to the Funds and the purpose for which each debit to the Funds wan made. The Funds ere pledged as additional security for Wesums second by this Mortgage. If the amount of the Runde hdd by Leader, togeWer with the future monthly installments of Fonda payable prior to the due dates of taxes. assessments, insnranos premiums and ground rents, shall e:ozed the amount required to pa<y said taxes, assessnunta, Insurance pr~eminma and ground rents ere they fop due. such exoers shall lye, at Borrower's option. either promptly repaid to Borrower or Qedited to Bt?aower on monthly instalimeerb ~ Funds. U the amount of the Funds held by Lender shall not be anfficieat to pay taxes. assessments, insurance r pnmunnu clad ground rents as they fall due, Borrower chap pay to Lender aqy amount neossary to make up the deficiency within 30 days from the date notice is mewled by Lender to Borrower requesting payment thereof. Upon payment in fop of cep soma second by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. U~ades paragraph 1S hereof the ?,go~--t3; is cold or !1'.e Property is aihsrsvise acquired by Lender. I~nder whall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application ea a credit against the sums secured by thin Mortgage. 3. Application of Payments. 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 hereof. then to interest payable on the Note. then to We principal of We Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower ahap pay all taxes, assessments end other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or. if not paid in each manner, by Borrower making payment. when due, directly to the payee thereof. Borrower chap promptly furnish toLender - all notices of amounts due under this paragraph, and in the event Borrower ahal l make payment directly, Borrower shall promptly furnish to Lender reoeipta evidencing each payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, Wet 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 manner 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 We enforcement of We lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improveaenta now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods ea Leader may require; provided, that Lender shall not require Wat We amount of each coverage exceed that amount of coverage required to pay We name secured by this Mortgage. The 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 each manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of ~ and in form acceptable to Lender. Lender ahaU have the right to hold the policies and renewals Wereof, and Borrower shall promptly fnrriiah to 1 i.endet all renewal notices and all receipts of paid premiums. In We event of Ions, Borrower shall give prompt notice to the insurance carrier and Leader. Lender may make proof of loss if not made promptly by Borrower. Unless Leader and Borrower otherwise agree in writing, Insurance proceeds shall be applied to restoration or repair of We Property damaged, provided such restoration or repair is economically feasible and We security of this Mortgage is not thereby impaired. If each reatoratioa or repair is not economically feasible or if the security of this Mortgage would be impaired. We insurance proceeds shall be applied to We sums secured by Win Mortgage, wild the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender wiWin 30 days from We date notice is mailed by Lender b Borrower that the insurance carrier offers to settle a claim 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 We sums secured by this Mortgage. - ' ~Inless Leader and Borrower otherwise agree in w»ting, any such application of proceeds to principal shall not extend or postpone We due date of We monthly installments referred b in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right. title and interest of Borrower in and to any insurance policies and in and to We proceeds thereof resulting fiom damage to Property prior to the sale or acquisition shall pass to Lender to Wee:tent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerehall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with We 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, We by-laws and regulations of We condominium or planned unit development, and eonatitnent documents. If a condominium or planned unit development rider is executed by Borrower and rernrded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of thin Mortgage as if We rider wen a part hereof. - , 7. Protection of Lender's Security. If Borrower fails to perform the ooveaants and agreements contained in this Mortgage, or if any action or proceeding is eommenoed which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements'or proceedings involving a bankrupt or decedent, Wea Lender at Lende:•s option,npon notice to Borrower may make such appearances, diabnree such nuns end take such action as is necessary to protect T..ender's interest, including, but not limited to, disbnreemeat of reasonable attorney's fees and entry neon We Property to make repair. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums regrind to maintain each insurance in efi*ect until such time as the requinmeat for such insurance terminates in accordance ariW Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amaant of all mortgage insurance premiums in the manner provided ands paragraph 2 hereof. Any amounts disbursed by Lends persuant to Wis paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgages Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear iaterwt from We date of disbursement at the rate payable from time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which event snob amounts shall bear interest at the highest rate permieeible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hersaader. B~31s p~ _ zao ~ -