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HomeMy WebLinkAbout0589 'e - _ Borrrower and Lender covenant and agree u follows: I. Psyaaont of Principal sari Interest. Borrower shall promptly pay when dw t:ee principal of and interest on the indebtwineas evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and iptereat on any Future Advances secured by this Martgars. 2. Funds foz Taxes sad Inauraaos. 3ubjed to applicably law or to a written waiver by I.wider, Borrows shall pay to Lender on the day monthly enatallmenta of p.-ancipal and interest are psyable unde'tbe Note, until the Nots is paid in tltll, a sum (herein "Fnada'7 equal to oas- twdtth afthe yearly tapes and assessmen4 which may Main priority over this Mortgage. and ground rents on tlt~ Property, if arty, plw ono- twslRh of yearly premium installmatts [or hazard insurance, plea ono-twelfth of yearj$ premium installments for mortgage insurance, if any. . all as reasonably estiruated initially and from time to time by Lender on the bole of aasesamenN and bilb and reasonable estimates thereof. 'flee Funds shall be held is an institution the depooita or aceouata of which are inaurd or guaranteed by a Federal or Scats agency (incladirig Lender if Lender is such as institution?. Lender shall apply the Funds to pay said taxes, aesesarnsats, insurance premierma Held grouud rents. Lender may cwt dtarge foe: ao holding and applying the Rurida, analysing said account, or verifying sad compiling acid e,saeeaateats aed bU4. unless Lender pays Iiwrrowsr interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender mr~y agree is writing it the time of a:ecution of this Mortgage that interest on the Funds shall be paid to Borrower. sad ewisss such agreement u made or applicable law requirei sucl, int~eat to be paid. Lender shall not be required to pay borrower any interest or earnings on the Femde. Lender shall give to Borrovnr. without charge. an annual accounting of the Funds showing credits and debits to the Fua~a and the purpose foz which each debit to the Funds waa made. The Funds are pledged as additional security for the sums secured by this Mortgage. - - . If the amount of the Funds hdd by Lender, together with the future monthly installments of Funds payable prior to the dw dates of taxes, asaeesnisnis. irunrance premiums and ground rents, shall exceed the amount rtauired topay said taxE s. a:seasinenis. insurance premiums end ground rants u they fall due, arch ezoesa shall be, at Ilutrovrer's option, either pror!iptly repaid W Br~YOwer or credited to Borrower oa monthly instaUmenta of Funds. If We amount of We Funds held by Lender shall not be sufficient to pay taxes. assessments, irunraaoe premiums and ground rents as tl*ey fall due."Borrower shall pay to Lender any amount necessary to make np the deficiency within 30 days from the date rx?tice is mailed by Lender to Borrower requcatiag-Payment thereof: ~ - Upon payment in roll of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds hdd by Lender. if Hader paragraph LS hereof the Property is sold or the Property is otT.erwiae acquired by Lender, Lender shall apply. no later than immediately prior to the sale of We Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums eectiFed by this lldortgage. . 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender ands- the Nots and ~ paragraphs 1 and 2 hereof shall be applied by Lender fast in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, - that to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. Charges; Bens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a prarity over this Mor~gage,and leasehold payments or ground rants, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly t~ the payee thereof. Borrower shall promptly furnish b Lender ull notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to l,endei receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this 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 theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith wntest such lien by, ordefend enforcemen4 of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. - j 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards ir?cluded within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage - The insurance carrier providing the insurance shat! be chosen by Borrower subject to approval by Ixnder, provided. that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2liereof or. if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier.` AU 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 acceptabk'.o Lender. Lender shat! h eve the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree ir•_ writing, insuran~~e proceeds shall be applied to restoration or repair of the Property damaged, provided each 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 f to the sums secured by this Mortgage, with the excess, it any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by tender to Borrower that the insurance carrier offers to settle a claim for ' insurance benefits, I.endtr is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the c i Property or the sums secwed by this Mortgage. - ` i Unless Lender and 3orrower otherwise agree in writing, any such application of pra~eeds to principal shall not extend or p.>stpone the due } date of the monthly installments referred to in paragraphs l 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 the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the a:tent of the soma secured by this Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Mainteaanceof Prnperty; Leaseholds; Condominums; Planned Li=~°i lh'velopmeats. Borrowershall 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 i''thia 11Fortgage 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 cot manta creatingor governing the rnndominium or planned - unit development, the bylaws and regulations of the condominium or .planned unit development, and rnnstituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this. Mortgage, the covenants and _ agreements of such nder shall be incorporated :nto and shall amend and suppler: ant the covenants and agreements of this Mortgage as if the rider were a pa.*t hereof. - 7. Protection of Lender's Security. if Borrower fails to perform the eovenante and egrcementa contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender a interest in the Iroperty, including, but not limited to, ectinent domain, - insolvency, node enfor~oemeni, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lmder'r option,npon notice to Borrower may make such appearanoea, dirburae snrh sums and take such action -ace is necessary to protect Lender's interest, including, but not limited to, disbur;emeni of reasonable attorney's fees and entry upon the Property to make repairs. If Lender rogmred mortgage insurance as a condition of making the.!oan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Leadds ~ written agreement ce applicable i.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided undo paragraph 2 hereof. - - My anonnts disbursed by Lender Yereuarrt to this parnRraph 7, with interest thereon. shall become additional iadebtedneaa of Borrower secured by this Mortgages Unless Borrower and Leader agree to other terms of payment, such amavnts shall be pa?able aeon notice from Lender to Borrower requesting payment thtreot and shall bear interest from the daft of disbursement at the rate payn~:k from time to time on outstanding principal under the Note anlese pd~•nnert of inter+cet a! ouch rate would.be contrary to applicable law, in which ` # event ouch amounts shall bear interest at the highest rate permis~i ale under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. - B0~ PAGE , .