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HomeMy WebLinkAbout0593 +r .f • 3 ` - _ - - ~ . t - - w .r - Borrowar and Lender covenant sad ogre. as fdi~wa: 1. L'rUraeeAt of Princfpsd and Interest, 3sortower shall promptly pay when due the principal of nab interest on the indebtedness rvidenesd by less Note. prepa~,ymesat and isle charges a. provided in the Note. and the principal of and intereston aqy FLture Advances secured by this Idartgage. ~ 2. Ptitnds for Tat[es erect Inaaranoe. 3ubjed to applicable law or to a writte:a waiver by Lender, Borrows c shaft pay to Lender on the day ~ monthly insWlaneata of principal and interest are payable under the Note. until the Note is paid in lull, a sum (herein "Funds")egos! to ore~- twelfth ofthe Yearly taxes and asaesNaents which may attain priority over this Mortgage. and ground r~enta on the Property. if any. Pius ones - twelfth of yearly premium i:sstal'.ments for hasard insurance. plus otse•twelfth of yearly premium instalhnsnis for mortgage insurance. if any. ~ ~ all as reasonably estiasated initially and from time to time b`y Lender on the basic of aaseeuzments and hilt and reasonable eatimata thereof ' The Ftinds shall be held in an inditutiiora the dspodts or aeooun4 oI which are insured or guaranteed by a Federal or Seale agency t (inducting L~sder if Leader is such an institution). Lender shall apply the Funds to pay said taxes. aaseeamsnts, insurance premiums and ground rents. Lender may not charge fot so holding and applying the Frauds, arasly:ing acid account. or verifying and eompiliag said ! arsesaaents and bills. unless Leader pays Borrower interest oa the Funds and applicable law permits bender to make such a charge. Borrower - t and Leader mazy agree in writing at the time of execution of this Mortgage that interest oa the Funds shall be paid to Baiower, and wale`s such agre~oent is made or applicable law regains such ingest t be paid. Deader shall not be required to pay Borrower any interest or earnings on the Funds. Calder shall give to Borrower. wi Wont dsarge. an annual ec counting of the Fonda showing credits and debits to the Ptisuds and the purpose foe whirls earls debit to the l~lmds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. ~ if the amo~mt of the Fnad+s held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes. ~ assessments, insurance premiums and ground rents. shall exoaed the amount required W pe~y acid tares, assessments, insurance premiums and ground teats as they fall due. suds excess shall be, at Borrower s option. either promptly repaid b Borroweir or credited to Borrows on monthly inaWlmenta of I~mds. U the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall doe, Borrower shall pay to Lender any amount aeoessary to make up the d-ficiency within 30days - from the date notice is mailed by Lender to Borrower requesting payment thereof.. . Upon paymast is fall of all soma sacred by ibis Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 ha+eof the Property is sob or the Property is otherwise acquired by Lender. Lender shall apply, no later Wan immediatdy prior to We sale of the Properly or its aogni~tiaa by Lender.any Funds held by Lender at the time of application as a credit against the auras secured by this Mortgage. - ' - - - 3. Appikation of Payments. Unless applicable law provides oWerwise, all. payments received by Lender under the Note a~ paragraphs 1 and g hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower ender paragraph 2 hereof, : i then to interact payable on We Nose, Wen to We principal of the Note, and Wen to interest and principal on any Future Advances. - i - 4. Charges; Liens. Borrower shall pay all taxes, asaeasment-and other charges, fines and impositions nttributabk to the Property which may attain a priority over this Mortgage, and leaaehokl payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee Werea;f. Borrowershat! promptly furnish to Lender all notices of amounts due under Wisparagraph,-and in We event Borrower shall make payzaent directly. Borrower shalt promptly furnish to Lender receipts evidencing such payments: Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, Wat Borrovrr~ shalt not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secnrFd by such lien in a r_~anner acceptable to Lender, or shall in goad faith contest such lien by, orde[end 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 improvements new existing or hereafter erected on the Property insured against loss i'y fire, hazards included within We term "extended coverage,° and such other haza>;ds as Lender may require an~i in such amounts and forauch ' gerioda as Lender may require; provided, Wat Lender shall not require that We amount of such oocerage exceed Wat amount of coverage required to pay We sums 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 repaid in-the manner provided under paragraph 2 hereotor. if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals Wereof shall be in form acceptable to Lender and shall include a standard mortgage clause iri favorof ' and inform acceptable to Lender. Lender shall have the right to hold the policies and ienewals thereof, and Borrows: shall promptlyfurnish to - ' i.ender all renewal noticxs and all rrceipts of paid premiums. In tie event of loss, Borrower shall give prompt notice to We insurance carrier acct Lender. Lender may make proof of loss if not made promptly by Borrower. i i -Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property Z damaged, provided such restoration or repair i>= economically feasible and the security of this Mortgage is not Wereby impaired. If such I restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, wiW W e excess, if any, paid to Bonrower. If the Properly ie abandoned by Borrower, or if Borrower fails to respond to Leader within 30 days from the date notice is mailed by Lender to Borrower W at We insurance carrier offers to settle a claim for insnrartce 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 snore secured by Wis Mortgage. - Unless Lender and Borrower oWerwise agree in writing, any such applicatior: of proceeds to principal shall not extend or postpone the due date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof We 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 We extent of the auras secured by Wis Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit 1)evelopment~. Borrowershall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of Clse Property and shall comply wiW We provisions of any lease if Wis Mortgage is on a leasehold. If Wis Mortgage is nn a unit in a rnndominium or s planned unit development. - Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing We rnndominium or planned snit development, We by-laws and regulations of the condominium or planned unit development, and rnnatituent documents. -If a condominium or planned unit development rider is executed by Borrower and recorded tageWer .,rich Wis Mortgag!, We rnvenanta and agreements of such rider shell be incorporated into and shall amend and supplement the covenants and agreemer. to of this Mortgage as if the i rider-were a pad hereof. - _ ~ 7. Protection of I.ender'e Security. If Borrower fails to perform We covenants and agreerc~enta contained in G'sis Mortgage, or if any l action or proceeding is cwnmenced which materially affects Lender s interest in the Property. inducting, trot not limited to, eminent domain. insolvency, code enfornanent, or arrangement or proceedings :evolving a bankrupt ar decedent. then Lender at Lenders aption,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's istta+eet, inducting, but not limited to, disbursement of reasonable attorney's fees and entry upon the Properly to make repeire. If Lender required mortgage insurance as a rnndition of making We loan secured by this 1liortgage, Borrower shall pay the premiums required to maintain 1 ~ such insurance in effect until enclr time as Wr requiren±ent for such insurance terminate in accordance aiW Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under _ paragraph 2 hereof. Any amounts diabnraed by Lender persuant to Wis paragraph 7, wiW interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment. such amounts shall be payable upon notice from Linder to Harrower requesting payment Wereof, and steal! bear interest from the ctate of disbursement st the rate payable from ~ time to time on outstanding principal under the Nose unless payment of interest at such rate would be contrary to applicable law, in whirls event such amounts shall bear interest at the highest rate permissible ender applicable lax. Nothing contained in this paragraph 7, shall require bender to inersr any txpenae or take any action hereunder. 1 - g~~~4 P~ 592 - ~ ~ - -