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HomeMy WebLinkAbout0601 • ~ . ~ ~ ` • - p Borrower and I~rtder covenant and agree u folbws: ; 1. Pay rnent ~~f 1Madpal and turterest, Borrows shall ptosrpt~y pry when ~dw the psir.~ipal o[ and interest oa the iadebtediteas ' evidenead by the Note, prepayment acd fate charges u provided is the Note. sad the principal of and interest on aqy Fleture Advances aecnred h y thief Marfgaga t 2 Fuaet~a for 1`axes and lasuranae. Subjedso applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly iattaliments of principal sad interest are payable under the Note, until the Note is paid in full, a sum (herein "Funda'ti equal to one• t.relfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus aae• 1 twelfth of yearly premium install•aetts far hasacd insurance. plus uoe•twelRb of yearly premium installmert+c for mortgage insurance. if any, all as reasoaabUr esBmsted initially and fro~ar time to time by Lender on the basis of aaseesmcnts and bills and rsasoaabk estimates thereof. s Ths Funds shall be held in an institution the deposits or aaoounts of which are insured or guaranteed by a Federal or State agency ~ (findading Lender if Lender is sndr an inatitutian). Lender shall apply the Pamela to pay said taxes, assessments, insurance premiums and ground rent. Lewder may not charge for so holding and applying the Funds, analyzing said account, or verifying sad oaapiling acid as~essmenta sad bill. nnisss Lauder pays Borrower iatsrsst oa the Funds and applicable law permits Lender to make ouch a charge. Bortowes and Lender may agree in writing at the tune of execution of this Mortgage that interest an the Plrnda shall be paid to Borrower, and unless ~ aL.ch agreement is made or applicable law regnires snd? iutereat to be paid, Lender shall not be required to pay Harrower al?Y interest or earnings on the fitnda. Lender shall give to Borrower, without charge. as annual eu-counting of the finds ahow-ing credits and debits to the Ftimds and the purpose for which each debit to the I~lrnds was made. The Fusels are pledged as additional security for the sums secured by thin ~ Mortgage. If the amount of the Fonds held by Deader. together w ith the future nanthiy installments of bLndf~?ayabk prior to the due dates of fazes, aasesemeats. inamrsace premiums and ground rents. shall exaaed the amount required to pay said taxes. asxsaments, insurance premiums and ground rents as they faU due. such excess shall be, at Borrower's option, either promptly repaid to Borrows or creditsd to Bormweron monthly installments of FhncLs. If the amount of the Funds held by Lender shall sot be pufficient to pay taxes, assessments, insurance prearinma and growrd rests u they fall due. Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums ssxnred by this Mortgage, Lender shall promptly erfund to Borrower any fimde held by Lender. Tf under _ paragraph 18 hersof the Property u sold oa the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to tl,e sale of the Property orita acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3Application of Payments. Unless applicable law proridea otherwise,-all payments received by Lender ands 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. thence interest payable on We Note, then to the principal'of the Note, and then to interest and principal on any Future Advances. 4. C-hargeet; Lie~na. Borrower shall pay all taxes, usesamenta and other charges, fines and impositions attributable to the Property which may attain a priority ova: this Mortgage, and leasehold payments orground rents, ifany, in the mannerprovided under parar~raph 2 hereofor, if not paid in ouch manner. by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly fwnish b Lender receipts evidencing such payments. Borrower shall promptly discharge-any lien which has priority over this Mortgage; provided. that 13orsower shall not berequired todiacharge any such lien salons as Rerrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contestsuch lien by, or defend enforcement of such lien in; legal proceedings which operate to prevent the enforcement of the lien a forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shalt krep the improvements now a:fisting or hereaRrr ertsicd o~n theProperty insured againatloss by fire, hazards included within t,`se term "2stended rnverage,"and such other hazards as Lender may require and in such amounts and foraudr _ pEriods as Lender may require: provided, that t wrder• shall not require that the amount of such oovetage exceed that amount of rnverage required to pay th¢ soma secured.by this Mortgage. The insurance carrier prodding the insurance shall be chosen by Borrower subject to approval by-Lender; provided, that such approval shall moths unreasonably withheld. All premiums on insurance policies shall be paid in t'ie manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly tc the insurance carrier. All insurance policies and renewals. thereof shall be in form acceptable to Lender and shall include a stanaard mortgage clause in favor of and in form acceptable to Lender. Lender shall havo the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender a11_ renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Leader, Lender may make proof of toss if not made promptly by $orrower. s Unleaa bender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair a~f the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not there: 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 sums secured bythia Mortgage, with the excess, if any , paid to Borrower. If the Property fis abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnllect and apply tl:e insurance proceeds at I.ender'a option either to restoration or repair of the Property or the awns secured by this Mortgage. Unless Lender and Borrowerotherwiseagree in writing, any such application ofproreeds to principal shall not extend orpoatpone thedne date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ' hereof the Property is acquired by bender, all right, title and interest of Borrowerin 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 extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and ktafiatenance of Property; Leaseholds; Condominums; Plaerned Unit Developments. &~rrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the p:nvisiona of any lease it this Mortgage is on a leasehold. 7f this Mortgage is on a unit in a rnndominium or s planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or covenants creatingor governing the condominium or planned # unit development, the bjr-laws and regulations of the rnndominium or planned unit development, and constituent docamenta. If a - # rnndominium or planned unit development ruler fis executed by Borrowr and r^erorded together with thin Mortgage, the oovenanta and agreements of such rider shall be inwrporated in to and shall amend a nd supplement the covenants and agreements oltl:is Morytage as if the rider were a react hereof. 7. Protection of Lender's 3ecs?rity. If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any action or proceeding is comsneneed which materially affects Lender's interest in the Property, inciudurg, bat not limited to, eminent domain, insolvency. code e~rforororent, or arrangements ar proaaedinga involving a bankrupt or decedent, then bender at Lender'r optivn,upon noti::e to Borrower may. make such apptaranoes, diebursG anch sums sad take such action as is necessary to protect Lendei • interest. including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make rtpairs_ If Lender requir:~d mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to mraintuin ' such insurance fir. effect until such time as the requirement fns such insurance terminates ire sooordance with Borrower's and Censer's written agreement oT applicable haw. Borro~rer shall pay the amount of all mortgage insurance premiums in the manner provided under ~ paragraph 2 hereof. My aawunts disbursed by Lender pQrruant to this paragraph 'l, with interest thereon. shat! become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teams of payment, such amounts shall be payable npan - aotice from [.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable brortt time to time on outstanding principal under the Note unless payment of interest at audti rate would be oantrary to apolicabte law, in which event such amounts shalt bear interest at the highest rate permissible under applicable law. NoWing contained in this paragraph shall require Lender to incw any expense or take any action hs:rnsnder. _ _