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HomeMy WebLinkAbout0606 'j ..air _ _ • t c - ~ i3orrewtt and Leader covenant and agree a. follows: 1. Padraseat of Principal and Interest. Horenwer shall P~PW? PaY when due the princppal of sad iatcrest on the indebtdnese evideaoed by tM No#e, prepayaaent sad late charges as providd in the Note, and the principal of and interest en any Future Advances secured by this Mortgsge. - ; 2. T~bnds for Tares sad Insurance. Subja4 tv applicable law ar to a written w river by Lender, Borrower shall pay to Lender on the day i monthly installments of principal and inter~eat are payabk under the Note. until the Nute is paid in toll, a sum (herein "Fonda"?equal to one- ~ twelfth of the yearly taxes and anessmenta which may attsin priority over this Mortgage, and ground rents on the Properly. if any. plus one• twelfth of yearly premium installments for hasard insurance. Plus ere-tvrelfth of yearly premium installments for mortgage insurance, iteny, i nU as raasonab~y eetimatd initially and from time to tiara by Lender on the basis of assessments and bills and reasonable estimates thereof. ! The Funds shag be held in as institution the deposits or aceouats of which are insured or guansateen by a Federal or State agency (including Leader J Lender is cash an institution). Lender shall apply We Fuads to pay said tares, asstssanenta. ir~suranoe premiums and ground rents. Lender may not charge fa eo holding and applying the Funds. analysing said account, or verifying and compiling said ~ - f asaeeementa and bills. unlep Lender pays' ° .,rtawer interest on the F ~rrds and applicable law permits Lender to make such a charge. Borrower - and Lender rosy agree in writing at the time of executioa of this Mortgage that interest oa the Funds ehaA be paid to Borrower, and udees t such agreaaent is made or applicable law requires such interest to be paid, Lends shall not be required to pay Borrows: any interest err - ~ earnings on the T•ltnde. Fender shall give to Borrower, without charge. an annual acoacnUng of tlsc Funds showicg crec'.its and debits :ha - Fundsandthe putposc for which each debit to the Funds was made. The Funds are pledged as additional security for'the sums secured by this Mortgage. If We amount of the Funds held by Lender. together with the futures monthly installments of Funds payabk prior to the due dates of taxes. ~ ~ assessments. insurance premiums and ground rents, shalt exceed thf amount required to pay said taxes, assessments, insurance premis~ms and ground carts as they fall duo, such excess shaU.Le, at Borrnwer's option. either promptly repaid to Harrower or credited b Borroweron monthly installments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, aseesamenis. insurance premiums and ground rents as they fall due. Borrower shall Pay to Lender any amount necessary to make up Wedefi«ency within 30days from the date notit~ is mailed by Leader to Borrower requesting Payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Leader. If nader paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender shall apply, no later than immediately prior i . to the sale of the Properly o: eta soquiaition by Lender. any Funds held by Lender at the time of application as a credit against the sums secured by this 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 appUd by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then w interest payable on the Note, then to the principal of the Note, and then b interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fineea 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 such manner. by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender - all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to - Lender receipts ev;dencing such payments. Borrower shall prompt(( discharge any lien which has priority over thin Mortgage; provided, that ' i Borrower shall not be required to discharge any such lien so long as Burrower 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 rnntest such lien by, or defend enforcement of such lien in, legal proceedings ~ which operate to prevent the enforcement of the lien or forfeiture of the ~operty or any part thereof. _ 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by = ~ fire, hazards included within the term "extended coverage." and such other hazards as Lender may require and in such amounts and for each 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 [dorlgage. The insurance carrier providing the insurance shall be chasm 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 such manner, by Borrower making payment, when due, directly to the insurance carrier. _ ~ AU insurance policies and renewals thereofshall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lendc~t shall have the right to hold the policies and rentwals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premitms. In the event of lass, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lase if not made promptly by Borrower. . Unless Lender and Borrowei otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security ,rt this Mortgage is not thereby impaired. If each 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 by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 3Q days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle ` _laim for insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pra~eeda to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs ;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 ana 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 sums secured by this Mortgage immediately prior W such sale or acquisition. - _ Z 6. Preservation and Maintenance of Property; Leaseholds; Condominc.ma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit waste or permit jmpairment or deterioration of the Property and shall comply with the ~ provisions of any lease if th74 Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a phurned unt development, Borrower shall perform all of Borrower s obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and eonatituent documents. If a rnndominium or Alarmed unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and - agreements o[such rider shall be incorporated into and shall amend and supplement the cuvenantsand agree=_nents ofthis 1'dortgage as if the rider were a part hereof. - 7. prot~tion of Lender's Security. If Borrower fails to perform the covenants and agreements oantained is this Mortgage. or if any aMion or proceeding ie commentRd which materially affects Lenders interest in the Property. including. but not limited to, emineat domain, insolvency. node c-rrfor~ement, or srrangemeuts err proceedings involving a banlwpt or ._'xdent, ihen,Lerrder at Lender's optioa.npon notice to Borrower-may make such appearancea.•disburae such sums and take such action ae is necessary to protsrt Lender's interest, ! including, bat not limited to, disbursement of reasonable attorney's fees and entry neon tht Property to.make repairs. if Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the pwminms regerired to maintain 3 3 ouch inesrarrce in effect anti( such time ere the requirement for such insurance terurinates in accordance with Borrowtr's and Candela written agreemeat or applicable Law. Borrower shall fay the amount of all mortgage insurance premiums in the manner provided ands paragraph 2 hereof. Any amounts disbnraed lay Lender persnant to this paragraph 7. with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unlem Borrower end Lender agree to other terms of payment, arch amounts etiaU be payabk upon nctice from Lender to Borrower regneating payment thrn.~', .;nd shall bear interest from the date of disbursement at the rate payabk from time to time ore outstanding principal under the Note unless payment of interact at such rate world be contrary to applicable law. in which event sash amounts shalt bear interest at the highest rate permissible under applicable law. ;clothing Mrifained in this Paragraph 7, shall require Lender to incur any ezpease or take any action hereunder. - 4 f E a _ -