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HomeMy WebLinkAbout1069 • i . ~t • 1 t Borrower and Lender covenant and agree a• follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indsbtednea ~ evidenced by the Note, prepayment sad late charges as provided is the Note, sad the principal of and interest oa any Future Advances second 't by this Mortgage. 2 Funds for Taxes and Iruuraaos. 3ubjed W applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day ~ monthly installments of principal and interest are payable under the Note, until We Note is paid in full, a sum (herein "Fnnds'7 equal to oae- iweiicn ui ire yearly lazes and asr~meaw which may atiaia priuriiy user iris isiirrigaKe, eau gruunu rents un ire iruyt3i#~y, If any, plw: tine- ewelfW ofyearlypremium instalhnents foe hauudinsurance. plus onetwelfth of yearly premium installmenb for mortgage insurance. if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or aooouats of whid~ are insured or guaranteed by a Federal os 3tate agency (indnding Lender if Lender is such an institution). Leader shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and biW, ndess Leader pays Borrower interest on the Funds and applicable law permits Leader to make such a charge. Borrower i and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, tad nnlea : such agreement is made or applcabk law requires such interest to be paid, Linder shall not be required to pay Borrower any iatered or earnings on the Fnadr. Lender shag give to Borrower. wi Wont charge, an annual aeoonnting of the Dada showing credits and debits to the ' Funds and We purpose for which each debit to the Funds was made. The Fends are pledged as additional security for the soma secnr+ed by this ~ Mortgage. ~ If We amount of the Fonda held by Lender, togeWer wi W We future monthly iaalaUments of Funds payable prior to the due dates of taxes, assessments, iasuraaoe premiums and ground ants, shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bottower'a option, abler promptly repaid to Borrower os credited to Borrower on monthly installments of Funds. ff We smonat of We Funds held by Leader shaA not be sufficient to pay taxes, aseeeaments, insurance premiums and ground rents as Way fall due, Borrower shall pay to Leader any amount necessary to make up We deficiency wiWin 30 days from We date notice is mailed by Lender to Borrower requesting payment Weroof. Upon payment in fell of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If render paragraph 18 hereof the Property is sold or the Property is oWerwise acquired by Lender, Lender shall apply, no later than immediately prior ' to We sale of We Property or its aognisition by Lender, any Fends held by Lender at the time of application as a credit against We soma second by this Mortgage. ~ fi 3. Application of Payments. Unless applicable law provides oWerwise, all payments received by Lender under We Note and paragraphs 1 a~ 2 hereof shall be applied by Lender first in payment of amounts payable to lender by Borrower under paragraph 2 hereof, then to intend payable on the Note, Wen to the principal of the Note. and Wen to interest and principal on any I~ture Advances 4. Charges; Liens. Borrower shell pay all fazes, assessments and 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, is 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. Borrower shall promptly furnish to Lender all notices of amonata due under Wis paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing each 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 ao long as Borrower shall agree in writing to the payment of the obligation secured by ~ such lien is a manner acceptable to Lender, or shall in good faiW contest such lien by. or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insusanoe. Borrower shall keep the improvements sow eziating or hereafter a~ected on the Property insured against lose by fire, hazards indnded within We term "extended coverage," and such other hazards as Lender may require and in such amounts and for such ~ periods as Calder may require; provided, that La?der shall not require such wverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities of Leader, or that amount of coverage required to pay We soma secured by this Mortgage, whichever is We greater. The insurance carrier t 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 We manner provided underparagraph 2 hereof or, if not paid is such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policiea'and renewals Wereof shall be in form acceptable to Leader sad shall include a standard mortgage clause in favor of and in form acceptable to Lender. Linder shall have We right to hold the poUtses and renewals Wereof,,and Borrower shall promptly fnrniah to i .ender all renewal notices and all r+eoapts of paid premiums. In the event of lass, Borrower shall give prompt notice to We insurance carrier ~ and Lender. Linder may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower oWawise 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 We security of this Mortgage is not Wereby impaired. If such ~ restoration or repair is not eooaomically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied to the sums secuued by this Mortgage. wild Wee:cees. if any. paid to Borrower. If We Property is abandoned by Borrower. or if Borrower fails to E respond to Lender within 30 days from We date notice is mailed by Lender to Borrower W at the insurance carrier ogers to settle a claim for insurance benefits, Lender is anWorized to collect sad apply We insurance proceeds at Lender's option either to restoration or repair of the Property or We soma secured by this Mortgage. 4 Unless Lender and Borrower oWerwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due i date of the monthly installments referred to in paragraphs 1 and 2 hereof or change We amount of arch inatallmente. If ender paragraph 18 hereof the Property is acquired by Lender. ail right. title and interest of iorrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to We eels or aoquiaition shall pass to Lender to the eztent of We sums secured by this Mortgage immediately prior to sack sale or aognisition. ~ 6. Preservation and 1[ainteoance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall sot commit waste or permit impairment or deterioration of the Property sad shall comply wild We provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a Wait in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations ender the declaration or covenants t:eatingor governing We ooadominium or planned unit development, We by-laws and regulations of We condominium or planned unit development. and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded togeWer wild this Mortgage, the covenants and agreements of arch rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage sa if We rider were a part hereof. 7. Protection of Lender's fiecurity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is oommenosd which materially affects Lender's intered in the Property, including, bet not limited to, eminent domain, insolvency, code eaforoaneat, or arrangements or proceedings involving a bankrupt or deoedeat, then bender at Leadds option,apon ~ notice to Borrower may make such appearances. disburse such smaa and take such action as is necessary to protect Calder's interest, ~ including, but sot limited to. disbarsemeat of reasonable attorney's fees and entry upon We Property to make repairs. If Lends required mortgage insurance as a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such inrnranoe in effect until such time as the regnireaaent for such iasurenee laminates in accordanoa with Borrower's and La?der's ~ written agreement or applicable Law. Borrower shall pay We amount rf all mortgage insurance preminmr in We manner provided Hader paragraph 2 hereof. t Any amounts disbarred by Lender persuant to this paragraph 7, with interest Wereon, shall become additional indebtednea of Borrows secured by this Mortgage. Unless Borrower and Lends agree to older terms of payment, such amounts shall be payable upon notice from Lender to Borrows requesting payment Wereof; and shall bear intered from the date of disbursement at the rate payable from time to time on ontrtanding principal render the Note unless payment of intednd at such rate would be contrary to applicable law, in which event such amonnb shall bear interest at the highest rate permissible ands applicable law. Nothing contained in Wis paragraph 7, shall require Leader to iacnr any expense or take any action hereunder. s s ee~~ s B~K J!~,5 P~~~ ~ '