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HomeMy WebLinkAbout0472I3orrower and Gender covenant and agree aa fo-lows: • l. Paymeat of Principal and l~tereet. Borwwe~ shall promptly pay when due the principal of and intereat on the indebted~ess evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal oland inte~eston any bliture Advartcee aecured by this Mortgage. ~ 2. Etitnda for Taxee and Ineurance. Subject to applicable iAw or to a written waiver by l.ender, f3urrower shall pay to l.ender on the day monthly installmenta of pri~cipal and interest are payable under the Note, until the Note is paid in full, o sum Iherein "F unds"1 equal to one twelfth of the yearly taxea and asaessme~ta which may attain priority uver this Mortgage, and ~round renta on the Piruperty, if any, plua onP twelfth of yearly premium installments for hazard insu~ance, plus unetweiRh of yea~ly premium installme~tb for movlguge insurance, if any, nll ae reasonably eatimated initially and from time to time by I.ender on -he busis ut assessments and bills and rrasuoable estimatea thereot. The ~nds ahall be held in an inatitution the deposita or accounts of which are insured or gua~a~teed by a Federal or State agency lincluding Lende~ it L.ender is auch an inatitution). l.ender shall apply the Funds ta pay said taxes, asaessmenta, insurance premiums and Krour~d renta. l.ender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said s~saeeamenta and bills. unleea I.ender paya Bor-rower interext on the Funda and applicable law permits I.ende~ to make such a charge. Borrowe~ and Lender may agree in writing at the time of execution of thia Morigage that interest on the F unds ahall be pHid to Borrower, and unleas euch agreement ia made or applicable law requirea such interest to be paid, l.ender ahall nol be required b pay E3orrowe~ a~y intereat or earnings on the Fl~nde. L,ender shall give to Borrower, without charge, an annual accounting of the F unde showing credits and debits to the F unds and the purpoae [or which each debit to the Funds was made_ The F unds are pledged as additional security for the sums secured by thia Mortgage. If the amow~t of the Ftinda held by I.ender, togelher with the future monthly inatallments of M unds payable prior to the due dates of ta:ea. assessmente, inaurance premiuma and ground renta, shall excred the amount required to pay said taxee, assesamenta, insurance premiuma and ground rents as they fall due, auch excesa shall be, at Ho~n-wei s option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallmenta of Funde. If the amount of the Funds held by I~ender shall not be suffcient to pay taxes, assessmenta, insurance premiuma and ground rents as they fall due, Borrower ahall pay to I.ender any amouot necessary to make up the deficiency within :~0 daya fmm the date notice ia mailed by l.ender lo Borrower requesting pa~ ment thereof. Upon payment in full of all aums eecund by this Mortgage, l.ender ahall promptly refund to tiorrowe~ any funds held by l.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, l.ende~ shall apply, no later than i~nmediately prior to the sale of the Property or its acquisition by I.ende~, any f~ unds held by I.ender at the time of application as a credit against the sums secured by thie Mortgage_ 3. Applieation of Paymente. Unless applicnble law providrs otherwise, all payments received by I.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firxt in payment of amounts paynble to l.ender by Borruwer unde~ paragraph 2 hereof, then to intereat payable on the Note, then to the principa) of the Note, and then to interest and principal on any Future Advancea_ ~4. Charges; Liena. E3orrower shall pay all taxes, ac~smrnts:~nd otheri•harges, fines and impti4itions attributable tu the Property which may attain a priority over this MortKaKe, and le:~.sehuld payments or ~n~und rents, if any, in the manner pre~vidrel under par:igraph 2 hereofor, if not paid in such manner, by E3orrower makinK p:iyment, when due, directly to the paycr thert~-f. Burn~Mer shall prompdy furnish to I.ender all notices of amounts due under this paragraph, .~nd in the e~ent 1~rruvrrr sh:dl make p:iyment directl~, fiorn~wer shall prompUy furnish to l.ender receipts evideneing such paymen4s. fiorruwer~shall pn-mptl>• disch:vKe ~ny lirn which has priurity u~•er this MortKage; provided, that Fiorrower shall not be required to diseharKe.~ny such lien su IonK :~ti It~-rrower.h:~I1:~Krrc• in vvriting to th~• p:~y mc•nt of the~~bliKation secured by such lien in a manner acceptable to Ixnder, or sh:ill in K~Nx1 faith cuntc~t sui•h lii•n by, ordefend enfi~n•~•ment uf such li~•n in. IrKal pmceedings w•hich operate to prevent the enfurcemrnt of thr lien ur furf~•iture ~~f th~• 1'ro{x•rty ur any part thrrtr,f. 5. Hazard Insurance. Borrnw er shall keep the impn-vemrnts now• existinK ur hemafter erected on lhe !'roperty in~ured against loss by fire, hazards included within thr term "extendecl rnreraKe,° .ind such othrr ha-tards as I.ender may require and in such amounts and forsuch periods as I.ender ma~ reyuim; providc~l, that I.ender shall nut myuire that lhe .~muunt of such n-veraKe exce~d that amount of co~~erage required to pay the sums secured h~ this A1ortKaKe_ The insurance camer pro~•idin~; the insuran~-~~ sh:-11 IK• ~•h~~.~•n h~• K~~rr~~w•~•r sutrj~Y•t tu appn~~:~l b~• Lr~d~•r, pn~vid~rl, that su~•h .~ppro~•al shall not be unre:~sunabl~ withhi~ld. All premiums un in~uran~•r {M~licii~s ~h:~ll I~e paid in !he m:~nn~~r prucid~~l unitrr paraKraph Y. henr~f or, if not paid in such manner, b~ Fiurruw~er m:ikinK pa~•m~•nt. whrn du~~, dirw•th• t~~ ~h~• inwranm ~•arri~•r. All insurance policies and renewals therc~f shall t-r in G-rm accept:iblr tn 1~e~ndrr and shall include a standard murtgageclause in taeor of and in form acceptable to [.ender. l.endrr shall ha~ethe riKht G~ huld the p~di~•ier and rrnev-als thercti~f, and &~rrowersh~ll promptl~ (umish to ~,ender all renevral notices and all receipts af paid prrmiums. (n tht• e~rut of I~~,.c, R~~rn~wer shall Ki~e prompt nntice W the insurance carrier and Lender. Lender may make praof ~~f luss if not madN promptly b~• Rurruvrrr. Unless [.ender and E3orrower otherv-i~ aKree in writinK, insur~ncr proc-eeds shall tx• .~pplied to resturatinn or repair of the Property damaged, provided such resU-ratiun or repair is crunumically fea~ible .~nd the u<•unh• uf this 11urtKaKe is not thereby impaired. If such restoration or repair is not ecunomically feasible or if tht• uvurity uf this ~1ort~.iKr wuuld br impaired, the inxurance proceeds shall be applied to the sums secured by thia MortKagr, wilh thr excrsc, if :my, paid to Fi~~rrow•er. lf tht~ I'rupert~• is abanduned by f~rrower, or if I~rrower faila to re~pond to Lender within :i0 days from the date notici• is mai1M1 by I.ender tn liorruwer that the insurance carrier offers to settle a claim for insurance benefils, I.ender is authurizc~l to ~•utlrc•t :ind apph~ thi• insuranm pr~~ce~~cls at l~~nder's option either to restoration or repair of the Property or the sums secured by this MortK:~Ke- Unlesa I.ender and Borrower otherwise .iKree in w•ritinK, cim~ such applicatiun uf pnK•c~l~ to principal shall not extend or postpone the due date of the monthly installmenL4 referred to in paraKra{rhs 1.ind'l t~Prcy~f or ch:~nKe the arnuunt of such installmen4~_ If under paragraph 18 hereof the Property is acquired by I.ender, all riKht, tide and interest ut &~rruw•rr in and to any incurance policies and in and to the proceeds thereof reaulting from damage t~~ Propeny ~ri~~r eo ihc• sale or acqwsitiun shall pass to l.eoder tu the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6_ Preaervation and Meintenanceof Property: l.easeholds: ('ondominums; Planned Unit Uevelopmenta. E3orrowerahall keep the Properly in q«xl repair and shall not commit waatr nr pe•rmit impairmrnt or deterioration of the Property and shall comply w~th the provisions of any lease if this MnrtKage is on a leasehold. If this 11ortKaKr ic nn a unit in a n~ndominium or a planned unit de~•elopment, Fiorrower ahall perform all of Ii~~rrower's obliKatiuns under thr dec•laratiun ur co~rnants ~-n•ahntior KuvermnK the condominium or planned unit development. !he bylaws and re~eulations nf the conduminium ur planned unit development, and constituenl documenls_ I[ a condominium or planned unit devrlopment ridrr is t•xfvutcyf by 13orrower and rec•urded tuKether with this Murtqage, the covenants and :~Kreements of such riJer shall 1-e inc~~rpurat~•d int~~ :~nd .hali amrnd and sup~di•ment the ruvrnants:+nd:iKrrements of this Uortgage as if the nder were a part hercY,f. 7. Protection ot Lender'e Security. If l3orn,wer faila tr- perform the rnvenante and agreementa contained in thia Mortgege, or if any aMion or proceeding ia commencrd which materially affecte l~ender'e intere9t in the Property, including, but not limited to, eminent domain, ineolvency, code enforcement, or arrangement8 or proceedinga involving a bankrupt or decedent, then [.ender al l.ender'a option,upon notice to Borrower may make euch appearancee, diaburee auch sums and take auch action ae ie neceesary to protect Lender's ihterest, including, but not limited to, diabureement of reasonable attorney'a fees and entry upun the Property to make repaire. It Lender required mortgage inaurance ae a condition of making the loan aecured by this Mortgage, E3urrower ahall pay the premiume required to maintain euch ineurance in effeM until euch_ time as the requirement for euch ineurance terminatei+ in accorciance with Borrower'e and [.ender s written agreement or applicable Law. Aorrower ahall pay the am~wnt of all mortQage insurance premiums in the manner provided under paragraph 2 hereof. ' Any amounta diebursed by l.ender perauant to thia paragraph 7, with intereat thereon, ahall berome additional indebtednese of Fiorrower aecured by thie Mortgaqe. Unleas fiorr~,wer and t,ender agree to other terma of payment, auch amounte shall be payable upon notice from Lender to Borrower requeeting payment thereof, and Ahall bear interest from the dale of diebur~ement at the rate payable from time to time un outetanding principal under the Note unleas payment of interei+t at such rate wuuld be rnntrary• to applicable law, in which event Rueh amounta ahal) bear intereat at the highest rate permiasible under applicable law. Nothing contained in this paragraph 7, ehall require [.ender to incur any expense or take any action hereunder. 's ~ _~ .- _: ~o3x 345 P~~E 471 ~ ~.-~~ .~ .t..~k .