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HomeMy WebLinkAbout1175•' `~` . ~ t + . •;. f ~ i Bor~ower and i.ender oovenant arid agre~ as followa: ~ 1. Paymeat ot Psiacipal and Interes~ Borrower shall promptJy pay when due the pri~ci~al ot end interest on the indebtednew widenoed by the Note, prepayment and late charges as pmvided in the Note, a~d the pirincipal otend intereat on any Fl~ture Advances ~ecured by thu Mortga~e. ~. Ftiada ~or Tasea and Insu~apce. Subject b applicable law or to a written waiver by I.ender, Borrower ehai) pay to L.ender on the dsy monthly installments oiprincipal and inte~est are payeble under the Note, until the Note ia paid in full, a sum Iherein "Elrnds") equal to on~ twelfth of the yearly taxes and ase~aamenta which may attain j-riority over thia Mortgage, and ground re~te on the Property, if any, plua one~ tweltth of yearly premium installmenta [or hazard ineurance, plus onetwelfth otyearly premium installments for mortgageinsurance, i[any. all as reasonably estimaled initially and from time to tiR~e by l.ende~ on the basis of assessments and billa and reasonable eatimates thereof. '11se Pltads ahall be held in ari i~utitution the depoaita or accounta ot which are inaured or guaranteed by a Federal or State agency (including Lender if I.end~ ia auch an institution). L.ender shall apply the Funds to pay said taxee. esseasmenta, insurance premiums and grou~d nr-ts. I.ender me~y not charge [ot so holdi~g and applying the Funde, analyzing said account, or verifying and compiling said asaeasmeafs and biUs, anlue Lender pays Borrower interest on the F~nds and applicable law permits Lender to make auch a charge. Borrower and Leader may egree in writing at the time of e:erution ot thia Mortgege that e~tereat on the Funds ahall be paid to Borrower, and unlew sach agreement ia made or applicable law requires euch intereat to be paid. Lendet shall not be requioed to pay Borrowe~ any inferat or earnings on the PLnds. Lender shall give to Borrower, without charge, an annual accounting of the Funda ahowing cndita and debite b the E~nds and the purpose [or which each debit to the Funda vyas made. The Funds are pledged as additional eecurity for the euma secured by this Mortgage. - . If the amount oithe Plinds held by Lender. togethe~ with the [uture monthly inatallmenes of Funda payable prior to the due dates of taues, a~eeesments. insurance pnmiums and ground rents. ahal) excred the amount requind to pay said ta:es, asseasmenta, inaurance premi~una aad ground rents as lhey fall due. such exceae ahall be, at Bo~rower's optio~, either promptly repaid to Borrower or credited to Borroweron monthly inatallmenta of I~nds. If the amount of the Funda held by l.ender shall not be aufficient to pay ta:es, assesementa, insurance premiums and ground renta as lhey tall due, Borrower ahall pay to Ixnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrowe~ requesting payme~t thereof. . Upon payment in fnll of all sucna secured by this Mortgage, l.ender ahall promptly refund to Borrower any tunda held by l.ender. V under paragraph 18 hereof the Property is eold or the Property is otherwise acquired by Lender, l.ender ahall apply, no later than immediately prior to the sale of the Property or ifsaoquieition by L,ender. any Funds held by I.ender at the time of application es a credi/ againat the suma sec~ued by. W;a Mortgage. 3. Application ot Ps~rments. Unleas applicable law provides otherwise, all paymenta received by l.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, fhen to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; I.iens. Borrower shall pay all taxes, as,4essments and other rharges, fines and impositions attribulable to the Property which may attain a priority over thia Mortgage, and leasehold payments or gruund 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. l3orrowershall prampdy furnish to I.ender all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrnw•er shall promptly furnish to Lender receipts evidencing such payments_ Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to dischurge any such lien so long as Borrower shall agree in writinR to the payment of the obligatio~ secured by such lien in a manner acceptable to Lender, or shall in good faith cuntest such lien by, or defend enforcement ofsuch lien in, legal proceedings which operate lo prevent the enforcement of the lien or torfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrow~er shall keep the improvements now exiating or hereafter erected on the Property inaured againet loea by fire, hazards included within the term "extended coveraqe," and such other hazards as I.ender may require and in such amounte and forauch periods as I.ender ms~y require; provided, that [.ender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage_ 'l7ie insurance carrier providing the insurance shali be ch~en by [;orrowcr subject to approval by t.ender, provided, that such approval ehall not be unreasonably withheld. Al) premiums on insurance pulici~s shall be p~id in the manner pro~•ided under parag~aph 2 hereof or, if not paid in such manner, by E3orrower making p.~yment, when due, directly to the insurance carrier. AU inaurance policies and renewals thereof shall be in [orm acceptable to l.ender and shall include a standard mortgageclausein favor of and in form acceptable to Lender. l.ender shall have the right to hold the policics and renewals thereot, and $onower ahall promptly ftirnish to i.ender al) renewa! notices and all receipts of paid premiums. In the event of los.g, Born,wer shall give prompt notice to the ineurance carrier and Lender. Lender may make proof of loss i[ not made promptly by E3orrower. - . Unleas I.ender and Borrower otherwise agree•in writing, insurance prncee~ shall be applied to restoration or npair of the Property damaged, provided auch reatoration'or rnpair is econumically felsiblP and the+serurity ot this Morlgage is not thereby impaired. If such restoration or repair is not economically feasible or if thr security of this Mort~age would be impaired, the insurance proceeds shall be applied to the sums aecured by this Mortgage, vrith the excess, if any, paid to Burrower. If the Property is abandoned by Borrower, or itBorrowet fails to respond Lo I.ender within :~0 days from lhe date notice is mailed by I.ender tu B~rrower that the iusurance carrier ot~era to aettle a elaim for inaurance benefits, [.ender is authorized to collect and apply the insurance proceeds at I.ender's option either to reatoration or•repair of the Property or the aums secured by this Mortgage_ ' Unlese Lender and Borrower otherwise agree in writinQ, any such application of proceeds to principa) shall not extend or poetpane thedue date of the monthly inatallments referred to in paragraphs I and `L hereof c~r chanKe the amount of such installmenta. If undet paragraph IS hereof the Property ia acquired by Lender, all righl, title and interest of Born,wer in and to any insurance policies and in and to tlie proceeds thereof resultirig from damage to Property prior to the r,ate or acqu~sition shall pass to Lender to the extent of the euma secured by thie Mortgage immediately prior to such sale or acquisition. . 6. Preservation and Maintenanceof Property; l.easeholds; Condominums; Pianned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or pPrmit impairment or deterioration of the Property and ahall comply with the proviaiona of any lease if this Alortgage is on a leasehold. If this MortgnKe is un a unit in a eondominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatinRor governing the condominium or planned unit development, the by-lawe and regulations of the condominium ur planned unit development, and conatituent documente. It a condominium or planned unit development rider ia executed by Ebrrower and recorded t~~ether with thia Mortgage, the oovenante and agreements of such rider shall be incorporated intu a nd sh:~l l ame•nd and supplement the covenants and aRreements of this Mortgage as if the rider were a part hereof. 7. Protection of I.ender's 3ecvrity. If Borrower faila to perform the covenante and agreementa conteined in this Mortgage, or it any adion or proceeding is canmenced which materially affecta Lender'a interest in the Property, including, but not timited to, eminent domain. inwlvency, oode mforcement, or arrangemente or proceedinga involving a bankrupt or deceden~ then Lender at I.ender's option.upon notice to Borrower may make such appearancea, dieburee euch aume and take auch action as ia neceaeary to protect Lender'~ intere~t, including, but not l~mited to, dieburoement of reaeonable attorney's feee and entry upon the Property to make repain. If Lenda reqnired mortgage insurance as a condition of making the loan accured by thia Mortgage, Eiorrower shall pay the premiumr required to maintain ~nch insurance in effect until such time as the requirement for auch ~inaurance tem-inates in accordance with Borrower's and Lendd~ written agreement or epplicable Law. Borrower ehall pay the emount of all mortgage insurance premiuma in the manner provided under paragraph 2 hereof. My amounts disburoed by Lender pereuant w this paragraph 7, with intereet thereon, ahaU become additional indebtedne~s of Borrower secured by this Mortgage. Unleae Borrower and Lender aqree to other terma of payment, auch amounts shall be payable upon notice from [.ender to Borrower req~seeting payment thereof, and ahall bear intereat fmm the date of dinbursement at the rate payable from time to time on outatanding principal under the Note unleae payment of intereet at such rate wo~wld be rnntrary to applicable law, in which event auch emounte shall bear interest at the highest rate permiaeible under applicable law. Nothing rnntained in this paragraph 7. shall requirc Lender to incur any expenee or tate any action hereunder. , BaoK3~6 P~cE1172 ~ ~ i ~-