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HomeMy WebLinkAbout0869Fiorrowe~ and Lender covenant and agree a~ folbws: 1. Psyment ot Principal and Ir-tere~t. Borrower eha11 promptly pay when due the principal of and i~lerat o~ the indebtedneas evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal ote~d i~tereston any Future Advances secured by this Mortgage_ 2. E1u~ds torTaxes artd Insurance. Subject to applicable Iaw or to a written waive~ by I.ender, Borrowe~ shall pay tu t.ender on the day monthly installmente of principal and interest are payable unde~ the Note, until the Note ia paid in tull, a sum (hereio "Funda") equal to on~ twelRh of the yearly taxee and asaeaements which may attain priority over this Modgage, and ground renta or- the Property, if any, plus ont twelRh of yearly premium inatallmenta for hazard inaurance, plus onetwelRh of yearly premium installmentslor mortgage insurance, i[any, all as maso~ably estimated initially and from time to tiR~e by I.ender un the basis of assessments and bills and ~easunable extimates thereof. The ~nds shall be held in an inatitutio~ the deposits or accounta of which are insured or guaranteed by a Federal or State agency lincluding L.ender if I.ender is such an institution). l.ender ahall apply the Funds to pay said taxes, assesamenta, inau~ance premiuma and ground rente. Lender may oot cha~ge for so holding and applying the Funda, analyzing aaid account, or verifying and compiling said aeaesamenta and bille, unleee l.ender pays Borrower intereat on the Funda and applicable law pe~mita l.ender to make such a charqe. Borrower and.l.ende~ may agree in writing at the time of execution of this Mortgage that intereat on the Funds ahall be paid to Borrower, and unless euch agreement ia made or applicable law requirea auch interest to be paid. l.ender shali not be required to pay Borrowe~ any intereat or earninga on the Ftinda. l.ender ahall give to Borrower, without charge, an annual accounting of the F unds showing credite and debite w the Funda and the purpose for which each debit to the Funde was made. The Funda are pledged as additional aecurity for the auma secured by thia Mortgage. . If the amount of the ~Lnda held by I.ender, together with the future monthly installmenta of Funds payable prior to the due datea of taxes, asaeasmente, inaurance premiuma and ground rents, shall excred the amount required to pay said Laxes, aseeasmente, insurance premiuma and ground rente as they fall due, such excess shall be, at Bonowei a option, either promptly repaid to Borrower or credited to Borrower on monthly installmenta of FLnds. If the amount of the Fnnds held by I.ender ahall not be aufficient to pay tsxes, aseeesmente, ineurance premiume and ground renta as they fal) due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to E3orrower requesling payment lhereoL ~ Upon payment in full of all suma eecured by this Morigage, l.ender ahall promptly retund to Borrower any funds held by I.ender. lf under paragraph I8 hereof the Property is sold or the Property is otherwiee acquired by (.ender. I.ender shaU apply, no laterthan immediately prio~ tu the eale of the Property or its acquisition by Lender, any Funds heid by l.ender at the time of application as a credit against the suma secured by thie Mortgage_ 3_ Application of Paymente. Unlesa applicable law provides otherwiae, all payments received by l.ender under the Note and paragrapha 1 and 2 hereot ahall be applied by I.eader firet in payment of amounts payable to I.ender by E3orrower under paragraph 2 hereof, then to interest payable on the Note, then to the principa) of the Note, and then to interest and principal on any Future Advances. 4. Chargee; [.iens. E3orrower shall pay all taxes, assessmrnts and other rharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenls ur gmund rents, if any, in the manner pruvided u~der paragraph'l hereotor, ~[ not paid in such manner, by Borrower making payment, when due, directl~ to the payee thereol. tiorn-wer sh:ill prumptly furnish to l.ender all notices of amounls due under this paragraph, and in the event &~rrower shali make payment dirrctly, Borruwer shal) prompUy furnish to I~•nder receipts evidencing such paymrn~s. Borrower shall promptl4 disch~rgr any lien which has priority o~•er this 11ortKage; pmvided, that Borrower shall not tx~ required W discharge any such lien so IonK as I~~rrower shall agree in writing tu the payment of theobliKation secured by such lien in a manner acceplable to IxnJrr, ur shall in Rcx~d faith cuntest such 6rn by, urdefend enfurcrmentof such lien ~n, leKal proceedings w•h-ch operate to prevent thr enforcement of thr lien or forfriture of the Nruperh• or any part therrof. _ - 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against losa by fire, hazards included within the term "extended co~eraKe." and such olher hazards as Ixnder may require and in such amounts and forsuch ~~riods as [xnder may reyuire: pruvided, that Ixndrr shall not require that the amuunt of such coveraKe excerd lhat amount of co~~erage required to pa~ the sums srcvred by this MortKage. 7'he insurance carriNr pru~•idinK the ~nsur.inn• sh:+ll t~r i•hust~n by R~~rrower sub~ert tu appru~•al by Ixnder: pru~•idcrl, that such appro~ al shall not be unreasunably withheld. All prem~ums un ~nsuram•.• p~~l~i~~r. shall tK• paM in the m:~nner pruv~dr~i under paruKraph Z hereuf or, if nut paid in such manner, b~ Finrruv-~er mak~nK payment, whrn due, dirrctly t~~ thr ~nsurancr carrier All insurance policies and renewals thereof shail be in form accept~ble u~ i.ender and shall include a standard mortgage ciause in favor of a nd in form acceptable to C,ender. l.ender shall ha~•e the ri~cht u- huld thr. {N~licies and renewals thercw(, and E3~rrorrer shall prumptly furnish to i.ender all renewal notices and aU receipts of pa~d prrmiums. In the eveut of luss. Born~wer shall Rive prompt notice u- the insurance carrier ~nd I.ender. l.ender may make proof of loss if not made promptly by Korrower. Unlese I.ender and Rorrower othervvisr a~cree in writing. insurance proceeds shall be applied to restoration or repair of the Ptroperty damaged, pro~~ded such resb~ratiun or rrpair is ec~~numically feasible and the srcurity uf this MortgaKe ia not thereby impaired. [f such n~storation or repair is not ecunumically feasiMr ~~r if the ~secunty nf this Mortgage v-ould beimpaired, the insurance proceeds shall be applied t~~ the aums secured by this MortgaKe, v-~th the excrss, if any, p:+id t~~ Borrower. lf lhe Property is abandoned by E3orrower, or if E3orrower fails b re,pond to Lender w ithin 3(1 days frnm the date nuticr ~s ma~l~d by I.ender tu Eiorrower that the insurance carrier offers tosettle a claim for ~nsurance benefits, [.ender is authorizrd to collrct and apply the insurance proceeds at I.ender's option either to restoration or repair uf the E'roperty or the suma secured by this MortKage. Unless l.ender and Rorruw•er otherw ise aKrre in wntinK, any such application utproceeds to principal ahall not e=tend or poatpone thedue date of the monthly installmenLg referred to in paraQraphs 1 and `l hereof or change the amount of such installmenta. If under paragraph 18 hereof the Property ia acquired by I.ender, all right, title and interest of F3ormwer in and tu any insurance pc-liciea and in and to the proceeda thereof resulting from damaqe to Prnperty prior to the sale or acyu-siuon.shall pass to I.ender to the extent ~f the euma aecured by this ~iortgage immediately prior w such sale or acquisition_ 6. Preeervation and Maintenence of Property; l.easeholds; ('ondominume; Planned Unit Developmenta. l3orrower ahall keep the Property in good repairand shall not commit wa~te or permit impairment or deterioration of the PropeRy and shall comply with the provis-ons of any lease if this lllnrtgage is on a leasehold. If this MurtKaKe is on a unit in a condominium or a planned unit development, fiorruwer shaU perform all of }3orruwer's obligations under the declaratinn or covenan~g creatinKor govern~ng the conduminium or planned un~t development, the by-laws and regulations of the condominium or planned unit development, and conatituent dceumentn. If a ~~undominium or planned unit development rider ~s exeruted by &~rruwrr :~nd recorded together with this Mortgage, the covenants and :~Krerments of such rider shall be inrnrporated into :+nd ~chall amend and supplrment the covenants and agreemenls of th~s;llortgage as if the nder were a part hereof. 7. Protection ot I.ender'q 3eci~rity. If Borrower fails to perform the covenants and agreementa contained in this Mortgage, or if sny action or proceeding is commenced which materially affecte Lender'e intereet in the Property, including, but not limited to, eminent domain, ,neolvency, eode enforcement, or arrangementa or proceedinge involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make euch appearancee, diaburoe euch aume and take euch aMion aa is necessary to protect Lender's interest, including, but not limited to, disbureement of reasonable attorney'e feee and entry upon the Property to make npairs. If Lender required mortgage ineurance ae a rnndition of making the loan eecured by this Mortgage. Borrower ahall pay the premiums required to maintain euch ineurance in effect until such time ae the requirement [or auch ineurance terminatee in accordance with Borrower's and [.ender e written agreement or applicable Law. Borrower ehall pay the amount ot all mortgaqe insurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender persuant to this paragraph 7, with intereet thereon, ahall become additiona) indebtedness of Borrower eecured by thia Mortgage. Unleae E3orrower and Lender agree to other terma of payment, auch amounte ehall be payable upon notice from Lender tu Borrower requesting payment thereof, and ehsll bear interest fnom the date of diabureement at the rate payable from time w time on outetanding principal under the Note unleee payment of interest at auch rate would be contrary to applicable law, in which event such amounts ehall bear interest at the higheet rate permiseible under applicable Iaw. Nothing"~ontained in this paragraph 7, ehall require Lender to incur any e:penee or take any action hereunder. B~nK 3`t / P»GF 8tlej - = 2 3~, ~. :w%"'4~'!:tii.~, a`~`_ J~~: ~'