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HomeMy WebLinkAbout2760Eiorrower and l.ender covena~t a~d a~ree u tolbvw: I. P~yment ot Prit~cipal a~d Intere~t. Borrower ~hall promptly pay when due the principal of and intereet on tl~e indebtednesi evidenced by the Note, prepnyment and late char~es as pmvided in the Note, and the principal of and inte~eet on any ~ture Advances accured by this Mortgage. 2. I~Lnds for Tuee a~d In~uran~. Subject to applicable law or to a written waiver by Le~de~, Borrower shall pay to I.ender on the day monthly installments of principa! and inte~eat are payable under the Note, until the Note ia paid in full, a sum (he~ei~ "Funds") equal to one- twelRh of the yearly taxes and assesam~nts which may attain priority over thia Mortgege. and ground re~ta on the Propeirty, if any, plus ont twelfth of yearly premium installments for hezerd inaurance, plua onetwelRh o[yearly premium installments [or mortgage insurance, if any, ~11 as reasonably eatimated initially and from time to time by I.ender on the baeis of aaaesamenta and billa and reaaonable estimates thereof. The Ftinds ahall be heM in an institution the deposits or accounts of which are ineured or guaranteed by a Federal or State agency (including Lender i[ Lender is such an inetitution). Lender shaU apply the Funds to pay said taxes, assesaments, insurance premiums and ground rents. I.ender may not charge for so holding a~d applying the Funde, analyzing said account, or verifying and rnmpiling said asaeaementa and bille, unleas Lender psys Bormwer interest on the F1nde and applicable law permita Lender to make such a charge. Borrower and I.ender may agree in writing at the time of executio~ oi this Morigege that intereat on the Funds shall be paid to Borrower, and unless euch agreement ie made or applicable law requires auch intereet to be paid. Lender shall not be required to pay Borrower eny interest or earnings on the Fl~nds. Lender shall gi~ e to Barroveer, aritlsoat charge, sn saausl sccounting ot tha Funda showing credits apd debita to the Funda and the purpoee for which each debit to the Funda was made.'11~e Funds are pledged as additional serurity for the aums secured by this Mortgage. If the amount of the ~nda held by Lender. together with the future monthly installmenta of Funds payable prior to the due dates of ta~ces, aaseesments, inaurance premiums and ground rents, ehall excaed the amount required to pay eaid taaes, seaeasmente, ineurance premiums and ground renta ae they fall due. such excess ehall be. at Bo~mwer s option, either pmmptly repaid to Borrower or credited to Borrower on monthly installments of ~Lnds. If the amount of the Funda held by Lender ahall not be sufficient to pay taxee, asseasmenta, ineurance premiums and ground rente aa they lall due, Borrower ehall pay to Lender any amount neceseary W make up the deficiency within 30 deys from the date notice ia mailed by L.ender to Borrower requeating payment thereof. Upon payment in full of all aume secured by this Mortgage, Lender shall promptly refund to Borrowe~ any funds held by Lender. If under paragraph 18 hereof the Property ia sold oT the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite acquisition by Lender, any Funda held by I.ender at the time of application ae a credit againat the eums aecured by this Mortgage. 3. Application of Payments. Unleas applicable law provides otherwiae, all paymenta received by Lender under the Note and paragraphe i and 2 hereof ehall be applied by Lender first in payment of amounts payabie to Lender by Borrowet under pacagraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liena. Borrowershall pay all taxes, assessments and othercharges, fines 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 E3orrower making payment, when due, directly to the payee thereof. Borrower shall promptly [urnish to [,ender all notices o[ amounts due under this paragraph, and in the event Borrower shall make payment di~ectly, Borrower shall promptiy furnish to [.ender receipts evidencing such payme~ts. Borrower shall p~omptly discharge any lien which has priority over this htortgage; provided, that Borrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment oCtheobligation secured by such lien in a manner acceplable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. E3orrow'er shall keep the improvements now existing or hereafter erected on the Property insured againat loea by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for auch periods as l.ender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required !o pay the sums secored by this Mortgage. The insurance carrier providing the insurance shall be chusen by Rorrower subject to approval by l.ender, provided, that such approval shall not be unreasonably w ithheld. All premiams on insurance policire shall be paid in the mannef provided un~er paraRr~ph `L hereof or, if not paid in such manner, by Korrower makinq payment, when due, direcdy to the insurance carrier. Ail insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage clause in favor of and in form acceptable to I.ender. I.endershall have the right to hold the policies and renewals thereof, and E3orrower shall promptly furniah to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by E3orrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically [easible and the security of this Mortgage is not thereby impaired_ If auch 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. Ilthe Property ia abandoned by Borrower.or if Borrower faila to reapond to Lender within 30 days from the date notice is mailed by l.ender to Borrower that the insurance carrier offers to settle a claim tor inaurance benefits, I.ender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the Property or the sume secured by this MortKage. Unlesa Lender and I3orrower otherwise agree in writing, any such application of proceeds to principal shall not extend or poatpone thedue date of the monthly installmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inetallmenta. If under paragraph 18 hereof the Property ia acquired by I.ender, all right, title and interest o[ Borrower in and to any inaurance policies and in and to the proceeds thereof reaulting from damaqe to Property prior to the sale or acqwsition shall pass to Lender to the extent ot the suma secured by this Mortgage immedialely prior to auch sale or acquisition. 6. Preaervation and Maintenanceof Property; l.easeholds; Condominume; Planned Unit Developmente. Borrowerahall keep thc Properiy in good repair and ahall not commit waste ur permit impairment or deterioration of the Property and shall comply with the proviaions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, E3orrower shall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulations of the condominium or planned unit development, and conetituent documente. If a condominium or planned unit development rider ia executed by f3orrower and recorded together vrith thia Mortgage, the wvenante and ~greements of such rider shall be incorporated into and shall amend and supplement lhe covenants and agreementsof this Mortgageas ifthe rider were a part hereof. 7. Protection ot Lender's 3ecurity. If Borrower faila to per[orm the oovenante and agreements rnntained in this Mortgage, or if any action or proceeding is commenced which meterially affecte Lender's interest in the Pmperty, including, but not limited to, eminent domain, ineolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender s option,upon notice to Borrower mey make such appearencee, disburee such aums and take such action aa is neoessary to protect Lender's interea~ including, but not limited tn, disbursement of reasonable attorney's fees and entry upon the Property to make repairs_'If Lender reqaired mortgage inaurance ae a rnndition of making the loan secured by this Mortgage, Borrower ehall pay the premiums required to maintain auch ineurance in effect until such time as the requirement for such ineurance terminates in accordence with Borrower s and Lendds written agreement or applicable Law. Borrower shall pay the amount of sU mortgage insurance premiume in the manner provided under pa~agraph 2 hereof. Any amounte disbureed by Lender perouant to thie paragraph 7, with interest thereon, shall become additional indebtednese ot Borrower secured by thie Mortgage. Unless Borrower and Lender agree to other terme of payment, such emounts shall be payable upon notice from Lender to Borrower requesting payment thereof, end shall bear interest from the date of diebursement at the rate payable from time to time on outetanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event euch amounte ehall bear interest at the highest rate permissible under appliceble Iaw. Nothing rnntaincd in this paragraph 7, shall require [.ender to incur any expense or take any action hercunder. BnriK ~~Jli PACE 2•! 50 E 1 . • ~ iq~~ _ ~-_ ~ -~ H-y'q''_~. -. :. , _ - . - .- _ _~ _ "- ~ . -~.-_ . -. " . .. .."t-.