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HomeMy WebLinkAbout0416E3orrower and I,ender covenant and agree as tollowb: ~ 1. Payment ot Pri~cipel and Interes~ Borrower shell promptly pay when due the principal of and intereat on the indebtedness evidenced by the Note, prepayment and latechargea as provided in the Note, and the principai of nnd intereat on any Future Adva~cee aecured by thia Mortgage. 2. Ftitnds tor Ta:ea and Insurance. Subject to applicable law or to a written waiver by l.ender, EioROwer ahall pay to lxnder o~ the dey monthly inatallmenta of principal t+nd interest are payable under the Note, until the Note is paid in full, a sum (hereio "F unds") equal to onc twelRh of the yearly taxes and assesements which may attain priority over thia Mortgagr, and ground reots on the Property, if any, plua o~e tweitth of yearly premium installments fo~ hazard insurance, plus onelwelfth of yea~ly premium insts~Uments for mortgage insurance, if any, a1i as reasonably estimated initially and from time to tirr~e by Lender on the bxsis of assessments and bills nnd reasonable eslimates the~eof. The FLnda ahall be held in an inatitution the depoaita or accounta ot which are insured or guaranteed by a Federal or State ugency (including l.ender if l.ender ia auch an inetitution). I.ender shall apply the Funda to pay said taxea, assexsments, insurance premiuma and ground rente. l.ender may not charge for so holding and applying the Funds, nnalyzing said account, or verifying and compiling said aeseesment8 and bille, unless i.ender paye Borrower intereat on the Funds and applicable law permits l.ender to make auch a charge. Borrower and I.ender may agree in writing at the lime of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unlesa such agreement ie made or applicable lav- requirea auch interest to be paid, Lender shall not be required to pay Borrower any intereat or earninge on the ~nds. I.ender ahall give to Borrower, without charge, an annua) accounting of the Fundec showing credits and debite to the Funde and the purpose for which each debit to the Funda was made. The Funds are pledged as add itional security for the suma secured by thie Mortgage. If the amount of the fi~nds held by Lender, together with the future munthly installments of Funda payable prior to the due dates of taxee, aeeesaments, inaurance premiums and ground rents, shall excred the amount required to pay said taxea, assessmenta, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of Funds. If the amount of the Funda held by l.ender shali not be sufficient to pay taxes, asseasments, insurance premiuma and ground renta as they fall due, Borrower shall pay to I.ender any amount necessary to muke up the deficiency within 30 daye from the date notice ie mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of all aums secured by this hlortgage, l.ender shall promptly refund to Borrower any funds held by-l.ender. lf under paragraph 18 hereof the Propetly ie sold or the Property is otherwise ucqu~red by l.ender, l.ender shall apply, no later lhan immediately prior to the sale af the Property or ite acquisition by Lender, any Funds held by I.ender at the time of application as a credit against the suma secured by thie Mortgage. _ 3. Application of Peymente. Unlesx appiicable law provides otherwise, ali payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be appiied by Lender first in pnyment of amounts papablP to I.ender by Barrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges: Liene. Borrov~ er shall pay all taxes, assessments and other charRes, fines and im{wsitions attributable to the Yroperty which ma~ attain a priorily over this MortgaRe, and leasehold p:~yments ur gnwnd rents, if any, in the manner pro~ ided under paragraph 2 hereof or, if not paid in such manner, by Bonower making pay ment, when due, directly to the payee thereof. Borrower shall promptly furnish to. Lender all notices of amounts due under this paragraph~and in the event Rorrower shall make p.~yment directly, BorroN~er shnll promptly furnish to l.ender receipts evidencing such payments. t3orrower sha11 prori~ptly`di~charKr any lien w hich has priority o~•er this MortRage; provided, that E3orrower shall not be required todischarge any such lien so lonR as [~>rn~wer shall aKree in writi~R to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shalt in guod faith contest such lieo bp, ordeCend rn(orcement of such lien in, IeKai proceedinga which operate to prevent the enfurcement of the lien ur forfeiture of the Property or any part therE~~f. 5. Hazard Insurance. Korrower shall keep the improveme'hts nowexisting or hereafter erected on the Property insured ugainstlosaby fire, hazards included within the term "extendecl co~~eraKe." and such other hazards as I.ender may reyuire and in such amount~g and for such periods as l.ender may require; pro~•idPd, that I.ender shall not require that the amount of such coveraKe exceed that amount of coverage required to pay the sums secured by thi, MortK:+Ke. 7'he insurance camer pro~•idinK the inwranc~• ::hall tx• ~•hus~•n by Korr~~w•er subject to appru~•ai by Ixnder, pnn•ided, that such approval shall not be unreasonably withhrid. All premiums ~~n insuranct~ p~~licie~s shall Ix~ paid in the manner prm•id~d under par-Rraph '2 hermf or, if not paid in sueh manner, hy I~~rrower makinK pa)•m~~nt, K•hen dur, dinr•tlc to the incurance carrier. All insurance policies and renewals thereof shali be in form acceptahle to l.ender and shall include a standard mortgageclausein favorof and in form acceptable to Lender. I,ender shail have the riKht to hnid thr p~~licies and renrw als thereof, and Bonower shall promptly furnish to i~ender all renewal notices and all receipts of paid premiums. In thr r~~ez~t of Inss, Korrower shall Qive prompt notice to the insurance carrier and I.ender. Lender may make proof of loss if not made prumpth• b~~ Rurrow•er. Unlesa Lender and E3orrower olhervvise aECree in w•ritinK, insurance pr«•ee~i: shail be applied to resturation or repair of the Property damaged, provided such restoration or repair is econo~nically fe~sible and the~see•urih• of thia Mortgage ia not thereb~ impaired. If auch restoration or repair is not economically [e.isible or if the security of this MurtKaAe would be irnpaired, the insurance proceeda shall be applied to the sums secured by this Morigage, w~th the exmss, if any, p~id to Borrower. lf the Pro~rt>' is abanduned b~ Borruwer, or if Eiorrower faila to respond to Lender within 3(l days from the date notice is mailf~cl by 1 xnder tu Rurr~~wer that the insurance carrier offera to settle a claim for insurance benefits, I.ender is au.horizc~ci to:z,llect and appl}~ the insurance pnxeeds at Ixnder's option either to restoration or repair of the Property or the sums serured by this h1o:tK~~K~'~ Unless l.ender and EZon~,wer utherw•ise aKree in wrihnK, any such appliration uf proceeds tu principal shall not extend or postpo~ethedue date of the monthly installments referrecl w in par.~Kraphs 1 and 'L Lereuf or chanKe the amount of such instaliments. If under paragraph 18 hereof the Pmperty is acquired b~~ I.en:fer, all right, title and interest of Borrow•er in and ta any insurance policies and in and to the proceeda thereof resulting from damage to Property pr.or tu the sale or acyu~sition shall pasti to I.ender to the extent of the sums secured by this Mortgage immedialely prior to such sale or acquisition. 6. Preeervation and Msintenance of Property; l.exsrhoids; Condominums: Planned Unit Developmenta. Borrowershall keep the f'roperty in g~wd repair and shall not commit wa~te ur pE•nnit impairment or d~•terioratiun of the Properly and shall comply w~th the provisions o1 any lease if this Mort~age -s on a leasehold. If this Rlorlgake is on a unit in a condominium or a planned unil development, Korrower shall perform all of Bortower's ohli~aiii~ns under the dec•laratiun or covenanGs ~•reatinkor govern~~g the condominium or planned unit development, the by-laws and re~ulations o[ the condominium or planned unit development, and constituent documents. If a condominium or planned unit de~~elupment rider is executed by &~rr~~w•rr and recorded toKether with this Mortgage, the covenants and agreements oFsuch nder shall tx• incorpuratecl intn :~ad shall amend :+nd suppleme~nt the cu~•enants and ag:erments of this AlortgaQe as if the rider were a part hereof. 7. Protection ot Lender'e Security. If E3orr~~wer fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affecti+ Lender'e intereet in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinqa involving a bankrupt or decedent, then Lender at Lendei s option,upon notice 1o Borrower may make auch appearancee, diaburse such aume and take au~h action as is necesaary tu protect Lendei s interest, including, but not I~mited to, dieburi+ement of reasunable attornPy's [eea and entry upon the Property to make repaire. lf Lender required mortgage inaurance se a condition ot making the loan aecured by this Mortgage. &~rrower shall pay the premiume required to maintain euch ineurance in effect until euch time as the requirement for auch insurance terminates in accordance w~th Borrower'a and Lender s written agreement or applicable [aw. Borrower shall pay the amount of all mortqage inaurance premiums in the manner provided under paragraph 2 hereof. Any amounts diebursed by I.ender pereuant to this paragraph 7, with interest thereon, ehall become additional indebtednese of Borrower secured by this Mortgage. Unlesa Borrower and i.ender agree to other terme of payment, auch amounte ehall be payable upon notice from I~ender to Borrower requeeting payment thereot, and ahall bear intereat from the date of diaburarment al the rate payable from time to time un outetanding principal under the Note unless payment of interest al such rate would be contrary to applicable law, in which event auch amounta ahall bear interest at the highest rate permissible under applicable law. Nothing contained in thie paragraph ?, ahall require I.ender to incur any expense or take any action hereunder. ~~~~x351 ~A~~ 415 --~_.