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HomeMy WebLinkAbout1908Boerowe~ ar~d Le~der covenaM Rnd e~ree ai [olbws: 1. P~yme~t of Principal wt~d I~tere~~ Borrowe~ shsll prompdy pay whe~ due the principal ot aad intereat on the indebtednes~ evidrnced by the Note, ptepayment er-d late chuQa a~ provided in the Note, and /he principal oi and intere~t on ar-y Flture Adve~ces secured by this Mortgage. 2. I~unds for Ta:~ and Insurance. Subject to applicable law or to e written waiver by Lende~, Borrower shall pay to t.ender on the day monthly inatallments of principal and interest are payable under tAe Note, until the Note is paid in fuD, a aum ~herein "~nds") equal to on~ twelRh oithe yearly taxes and asseaements which may attain prio~ty over this Mortgage, and ~round renta on the Property. i[any. plus one twelfth of yearly premium installmertte [os hasard ineurance, plua on~twelRh of yearly premium inatallments for mortgage inaurance, if any, all as reaeo~ably eatimated i~itially and trom time to tiR~e by I.ender on the basis of assesamenta a~d bills and reaaonable eatimatea thereof. '11~e FLnda shall be held in an inatitution the deposita or accounts ot which are insured or guaranteed by a Federal or Stete agency (including t,ender ii Lender ia such an institution). Lender ahall apply the Funds to pay said taxes, assessmenle, insurance prnmiums and ~round rent+s. Lender may not charge ior so holding and applying the Funds, analysing said accwu~t, or verifying and compili~g said aesessmenes and bills, unlesa l.ender pay~ Borrower interest on the Funds and applicable law pern-its I.ender to make auch a charge. Borrower and I.ende~ may agree in writing et the time of e:eculion of thia Mortgage that interest on the ~nds ahall be paid to Aorrowe~, and unless euch agreement ia made or applicable lew requirea euch intereat to be paid, Lender shall not be required to pay Borrower any intereat or earnings on lhe F1nds. Lender shal) give to Borrower, without charge, an annual accounting of lhe Funds showing credits end debits to the Funds and the purpoHe for which each debit to the ~nda wae made_ The Funds are pledged as additional security for the auma secured by this Mortgage. I[the amount of the F~nds held by Lender, together with the future monthly inetallmenta of Funda payable prior to the due datee of ta:es, asaeeamente, inaurance premiuma and ground rents. shall excaed the amount required to pey eaid taxea. aseesaments, ineurance premiums and ground renta as they [all due, such excess ehall be, at Bor~ower s option, either pmmpUy repaid to Borrower or credited eo Borrower on monthly installments of Ftinda. If the amount of the Funds held by Lender shall oot be eufficient to pay taxes, aasesements, inaurance premiums and ground rents ae they fall due, Borrower shall pay to L.ender any amount necesaery to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upon payme~t in [ull of all sums secured by thia Mortgage, I.ender shaU promptly refund to Borrower any [unda held by Lender. If under paragraph 18 hereof the Property ia eold or the Property is otherwiae acquired by l.ender, [.ender shail apply. no later than immediately prior to the eale of the Property or ita acquiaition by l.ender, any Funda held by Lender at the time of application aa a credit against the auma eecured by this Mortgage. 3. Application ot Payments. Unless applicable law providea otherwiae, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by BoROwer under paragraph 2 hereof, then to intereat payeble on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances_ 4. Chargea; Liene. E3orrower shall pay all taxes, assessments and other charges, finea and impoaitions attributable to the Nroperiy which may attain a priority over this MoriRage, and leasehold payments or ground renls, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Eiorrower making payment, when due, directiy to the pnyee thereot B~rrower shall promptly fu~niah to Lender all notices of amounts due under this paragraph, and in the event i3orrower shall make payment directly, Eiorrower shall promptly turnish to l.ender receipts evidencing such payments. E3orrower shall promptly dischargr any lien which has priority over this Morigage: provi~zd, that Rorrower shall not be reyuired to discharge any such lien so long ac f3orrower shali agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [.endrr, or shall in good faith contest such lien by, ordrtend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereof. ~ 5. Hazard Inaurance. Borrowrer shall keep the improvements now exiating or hereafter erected on the Property inaured againat losa by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in auch amounta and for such periods as Ixnder may require: provided, that Lender shall not require that the amount ot such coverage exceed that amount of coverage required to pay the sums srrured by lhis MortRage_ The insurancr carrier prov~dinK the insuranrr shall t-e chosen by tiorruvrer subject to appro~ al by i.ender, pruvided, that such approval shal) not be unreasonably withheld. Al) premiums on insuran~r pulicir.r• shall be paid in the manner provided under paraQr~ph 'l hereof or, if not paid in such manner, by tiorrower mak~ng payment, when due, dirrcUy to the insurance carrier. , Al) inaurance policies a~d renewals thereof shall be in form acceptable to l~ender and shall include a standard mortgage clause in [avorof and in form acceptable to I.ender. l.ender shall have the right to hold the policies and renewala thereof, and ~rrower ahall promptly furniah to i.ender all renewa) notices and all receipts ot paid premiums. In the event of losa. Borruwer ahall give prompt notice to the inaurance carrier and I.ender. I.ender may make proof of loss if not made promptly by Fiorrower. Unlesa Ixnder and Borrower otherwiae agree in writing, insuranrn proceeds shaU be apptied to restoration or repair of the Property damaged, provided such rextoration or repair is ec~-nomically feasible and the aecurity of this Mortgage is not thereby impaired. If such rrstoration or repair ia not economically feasible or itthe sPCUrity of this Mortgagewould beimpaired,the inauranceproceeds shall beapplied to the aums aecured by this MortKage, with the eace_x~, if any, paid to E3orrower. If the Property is abandoned by Borrower, or if Eiorrower faila to respond to [.ender within :i0 days from the date notice ia mailed by I.ender to ~rrower that the inaurance carrier offers to aettle a claim for insurance benefita. I.ender is authurized to collect arid apply the insurance proceeda at Lender'a option either to restoration or repair of the Property or the sums aecured by lhis MurtgaRe. Unleas Lender and I3orrower otherwisr agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue date of the monthly inataUments referred to in paragraphs 1 and 'l l~ereot or change the amount of auch inatallmenta. It under paragraph 18 hereot the Property ia acquired by I.ender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof resnlting from damage to Property prior to the sale or acqu~sition ahall pass to Lender to the exlent of the buma secured by thie Mortgage immediately prior to auch eale or acquiailion. 6. Preservation and MaintenanceotProperty; l.easeholde; Condomiriuma; Plenned l)nit Developmente. Borrower ehall keep the Property in good repair and shall not commit waAte or 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 Murtgage ie un a unit in a condominium or a planned unit development, Eiorrower ahall perform all of Rorrower'e obliqations under the declaration orcovenanta creatinRorgoveming thecondominium or planned unit development, the bylaws and regulatione of the condominium or planned unit development, and conatituent documenta. If a c~-ndominium or planned unit development rider ia executed by liorrower and recorded together with thia Mortgage, the aovenante and :~Kreements of such ride~ ahall be incorporated into and shall amend and ~upplement the cuvenants and agreementa of this Mortgage as if the nder were a part hereof. 7. Protection of Lender's 3ecurity. It Borrower faile to perform the rnvenante and agreementa contained in this Mortgage, or if any action or proceeding ie commenced which materially affecte I.ender s interest in the Property, including, but not limited to, eminent domain. insolvenry, oode enforcement, or arrangements or proceedings involving s bankrupt or decedent, then Lender at Lender'~ option.upoa notice to Borrower may make such eppearances, disburee auch aums and take such aMion as ia neoa~ary to proLect Lender i in~t, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to malce repairs. If Lender required mortgage insurance aa a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such ineurance in effect unti) auch time as the requirement for such insurance terminatss in accordence with Borrower's and Lendd~ written agreement or applicable Lew. Borrower shall pay the amount of all mortgage ineurance premiums in the manner pmvided under paragraph 2 hereof. Any emounte disbureed by Lender persuant to this paragraph 7, with intereet thereon, ehaU become additional indebtedneu of Eiorrower eecured by thia Mortgege. Unless Borrower and Lender agree to other terms of payment, such amounta shall be payable upon notice from Lender to Borrower requesting peyment thereot, and ehall bear interest fmm the date of disbursement at the rate payabk from time b time on outstanding pri~cipal under the Note unless payment ot interest at such rate would be ooatrary to applicable lew, in which event such amounts ehall bear interest at the highest rate permissible under applicable law. Nothing contsined in this paragrap~ 7, shall require Lender to incur any expense or take any action hereunder. dOnK+~~O FACE~9U~ I ~ . ~ . . ~ lr.v.~. 'L`d.'4-:~. ,,..~ _~., .,. ' : t.. , _ "' -F2i ':.. ~+f2~.'i.' ~ . '