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HomeMy WebLinkAbout0959 ~ ~ 1 ~ , q s . y f3orrower and Lender covenant and a~rse as follows: 1. Payment of Principal and Intere~t. Borrower shall prompdy pay when due the princ~pal uf and interest on the indebtedneas evidenctid by the Note, prepayment and late charges as provided in the Note, and the principal of ar~d interest on eny Future Advancea eecured ~y thu Mort~age. 2. Fltnds [or T~es and Insurance. Sub~ect to applicable Iaw or to a written v?aiver by lxnder, E3urrower ehall pay to t.ender un the day monthly installments of principal and intereet are payable under the Note, until the Nute is paid in full, a sum (herein "Funds") eq~al to onr twelith of the yearty taxea and asaeasmenta Mhich may attain priority ove~ thia Mortgxge, and gruund rents on she Property, if any, plus one tweiRh of yearly prnmium installments for hazard inaurance, plus onrtwelfth of yearly premium installments for mortgage insurance, if nny, all aa reseonably eatimated initially and from time to tia~e by l.ender on the basis of assessments and bills and reasonable estimates therrof. The Funds ahall be held in an institution the depoaita or accounta of which are inaured or guaranteed by a Federal or State agency tincluding l.ender if Lender is such an inetitution). Lender ahall epply the Funda to pay said taxes, assesamenta, inaurance premiums and ground rents. l.ender may ~ot charge for eo holding and applying the Funda, analyzing said account, or verifying and compiling said asaesamente and bille, unlesa Lender paye Borrower intereat on t~~e Funde and applicable law permits I.ender to make such a charge. Borrower and L.ender may agree in writing at the time of execution of this Mortgage that intrrest on the Funds shall be paid to Borrower, and unlesa euch agreement ie made or applicable law requires auch intereet to be paid, Lender shalt not be requirc~cl to pay Borrower any interest or earninge on the Funda. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debite to the F unda and the purpoae for which each debit co the Funde~ was made. The Funda am pledged as additional security for the sume secured by thie Mortgsge. If the amount of the Ftinda held by Lender, t~ether with the future monthly instailments of Funds payable prior to the duedates of taxes, asaeasmenta, inaurance premiuma and gmund rents, shall excred the amount required to pay said taxes, asaetssmenta, insurance premiama and ground renta ae they faU due, auch exceas shall be, at f3o~TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of Funda. If the amount of the Funde held by l.ender shall not be sufficient to pay taxea, asseasmenta, insurance premiums and gtound rnnta ae they fall due, Borrower shail pay to Lender any amount necessary to make up thedeficiency within 30daye fmm the date notice ia mailed by Lender to f3orrower requesting payment thereof. Upon payment in full of all suma secured by this Mortgage, l.ender ahall promptly refund to E;orrower any Cunds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquircd b}• [.ender, [.ender shall appiy, no later than immediately prior to the sale af the Property or ite acquisition by Lender, any Funds held by l.ender at the time of application as a credit against the sums secured by thie Mortgaqe. 3. Applieation ot Paymente. llnless applicable law provides otherw~se, all payments received by l.ender under the ~Iote and paragrapha 1 and 2 hereof ahall be applied by Lender C~rst in payment of amounts payable to Lender by Bonower 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. 9. Charges; Liene. Borrower shall pac all taxes, assessments and uthrr charKes, fines and impositions attributable to the Property which may attain a priority over this MartRaRe, and leasehold payments or ~;ruund re•nts, if any, in the manner provided under paragraph 2 hereofor, ~ f not paid in such manner, by Borrower mak~ng payment, whrn due, dirc~~tly to the p:iyre thrreof. Borrower shall promptly furnish to l.ender ali notices of amounts due under this paragraph, and in the ece~t Borrow~er shall make payment directly, BorroN•er shall promptiy furnish to l,ender receipts evidencing such pa>~ments. I~urruwer shall prompth• discharge any lien which has priority o~•er this Mortgage; pro~~ided, that Borrower shall not be required to discharKe any cuch lien su InnK as Kurrower shall a~ree in µ~ritinK to the payment of the obliRation secured by ~uch lien in a manner acceptable to l.ender, ur sh.ill in K<~~~ faith c~~ntrst such lien b~~, ur defend enforcement of such lien in, legal proceed:ngs w~hich operate to prevent the anforcemrnt of the lien ~~r furferturr uf the I'ropert~• ur any part thereof. 5. Hazard [naurance. Borraa•er ~hall keep the improvements nuw existinR or hereafter erected on the Property insured against loes by fire, hazarda inetuded within the term "extendrd co~•eraKe." and snch other hazards as l.ender may require and in such amounts and for such periods as l.ender may reyuire; pro~•idecl. that Lrnder shall nut reyuire that the amount of su~h co~•eraRe exceed that amount of co~•erage required to pa>• the sums secured by thi. Murt~;aKe. The insurance carrier pru~•idinK the ~n.ur.~nr~• .h.ill hr i~h~~se~n h}• k~~rr~~w•er suhject tu appro~•at M~ I.endrr, pru~~ided, that such approval shall not be unreasonabh• withheld. All premium. un ~n.uran~e puhc~rs shall be paid in the manner pro~~~ded undrr paraKraph 2 hereof or, if not paid in such manner, by Kurrua~er makinK p:~ym~•nt. ~vh~•n dur. ~1ir~•~~th• t~~ th~• in~urance carrirr. All insurance policies and renew•als th~•reu(,hall br in furm a~•ceptahle tu l.enderand shall include a standard mortgageclause in favorof and in form acceptable to l.ender. l.ender shall ha~•e thr riKht to hold the w~licies and renew•als thereof, and Borrower shall promptly furnish to i.ender aU renewal notices and all receipts nf pa~d premiums. In the e~~ent of luss, Borruw•er shall give prompt notice to the insurance carrier and Lender. Lender may rttake proof of losc if not m.~de promptly by Rorrower. Unless (.ender and E3ortower otherwisP aKree in K'nting, insurance proceeds shall t~e applied to restoration or repair of the Properi_v damaged, provided such resG~ration or repair ~s econumically feasible and the sE-curity of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible nr i( the sc~~urity of this htortgage would be impaired, the insurance proceeds shali be applied tu the sums secured by this :~tortRage, w•ith the exce~s, ~f any, paid to Rorrower. If the Property is abandoned by Borrow•er, or if E3orrower faile to f reypond to Lender within :i0 days from the date notic~ i. mail~d by I.ender tu Borruwer that the insurance carrier offers to settle a claim for ; inaurance benefits, I.ender is authurizrci to callrct and apph• the insurance pn~ceeds ai [.ender's option either to reatoration or repair of the ! Property or the sums aecured by this MortRaKe. t Unleas Lender and Borrower otherwise a ree in wntin any such a lication of mceeds to nnci al ahall not extend or ~ K K. PP P P P poatponethedue date of the monthly inetallments referred to in paraKraphs 1 and 'L F~ereuf or change the amount of such installmenta. If under paragraph 18 ~ hereof the Propeny ia acquired by i.ender, all right, title and interest of Borrow•er in and to any insurance policies and in and to the proceeds ~ thereof reaulting fTOm damage to Property prior tu the sale or acyu~sition shall pass to I.ender to the extent of the aums secured by this hSortgage immediately prior to auch sale or acquisition. ~ 6. Preaervation and Maintenance of Properly; I.easeholds; Condominuma; Planned Unit Developmente. Borrower ahall keep ~ the Yroperty in good repair and shall not commit wa~te or permit impairment or deteri~ration of the Property and ahall comply w~th the provieions of any lease if this Mortgage is o~i a leasehold [f this Mortgage is on a unit in a cond~minium or a planned unit development, ? Borrower ahall perform atl of Borrower's obligatinns under the declaration or covenants creatinRor govern~ng the cnndominium or planned E unit developmznt, the by-laws and reRulations ~~f the condominium or planned unit development, and conatituent documenta. If a k condominium or planned unit de~•e!opment rider is executed by Rorr~~w~er and recorded together w-ith this Mortgage, the ec~venants and r aqreements of such nder shall be incurpurated intu <end .hall amend and supplement thecovenants and agreements cf thia Mortgage as if the ~ nder were a part hereof. 4 7. Protection of I.ender'e Security. If Borrower faila to perform the covenants and agreemente contained in thie Mortgage, or if any action or proceeding ie commenced which materiaUy affecta Lender's intereat in the Property, including, but not limited to, eminent domain, ~ ineolvency, code enforcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make euch appearances, diaburse euch eume and take euch action aa ie neceeeary to proteet L.ender's intereat, , includinq, but not iimited to, diebureement of reaaonable attorney's feee and entry upon the Property to ma1~e repaire. If L.ender tequired martgage inaurance aa a condition of making the loan eecured hy thie Mortgage, Borrower ahall pay the premiume required to maintain euch ineurance in effect until euch time ae the requirement for euch ineurance terminatea in accordance with Borrower'e and Lendei e written agreement or applicable L.aw. Borrower ehell pay the amount of all mortgage insurance premiume in the manner provided under paragraph 2 hereof. f Any amounte diabureed by Lender persuant to this paragraph 7, with intereat thereon, ahall become additional indebtedneee of : E~orrow•er secured by thie Mortgage. Unlesa Borrower and Lender agree to other terme of payment, auch amounta ahall be payable upcn ~ nctice fTOm L.ender to Bormwer requeating' payment thereof, and ehall bear interest from the date of diAbureement at the rate payable ftom. ~ time to time on outetanding principal under the I~ote unlea8 payment of interest at auch rate would be sontrary to applicable law, in which event euch amounte ehall bear intereat at the higheat rate permiaeible under applicable law. Noth~ng contained in this paragraph 7, shall require I.ender to incur any expense or take any action hereunder. 4~ K?' ~ a'•~!~ ~ ~409 P~ ~g ~ ~ ~ - _ _ ~ _ _ ~ - ~ ~ "