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HomeMy WebLinkAbout0965 • , _ : ~ ~ i~~ Aorrower and I.ender covenant and a~ree ai folbwr 1. Paymeat of~ Principal a~d Idterest. 6orrower ahaU promptly pay when due the principal of and intereat on the indebtedneaa evidenad by the Note, prepayment euld late charges a?e provided in the Note, and the principal of and interest on any Fl~lure Advances eecuted by this Ma~~a 2. Fund~ tor TaYe~ and In~urance. Subject to applicable law or to a written waiver by Lender, Borrowe~ shall pay to Lender on the day monthly inatalltaents o[ principal and interest are payable u~der the Note, until the Note ia paid in full, a sum (~erein "Fnnds") equal to ont twelfth of the yearly ta~ces and as~easmente whicA may attain priority over this Mortgage, and ground rents on the Phroperty, if any, plus one twelRh of ytarly prernium installmenta for hazard insurance, plus onetweiRh of yearly premium inatalimente for mortgage inaurance, if any, all as naaonably estimated initially and fr~m time to tia~e by l.ender oa the basis of assessmenta and bilis and reasonable estimates thereoL The Elu?de ahall be held in an institutioa the deposite or accounts ot which ate insuted or guaranteed by a Fcderal or Stste agency lincluding Lendet if I.ender is such an institution). Lender ahali apply the Funda to pay said taxea, assesaments, inaura~ce premiuma and grovnd renta. Lender may not charge for w holding and applying the Funda, analyzi~g said account, or verifying and compiiing said aseeeamenf8 and bills, unleas Leader pays Bortower intereat on the Funda and applicable law permits L.ender lo make such a charge. Borrower and I.ender mey agree in writing at the time of executioa of thia Mortgage that interest on the ~nde ahaU be paid to Borrower, and unleas such agreement is made or applicable law requirea auch intereat to be paid, Lender ahall not be required to pay Borrower any interest or ' earninga on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funde ahowing credita and debite to the Funds and the purpose for which each debit to the Funda was made. The Funds arn ptedged as additionai security torthe sume secured by this Mortgage. ~ If the amount of the ~nds held by L.ender, together with the future monthly instalimente of Funda payable prior to the due dates of ta:es. asaessmsnts, insurance premiume and ground rents, shall excred the amount required to pay said taxea, assessments, insurance premiums and ground renta aa they fall due, auch exceae ahall be, at Bo~TOwer's option, either promptly repaid to Borrowe~ or credited to Bormweron monthly inetallmeNa of Ftinds. If the amount of the Funde held by Lender shall not be sufficient w pay taxea, aseesamenta, insurance premiums and ground renta as they fall due, Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice is mailed by I.ender b Borrower requesting payment thereof. Upon payanent in full of all aums secured by this Mortgage, Lender shali promptly refund to 8onower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by l.ender, Lender ahall apply, no later than immediately prior to the sale of fhe Property oT its acquisiiion by Lender, any Funds hetd by Lender at the time of application as a credit againat the aums secured by thie Mottgage. 3. Application ot Payments. Unlese appiicable law provides otherwise, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest psyabte on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanees. 4. Chargee; Liene. Borrower shall pay all taxes, as,gessments and ather rharges, fines and impositions attributable to the Property which may attain a priority ovet this Mortgage, and leasehold payments or ground renLc, if any, in the manner provided under paragraph 2 hereof or, if not paid in each manner, by Borrower making payment, when due, directly to the payee thereof. BorrowershaU promptly furnishto Lender all noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, $orrower shali promptly turnish to I,ender receipts evidencing such pa~ ments. Borrower shall promptly discharge any iien which has priority over this Morigage; provided, thai Borrower shall not be required to discharge any such lier~ so long as E3orrower shal) agree in writing to the payment of theobligation secured by such 1'ten in a manner aceeptable to Lender, or shall in good faith a~ntest such lien by, ordefend enforcementofsuch lien in, legal proceedings which operate to prevent the euforcement of t~e lien or forfeiture of the Property or any part thereof. ~ 5. Hazard Inaurance. Borrower shall keep the improvements nuw existing or hereaRer erected on the Property inaured against loss by fire, hazarda inciuded within the term "extended coverage," and such other hazards as Lender may require and in euch amounts and for such periods as L.ender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MorigaQe. x The insurance carrier providing the insurani~e sh:~il ix• chosen bv Fiorrower subject to approvai by Ixnder; provided, thai such approval ~ ahall not be unreasonably withheld_ All premium, un insurance pulicies shall be paid in the manner provided under paragraph 2 hereof or, if ` not paid in such manner, by Borrower makinR payment, v?~hen due, directly to the insurante carrier. All inaurance policies and renewats thereotshalt be in form acceptable to l.ender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender_ Lender shal) ha~ e the right to hold the policies and renewals thereof, and Borrower shall promptiy furniah to = i,ender all rnnewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt nutice to the inaurance camer and Lender- Lender may make proof of loss if not made promptly by Borrower. Unleas Ixnder and Borrower otherwise agree in u~riting, insurance proceeds shall be applied W resWration or repair of the Property dameged, provided auch restoration or repair is economically [easible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied ~ to the euma eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to = respond to Lender wiihin a0 days ftom the date notice is mailed by I.ender to Borrower that the insurance carrier ofters to setde a claim for insurance benefita, Lender is authorized to coltect and apply the insurance proceeds at Lender s option either to restoration or repair of the Froperty or the sums eecured by this Mortgage. - Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone thedue dnte of the monthly inaRallmenta referred to in paragraphs 1 and Z hereuf or change the amount of auch inatallments. If under paragraph 18 ~ hereof the Properiy ia aequired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent ot the auma secured by this ~tortgage immediateiy prior to such sale or acquisition. 6. Preaervetion and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developments. Borrower ahall keep . the Property in good repair and shall not commit waste or permit impairment or detErioration of the Property and ehall comply with the provisiona of any lease if this Mortgage is on a leasehold_ [f this Mortgage ia on a unit in a condominium or a planned unit development, Borrower shall perform aU of Horrower's obligations under the declaration or covenants creatingor governing lhe condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the onvenante and agreements of aueh rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a pert hereof. 7. Protection of I.ender'e 3ecurity. If Borrower faila to perform the covenante and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affecte i.ender'e intereet in the Property, inctuding, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedings involving a banlwpt or decedent, then Lender at I.ender's option.upon notice to $orrower may make auch appearances, diaburee euch eum~ and teke auch action as is neceseary to protect Lender's intere~t. including, bnt not limited to, disbursement of reaeonable attomey'e feea and entry upon the Property to make repain. If I.ender required mortgage instaance as a condition of making the loan eecured by thie Mortgage. Borrower ahell pay the premiutns required !o maintain euch ins~uance ia effect until such time se the requirement for auch enaurance terminatea in accordance with Borrower's and Lende~ls written agreement or applicable I.ew. Borrower ehaU pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. My amounte diebnreed by Lender persuant to thie paragraph 7, with intereat thereon, ahall become additional indebtedness of Borrower eecured by this Mortgage. Unlees Horrower and Lender agree to other terms of payment, auch amounte shall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear intereet from the date of du~~n tOt~ ~e rate payable from time to time on outatanding principal under the Note unleee payment of intereet at auch rate woutd be trfay ptcable law, in which event such amounts shall bear interest at the highest rete permisaible under applicable law. Nothing rnntained in this paragraph 7, shaU require L.ender to incur any e:pense or take any action hereunder. 414 ~ 9~~ ~ ~ - . # ~ . ~ ~ . ~