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HomeMy WebLinkAbout0940 s _~t ~ Borrower end L.ender covenant and agree as follow~: ~ 1. P~yment ot Principel and Intereet. Borrower ahall promptly pay when due the principal of and intereet on the indebtedness evidenced by the Note, prcpayment and late charges es provided in the Note, and the principal oi and intereet on any FLture Advances secured by this Mortgage. 2. F~u~de for T~Yes and lneurance. SubjeM to applicable law or to a written waiver by Lender, Borrower ahall pay to [.ender on the day ~ monthly inetaUmente of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "Funda") equal W une twelfth of the yearly taxea and aaseaemente which may attain priority over thia Mortgage, and ground renta on the f'roperty, if any, plua one- twelRh of yea~ly premium installmenta for hazard ineurance, plus onetweiRh of yearly pmmium inatallmenta for mortgage ineurance, if any, f all ae reasonably esti~uhscd initially and from time to tirr~e by Ixnder on the baeis of aeaessmenta and billa and reasonable estimates thereof. t The F1nde ahall be held in an inetitution the deposits or accounts o[ which are inaured or guaranteed by a Federal or State agency ~ (including Lender if l,ender is euch an inatitution). Lender ahall apply the Funde to pay said taxee, asseasmente, inaurance premiuma and i gtound rente. L,ender may not charge for so holding and applying the Funde, analyzing said account, or verifying and compiling said 4 asaeaamenta and bills, unleae L.ender paye Borrower intereet on the Funds and applicable law permits I.ender W make auch a charge. Borrower ~ and l.ender may egree in writing et the time of executio~ of thia Mortgage that intereat on the Funda ehPll be paid to Borrower, and uniess } such agreement ia made or applicable law requirea such intereat to be paid, I.endea ahall not be required to pay Borrower any interesL or earnings on the Ftinds. L.endtr shall give to Borrower, without charge, an annual eccounting of the Funde showing credita and debite to the ~ Funds and the purpoac for which each debit to the Funda was made. The Funda are pledged as additional security for the aume aecured by thie q Mortgage. ~ ~ If the amount of the Funds held by Lender, together with the future monthly inetallmenta of Funds payable prior to the duedatee of ta~ces, esaeaementa, inaurance premiuma and ground rnnta, shaii excred the amount required to pay said taxee, asaesaments, inaurance premiums and ground rente ae they faU due, auch exceea ehall be, at Bm~rower's option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of ~nda. If the am~unt of the Funda held by Lender shall not be aufficient to pay taxea, aseeeamente, insurance premiume and ground rents ae they tall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by [.ender to Borrower requeating payment thereot. Upon payment in full of all aume secured by this Mortgage, Lender ahall promptly refund to Borrower any funds held by Lender. If under paragtaph 18 hereof the Property is eold or the Property is otherwise acquired by Lender, I.ender shall apply, no lster ihan immediately ptior to the eale of the Property or ite acquisition by Lender, any Funds held by I,ender at the time otapplication as a credit againat the sums aecured by this Mortgage. 3. Applieation of Pay~enta. Unleas applicable law provides otherwiee, ail paymenta received by Lender under the Note and paragrapha 1 end 2 hereof ehall be applied by Lender firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of !he Note, and then to intereat and principal on eny Future Advancea. 4. Charges; Liene. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over thie Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paraqraph 2 hereof or, if not paid in auch manner, by Bonower making payment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender ail noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Bormwer shall promptly furnish to Lender receipta evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement oCsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrow~er shall keep the improvements now exieting or hereafter erected on the Property insured against loee by fire, hazards included within the term "extended coverage," and such uther hazards as Lender may require and in such amounte and for such periods as L.ender may require; provided, that Lender shaU not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mort~age. The insurance earrier providinR the insurance sh.+ll be chosen by Korrower subject to approval b}• l.ender; provided, that such approval shall not be unreasonably withheld. All premiums nn insurance p~~licies shall be paid in the manner provideci under paragraph 2 hereof or, if not paid in such manner, by F3orrower makinK payment, whrn due, directly to the insurance carrier. All insurance policies and nnewals thereof shall be in form acceptable to l.ender and shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnieh to [.ender all renewal notices and all receipts of paid premiums. In the everit of loss, Borruwer ahall give prompt notice to the inaurance carrier 'i and Lendet. Lender may make proof of losa if not made promptly by Borrower_ ~ Unleas Lender and Borrower othera~ae agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If auch I ~ restoration or repair ia not econo~nicaily feasible or if the security of this Mortgage would be impaired, thP insurance proceeda ahall be applied I to the eums secured by this Mortgage, with the excess, if any, paid to Borrower_ If the Property ie abandoned by Borrower, or if Borrower faile to , respond to Lender within 30 days from the date notice is mailPd by I.ender to Borrower that the inaurance carrier offera to settle a claim for inaurance benefita. I.ender is authorized to collect and apply the insurance proceeds at Lender's option either to reatoration or repair of the ~ Property or the auma secured by this MortQage. Unleae L.ender and Borrower otherwise agree in writing, any such application of proceede to principai ahall not extend or postpone the due date of the monthly inetallments re[erred to in paragraphs I and 2 hereof or change the amount of euch inatallmente. lf under paragraph 18 hereof the Property is acquire~ by Lender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the eume eecured by this Mortgage immediately prior to auch sale or acquisition. 6. Preeervation and Maintenance of Property: Leaseholde; Condominums; Planned Unit Deveiopments. Borrower shall keep ihe Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ahall comply with the proviaions of any leaee if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower sha11 perform all of Bonower's obligatiuns under the declaration or covenanta creatingor governing the condominium or planned ~ unit developmeni, the by-laws and regulations uf the cundominium ar planned unit development, and conetituent documente. If a condominium or planned unit development rider is exexuted by E3orrower and recorded together with thie Mortgage, the oovenanta and agreements of such rider shall be incorporated into and tihall amend and suppiement the covenants and agreements of thia Mortgage asif the rider were a part hereof. 7. Protection of Lender's 3ecurity. If Borrower faila to perform the rnvenante and agreemente contiained in this Mortgage, or if any ~ action or proceeding ia cammenced which materially affecte Lendei s intereet in the Property, including, but not limited to, eminent domain, e insolvency, code enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender gt Lender'a oprion,upon notice to Borrower may make euch eppeasancee, dieburee auch eume and take euch action as is neceasary to protect Lender i interat, including, but not limited to, disbu:aement of reasonable ettorney's feee and entry upon the Property to make repairr. Ii Lender required mortgage insurance ae a condition of making the loan secured by thia Mortgage, Borrower ehall pay the premiums required to maintain auch ineurance in effect until auch time ae the requirement for auch insurance terminatee in accordance with Borrower's and Lendd~ written agreement or applicable L.sw. Borrower shall pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. My amounte disbureed by Lender pereuant to this paragraph with intereat thereon, ahall become additional indebtednw of Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terme of payment, such amounts shall be payable upon notice from I.ender to Borrawer requeating payment thereof, and shall bear intereat from the daf.e of diebureement at the rate payable 5com time to time on outetanding principal under the Note unlese payment of interest at such rate would be contrary to applicable law, in which event such amounts sha11 bear interest at the higheet rate permissible under applicable law. Nothing contained in tl?i~ paza~raph 7, ~hall reyuire Lender to incur any ezpenae or ta{ce eny action hereunder. ~Y' ` t' V iiR _ ~ ~~~K476 . .