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HomeMy WebLinkAbout0199 BoRVwer and l.ende~ covenant and agree as [ollowe: . •1. Paymenl of Priucipal a~d lntereet. Aorrower ahall promptly pay when due the principal oi and interest on the indeb?ednees evidenced by the Note, prepayment and late chargea ae provided in the Note, and the principal of and intereet on any F'uture Advances secured by thia Mortgage. 2. ~nde for Taxes and Ineurance. Subject to applicAble law or to a writlen waiver by l.ende~, t~orruwer ahall pay to l.ender on the day monthly inatallments of principal and intercat are payable under the Note, until the Note ia paid in full, a aum (hemin "F unda") equal to one twelfth otthe yeariy taxes and assessmente which may attain priority over thie hiortgage, and ground renta on ihe Property, if any, plua one twelfth of yearly pmmium instaltments for hazard insurance, plus onetwelfth of yeurly premium instaUmenta for mortgaige insurance, if any, all ae reasonably eatimated initinlly and from time ta time by l.ender on the basie of asseasme~te and biUs and ~easunnble extimt~tea thereof. The ~Lnds shali be held in an inatitution the deposite or accounta ot which are ineured or guaranteed by a Federal or State agency (including Lender if Le~det ie auch ~n inetitution). Lender ehall apply 1he Funda to pay eaid taxea, assesementa, inaurance prnmiume and ground renta. l.ender may ~ot charge for eo holding and applying the ~nda, analyzing said account, or verifying and compiling esid aseeesmente and biile, unleae L.ender paya Borrower intereet on the ~nds and applicable Iaw permita Lender to make euch a charge. f3orrower and I.ender may agree in writing at lhe time of e:ecution ot this Mortgage that intereat o~ the Ftinda sha[I be paid w Borrower, and unleas' auch agreement ia made or applicable taw requiree auch intereet to be paid, Lender ahall not be required to pay Eiorrower any intereat or earninge on the Ftinde. I.ender shall give to Borrower, without charge, an a~nual accounting of the Funda ehowing credita and debits to the Funds and the purpoee for which each debit to the Funda was made. The Funds are pledged as additional security for the auma secured by this Mortgage. If the amount of the F unds held by l.ender, together with the future monthly inataUmenta of Funds payable prior to the due datea of ta:ea. aseeasmente, ineurance premiums and ground rents, ahall exctied the amount required to pay said taxes, assesamenta, inaurnnce premiums and ground renta as they fall due, auch excesa ehall be, at Borrower's option, either promptly cepaid to Born?wer or credited to Borrower on monthly inetallmente of Funde. If the amount of the Funds held by Lender shall not be aufficient to pey taxea, asseaemente, inaurunce ~ premiume and ground renta as they fall due, Borrower ahall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notiee ia mailed by Lendec to Borrower requesting payment thereoL ~ Upon payment in fuil of all eums secured by thia biortgage, Lender ehall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 heteof the Property ia sold or the Property is otherwiee acquired by L.ender, l.ender shall apply, no later than immediately prior to the aale of the Property or ite acquieition by Lender, any ~nda held by i.ender at the time of application as a credit against the aums secured by thie Mortgage. 3. Application of Paymenta. Unless applicable law pmvidea otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by l.ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges: Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Pn~perty which may attnin a priority over this Mortgage, and leasehold payments or gruund rents, if any, in the manner provided under paragraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee lhereof. Borrower shall promptly furnish to Ixnder all notices of umounts due under this paragraph, and in the event E3ormwer shAll make payment directly, Borrower shstll promptly furnish to l.ender receipta evidencing such payments. Borrower shall promptly dischnrge any lien which has priority over this Mortgage; pmvided, that Borrower shall not be required to discharge any such lien sa long ns Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedinga which operate to pre~ent the enforcement_of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvements now exieting or heceafter erected on the Property inaured againat loas by fire, hazarda included within the term "extended coverage, ' and auch other hazards as I.ender may require and in such amounta and for such periods as I.ender may requirn; provided, that Lender shall not require such mverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance sh~ll be chosen by F3orrower subject to appm~•al by l.ender, pmvided, that such approval shall not be unrnasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided under paraKraph 'l hereof or, if not paid in such manner, by 13orrower muking payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof ahall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower shall promptly fumiah to i.ender all renewal noticea and all receipte of paid premiums. In the event of loss, Borcuwer shall give prompt notice to the insurance carrier j and Lender. I.ender may make proof of loss if not made promptly by Borrower_ 4 Unlese Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property i damaged, provided such restoration or repair is economically feasible 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 111ortgage would be impaired, the insurance proceeda shall be applied s to the euma secured by thia blortgage, with the excess, if any, paid to Borrower. If the I'roperty is abandoned by Borrower, or if Borrower faile to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offera to settle a claim for ~ :nsurance benefita, Lender is authorized to collect and apply the insurance prooeeda at Lender s option either to restoration or tepair of the ~ Property or the sums aecured by this Mortgage. Unleas Lender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not extend or poatpone the due date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquir+ed by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceede thereof reaulting from damage to Property prior W the sale or acquisition ahall pass to Lender to the extent of the sums aecured by thie Mortgage immediately prior to such sale or aoquiaition. - 6. Preaervation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and ehall not commit waete or permit impairment or deterioration of the Property and ahall rnmply with the provieions of any lease if this Mortgaqe ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower'a obligationa under the declaration or covenants creatingor governing the 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 ia executed by Borrov+er and recorded together with this Mortgage, the oovenante and ~ agreements of such rider ahall be incorporated into and shall amend and supplement thecovenants and agreement,~ of this Mortgage as if the rider were a part hereof. ~ 7. Protection of i.ender'e Security. If Borrower faile to perform the oovenante and agreemente contained in lhie Mortgage, or if any action or proceeding ia commenced which materially affecta Lende~a intereet in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcemen~ or arrangemente or proceedinge ~nvolving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make auch appearancea, dieburee euch aums and talice auch action ae ie neceesary to protect L,ender'e intercat, inclading, but not limited to, disbureement of reaeonable attorney e feee and entry upon the Property to malce repaire. If Lender required r; mortgage inenrance ae a condition of malcing the loan eecured by this Mortgage, Borrower ehall pay the premiume required to maintain ~ euch inaurance in effect nntil euch time ae the requirement for auch inaurance terminatee in accordance with Borrower'e and Lende~s ~ written agrcement or applicable Law. Borrower ehall 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 intereet thereon, shall beoome additional indebtednees of ~ Borrower'secured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, such amounta ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of diabureement at the rate payable from ~ime to time on outatanding principal under the Note unlesa payment of intereat at auch rate would be oontTary to applicable law, in which ~ event euch amounte shall bear interest at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, ehall require Lender to incur any expense or take any action hereunder. ~ ~ ~~~285:~~ i94 ~ . . _ - - _ ~ ~ ~ ` - ~~-~_...~,r~ N-~> , _ _ _ _