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HomeMy WebLinkAbout0812 Bomowe~ a~d l.ender covenant and agrce as followe: . 1. Payment of Principal end Interest. Borrowet ahall promptly pay when due the principal of and intereet on the indebtednexs evidenced by the Note. prepayment and late chergee as provided in the Note, and the principel of and intereet on any Future Advances secured by this Mortgage. Z. I~unds for Ta~tea and Insurance. Subject to applicable law or to a written waiver by Gender, E3orrower shall pay to I.ender on the day monthly inatallmenta of principal and i~terest are payable under the No?e, until the Note ia paid irt full, a aum (herein "Fbnde") equal tu one twelfth of the yearly taxea and aseessmenta which may attain priority over thia Mortgage, and ground rents on the f'roperty, ifany, plue ona twelflh of yearly premium installmente !or hazard ineurance, plus onetwelfth of yearly premium inatallmentr~ fo~ morigage inau~ance, itany, all ae reaeonably eatimated iaitially and from time to time by I.ender on the bneie of asaessmenta and bills and ~easonable esiimatea thereof. The FLnda shall be held in an institution the depoeite or accounte of which are insured or guara~teed by a Federal or State agency (including I.ender if Lender is such an inetitution). Lender ehaq appty the ~nds to pay said ta:ee, aasesamenta, inaurance premiwnu and ground rents. I.endet may not charge for eo holding and applying the Funds, analyzing said account, or verifying and rnmpiling eaid asseeamente and bi~ls, unleea I.ender rays $orrower intereat on the ~nds and applicable law permits Le~derlo make such a chatge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the ~nda ahall be paid to Borrower, a~d uotees such agrcement is made or epplicable law requires such intereet to be paid, l.ender ahall not be required to pqy Bormwer any interest or earninga on the Ftinde. I.ender ehall give to Borrower, without chatge, an annual accounting of the Funda ehowing credita and debita to the Funds and the purpoee fot which each debit to the Ftinds waa made. The Funda are pledged as additional aecurity for the sume secured by thie Mortgage. If the amount of the F`unda he2d by l.ender, tagether with the future monthly inatallments of Funda payable prior to the due dates of taxea, assc~sments, insurance premiuma and ground rents, ahall exc~ed the amount required to puy eaid taxea, assessmenta, insurance premiums and ground rente as they fall due, auch excese shall be, at Borrower s option, either promptiy repaid to Borrower or rredited to Bortower on month[y installmenta of ~nda. If the amount of the Funds held by I.ender shal! not be sufficient to pay tax~, aseesamenta, insurance premiume and ground rente ae they faU due, Borrower shaU pay to I.ender any amount neceseary to make up the deficiency within 30 daye from the date notice is mailed by I,ender b Borrower requeating payment thereof. Upon payaaent in full of al) sums eecured by this Mortgage, Lender ehall prompUy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwiee acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ita aoquiaition by L.ender, any ~nda held by l.ender at the time of application ae a credit againat the auma secured by thie Mottgage. ~ 3. Appltcation of Paya?ents. Unleas applicable !aw providea otherwiee, al) paymenta received by I.ender ander the Note and paragrephe 2 and 2 herrof ahall br applied by Lender fimt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, th~n to the principal of the Note, and lhen to intereat and principal on any Futw-e Advancee. 4. Charges; Liene. Borrower ehall pay all taxes, assessmenta And other charges, fines and impositions attributabte to the Property which may attain a priority over this Mortgage, and leasehotd payments orground rents, ifany, in the manner provided under paragraph 2 hereof or, if not paid in auch manner. by Borrower malcing payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounts due under thia paragtaph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to 1,ender teceipts evidencing auch payments. Borrower shall promptly discharge any tien which has priorityovet this Mortqage; providecl, that ~ $orrower ahall not be required to discharge any such lien so long as Borrovirerahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, ordefend enforcement of such lien in,legal proceedinKs which operate to prevent the eniorcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Bortower ahall keep the improvements now exieting or hereafter erected on the Property insured against losa by fire, hazarda included within the ter~n "e:te~ed coverage; ' and ,~uch other hazards as Lender mey require and in such amou~ts and for such . periods aa Lender may require; provided, that Lender ahall not require auch rnverage amount exceeding the minimum, as may be required by state or federal regulatione governing activities of I.ender, or that amoant of coverage required to pay the suma secured by this Mortgage, whicheve~r ia the greater_ The inaurance carrier providing the insurance ahall be chosen by $orrower subject to approval by l.ender, pmvided, that such approval shall not be unreasonably withheld. All premiums on insuranrn policies shall be paid in the manner provided under puragraph Y hercof or, if not paid in sueh manner, by Eiorrower making payment, when due, direclly to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to l.ender and ahaA include a atandatd mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal noticea and all receipts of paid prnmiums. In the eventof loss. Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unlese Lender and Borrower otherwise agre~ in writing, insurance proceede shall be applied to restoration or repair of the Property damaged, provided euch restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired_ If auch reetoration or repair is not economically feasible or if the aecurity of thie Mortgage would be impaired, the insurance proceeds shaU be applied to the sume secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond Lo Lender within 30 daye from the date noUce is mailed by Lender to Borrower that the ineurance carrier of~era to setde a claim for inaurance benefite, Lender ie anthorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums eecured by this Mortgage. Unless Lender and Borrower otherwise ag~~ee in writing, any sach application of proceeda to principal shall not extend or poatpone the due date of the monthly inetallmente referred to in paragraphs 1 and 2 hereof or change the amount of such inatalimente. If under paragraph 18 Aereof the Property ia aoquired by I.ender, all tight, titleand interest of Borrower in and to any insurance policies and in and to the proceeda thereof reeulting from damage to Property prior to the eale or acquiaition shail pass to Lender to the extent of the auma secured by thie Mortgage immediately prior to such eale or soquiaition . 6. Preservation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall compiy with the provieione of any teaee if this Mortgage ie on a leasehotd. If this Mortgege is on a unit in a oondominium or s planned unit development, Borrowez ahall perform all of Borrower's obligationa under the declaration or rnvenants creatingor governing the rnndominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documents. If a rnndominium or planned. unit development rider ia executed by Borrower and recorded together with thie Mortgage. the oavenante-and agreements otauch rider ahall be inrorporated into and shal) amend and supplement thecovenanL9 and agreementa of this Mortgage as if the rider were a part hereof. _ Protection of I.ender'e Security. If Borrower fails to perform the oovenants and agreements conteined in this Mortgage, or if any action or proceedit?g ie commenced which materially affecte Lendet's intereet in the Property, including, bnt not limited to, eminent domsin, ineolvency, oode enforcement, or arrangemente or praceedinga involving a banlmipt or decedent, then Lender at Lender'e option,upon notice to Borrower may make auch appearanoes~ diaburee auch aums and talce such action as ie neoeaeary to protect Lender e intereat, induding, bnt not limited to, diabutsement of reasonable attorney's fees and entry upon the Property to make repairs, If Lenda required mortgage ineurance as a oondition of making the loan secured by thie Mortgage, Borrowcr shaU pay the premiums required to maintain sach iaenrance in eftect until auch timl ae the requirement for snch inenrance t~erminates in accordance with Borrower'e and Lendet's written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage ineurance premiuma in the manner provided under ~ paragraph 2 hereof. My amounte diebureed by Lender pereuant to thie paragrnph with interest thereon, ahall beoome additional indebtedneae of ' $orrower eecured by thie Mortgage. Unlees Bonower and Lender agree to other terma of payment, auch amounts ehall be payable upon notice firom Lender to Borrower requeating payment thereof. and sha11 bear intereet from the date of diabureement at the rate payable from time to time on outstanding principal under the Note anleee payment of interest at auch rate woutd be oontrary to applicable law, in which event auch amounte shali bear inter~t at the highest rate permiseible under applicable law. Nothing contained in this paragraph shall reqnire Lender to incur any expense or take any action hereunder. ~'LjRK285 PA~~ 800 ~ _ - : - - - - _