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HomeMy WebLinkAbout0152 . ' . . Borrovver and l.ender covena~t and agree us fullowe: 1. Payment of Princips) and Intereet. Borruwer ahnll prnmptly pay when due the principul of aind interrat un the indrbledneaa evidenced by the Note, prepayment and l~te cht~rges as provided in the Note, and the principal of And interest un nny N uture Advancea securcd by this Mortgage. - 2. F~tnds for Taxea and Ineurance. Subject to npplicable I~iw or to a writtrn waiver by I.ender, t~,rruw•er shull pa~y to 1 xnder un the day monthly instullments of principal and interest are pf~yabie under the Nute, until the Nute is puid in full, t+ sum Ihrrein "Funds~'7 eyual tu unP twelfih of the yearly tiixes a~d assessments which may nttain priority o~~er thia Morigage, i~nd ground rentss un the F'ruperly, if any, plus on~ twe)Rh of yearly premium installmentx for haz:~rd i~surnnce, plus one twelfth of yei~rly premium instullments for mortgage insurnnce, if uny, all as reasonably estimated initially nnd fram time to time hy l,ender on the basis af a?ssessmenta xnd bills und reusunxblr ~~stim:itrx iherruf. The ~nda ahall be held in an inetitution the deposits or accou~te of which are inaured or guaranteed by a Federal or State aKency (including I.ender if l.ender is such an institution). l.ender ahall apply the Funda to pay said taxes, asseaxments, inaurnnce premiums and ground rents. l.ender may not cha~ge for eo holding and applying the Funda, unalyzing said account, or verifying and compiling said aaaesamenta and bills, unleas l.ender pays Borrower intereat on the Funds und appticable law permits Ixnder to make auch a churge. E3orrower and I.ender may agree in writing at the time of execution of thia Mortgage that interest un the H unda shall be paid to Borrower, and unlesa auch agreement ie made or applicable law requires such internat to be paid, Lender shall not be required to pay E3o~tower any intereat or earnings on the ~nds. I.ender shall give to Iiorrower, without charge, an nnnuxl accounting of the Funds showing credits and debits to the Funda and the purpose for which each debit to the Funda wua made. The F unds Are plydged as additional security for the sums secured by this Mortgage. If the amount of the ~nda held by l.ender, together with the future monthly installmenls of Funda payable prior to the duedates of taxes, assesamenta, ineurance premiuma and ground renta, shall excred the amount required to pay aaid taxea, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to E3orrower or credited to Bortower on moothly instaUmentri o[ ~nda. If the amount of the Funda held by Lender shAll nut be sufficient to pay taxea, asaessmenta, insurance premiums and ground renta as they fall due, Borrower shall pay to I.ender any umount neces.gary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to E3orrower reyuesting payment thereof. Upon payment in full of all sums secured by this Mortgage, I.ender shall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, [.ender ahail apply, no later than immediately prior tu the sale of the Pro~.rty or its acquisition by l.ender, any Funds held by l.ender At the time of application as a credit against the suma secured by thie 111ortgage. 3. Application of Paymente. Unless applicable law provides otherwise, all payments recei~~ed by l.ender under the ~1ote and paragraphs 1 nnd 2 hereof shall be applied by I.ender first in payment of amounts payable to I.ender by E3orrow er under paragraph 'L hereof, then to internst payable on the Note, then to the principal of the Note, and then to interest and principal un any Future Advances. 4. Gharges; I.iens. Borrower shall p~y all taxes, xssessments and other charges, fines and impositions atlributable to the Yroperty which may attain a priority over this Mortgage, and leasehold px~ ments or Kruund rents, if any, in the manner pmvided under paragraph `L hereofor, - if not paid in such manner, by I3orrower making payment, when due, direcLly to the pa}•ee thereof. Borniw•er sh:ill pramptly furnish to Ixnder all notices ot amounts due under ihis paraRraph, and in the event Bormwer shall make payment directiy, Borrower shall promptl~ furnish to Ixnder receipts evidencinR such payments. Borrovrer shull promptly discharKr any lien which has priorit~ over this Mort~tage; provided, that Horrower shall not be required to discharge any such lien so long :~.s Borrower shz~ll aKree in writinQ to the pa~•ment of theoblikation secured by such lien in a manner acceptable to Lender, or shall in Kood faith contest such lien by, or defend enforcement of such lien in, legal pr~,ceeclings which operate to prevent the enforcement of the lien or forfeiture of the Yroperty or any part ther~v~C . 5. Hazard Ineurance. Borrower shall keep the improvements now existinK or hernafter erected on the Property insured against lo~ by f?re, hazards included within the term "extended coverage," and xuch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not requirr such coverage amount exceeding the minimum, as may be required by j state or federal regulations governing adivitiea of I.ender, or that amount of co~•erage required to pay the suma secured by this Mortgage, i whichever is the greater. ~ The insurance carrier providinK the insurance shnll be chosen by Korrower subject to appro~•al t~~• 1 xnder, pmvided, that such approeal ~ .hall not be unreasonably withheld. All premiums un insurunce pulicies shall tx~ p:~id in the manner pn~vidc~ci under par.?Kraph 2 hereof or, if not paid in such manner, by Fk~rrovrer makinR payment, when due, directl> to the incurance carrier_ g All insurance policies and renewals thereof shall be in form acceptable to Lender and shali include a atandard mortgage clauae in favor of F and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptl~• furnish to ~ i.ender all renewal notices and all receipts of paid premiams. [n the event of loss, Borruwer shall gi~•e prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loas if not made pmmptly by Borrower. - Unlesa Lender and Bonower otherwiae agree in writing, insurance proceeds shall be applied to restoration or rnpair of the Pruperty damaged, provided such restoratiun or repair is economically feasible and the aecurity of this Mortgage i$ not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ' to the sume secured by this Mortqage, with the excess, if any, paid to f3orrower. If the Property is abandoned by Borrower, or if i3orrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefits. L,ender is authorized to collect and apply the insurance proceeds at I.ender's option either to restoraiion or repair of the Property or the auma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of procec~cls to principal ahall not extend or postpone thedue ~ date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Pmperty is acquired by Lender, ali right, title and interest of Borrower in and to any insurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acqu~sition shall pass to Lender to the extent o[ the sums secured by this ~ tilortgage immediately prior to auch sale or acquiaition. ~ 6. Preaervation and Meintenance of Property; Leaseholda; Condominume; Planned Unit Developmsnta. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the pmvisiona of any lease if this Mortgage ie on a leasehold. If this blortgaqe is on a unit in a condominium or a planned unit development, ~ Bonower shall perform all of Borrower's obligations under the declaration or covenants creatinQor governing the condominium or planned ~ unit development, the by-laws and. regulationa of the condominium or planned unit development, and constituent documents_ If a condominium or planned unit development rider is executed by Borrower and recorded tugether with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement theco~•enants and agreementsof this Mortgage as if the ~ rider were a part hereof. - 7. Protection of I.ender'e 3ecurity. If Borrower fails to perform the oovenante and agreemente contained in thia Mortgage, or if any action or proceeding ie commenced which materially affecte Lendei s interest in the Property, induding, but not limited to, eminent domain, inaolvency, code enforcement, or arrangemente or proceedinga involving a bankrupt or dct~edent, then Lender at Lender'e opiion.vpon notice to Borrower may make euch appearances, diaburee such auma and take auch action as ie necesaary to protect Lender's intereat, including, but not limited to, diaburBement of reaaonable attorney's feea and entry upon the Property to make repaire. If Lender required moTtgage ineurance as a condition ot making the loan aecured by thia Mortgage, Borrower ahall pay the premiuma required to maintain ~ auch inaurance in effect until auch time se the requirement for such ineurance terminateri in accordance with Borrower'e and Lendei a written agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. My amounte disbursed by Lender perauant to this paragraph 7, with intereat thereon, ahall become additional indebtedneea of ' i Borrower aecured by this Mortgage. Unleae Borrower and I.ender agree to other terme of payment; euch amounte ehaU be payable upon notice from Lender to Borrower requesting payment thereof, and ehall bear intereet from the date of diabursement at the rate payable from = time to time on outatanding principal under the Note unless payment of intereat at auch rate would be rnntrary to applicable law, in which event such amounta ahall bear intereat et the highest rate permisaible under applicable law. Nothing contained in thie ~paragraph 7, shall 4:"~ require Lender W incur any expense or take any aMion hereunder. ,v~ l~ A Q~+ SC!t+(~W PALf _ . f