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HomeMy WebLinkAbout0264 ' ~ ' . Borrowe~ and l.ender covenant and agree t?s folluwa: 1. Payment ot Prtncipal end intereat. Borrowe~ ahall promptly pay when due the principal of and intereat on the indebtednexs evidenced by lhe Note, prepayment and late chargee as provided in the Note, and the principal of and intereet on any Future Advances secured by thia Mortgage. 2. F~nda [or Te:es and Iaeu~ance. Subject to uppiicnble luw or to a written waiver by l.ender, F3orrow~er shnll puy to l.ender on the day monthly installmenta of principal nnd interest are payable under the Note, until the Note ie paid i~ full, a aum (herein "Funds") equal to one- twelfth of the yearly taxea and assessments which may attain priority ovrr this Mortgage, and ~und rents on the !'ropecty, if uny, plus one twelfth of yearly premium inatallmenta for hazard insurance, plus onPtwelfth ofyearly premium installmenta for mortgnge inaurance, if any, alf as rcaeonably es/imated initially and from time to time by Ixnder on the basis of r+ssessmentx nnd billa and reusonable estimates thereof. The ~nda ehall be held in an institution the depoaita or accounta of which are inaured or guaranteed by a Federal or State agency (including Lende~ if Lender is such aa inatitutionl. Lender ahall apply the Funds to pay eaid taxee, aases8menta, insurance premiume and . ground rente. Lender may not charge for eo holding and applying the Funde, analyzing eaid account, or verifying and compiling eaid aeaessmenta and bilis, unlesa L.ender paya Borrower intereat on the I~ unde and applicable Iaw permits Lender to make euch a charge. E3orrower and I.ender may agree in writing at the time of execution of thie Mortgc+ge that interest on the Funda ahall be paid to E3orrower, and unlesa auch agreement is made or applicable law requirea auch internet to be paid, Lender ahall not be required to pay Borrower any intereat or earninge on the Funde. I.ender ehall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debits to the Funde and the pur-po~e for which each debit to the Funda wae made. 7'he Funde are p1rdK~ed as additional security for the aums secured by this Mortgage_ , If the amount of the Funde held by l.e~der, together with the future monthly inatallments of Funds payable prior to the due dates of taxes, asaeasments, inaurance premiums and ground renta, shall excred the amount required to pay said taxes, asaeasments, inautance premiuma and ground rents as they fal) due, such ezceas ahall be, at Rorrower's option, either promptiy repaid to Eiorrower or credited to Borrower on monthly inatallmenta of ~Lnde. If the amount of the Funds held by I.ender ahall not be sufficient to pay taxea, assesxmente, inaurance prnmiums and ground rents as they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to E3orrower requesting payment thereof. Upon payment in full of aU suma eecured by this Mortgege, l.ender ehall prompUy refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any Funds held by Lender at the time of application as a credit againat the auma secured by thie Mortgage. 3_ Application of Paymente. Unlesa applicable law provides otherv?ise, all paymenta received by l.ender under the Note and paragtaphs 1 and 2 hereof shall be applied by I.eoder firxt in payment of amounta 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 interest and principal on any Future Advances. Charges: Liene. Botrower ahall pay all taxes, assesaments and otherrharges, hnes and impositions atiribuiaLle iu the Pru~rty which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by [iorrower making paymerit, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounts due under this parngraph, and in the event Burrower shall make payment directiy, Borrower shall promptly fumish to i.ender receipts evidencing such paymente. f3orrower shall promptly discharKe any lien which has pric?rity over this MortRage; provided, that Eiorrower shall not be required to discharge any such lien so long as Borrower shall nRree in writinq to the pnyment of the obligation secured by such lien in a manner acceptable to l.ender, or ahall in good fnith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "e:tended coverage," and ~nch other hazards as l.ender may require and in auch amounts and for such periods as Lender may require; provided, that I.ender shall not require such coverage amount exceeding the minimum, as may be required by state or federal tegulationa goveming aMivitiea of L.ender, or that amount of coverage required to pay the aums secured by this Mortgage, ' whichever ia the gmater. The insurance carrier providing the insurance shall be chosen by Rorrower subject to approval by l.ender, pmvided, that such approval sha11 not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if j not paid in such manner, by E3orrower making pa~•ment, when due, directly to the insurnnce carrier. ; All inaurance policiea and renewals thereof shall be in torm acceptable to Lender and ahall include a atandard mortgage clause in favor of ~ and in form acceptable to L.ender. l.ender ahall have the right to hold the policiea and renewals thereot, and Borrower shall promptly furnish to ( i,ender all renewal notices and all receipta of paid premiums. In the event of loss, Burruwer ahall give prompt notice Lo the insurance carrier ; and Lender. Lender may make proof of [osa if not made promptly by Borrower_ f Unlesa Lender and Borrower otherwise agree in writing, insurance pmceeds shall be applied to reatoration or repair of the Property ~ damaged, provided such restoration o~ rnpair is economically feasible and the security of this Mortgage is not thernby impaired. If such ~ reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied ~ to the sums secured by this Mortgage, with lhe ezceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the insurance carrier offets to settle a claim for g inaurance benefits, L,ender is authorized to rnllect and apply the insurance proceeda at L.ender a option either to reatoration or repair of the ~ Property or the auma secured by this Mortgage. Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal shaU not extend or poatpone the due ~ date of the monthly installmenEs referred to in paragrapha 1 and 2 hereof or change the amount of such instailments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, al1 right, title and interest of Borrower in and to any insurance policies and in and to the proceeds r thereof reaulting from damage to Property prior to the sale or acquiaition ehall pass to Lender to the extent of the sums secured by this ~ Mortgage immediately prior to sach sale ot aaquiaition. ~ 6. Preaervadon and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ehall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the x provisions of any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower's obligaGons under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent dceumenta. If a ~ condominium or ptanned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and agreementa of such rider shall be inrorporated into and shall amend and supplement thecovenants and agreements of this Mortqage as if the ~ rider were a part hereof. 7. Protection of Leader'e 3ecurity. If Borrower faile to perform the oovenante and agreemente rnntained in thie Mortgage, or if any action or proceeding ia rnmmenced which materially affecte Lender a intereat in the Proper~y, including, but not limited to, eminent domain, _ ineolvency, oode enforcement, or arrangemente or proceedinga involving a banknipt or decedent, then Lender at L.ender's option,upon notice to Borrower may make such appearances, disburee auch sums and take euch action as ie neceesary to protect Lender e intereat, inclnding, but'not limited to, diebureement of reaeonable attorney's feee and entry upon the Property to make repaire. If I.ender required. mortgage ineurance ae a rnndition of making the loan eecnred by this Mortgage, Borrowet ehall pay the premiume required to maintain euch ineuranex in eKect until auch time as the requirement for auch inswance terminatee in accordance with Borrowei s and Lender's - written agreement or applicable I.aw_ Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under _v paragraph 2 hereof. ';5 My amounta disbureed by Lender perauant to thia paragraph 7, with interest thereon, ahall become additional indebtednaae of Borrower eecured by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, euch amounts shall be payable npon notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebursement at the rate payable from s;a:~ time to time on outatanding principal under the Note unleee payment of intereet at auch rate would be oontrary to applicable law, in which event euch amounts ahall bear intereat at the highest rate permiasible under applicable law_ Nothing contained in this paragraph 7, ahall n~z require Lender to incur any expense or take any action hereunder. , ,r = ` _ ~a$ ~ ~ '`"y ~ ~ ~ . . ~ : - x _ _ ~ " _ • ~