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HomeMy WebLinkAbout0736 ~ ~ BorroweT and Leade~ covenant and a~ree a~ folbws: 1. Payment of Priocipal aud Intere~~ Rorwwer ~hall pmmptly paY vrhen due the principal of and interest on the indebtedness evideaoed by the Note. psepayment end late charges as provided in the Note, and the prittripal ot and interest on any ~ture Advances secured by thii Mort~a~a 2 FLnd~ for Tw:es aad Insurance. 3ubject to applicable law or to awritten waiv~ by l.ender, Bormwe~ shaU pay to I.ender on the day monthly inatallmenta of principal and interest are payable under tha Note, until the Note is paid in full, R sum (herein "FLndi'~ equal b one twelRh o[the y~?r~jr ta~ces and aseeesmenta which may ateain priority over thia Mortgage, and ground rente on the Property. if any. plua one twelfth of yauly pre~mium installments for hazard insurance. plus onetwelRh of yearly premium installments for mortgage ineurance, if any. all ea reasoaably eslimaLed i~itially and from time to time by L.ender on the baais of aeaessmente and biUs and reasonable eatimatea thereot. 'IUe Flinds shall be heW in an iastitution the deposits oT socounts of which are ineured or guarantced by a Federal or 3tate agency (including Lender ii Lender is such an uutitution). Lender shaU apply the Fl~nds to pay eaid ta:es. asee~aments. inaur~nce pnmiums and ground rents. Lender may no! charge for so holding and applying the F~nds. analyzing said acooun~. or verifying and rnmpiling said asseesmente and biW. unlesa I.ender pays Borrower interest on the Fl~nds and applicable law permib Lender to make such a charge. Borrower and Le~der may agree in vrritin8 at the time of e:ecution of this Mortgage that inbrest on the I~nds shall be paid b Borrower. and unleea such agnement is made or appticable law requins auch interest to be paid, I.ender shall not be required to pay Borrow~ any interest or eamings on the PY~nds. Lender ahaU give to Borrower, without charge. an annual aocounting of the I~nds showing credits and debite to the E~nds ead the purpose for which each debit b We Phnda waa made. The Funda are pledged as additional security for the sums secured by this Mortgage. If !he amount of the I~nds held by I.ender, together with the future monthly inatallments of Funds payable prior to the due dates of t~ea. eesessmeats. ineuranoe pr~niums and ground rents. shall ra~c+~ed the amount required to pay eaid taxes. assessments. inaurance premiums and ground teats aa they fall due. such e~ccess shall be, at Borrower s option, either pmmptly repaid to Bormwer or credited to Borrower on monthly instaUmenta oi Ptiu?ds. If the amount of the Funda heW by Lender shaU not be eufficien! to pay tnzea. asseeaments, insurance preminp~s and ground rents aa they fall due. Borrower shall pay to I.ender any amount ne~.~easary to make up the deficiency withia 30 days from the date notice is mailed by I.ender to Borrower requeating payment thEreof. Upon paymeat in fuU of all eums secured by Wia Mortgage, Leader ahaU promptly nfund to Borrower any funds held by Lender. If under paragraph 18 hereof the Pcoperty ia aold or the Property ia otherwise acquired by I.ender. Lender ahall aPP~Y, no lat~ than immediately prior to the sale of the Property or ite aoquisition by I.ender, any Ftinde held by Lender at the dme of application as a credit againat the aums aec~u~ed by this Mortgage. ~ 3. Application o! Payments. Unleea epplicable law pmvides atherwiee.. all paymenta reoeived by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then b iaterest pqyable on the Note, then to the principal of ihe Note, and then to interest and principal on any Future Advancea. -4. Charges; i.iens. Borrower ahall psy all ta~ces, assesaments and other charges, finea and impoeitiona attributable to the Property which may attain a priority ove9r this Mortgage, and leasehold payments or ground renta, if any. in the manne; provided under paragraph 2 hereof or. if not paid in such manner. by Borrow~ makine Payment, when due. directly to the p~yee thereof. Botrower ahall promptly furniah to Lender all noticeaof amounts due under thia paragreph, and in the event Borrower ahall make payment directly, Borrower shall prompUy furniah to Lender receipta evidencin~ such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that 8orrower ahall not be required to discharBe any auch lien so long aa Borrower ahaU.agree in writing to the payment of the obligation eecured by such lien in a manner acoeptable to Lender, or shall in good lsith contest such lien by. ordefend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part Wereof. 5. Hazard Insnrance. Boirower shaU keep We improvementa now ezisting or hereafter erected on the Property inaured againat loes by fire. hazarda included within the ttrm "e~tended coverage." and auch other hazards as Lender may require aad ia such amounte and for such periode as I.ender may reyuin; provided, that I.ender ehall not require such ooverage ainount e:ceeding the aninimum. as may be requind by etate or federal regulations govesning activitiee of Lei?der, or that emount of eoverage required to pay the suma eecured by this Mortgage, _ whichever is the greate~. The inaurance carrier providing the insarance shall be chosen by Borrower aubject to approvsl by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies ahall be pa3d in the manner provided under paragraph 2 hereaf or, if not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. ~ All insutance policiee and renewals thereof ahall be in form soceptable to Lender and ahail include a standard mortgage clauae in favor of and in form soceptable b Lender. Lender ehall have the right to hold the policiee and renewals thereof, and Borrower aha,ll promptly furnish to I! i.ender all renewal notioee and all reoeipte of paid premiume. In the event of loea. Borrower shall give prompt notice to the inaurance carrier f and Lender. Lender may make proof of laea if not made pmmptly by Borrower. f Unlees Lender and Borrower otherwise agree in writing, inaurance proceeda shali be applied to restaration or repeir of the Property ~ dameged, provided euch reatoration or repair ie eoonomically feasible and the eecurity of thie Mortgage ie not thereby impaired. If such ¢ reatoration or npair is not economically feaeible or if the aecurity of thia Mortgage would be impaired, the inaurance proceeda shall be applied f to the aums aecnted by this Moitgage, with the e~ce~ess, if eny, paid to Borrower. If the Propetty ia abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daYa hom the date notice.ia mailed by I.ender !o Borrower that the insarance carrier offere to eettle a daim for inaurance benefite, I.endet ia suthorized to ooUect and apply the inaurance pmceeds at Lender'a option either to restoration or repair of the Property or the suma secured by this Murtgage. Unlees Lender and Borrower otherwise agree in writing, any auch application of procxeds to principal shall not ~tend or poetpone the due date of the monthly inaWlmente referred to in paragrapha 1 and 2 her~eof or change the amount of auch inatallmenta. ff under paragraph 18 hereof !he Property is aaquired by Lender, all right, title and intereet of Borrower in and to any insurance policies and in and to the prooeeda thereof reaulting 5rom damage b Property prior to the saie or soquiaition ahatl pass to Lender b the eztent of the suma eecured by thie Mortgage immediately prior to such sale or aoquiaition. ~ 6. Preservatlon and Maintenance of Property; Leaeeholda; Condominume; Planned Unit Developmenta. Borrower ahall keep _ the Property in good repair abd ehall not commit waete or permit impairment or deterioration of the Propedy and ahall comply with the proviaioas of any lease if thie Mortgage is on a leaeehold. If this Mortgage is on a ~nit in a oondominium or a planned unit development, Borrower shall perform all of Borrower'a obligations ander the declaration or covenanta creatinB or governing the oondominiam or plaaned unit developme~t, the by-lawe and regnlations of the condominium or planned unit development, and oonetituent docaments. If a condomininm or planned unit development rider ia euecuted by Borrower and recorded together with thia Mortgege, the oovenants and. agreementa of such rider ahall be incorporated into and shall amend and eupplement the covenante and agreements of thie Mortgage as if the rider were a part hereof. Prote~tion of Lender'~ $ecarity. If Borrowe~r fails to per[orm the oovenants and a~reements contained in this Mortgege. or if any action or prooeeding is oommenced which mate~iallY affeds f.ender's interest ia the Property. including. but aot limited to. eminent domain, ~ insolveacy, oode enforoement, or arrangemwta or prooeedings involving a bankrnpt or deoed~t, tha? I.ender at Lender'~ option.upon ~ notice to Borro~ver m~y make such appearanaee, diaburse anch sums end take wch aetion as is neassary to protect Lendds inta~esR ~ incinding. but not limited to, disbareemeat of reasonable attorney's fees and entry apon the Property to malce npairs. If I.ender reqnirad mortgage inanranoe as a co~ition of mai~ing the loan eecared by thie MortBaSe. Borrowez ahall pay the pr~inms reqnired to mainteiu ~ such inanraaoe ia e~fect antil sndi tim~ es the re9nirement for ench inenranoe terminates in aooordanoe with Borrower's and Lende~s ~ w+ritten agreemeat ar applicabk I.aw. Bormwer ahaU pay the amount of all mortgage insuranoe pr~niums ia the manner provided nnda ParagraPb 2 ha~eof. Any amonnts diabursed by Lender pereuant to this PareBraPh with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgag~ Unless Borrower and Lender agree b other terms of paymen~ snch amonnts shall be paYable upon r.otioe fmm Lender to Borrower requ~ting payment thereof. and ahall bear interest from the date of disbnrsem~t at the rate payabk fmm . time to time on outstending princapal under the Note unless payment of interest at ench rate would be oontrary to applicable law, in ahich ev~t wch amounts shall bear intereet at the highest rate permiasible nndu applicable law. Nothing oontained ia thie paragraph 7, ahall nqnire Leader to inrur any eupenee or taice any action h~reunder. ~ ~oo~ 287 ~ 733 . . r_ . 1 ' . . . . - " - ~~1y:.':~._, ....~~m?~t-cc~2.ar::a~~.k~~ r.~ . . _ ~ .