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HomeMy WebLinkAbout0744 Bortower and L,ender covenant and agree aa folMwa: 1. P~nneat of Prit~cipal and Intere~~ Borrower ahalt promptly pay when due the prinppal of and interest on the indebtedneas evidenced by the Note. prepayment and late charges as provided in the Note. and the principal of artd in~t on eny ~ture Advancee secured by thu Mottga~e. 2~Lt~ds !or Taxes and Inauranoe. 3ubject to applicable Iaw or to a written waiver by Lendet, Bortower shall pay to l.ender on the day monthly installmenta of principal and interest are payable under the Note, until the Note ia paid ir? full, a eum (herein "Fu~ds") equal to one twelRh of the yearly t~ucee and asseasments which may attain priority over thia Mortgage, and ground tenta on the Property, if any, plus ona ~ twelRh of yearly premium inataliments for hazani insuranee. plue onetwelfth otyearly ptemium inatallmenta for mortgage inaurance. if any, a!1 as rPaaoaably estimated initially and from tirine to time by i.e~der on the baeia of aseesaments and billa and reasonable eetimatee thereof. The Funds shall be heW in an institution the deposits or aaounts of which are ineured or gusranteed by a Federal or 3tate agency (including I.ender if Lender is such an institu.tion). Lender shall apply the ~?ada to pay said taxea, aseeaaments. inauranc~e premiums and gmund rents. Lender may not charge for so holding and spplying the ~nda, analyzing eaid accoun~ or verifying and compiling eaid aaseasments and bille. unless I.ender pays Borrower interest on the F~nds and applicable law permits I.ender to make auch a charge. Borrower ` and Lender may agree in writing at the time of exect~tion of thia Mortgage that interest on the ~ds ehall be paid b Borrower, and uniess such agreement is made or applicable law rec~uires such intereet to be paid, I.e~der shall not be required to pay Bo:rower any intere8t or earnings on the P~nds. I.endes ehall give to Borrower. withont charge, an annual acoounting of the Funda ehowing credita and debiLa to the ~ Funds and the putpoee for which each debit to the ~nda was made. 7t~e ~nds are pledged aa additional aecurity for the sume secured by this Mortgage. Iithe amount of the I~nds held hy Lender, together with the tuture monthly inaWlmenta of Funde payable prior to the due dates of ta:ea, ~ aseeasmente. inaurance premiuans and gmund rents, ahall exezed the amount required to pay eaid taxea, aseesamenta. itisurance premiuma and ground reate as they fall due. such exceas shall be, at Bo~TOwer'a option. either pmmpdy repaid to Borrower or credited to Borrower on monthly inatallmenta of ~nds. If the ainount of the Funds held by I.ender ahatl not be suftcient to pay taxes. aseeasmente, insurance ~ premiums and ground rents aa they fal) due, Borrower ahall pay to Lender any amount neceaeary to make up the de6ciency within 30 days ; fmm the date notice ie mailed by l.ender to Borrower requeeting payment thereof. ~ Upon paymeitt in full of all sums secwed by this MortgagP, I,ender ahall-prompQy refund to Borrower any funda held by Lender. If under ~ paragraph 18 hereof the Property is sotd or the Property ie otherwiae acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite acquiaition by I.ender, any I~nda held by Lender at the time of application aa a credit against the sums eecured by thia Mortgage. . 3. ApplIcadon of Payments. Unleaa applicable law providea otherwiee, ail payments received by I.ender under the Note and paragraphs 1 and 2 henwf ehall be applied by Lender firnt in payment of smounta payable to Lender by Borrower under paragraph 2 hereof, then to intetest payable on the Note, then to the principal of the Note, and then to intereat and principal on any F~ture Advancea. 4. Chargea; Liens. Borrower ahall pay all taxea, assess~nenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereofor. if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompdy furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower ahall prompUy furnish to I.ender receipte evidencing such payments. Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided. that I3orrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by ~ such lien in a manner acceptable. to Lender. or shall in good faith contest such lien by. or defend enforcement of auch lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. - 5. HaZard Insurance. Borrower ahall keep the improvements now e:iating or hereafter erected on the Propedy inaured againat loss by fire, hazarda included within the tenn "extended eoverage, ' and such other hazsrds as I,ender may require and in auch amoqnts and for auch - periods as ~,ender may require; provided, that Lender shall not require such ooverage amount e:ceeding the minimum, as may be required by a atate or federal regulatione governing activities of Lender, or that amount of coveraggrequired to pay the aums secured by this Mortgage, i whichever ie the greater. _ i The ineurance carriet providing the insurance ahall be chosen by $orrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insnrance policies ahall be paid in the manner provided under paragraph 2 hereof or, if < not paid in such manner, by Borrower making payment, when due, directly to the insnrance carrier_ ' i All inaurance policies and renewala thereof shall be in form sooeptable to Lenderand ehall include a atandard mortgage clausein favor of and in form acceptable to Lendc~. I.endershall have the right to hold the policiea and renewals ther~of, and Borrower ahall pmmptly furnish to ~ i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insuranve carrier ; and I.ender. Lender may malce proof of losa if not made promptly by Botrower. Unleae Lender and Borrower otherwiae agree in writing, insarance p:+nceeds sha1) be applied to reatoration or repair of the Property damaged, provided auch reatoration or repair is economically feaeible and the security of thia Mortgage is not thereby impaired. If such reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the anma eecured by thia Mortgage, with the e~cce8s. if any. paid to Borrower. If the Property ie abandoned by Borrower. or if Bozrower faile to respond to I.ender within 30 daya hom the date notice ia mailed by Lender to Borrower that the insurance carrier ot'fers to eetde a claim for inaurance benefits, Lender ie authorized to collect and apply the inaurance proceeds at Lender'e option either to re~toration or repair of the - Property or the aums eecured by thia Mortgage. Ualess Leader and Borrower otherwiae agree in writing, any sueh application of proc~.*ede Lo principal ahall not eutend or poatpone the due ' date of the monthly instellments referred b in paragrapha 1 and 2 hereof or change the amonnt of such inetallmente. If under paragraph 18 hereof the Prope~rty ia acqnired by Lender, all right, title and intereat of Borrower in and to any inaurance poUcies and in and to the proceede thereof reaulting from damage to Property prior to the eale or aoquieition ahall paea to Lender to the eztent of the sums secured by this Mortgage immediately prior to such eale or soquiaition. ; 6. Preeervat[on and Maintenance of Property; Leaseholds; Condominume; Planned Unit Devetopmente. Borrower ahall keep the Property in good repair and eha1Z not commit waate or permit impairment or deterioration of the Property and ahall comply with the proviaions af any lease if this Mortgage is on a leseehold. If this Mortgage ia on a unit in a oondominiwm or a planned unit development, ~ Bomower ehell perform all of Borrower's obligationa under the d~claration or oovenante creatingor gove~rning the condominium or planned unit development, the by-laws and reguletiona of the rnndominium or planned unit development, and conBtituent documente. If a oondominium or plaaned unit development rider is executed by Borrower aad recorded together with this Mortgage, the oovenante and agreements of auch rider ahall be incorporated into and ahali amend and eupplement the covenants and agreemente of Lhis Mortgage as if the • rider were a part hereof. 7. Protection of I.ender's Security. If Boreower faila to perform the aovenante and agrcements oontained in thi~ Mortgage, or if any action or proceeding ia commenoed wtrich materially affecte Lender's interest in the Property. including, but not limited to, eminent domain, insolvency, aode enforcement, or arrangements or penceedinge involving a banlmipt or decedenk then Lendes at Lendet's option,upon notice to Borrower may mske a~ch appesrancee. dieburse auch eums and take such action as is neceasary to pmtect Lender'e interest, indnding. bat not limited to, diebursemeat of reaeonable attorr?ey'e fees and entry npon the Prope:ty to meke repairs. If I.ender reqnired ~ mortgage ins~uance as a condition of making the loan eecvred by this Martgage, Borrower ehall pay the pr~?iums required to meintaia ench insurance in effect antil such time ae the requirement for auch insurenoe terminatee iu aa~ordance with Borrower's and I,ender's written egreemeat or applicable I~~r. Borrower ehall pay the amount of all mortgage insurance preminme in the manner provided nnder ` paragraPh 2 hereof. ~ Any amounta diebursed by Lender persuant to thiB paragraph with inter+est thereon, shai~ ~eoome additional indebtednes' of i BorrowQ secured by this Mortgage. Unleae Borrower and Lende~r agree to other terme of payment, such amounte shall be payable upon notice from I.endez to Borrower requeating payment thereof, and ahall bear interest from the date of diebursement at the rate payable from time to time on outatanding principal ander the Note nnlees payment of interest at ench rate would be oontrary to applicabie laa, in which event ruch amounts a6aii bear interest at the highest rate permieaible under applicable law. Nothing coalained in thiu paragraph ehall require I.eader to incur any espense or take any action hereunder. L $4~~~ ~ ~ 's i ~ • i ~ ~ _ _ • - - - ~ . _ ° _ - . , , ti .