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HomeMy WebLinkAbout0062 Borrowes and I.ender cove~snt eu~d 'agree as [o:lows: 1. Paymeat ot Principal and [nterea~ Borrowa~ shall pmmptly pay when due the principal of and interest on the indebtedneas evidenced by the Note, prepaymcnt and late chargea as provided in the Nott, and th~ principal of and intereat on any ~ture Advances aecuced by thio Mortgage. ' . 2. Ftinds for Taues and lnsuraace. Subject to applicable law or to a written waiver by I.ender, Horrower ehall pay lo Ixnder on the day monthly inatallmenta of principal and intereal are payeble undet the Note, until the Note is paid in full, a eum (herein "Funda") equal to one twelfth of the yearly taxee and aeaeasmenta which may attain priority over thia Mortgage, and ground re~ta on the Property, if any, plua one- twelfth of yearly premium inetalimenta for hazard inaurance, plus onetwelRh ofyearly'premium inatallmenta [or mortgage insurenc~ itany, all as reaeonably estimated initially and from time to time by I.ender on the basia of asaesamenta and billa and reasonable eatimates thereof. The Elinds ahall be held in an inetitution the depoaits or accounts of which are ineured or guaranteed by a Federal or State agency ~ (including I.ender if Lender is such an inetitution). I.ender ehall apply the Funds to pay eaid taxes, usee$ament$, insurance premiume and ground re~ta. Lender may not charge for so holding and applying the ~nds, analyzing said account, or verifying and compiling esid eseesemente and bills, unlese Leader paya Borrower intereet on the Funda and applicable law permite I.ender to make euch a charge. Borrower and Lender may agree in writing at the time of e:ecution of thie Mortgage that inlerest on the ~nda ahall be paid to Borrower, and unleae such agreement ia made or applicable law requirea euch intereat to be paid. Lerider ehall not be required to pay Bormwer any intereet or earninga on the Fltnds. Lender shall give to Borrower, without charge, an annual accounting of the Funda showing credits and debita to the ~nde and We purpoae for which each debit to the Funds w as made. The Funda are pledged as additional security for the sume secured by this Mortgage. If the amount of the FLnds held by Lender, together with the tuture monthly inetallmenta of Funde payable prior to the due datea of taxes, aseesemente, insurance prrmiums and ground renls, ahall euc2ed the amount required to pay said taxes, aesE.~asments, inaurance premiuma ' end ground rent8 as they tall due, such e:cess ahall be, at Borrower a option, either pmmptly repaid to Borrower or credited io Borrower on monthly inetallments of F1nda. If the amou~t of the Funda held by Lend~ ehall not be aufficient to pay ta~ea, aseesaments, inauranoe premiuma end ground rents ae they fall due, Borrower ahall pay to Lender any amount neceaeary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Eiorrower requestiog payment thereof. ' Upon payment in full of all aqma secure~d by thie Mortgnge, Lendei ehalt promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by l.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or its aoquisition by I.ender, any ~nda held by Lender at the time of application as a credit against the euma secured by thi8 Mortgage. - ~ 3. Application of Paymenta. Unlesa applicable law providea otherwiee, all paymenta received by Lender undeT the Note and paragraphe 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. C6argea; Liens. Borrower ehall pay all taxes, assessments and other charges, fines and impositions attribntable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 herrof or, if not paid in such manner. by Borrower making paXment, when due, directly to the payee thereof. Borrower shall promptly furniah to Lender all noticea of amounta due under thie paragraph, and in the event Borrower ahall make payment directly, Borrower shall prompdy furnish to I.ender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over thia Dtortgage; provided, that Borrower ahall not be required to discharge any such lien so long ns Borrowet shall agree in writinR to the payment of the obligation secured by . such lien in a manner acoeptable to Lender, or ahall in good faith 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 Inaurance. Borrower ahaU keep the improvements now existing or hereafter erected on the Property insured against losa by fire, hazarda included within !he term "eztended coverage," and euch other hazarde as Lender may require and in such amounts and for auch periods es Lender may require; provided, that Lender shall not require s~~ch ooverage amount exceeding the minimum, as may be required by state or federal regulationa goveming activitiea of Lender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever is the gre~ter_ ~ The insurance carrier providing the insurance shall be chosen by Eiorrower subject to approval by l.ender, pmvided, that such approv~l shall not be unmasonably withheld. All pmmiums on insurance policies shall be paid in the manner provided under paraKraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clauae in favorof and in form aoceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furniah to i.ender all renewal noticea and all receipta of paid premiums. In the eVent of lose, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of loea if not made prompdy by Borrower. ~ Unlesa Lender and Borrower otherwiee agree in writing, inaurance pra,~eede shall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or•repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ reetoration or repair is not economically feaeible or if the sec~uity of this Mortgage would be impaired, the insurance proceeds shall be applied 4 to the suma eecured by tAia Mortgage, with thee:cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to E respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier o~fere to setde a clairn for ~ insurance benefita, Lender ia authorized to~collect and apply the insursnce proceeda at Lender s option either to restoration or repair of the Property or the ewne aecured by this Mortgage_ ~Unleea Lender and Borrower otherwise agree in wtiting, any such application of proceeds to principal ahall not extend or poatpone thedue date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If ander paragraph 18 heteof the Property is acquired by L.ender, all right, title and intcreat of Borrower in and to any insurance policies and in and to the proceeda thereof resalting from damage to Property prior to the sale or acquieition ahall pass to_ Lender to the extent of the eums aecured by thie ~ Mortgage immediately prior to auch sale or aoquiaition. 6. Preservation and MaintenanceoiProperty; Leseeholds;Condominume; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and BhalY not rnmmit waste or permit impairment or deterioration of the Property and ahall comply with the provisiona of any lease if this Mortgage is on a leaeehold_ If thie Mortgage is on a nnit in a aondominium or a planned unit development, Bonower ahall perform all of Borrowe~r s obligationa under the declaration or rnvenante creatingor governing the condominium or planned unit development, the by-lawe and regulatione of the condominium or planned unit development. and conatituent documents. If a condominium or planned unit development rider ~ executed by Borrower and recorded together with this Mortgage, the oovenants and agreementa of auch rider shall be incorporated into and ahall amend and supplement the covenante and agreementa of this Mortgage as if the rider were a pari hereoL 7. Protection of I.ender•s Security. If Borrower faila to perform the o~venants and agreemente oontainecl in thie Mortgage. or if any ~ action or prooeeding is rnmmenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain. - insolvency, oode enforcement, or arrangementa or proceedinga involving a banknipt or deoedent, then I.ender at Lendei s option,upan ~ notice to Borrower may make auch appearances, disburee such eums and take euch action as ie ne~eary to protect I.endez's interest, inclnding, bM not limited to, diabursement of reaeonable attorney's feee and entry upon the Property to make npairs. If Lender required ~ mortgage insurance as a condition of makirg the loan eecured by thia Mortgage, Borrower shell pay the premiuma required to maintain • ~ snch insurance in effect nntil such time as the requirement for such insurance terminates in aocordairce with Borrower's and L.endds ~ written agreement ar applicable L.nw. Borrower shaU pay the amount of all mortgage inaurance premiums in the manner provided nnder ~ paragraph 2 hereof. Any amounts diabureed by Lender perauant to thia paragrsph 7. with intereet thereon, ahall bevome additional indebtednese of - ~ Borrower secured by this Mortgage. Unleas Borrower and I.ender agree to other terme of payment, auch amounts shall be payable upon notice from Lender to Borr~wer requeeting payment thereof, end ehall bear interest from the date of disbursement at the rate payable from ~ timP to time on outetanding principal under the Note unl~s payment of interest at euch rate would be contrary to appucable law, in wiuch ~ event auch amounfa ehall bea~ intereat a! the higheet rate permiaeible under applicable law. Nnthing contained in this paragraph 7, ahall ~ require Lender to incnr any ~pense or take any action herennder. ~ ~ 80uK ~v~ NAI;~' ~ ~ ~ ` +