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HomeMy WebLinkAbout0158 Borrower and Lender covenant and aQree a~ folbws: 1. Payment oi Priaclpwl end Intere~~ Borrowsr shall prompdy pay wl~e~ due the principal of and iMereat on the indebtednes~ evideaoed by tbe Nots. prepsyment and late charge~ as provided in the Note, and the principsl of and intereston any F~ture Advances eecured by thi~ Mort~a~e. Z. Ftiad~ for Twce~ and Insuraace. Subject to applicable law or to a written waiver by I.ender, Borrower ahall pay to l.ender on the d~y monthly inatalla~ents of principal and intereat are payable under 1he Note. until the Noee ia paid in full, a sum (herein "I~nds") equal to ono- twdfth of the yearly taxee and aseeesmenta which may attain priority over this Mortgage. and sround re~ta on the Property, if any. plus one- twelRh of yearly premium installments for hazar~ insurance, plua onetwelfth of yearly premium instaUments [or mortgage insurance. if any. all as reasonably estimated initially and from ti~ne to time by t.ender an the basis of asseesments at~d billa and reasonable estimatea thereof. '1'he F1wds she~U be heW in an inatitutioa We deposita or aocounts of which are insured or guarantced by a Fed~al or SLate agency (including Lend~ if Leade: is auch aa institution). Lender shall apply the r'~.da to pay aaid tex~, aasesaments. insurance premiums and ground rents. Lender msy not charge for so holding et~d applying the P~ads, analyzing said accoun~ or verifying and rnmpiling said eesess~aents and bills. unlees Lender pays Borrower interest on the ~nda and applicable law permits I.ender to ma~e such a charge. Borrower and L.end~ may agree in writinB at the time of execution of thie Mortgage that interest on the ~Lnda ehall be psid to Borrower, and unleee such agreement is made or applicable law requires such interest to be paid, Lender shall aot be required to pay Borrower any interest or earainge oa the ~nds. I.ender shall give to Borrower, without charge, an annual acoounting of the Funds showing credite and debite to the fi~nde and the purpose for which each debit to the ~nds was made. The I~nds are pledged as additional aecurity [or the euma secured by thia Morigage. ~ If the amotuit of the Fltnda held by Lender. tagether with the future monthly inatallmenta of Funds payable prior to the due detas of ta~ces. asseasmente, inaurance premiuma and ground rents. shaU exoaed the amount required to pay said taxes. assessmenta, inaurance premiume aad ground reats as they faU due, such excess ehaA be, at Borrower'a option. either prompdy ~epaid to Bocrower or credited to Borrower on monthly inatallmeata of FLnda. If the amount of the F~nda held by I.ender ehall not be eufficienL to pay t~ea. esaeeemente, inaurance premiums and ground reats as they fall due. Borrower shall pay to Lender any amount neceaaary to make up the deficiency within 30 days from the date notice ia mailed by L.end~ to Borrow~ requesting payment thereof. ' Upon payment in full of all sume secured by this Mortgage, Lender shall prompdy refund to Borrower any funda held by Lender. If ander paragraph 18 ~ueof the ~pe~ty ia eold or the Property is otherwiee acquind by I.ender, Lender ahall epply, no later than immediately prior to the sale of the Property or its aoquisition by I.ender. any fi~nds held by Lender et the time of application as a credit againet the suma secured by this Mortgage. 3. Application of Paymente. Unless applicable law pmvidea otherwiae, all paymenta received by Lender under the Note and paregraphs 1 and 2 hereof shal: ~lpli~ hv Lender fust in paymeot of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the prinapal of the Note, and then to interest and principai on any Future Advancee. 4. Chargea; Liens. Borrower shall pay all taxea, asseeaments and other charges, finea and impoaitiona attributable b the Property which ' may attain a priority over thie Mortgage, and leasehold paymenta or ground rente, if any, in the manner provided under paragraph 2 hereof or, . if not paid in such manner, by Borrower malcing payment, when due, directly to the payee thereof. Borrowerahali promptly furniah to I.ender all noticee of amounte due under thia paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender reoeipta evidencing euch payments. Borrower ahsll promptly discharge any lie~ which hae priority over this Mortgage;provided, that Borrower ahall nnt be required todischarge any such lien so long as Borrower ahap agree in writing to the payment of theobligation secured by such lien in a manner a~oeplabie to Lender. or shali in good faith contest such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the e~forcement of the lien or forfeiturn of the Property or any part thereof. . 5. Hazard Insuranoe. Borrower ahall keep the improvemente now e:isting or hereaf'ter ere~cted on the Property insured egainat losa by fir~ hazards inclnded within the term "~tended rnverage," and euch other hazards ae I.ender raay require and in auch amounta and for such periods as L.endez may reqnirr; pmvided, that Lender shall not reqnire such ooverage amount e:ceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that smount of coverage required to pay the euma eecured by this Mortgage. whichever ia the gr~ter. 7'he inaurance carrier providing the inaurance shall be chosen by Borrower subject to approval by I.ender, provided, that euch approval ehall not be anreasonably withheld. All premiums on inaurance policies shall 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 insurance carrier_ All ineurance poGciee and renewale thezeof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form aoceptable to Lender. Lender shall have the right to hold the policies and renewala thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipte of paid premiums. In the event of loas, Borrower ahall give prompt notice to the insarance carrier ' and Lender. Lender may meke proof of loee if not made promptly by Borrower. ~ Unl~a Leader and Borrower otherwiee agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided such reatoration or repa'v ie econanically feasible and the eecurity of thie Mortgage ie not thereby impaired. If such E restoration or repair is not economically feaeible or if W e eecurity of t}?is Mortgage would be impaired, the ineurance proceede shall be applied ~ to the suma eecured by this Mortgage. with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to f respond to I.ender within 30 daya from the date notice is mailed by Lender to Borrower that the ineurance carrier offers to aetde a claim for insurance benefite. Lender is suthorized to rnllect and apply the insurance proceeda at Leader e option either to reatoration or repair of the Proptrty or the euma eecared by thia Mortgege. Unleae Lender and Borrower otherwise agree in writing, any auch application of proceede to principal shall not e:tend or poatpone the due date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amonnt of anch inetallmenta. If under paragraph 18 hereof the Property ia aoquired by Lender. all right, title and interest of Borrower in and to any ineurance policiea and in and to the proceede thereof reaulting from damage to Pr~perty prior to the eale or aoquisition shall paee to I.ender to the eztent of the euma eecured by thia Mortgage immediately prior to such eale or acquisition_ ~ ~ 6. Preservation and Maintenance of Property; Leaeeholde; Condominuma; Planned Unit Developaienta. Borrower ahall keep the property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall eomply with the pmvieions of any lease if thie Mortgage ia on a leasehold..If thie Mortgage ia on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrower'e obligations ander the declaration or covenanta creatingor goveming the oondominium or planned w?it development, the by-lews and regulationa of the rnndomininm or planned unit development, and oonetituent documents. If a condominium or planned unit development rider ie ~ecuted by Borrower and recorded together with thia Mortgage. the oovenants and agreementa of auch tider ahall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgage aa if the rider were a part hereof. Protection of Lender'~ Securit~?. If Borroaer fails to perform the oovenants and agreem~Le oontained in Wis Mortgage. vr if any action or prooeeding is commenoed ~vhich mate~riallY affects Lender's interESt in the Property. including. but not limited to. emineat domain. inwlvency, eode mforoement, or arrangementa os prooeedings involving a banlaupt or deoedent, tben Lender at Lendds option.apon ~ ~ notice to Borrower may mal~e such appearances, diaburse such sume and take euch action as is neoessa:y to protect Lendds intere~~ ~ inclading, b~ not limited to, disbarseanent of reasonable attorney'a feee and eatry upon the Property to make repeits. If Lende: required ~ mortgage insurance aa a condition of making the loan scenred by this Mortgage, Borrower shall pay the pr~ninms reqaired to maintein ~ such ins~vanoe in effect nntil snch time as the reqnirement for anch ineurance terminates in aooordance wnth Borrower's and Lendds • wrid~ea a~reement or applicabk I.aw. Borrower ehaU pay the amount of all mortgage insuranoe pr~iums ia the manner provided nnder ~ Pal'as~Ph 2 hawf. ~ ' Any amoanta disbncsed by Lender persuant to this paragraph 7, with interest thereon. ahall beoome additional indebtednesa of Borrower secured by thia Mortgage. Unleea Borrower and Lender agree to other tums of paymeat, ench amouate ahall be payable upon notioe from I.ender to Borrower requesting payment thereof, and ehall bear interest from the dete of diabursement at the rate payabk ~om time to time on out~tanding principal nnder the Note unless payment of interest at snch rate would be oontrary to applicable law, in which event snch amonnts shal! bear interest at the higheet rate permissible under applicable law. Nothing oontained in this paragraph 7, shall require Lender to incur any ~pense or take any action hezeunder. i . r : . ao~K 288 Pac~ 158 ~ ~ _ _ - _ - ~ ~ . ~ . . . ~ _ .