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HomeMy WebLinkAbout0935 Borrower end [.ender covenant and a~ree ar [otlows: 1. Psyme~t ot Priacips) sad Intere~~ E3orrower ahall promptly pay when due the pri~cipal of and interest on the indebtednea~ evidenoed by the Note. psepayment and late charQe~ aa provided in thc Nott, and the principal of and i~terest on any Ftiture Advances secured by thie Mort~ase. 2. Plinda for Texes snd Insureutee. Subject to applicable law or to a written waiver by I.ender, Aorrower ahall pay to l.ender on tt~e day monthly ir~stallments of principal and intere8t are payable under the Note. until the Note ia paid in full, a eum ihemin "Fuiuie") equal b one twelfth of the yearly taxea and asseasments which may attain priority over this Morigage. and ground renis on the Property, if any, plua one twelfth of yearly premium inatallments for haaard insurance, plua onetwelRh of yearly premium inetallments for mortgage insu~ance. if any, all as reasonably estimsted initially snd from time to time by I.e~der on the baeie of aeaeeamenta and billa and reasonable estimates thereof. The I~nds shall be held in an institution the deposits or aocounLs of which are inaured or guaranteed by e Federal or State agency (including I.end~ if Lender ia such an inetitution). I.ender shall appiy the Fl~nda to pay said taxes, aeseasmenta. insurar?ce premiuma and ground nnb. Lender may not charge for so holdinR and epplying the I~Lnds, analyzing said accc,unt, us verifying and compiling eaid ansessmenta and bills, unless [.eader paye Borrower interest on the ~Lnds and applicable law permita Lender to make auch a charge. Bormwer and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the F~nds ehall be paid to Borrower, and unleas such agreement ia made or appUcabk law requirea such interest to be paid, I.ender ahall not be required to pay Borrower any interest or earnings on the Funds. Lender ehall give to Borrower, without charge. an annual accounting oithe Funds showing credits and debiLs to ihe ~nds and the putpoee for which each debit to the ~?nda was made. 7t~e Funda are pledged as additional aecurity for the suma ~cured by thia Mortgage. ~ ~ If the amount of the I~nds held by Lender. together with the future monthly inetallmenta of Funda payable prior to the due datee o[ta~ces, aseeasments. inawrance premiuma and ground rents, ehall exoted the amount required to pay eaid ta:es, asaeasmente, inaurance premiums and ground rente aa they fall due, auch exoeas ahell be, at Bo~rower e option, either promptly repaid b Borrower or credited to Borrower on monthly inatallmenta of flinds. If the amount of the Funds held by Lender ahall not be sufficirnt to pay ta:ee, assessmenta, inaurance premiume and ground rents ae they fall due. Borrower ahall pay to Lender any amount neceasery to make up the de5ciency within 30 days from the date notice ia mailed by I.ender to Borrower requeeting payment thereof. Upon payment in fiill of all suma eecured bv thie Mortgage. I.ender ahall promptly refund to Bormwer any funda held by I.ender. If under paragraph 18 hereof the Propedy ie aold or ehe Property is otherwise acquired by Lender, I.ender shall apply, no later tha~ immediately prior to the eale of the Property or ite acquisition by Lender, ariy i~ unde held by Lender at the time of applicatian aa a credit against the sums eecurpd by this Mortgage. 3. Applieatioa o! Paymenta. Unleea applicable law providea otherwiee, all paymenta received by ~.ender under the Note and paragraphs 1 and 2 hereof ahall be applied by I.ender firet in payment of amounts payable to Ixnder by Borrower under peragraph 2 hereot, then to interest payable on the Note. then to.the principal of the Note, and then to interest and principal on any F~ture Advances_ 4. Charges; Liena. Borrower ahall pay all taxee, asaeasments and other charges, finea and impositions s~ttributable to the Property which may attain a priority over this Mortgage, xnd teasehold payments or ground rents, if any, in t,~e manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furniah to Lender all notices of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furniah to [.ender receipts evidencing euch payments. Borrower shall promptly discharqe any lien which has priority over thie Mortgage; provided, that F3orrower ahall, not be required to discharge any auch lien ao long as Borrower shall ~?gtee in writing to the payment of the obligation secnred by such lien in a manner ecceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings : w~hich operate to prevent the enforcement of the lien or forfeiture of the Propetty or any part thereof. _ 5." Hazard Insurance. Borrower ahall keep the improvements now exiating or hereaRer erected on the Property ineured against loas by - fire, hazarda included within the term "e:tended coverage," and euch other hazards as Lender may require and in such amounts and [or such periads as I.ender may reqnire; provided, that I.ender ahall not require such coverage amount e:ceeding the minimum, as may be required by Atate or federal regutationa goveri~ing activities of I.ender, or that amount of coverage required to pay the sume eecured by this Mortgage, whichever is the greater. . The insurance carrier providing the insurance ahall be chosen by Borrower subject to appm~•al by Lender, proti•ided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies shall be paid in the manner provided under pnragraph 2 hereof or, if not paid in auch manneT, by Borrower making payment, when due, directly to the insurance carrier. All insurance policiea and renewala thereof ahall be in form aoceptable to Lender and shall include a standard mortgage dause in favor of and in form aoceptable ta Lender. Lender ehall have the right to hold the policies and renewals thereof, and Borrower ahall prompdy furniah to : i.ender all renewal notices and all receipts of paid premiuma. ln the event of loas, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made prompdy by ~3orrower. i Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeda ahall be applied to restoration or repair of the Property f damaged, provided such reatoration or repair ia economically feasible and the eecurity of this Mortgage is not thereby impaired. If auch restoration or repair is not economicaUy teasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied . to the aums eecured by thia Mortgage, with the e:cess, if any, paid to Borrower. If the Property ia abandoned by Borrower. or if Borrower faile to ~ reapond to Lender within 30 days from the date notice is mailed by I.ender to Bortower that the inaurance carrier offera to setde a claim for insurance benefife, Lender ia authorized to collect and apply the insurance proceeds at I~nder e option either to reetoration or repair of the ~ Property or the sums eecured by thie Mortgage. _ . Unless Lender snd Borrower otherwiee agree in writing, any euch application of proceeda to principal ahall not extend or postpone thedue date of the monthly inatalimente referred to in paragrapha 1 and 2 hereof or change the amount of such inetallmente. If under paragraph 18 - hereof the Property ia aoquired by Gender. all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof r~ulting from damage to Property prior to the sale or acquiaition ahalt pass to Lender to the extent of the aums aecured by this ~ Mortgage immediately prior to such eale or acquisition_ 6. Preaervation and Maintenance of Property; I.easeholde; Condominums; Planned Unit Devetopmente. Borrower ahall keep the Property in good repair and ehall not comroit waste or permit impairment or deterioration of the Property and ahall comply with the provieiona of any leaee if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit developmenl, Borrower ahall perform all of Borrower a obligationa under the declaration or rnvenanta creatingor governing the rnndomini~un or planned unit developmen~ the by-laws and regulations of the condominiam or planned unit development, and constituent documente. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the eovenants and agmementa of auch rider ahall be inrorporated into and shall amend and aupplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection ot I.eader's Security. If Borro~+er faile to perform the oovenants and agreemeats oontained in this Mortgage, or if eny ~ action or prooeeding ia commenced which materially af[ects Lende~s interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or anangementa or proceedinge iavolving a bankrupt or deoedent, then I.ender at I.ender's option,npon ~ notice to Borrower may make such appearancee, diebnree such sums and taice s~ch action aa is aeoessary to protect Lender's interwt, ~ including, btd not limited to, disbursement of reasoneble attoraey'e feee and entry npon the Property to make repairs. If Lende: required ri mortgage insurance as a condition of making the loan secured by thia Mortgage, Borrower shell pay the premiums required !o meintain ~ ench inauranoe in effeet nntil such time sa the requirement for euch uuurance terminates in acxordancx with Borrower s and Lendds ~ ~ written egreement or applicable I.aw. Borrower shall pay the amount of ell mortgage inanrance premiwne in the manner provided undet ~ paragraph 2 hueof. - My amoants diabarsed by Lender perauant to this paragraph 7, with ~ntereat thereon, ehall beoome additional inde~ednesa of ~ Borrower ~ecured by this Mortgage. Unleea Borrower and Lender agree to other terms of payment, euch amounte shall be payable npon ~ notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of disburs~ment at the rate payable irom time to time on outatanding principai under the Note unleae payment of inter~et at euch rate would be aontrary to applicable law, in which event such amounts ahall bear interest at the highest rate permissible under appliceble law. Nothing contained in this paragraph 7, shall requin Leader to incur any e=penae or take any action hereunder. - ~ ~~Q ~ 8tltA( ~.~.7J f~l(;~ ~ ~ .