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HomeMy WebLinkAbout0041 f~ Borrowe~ and Lendu cove~eurt and a~ree aa follows: 1. Paya~eat ot Priacipal snd lnterer~ Borrower ahaU promp?ly pay when due the principal of and interest o~ the indebtedneas evidenced by the Note, prepayment and late chargee ae provided i~ the Note, and the principal of and intereet on any ~ture Advancea secured by eh;s Mor~a~ce. 2. Ftiutde for Te=es end Insurance. Subject to applicable law or to a written waiver by [.ender, Born~wer shell pay to [.ender on lhe day monthly inatallments of principal and intereat are payable under lhe Note, until the Note ia paid in full, a aum (herein "~Lnds") equal to one twrelfih of the yearly t~es and asaeaamenta which may attain priority over this Mortgage, and ground renta on the Pmperty, if any. plua on~ - twelRh of yearly premium inatallme~es for hazard inaurance, plue onetwelfth otyearly premium inetallments [or mortgage inaurance, if any, aU aa reaeonably estirnated initially and from time to time by I.endcY o~ the baaia of asaessmenta and bills and reaaonable eatimatea thereof. The FLnds ahall be held in an inatitution the deposite or acoounts of which are insured or guaranteed by a Federal or 3tate agency (including.l.end~ if I.ender is auch an instatution). I.ender shall agply the Funds to pay eaid taxes. aaaesaments, ineurance premiuma and ground renta. Lender may not charge for Bo holding and applying the F~nds. analyzing said account, or verifying and compiling said ' essessments and bills, unl~a Lender pays Borrower intereat on the Funda and ~pplicable law permits l.ender b make each a charge. Borrower aad I.ender may agree in writing at the time of e:ecution of this Mortgage that intereat vn the Ftinde ahall be paid to l3oriower, and unle~s ; such egreement is made or applicable law requires auch i~terest to be paid. Iender shall not be required b pay Borrower any intereat or eamings on the FLnds. Lender ahall give to Borrower, v~ithout charge, an annual accounting of the Funde showing credits and debits to the ~ Funds and the purpoee for which each debit to the Funda was made.'11~e Funda are pledged as additionai eecurity for the aume eecured by this Mortgage. . I[the amount of the P1mda held by I.ender, together with the future ~nonthly inetallmente of Funda payable prior to the duedates of ta:ee, asseasmenta, inaarance premiums and ground rents, shall exe2ed t2ie amount required to pay said ta:ea, asseeaments, ineurance preminms aad ground rents ea they fall due, such e:c~s ehall be. at Bozrower e option. either prompdy repaid to Botrower or credited to Borrower on monthly inetallmente of FLnds. If the amount o! the ~nde held by I.ender ahall not be aufficient to pay taxea, asezasmente, inaurance premiums and ground rents se they fall due, Borrower ahall pay to I.ender any amount neceseary to meke up the deficiency within 30 daye ~ from the date notice ie mailed by Lender tn Borrower requeating payment thereoL ~ Upoa payment in full of sU aums secured by thie Mortgage, Lender ehall prompUy refund to Borrower any funds held by Lendet. If under ; paragraph 18 hereof the Property is sold or the Property is otherwiee acquired by Lender, Lender shall apply, no later than immediately prior ~ to the sele of We Property or its acquieition by Lender, any ~nds held by Lender~t the time of application as a credit against the auma secured by thia Mortgage- . . ~ 3. Application ot Payments. Unleas applicable law pmvides otherwiee, all paymenta.received by l.ender under the Note and paragrephs 1 and 2 hereof ahaU be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, tfien to the principal of the Note, and then to interest and prfncipal on any Futare Advances. 4. Chargee; Liena. ~3orrower shalt pay all taxea, ~ssessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided u~der paragraph 2 hereof or, if not Paid in auch manner, by Borrow er making payment, when due, directly to the payee thereof. Borrow er shall promptly furnish to Lender all noticea of amounts due undet this paragraph, and in the event Borrower shall make payment direetly, Borrower shall promptly furnish to - Lender receipts evidencing.auch payments. E3orrower shall promptly discharge any lien which has priority over this Murtgage; provided, that Borrower ehall not be required to discharge any such lien so long as BorroweT shaU agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, or defen~ enforcement of such lien in, legal proceedings which operate to prevent the enfotcement of the lien or torfeiture of the Property or any pari thereaf. 5. Hazard Inaurance. Borrower shall keep the improvemenfs now existing or hereafter erected on the Property insured againat loss by • fire, hazarda included within the term "e:tended rnverage,^ and auch other hazarde as Lender may require and in such amounta and for such periods as Lender may require;~provided, that Lender ehall not require auch coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. ~ The insurance carrier providing the inaurance shall be chosen by E3orrower subject to upproval by Lender; provided, lhat such approva! shall not be unreasonably withhetd. All prnmiums on insurance policies shall be paid in the manner pmvided under par<~qraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ All insurance policiea and renewsla thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form acceptable to I.ender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower ehall promptly furnish to ~ i,ender all rnnewal notioes and all receipta of paid premiume. In the event of :oss, Borruwer shali give prompt notice to the insurance carrier and Lender. Lender may make proof of losa if not msde prompEly by Borrower_ i Unfeas Lender and Borrov?er othetwise agree iis writing, ineurance proceede ahall be applied to reatoration or repair of the Property . ( damaged.- provided such reetoration or repair ia economically feasible and the security of this Mortgage is not thereby impxired_ If auch restoration ~ repair is not economically feasible or if the security af this Mortgage would be impaired, the ineurance proceeda ahall be applied ~ to tt~e~ums aecnred by thia Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ reapond to Lender w~ithin 30 daye from the date notice ia mailed by I,ender-to Borrower that the inaurance carrier ot~ers to eettle a claim for ~ ineursnce benefits. I.ender ia authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. ~ Unless L-ender and Borrower otherwise agree in writing, any such application of pmceede to principal ahall not extend or poatpone the due , date of the monthly inatallments referred to in paragraphe l and 2 hereof or change the amount of such installmenta. If nnder paragraph 18 hereof the Property ie aaquired by I.ender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof reeulting from damage to Property prior to the sale or acquiaition ahall pasa to Lender to the extent of the auma secured by this Mortgage immediately prior to such eale or aoquisition. ' . 6. Preeervation and Maintenance of Property; Leaseholda; Condominume; Planned UaitDevelopments. Borrowershall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provisiona of any leaee if this Mortgage is on a leasehold. If thia Mortgaqe ia on a unit in a oondominium or a planned unit development, Borrower ehall perform all of Borrower's obfigations under the declaration or covenants creatingor governing the condoroiniwn or planned unit d~velopmen~ the bylawe and regulationa of the rnndominium or planned unit development, and conatituent documents. If a condomipium or planned unit development rider ia execated by Borrower and recorded together with thie Mortgage. the oovenante and agreements of such rider shail be incorporated into and ahall amend and supplement the covenanta and agreemente of this Mortgage as if the rider were a part hereof. ~ ~ ~ 7. Protection of I.ender's Security. If Borrower fails to prrform the o~vena~ts and agreemente oontained in thie Mortgege, or if any ~ action or proceeding is commenoed which materiaUy affects Lender's interest in the Property, including, but not limited to. emineat domain, ~ in~olveacy, oode eaforoement, or arrengemente or proceedings involving a bankrupt or deaedent, then I.ender at Lender'e option,upon ; - notice to Borrower may ~make auch appearancea, dieburee euch eums and take euch action as is neceeeary to pmtect L.endei s interest, ~ inclading, but not limited to, disbursement of reasonable attorney's fcea and entry upon the Property to make npairs. If Lend~ reqairsd { mortgage ic~surance as a oondition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums reqmred b maintain ~ ench inaarance in effect nntil ench time ae the requirement for auch inenrance termiaates in aocordanoe with Borrower's and Lendds written agreement or applicable I.aw. Borrower ahall psy the amount of all mortgage ineurance premiums in the mannrr provided under ' paresraPh 2 hereof. _ ~ Any amounts diebnreed by Lender persuant to thia paragraph 7, with intereat thereon, ehall beoome additional indebtednees of ~ ~ Borrower secured by thie Mortgage. Unleee Borrower and Lender agree to other terme of payment, euch amounte shell be payable apon notice from Lender to Borrower requeeting payment thereof, and shall bear intereet from the date of disbursement at the rate payable from ~ time to time on outetanding principaZ under the Note unleas payment of intereet at euch rate would he oontrary to applicable law, in wiuch event ench amounts ehaU bear interest at the highest rate permiseible under applicable law. Nothing rnntained in this paragraph 7, ahall ` ~ require I.mder to incur any expense or take any action hareunder. ~ . ~ ,i ~ ~ R '4~ : ~ ~ ~289 ~ t ~ . : ~ - - , . - - - ~-'~l x - ; : ,a,~, - ~ ~ ~ , 7 e- ~,r. . ~ ~ ~ ~ k, y~~" ~ . s~~ ~ . 4~C~M . .