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HomeMy WebLinkAbout0901 Borrower and l.ender covena~t and a~ree as [oUow~: 1. P~rmeat of Principal and Iatere~t. Borrower shaU promptly pay wbrn due the p~incipal ot and intereat on the indebtedness evidenced by the Note, prepayment and late charges as pmvided in the Note, and the principal of and inLerest on any ~Cure Adva~ces aecured by thu Mort~age. ~ 2. bltnds !or Taxea and Insurance. Subjectct to applicpble law or to a written waive~ by l.ender, fiorrovre~ ahall pay to I.ender on the day monthly inatallmeats of pri~cipal and interest are payable under the Note, until the Note is paid i~ full, a sum (he~ein "~nds"1 equal to o~e • twelfth of the yearly ta~[ee and aasesaments which may attain p~iority over this Mortgage, nnd ground rents on the Pn>perty, if any. plua one twelfth of yearly premium inatallmenta [o~ hazard inaurnnce, plus onetwelfth ofyeurly premium inatallments for mortgage insurance, if any, all aa reaeonably eatimated initially and trom time W tirr~e by l.cnder on the be~sis of aasesemente and billa and reaeonnble estimatea thereot. The ~nds shall be held in an institution the deposita or accou~ta ot which are inaured or guaranteed by a Federal or State agency includio I.ender it l.ender is uch an inetitution . I.end r ahal) e 1 he F~ d ground reate. i.ender may not charQe [or so holding and applying the F~nds, analytirtg aaid account, or verifying and compiling said asseesmenta and billp, unleaa I.ender pays Borrower intereat on the ~nde and applicable law permita Lender to make auch a charge. Borrower and l.ender may agree in writing ~at the tune of executioa of thia Mortgage that interest on the Fl~nda ehaU be paid to Borrower, and unleas such agreement ia made or applicable law requires auch interest to be paid, Lender eha11 not be required to pqy Borrower any intereat or earninge on the Fl~nds. Lender shall give to Rorrower, without charge, an annual acoounting of lhe Funda showing credite and debite to the Runda at?d the purpoee for which each debit to the Fs?nde wae made. The Funda are pledged as additional aecurity for the aums secured by this Mortgage. If 1he amount of the FLnda held by l.ender, togethe~ with the future monthly inatallmenta ot Funda payable prior to the due datea of taxea, asseeaments. inauranoe premiums and gmund renta, ahaU e:c+~ed ihe amounl required to pay said takes, asseasments, inaurance premiums and ground renta ae they tall due, auch racceas eha11 be. at Borrower s option, either promptly repaid to Borrowe~ or credited to Borrower on monthly instalimenta of ~nde. If the amount of the Funda held by I.ender shall not be aufficient to pay taxea, aeeeasmenta, inaurance • premiums and ground rente as they fall due, Borrower ehaU pay to Lender any amount ~eceaeary to make up the deficiency within 30 days from the dete notice is mailed by [.ender to Borrower requesting payment thereof. Upon payment ia tull of all suma ecrured by this Mortgage, I.ender ehall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediatelv prior to the eale of the Property or ita acquisition by Lender, any ~nde held by I.ender at the time of appiication as a credit againat the suma eecured by this Mortgage, ~ 3. Application of Payments. Unlesa applicable law providee otherwiae, all paymente received by Lender under ~he Note and paragrepha 1 and 2 hereof shall be applied by Lender firat in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the prinripal of the Note, and then to interest and principel on any Future Advancea ~ 4. Charges; Liens. Borrower ahall pay all taxes, assessments and other eharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage~ and leasehold paymenta or ground rents, if any, in the manrter provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrowershall promptly furnish to l.end~r aU notices of amounts due ander this paragraph, and in the event Borrower shall make payment directly, E3orrower shall promptly furnisli to Lender receipta evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall nat be tequired to discharge any such lien so tong as Borrower ahaU agree in va~riting to the payment of the obligation secured by such lien in a rtianner acceptable to I.ender, or shall in good faith contest such lien by, or defend enforcement of such liea in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hezard lneutance. Botrower shall keep the improvements now exiating or hereafier erected on the Property insured against losa by fire, hazarde included within the term "eztended coverage, ' and auch other hazards ae LendeT may require and in such amounts and for such periods aa Lender may require: provided, that Lender shall not require such rnverage amount exceeding the minimum, as may be required by atate or federal regulatione governing activities of L.ender, or that amount o[ coverage required to pay the auma eecured by this Mortgsge, whichever ia the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unmasonably withheld. All premiums on insurance policies shal) be paid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof ehall be in [orm acceptable to Lender and ahall include a atandard mortgage clauae in favor of and in form acceptable to Lender. I.ender ahaU have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to i.ender all renewel notices and all nreipts of paid premiums: In the event of losa, Borrower ahall give prompt notice tu the inaurance carrier ~ and Lender. Lender may make proof of loss if not made prompdy by Borrower. ~ Unleae I.ender and Borrower otherwiee agree in writing, inaurance procecds shall be applied to reetoration or repair of the Property ~ damaged, provided such restoration or repair is economically feasible and the aecurity of thie Mortgage is not thereby impaired_ If auch reetoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied to the autna eecured by this Mortgage. with the excesa, if any, paid to Borrower. If the Property ia abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 days from the date 6otice is mailed by I.ender to Borrower that the insurance carrier of~era to settle a claim for inaurance benefile. Lender ia authorized to collect and apply the insurance proceeds at Lender'a option either to reatoration or repair of the Property or the sums eecured by this Mortgage. Unleas Lender and Borrower otherv?-iae agree in writing, any such appiication of proceeda to principal ahall not e:tend or poatpone the due date of the monthiy inetallmenta referred to in paragrapha 1 and 2 hereof or change the amount af such inetallments. If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquisition ahall pase to Lender to the extent of the euma secured by thie Mortgage immediately prior to such eale or aoquiaition. 6. Preaervation and Maintenance of Property: Leaeeholds; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the . provisione of any leaBe if thia Mortgage ia on a leasehold. If thie Mortgage. ia on a unit in a rnndominium or s planned unit developme~t, Borrowec ehall perform aU of Borrower'e obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulatione of the condominium or planned unit development, and conetituent documents. If a oondominium or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the oovenants and agreementa of such rider ahall be incorporated into and ahull amend and aupplement the covenanta and agreement~+of this iVlortgage as if the rider were a part hereof. 7. Protection oi Lender's 8eculrity. If Borrower fails to gerform the covenanta and agreemente contained in thia Mortgege, or if any action or pmceeding is commenoed which materially affecte Lender's intereet in the Property. including, but not limited to, eminent domain, insolvency, aode enforcement, or arrangements or proc~edings involving a banicr~pt or decedent, then [.ender at Lender's option,upon fr notice to Barrower may make auch appearenoes, diabune such eums and take svch action ae is neoeseary to protect Lender'e interest, ~ inclnding, but not limited to, disbursement of reaaoaable ettorney's fees end enCry upon the Property to make repairs. If I.ender required mortgage insurancx aa a oondition of making the Ioan eecured by ihia Mortgege, Borrower shall pay the premiums required to maintain snch insurance in ef[ect until snch time as the requirement for auch ineurance terminatee ici accordance with Borrower's and I.endds written egreement or appliceble I.aw. Borrower ahall pay the amount of all mortgnge ineurance premiuma in fhe menner provided undc paragraPh 2 hereoi. - My amounte diebarsed by Lender persuant to this paragraph 7, with intereet thereon, shall beoome additional indebtedness of Borrowrr secured by this Mortgage. Uniese Borrower and [.ender agree to other terme oi payment, auch amounts ehall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intereat from the dete of disbureement at the rate payable from time to time on outatanding principal under the Note unleas payment of interest at auch rate would be oontrary to applicable Iaw, in which . rvent such amounts ahall bear inttreat at the highest rate permiesible under applicable iaw. Nothing rnntained in this paragraph 7, ahall reqnire Lender W incur any expense or take any action hereunder. 6~~K 289 P~~E ~90 . _ _ ~ a`~ a ~t.c - p ~r b,-~r°~ ~ K ~r - r ~':a ->-a S " ~.-m ~ - s.`¢'- . . _ a , =sr~=-