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HomeMy WebLinkAbout0046 Borrower and L,ender covenant and a~ret es foUowc 1. Payment ot PriACipal and Interest. Borrower ahall prompqy pay when due lhe principal o[ and intereat on the indebtednese evidenced by the Note, prepayme~t and late chargee aa provided in the Note, and the prirtcipal of and interest on any i~ture Advancea secured by this Mortgage. 2. FY~nd~ for Teuces and laeurance. Subject to applicable law or to a written waiver by [.ender, Borrower sha) l pay to I.ender on the day monthly inatallmenb of principal and inte~eat are peyable under the Note, until the Note is paid in tull, a aum (herei~ "Funda") equal to one twelfth of the yearly taxee and aeaesements which may attain priority over thia bfortgage, and ground renta on the Property, if any, plua ont twelfth of yearly premium installmenta for hazard inaurance, plus onetwelRh of yearly premium inatallmenta for mortgage inaurance, if any, all as reasonably ~timated initially and from time to tirr~e by L.ender on the baeie of asaeeemente and billa and reaaonable eetimatea thereof. The Pltnds shaA be held in an inatitubion the depoaita or aocounts ot which are insured or guaranteed by a Federal or State agency (including Lend~ if Lender is auch aa institutio~). Lender ahall apply the ~da to pay said ta:es. aseesamente, insurance premiums and ground renta. Lender mey not charge for so holding and applyiog the ~nds, analyzing said accounl, or verifying and compiling said ameqm~ta and bills, unleas Lender paye Borrower intereat on the ~1nds and applicable law permita i.ender to make such a charge. Borrower and I.ender may agree in writinB at the time of e:ecution of thia Mortgage that interest on the F'unde ahall be paid to Borrower, and unleaa such agreement is made or appUcable law requires euch i~tereat to be psid, Lender shall not be required to pay Bormwer any intereat or earninge on the ~nds. Lender ahaA give to Borrower. without charge, an annual accouating of the Funda ahowing credite and debita to the Funda and lhe purpose for which each debit W the ~nde was made. The Funda are pledged aa additional eecurity for the eume eecured by thia Mortgage. If the amount of the ~nda hdd by Lender, together witii the future monthly inetallments of Fuodo payable prior bthe ~lue dates of ta~ces, aseesaments, inenrance premiums and ground rents, ahall e:c~ed the amount required to pay eaid tazes assesamet~Ra, insurance premiume and growsd renb as they fall due. auch e:ceae ahall be, at Borrower a option, either pmmpdy repaid ~o~~ofrov~+er'or rredited to Botrower on monthly installments of Fl~nde. If the amount ot` the Funde held by Lender ahali~not be su~icient bt1'pay tauE's, ~emei~e~ ~neurance premiums and ground nnts as they fall due, Borrower shaU pay to Lender any amqynt necea~ary toznake np t4e ~enoy wllhiti~ daYs from the date notice ia mailed by Lender to Borrowe~r requesting payment thereoL : . - ~ .~t Upon payanent in full of all eums secuted by thia Mortgage, Lender shall prompt~i re~und to Borrower any funds ~eld by Lender. If under paragraph 18 her.wf the Property ia sold or the Pcoperty is otherwiae acquired by I.ender, Lender shall apply, no later than immediately prior to the eale of theProperty or ita aoquieition by Lender, any ~nda held by Lender at the time of application ae a cndit againat the euma secured by thie Mortgage. 3. Applicatiop o! Paymente. Unlesa applicable law providee otherwiee, all paymenta received by I.ender under the Note and paragraphs 1 and 2 hereof shall be applied by I.ender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. C6argee; Liena. Borrower ahall pay all taxes, asaeasments 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 providcd under.paragraph 2 hereof or, if noi paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furniah to I.ender all noticea of amounte due under thia paragrapii, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender reoeipta evidencing such payments_ Eiorrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower ahall aRree in writing to the payment of the obligation secured by such lien in a manner accepteble to Lender, or ahall in good faith contest such lien by, or defend enforcemept of auch lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hasard Inauranoe. Borrower shall keep thQ improvements now exieting or hereafter erected on the Property inaured againat losa by : fire. hazar~s included within the term "estended rnverage," and euch other hazarde as I.ender may require and in such amounta and for such ; perioda aa I.ender may require; provided. that Lender shall not require such ooverage amount e:ceeding the minimum, aa may be required by state or federal regulatione governing aetivities of Lender. or that amount of coverage required to pay the aums secured by this Mortgage, ~ whichever ia the greater. The insurance carrie~ providine t!?e inaurance ahall be chosen by Borrower subject to approval by Lender; provided, ~hat such approval shall not be unreasonably 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 insurance policiee and renewals thereof ahall be in form acceptable to Lender tu?d ahall include a atandard mortgage clause in favor of 4 and in form aoceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower shali promptly furniah to i.ender all reneaal noticee and all receipta of paid premiume_ In the event of loss, Borrower shaU give prompt notice to the insurance carrier _ and Lender. Lender may ma1~e proof of loss if not made promptly by Borrower. I'i Unleas Lender and Borrower otherwiee agree in writing. ineurance pmceede ahall be applied to restoration or repair of the Property ' ; dameged. provided auch resLoration or repair ia economically feasible and the security of this Mortgage ia not thereby impaired_ If such reatoration or repair is not economicslly feasible or if the security of thie Mortgage would be impaired, the inaurance proceeda ahall be applied ~ to the sama eec~ued by this Mortgage, with the ~ceas, if any, paid to Borrower- If the Property ie abandoned by Borrower, or if Borrower faila to. ~ respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that ihe insurance carrier offere to setde a claim for - ! inaurance benefita. Lender ie authorized to collect and apply the inaurance proceeda at Lende?'s option either to reatoration or repair of the ~ Property or the auma eecured by thia Mortgage. ~ Ualeae I.ender and Borrower otherwiae agree in writing, any such application of prooeeds to prinripal ahall not extend or postpone the due ~ date of the monthiy inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. If under paragraph 18 hereof the Property is aoquired by Leader. all right, tide and intereat of Borrower in and to any inaurance policies and in and to the proceeds t thereof resulting from damaee to Property prior to the eale or acquisition ahall paea to Lender to the e:tent of the sume secured by this ~ Mortgage immediately prior to auch sale or soquieition. ~ 6. Preaervation and blaintenance of Property; Leaseholda; Condominume; Planned Untt Developmente. Borrower ahall keep the Property in good repair end ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisione of any leaee if this Mortgage is on a leasehold. If thia Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ehall perfortn ail of Borrower'e obligationa under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or planne~ unit development, and constituent documente. If a ~ condominium or planned nnit development rider ia eaecuted by Borrower and recorded together with thie Mortgage, the aovenanta anJ ~ agreemente of such rider aha11 be incorporated into and shall amend and supplement the covenants and agreements of thia Mortgage as if the rider were a part hereof. ~ 7. Pcotection of Lender's Secnrity. If Borrower faila to per[orm the oovenants and agreemente oontained in thia Mortgage, ar if aqy ~ action or proceeding is commenced whic6 materially effects Lender'e intereat in the Property, including, but not limif~ed to, eminent domain, insolvency. oode enforcement, or errangements or prooeedings involving a banlarupt or deoedent, then Lender at I.ender'e option,npon ~ aotice to Bormwer may make snch appearenoes. diaburee euch suma and take sach action as is necessary to proted Lender's intere~t, inclnding, but not limited to, disb~usement of reasonable attorney 8 fcee and entry upon the Property to mai~e repaire. If Lender required mortgage insurance ae a condition of ineking the loan secured by this Mortgage. Borrower ahall pey the premiume required to maintain ~ snch insuranoe in effect until anch time as the requirement for such inaurance terminates in accordance with Borrowa's and Lende~e ~ written agnem~t or agplicable Law. Borrower shall pay !he amount of all mortgege insurence premiums in the manner provided under ~ paragraph 2 hereoL - _ Any amounts dishureed by Lendez pereuant to thia paragraph 7, with interest thereon, shall beoome additional indebtednees of ~ Borrower secuied by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, such sinounte shall be payable upon - ~ notice firom Lender to Borrower requesting payment thereof, and ahall bear intereet firom the date of diabureement at tbe rate payable from ` time to time on outatanding principal under the Note anlees payment of intereat at sach rate would be oontrary to applicable law, in which ~ ~ event snch amounts shall bear intereat at the higheet rate permiesible under applicable law. Nothing containe~ ia thia paragraph 7, shall ~ require I.ender to incur any e:pense or take any action hereander. ~ a ~ ~ ~ BOOK~ ~GE ~ ~ - ` _ ~ ~ _ _.r-~ - - - - . ~ , - ~ ~ ' ~ ~ - - ~ - - _ _ ~ ~ ~ , ~ ~ ~ ;