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HomeMy WebLinkAbout0050 Eiorrower and I.ender covenant and a~re~ ae follmvs: 1. Payment ot Principal and Iaterest. Borrower shall promptly pay when due ihe principal of and intereat on the indebtedneaa evidenced by the Note, prepayment and lete charges as provided in the Note, and the principal of and inte~eat or? any Ftiture Advancea secured by this Mortgage. 2. FLnde for Twseo and Insuranoe. Subject to applicable law or to s written waiver by lxnder, ~3orrower ehall pay to l.ender on the day monihly installme~ts oi principal and interest are payable under the Note, until the Note ia paid in full, a aum Iherein "Ftinds") equal to one- twelRh of the yearly taxes and asaesaments which raay attain priority over this Mortgage, a~d ground re~ta on the Pruperty. if any, plus one twelRh oiyearly premium inatallmeata for hazard ir?surance, plus onetwelRh ofyearly premium inatailmente for mortgage inaurance, if any. all ae reaeonably eatimated initially and trom time to time by I.ender on the basia of assesementa and billa and reasonabie estimatea thereoi. The t~l~nds shall be held in an institution the deposits or aecounts oi which are inaured or guaranteed by a Federal or State agenry (including Lend~ if L.ender is such an institution). Lender shall apply the Ftinda to pay said ta:ea, asseaaments, inaurance premiums and ground tenfa. I.ender may not charge for so holding and applying the Flinds, analyzing aaid account, or verifying and compiling said aseessmente and bills, unleee Lender paye Borrower interest on the PY~nda and applicable law permite I.ender to make euch a charge. Borrower and I.ender may agree in writinB at the time of ezecudon of thie Mortgage that intereet on the F~nde ahall be paid to Borrower, and unleae euch agrcemeat is made or applicable law requirea such interest eo be paid, I.ender shall not be required to pay Bormwer any intereat or earninga on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credite and debite to the Funde and the purpoee for which each debit to the F~nds was made.'l~e Funde are pledged as additional eecurity [or the sume eecured by this Mortgage. If the amount of the Pti?nda held by I.ender, together with the future monthly inetallmenta of Funds payable prior to the due detes of t~ea, aseeasmeate. ineurance premiums and ground renta, shall e:cYed the amount required to pay said ta~ces, aaseeamente. insurance premiume and ground renta aa they fall due, such e:ceea ahall be, at Borrowei a option, either promptly repaid to Borrower or credited to Borrower on monthly installmenta of Funds. If the amount of the fi~nda held by Lender ahall not be sufficient to pay ta:ea, aeseeamenes, inaurance premiume and ground rents as they fall due, Borrower ahall pay Lo Lender any amount neceseary to make up the deficiency w~thin 30 daye from the date notice is mailed by l.ender to Borrower requesting payment thereof. Upon payment in fuU of all suma secured by this Mortgage, Lender shall promptly refund to Borrowes any funde held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwiee acquirecl by Lender, I.ender ehaU apply, no later than immediately prior to the sale of the Peoperty or its acquieition by I.ender, any Ftinda held by Lender at the time of application se a credit againat the suma secured by thie Mortgage. 3. Applicadon ot Payments. Unleas applicable law providea otherwiae, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by L,ender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note. thea to the principal of the Note. and then to interest and principal on any Futnre Advancea. 4. Chargea; Liene. Borrower shall pay all taxea, assessmenfs and other chatgea, fines and impositions attributable W the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in snch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompdy furnish to Lender all noticea of amounta due under this paragraph, and in the event Borrower ahall make payment direcUy. Borrower ahall promptly furniah w ~ Lender receipts evidencing such payments. Borrower ahall promptly discharge any lien which hae priority over this Mortgage; provided, that Borrower aha11 not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender. or shall in good faith contest such lien by. or detend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineuranoe. Borrower ahall keep the improvements now e~cieting or hereafter erected on the Property inaured againat loeB by fire. hazarde included within the term "eztended coverage," and auch other hazards ae I.ender may require and in such umounta and for such periode ae Lender may require; provided, that Lender ahall not require snch ooverage amount e:ceeding the minimum, aa may be required by state or federai regulations governing activitiea of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ie the greater. The inaurance carrie~ providing the insurance ahall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies ahall be paid in the mannet provided undei paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All ineurance policies and renewala thereof shall be in fortn acceptable to Lender and ehall include a standard mortgage clauee in favor of and in form aoceptable to I.ender. L.ender ahall have the right to hold the policies and rnnewals thereof, and Boaower shall promptly furnish to i.ender all renewal nobices and all reoeipte of paid premiuma. In the event of loes, Borrower ahall give prompt notice to the inaurance carrier ~ and Lender. Lender may make proof of loss if not made prompdy by Borrower_ ~ Unlesa Lender and Borrower otherwise agree in writing, inenrance proceeds shall be applied to restoration or repair of the Property ~ damaged, provided euch restoration or repair ie economically feasible and the eecurity of thie Mortgage ie not thereby impaired. If such reatoration or repair is not economically feasible or if the eecurity of thia Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the aume aecured by this Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faile to E respond to I.ender within 30 days from the date notice is mailed by Lender to Borrower that the ineurance carrier offers to eettle a claim for ~ ineurance benefite, Lender ia suthorized to collect and apply the insurance proceede at Lender's option either to restoration or repair of the Property or the auma eerured by thi8 Mortgage. Unleas Iender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not e:tend or postpone the due date of the monthly installmente referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If ander paragraph 18 hereof the Property ia acquired by Lender, aU right, tide and intereat of Borrower in and to any ineurance policies and in and to the proceeda thereof r~ulting from damage to Property prior to the eale or acquieition ehall pass to Lender to the e:tent of the suma eecured by thia Mortgage immediately prior to auch sale or aoquieition. ~ 6. Preservatioa and Maintenance of Property; I.eaee6olda; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deteriuration of the Property and ehall oomply with the pmvieiona of any lease if this Mortgage ie on a leasehold. If thie Mortgage ie on a unit in a oondominium or a planned unit developmQnt, ~ Borrower ahall perform all of Borrower'e obligations under the declaration or covenante creatingor governing the condominium or planned ~ unit developmenf, the by-laws and regulatione of the condominium or planned unit development. and oonstituent doc~unente. If a rnndominium or planned unit development rider is execnted by Borrower and recorded together with thia Mortgage, the oovenants and agreements of euch ridet ahall be incorporated into and ahall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of I.ender'e Security. If Borrower laila to perform the eovenante and agrcemente oontained in this Mortgage, or if any action or proceeding is oommenced which materially effecte Lendei s intereet in the Property, including, but not limited to, eminent domein. ~ insolvea oode enforoement, or arrangementa or pmce~edings involving a benlmipt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may make such appearances, diaburse such sums and take anch action as is aeoeseary to protect Lend~'s inte~e~t, including, but aot limited to, disbureement of reasonable attorney's fees and entry upon the Property to make repairs. If I.ender required y; mortgage inaurance ea a condition of making the loan secured by thie Mortgage, Borrower shall pay !he premiums reqaired to maintain mch ina~ranoe in effect until wch time aa the reqnirement for such insuranoe terminates in aocor~ance with Borrow~'s and Lende~s ~ written agreement or applicable Iaw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided nnder paragraph 2 hereof. ~ My aa?ounta disbureed by Lender persuant to thie paragraph with intereet thereon, shall beoome additional indebtedness of ~ Borrower secured by thia Mortgage. Ualeea Borrower and I.ender agree to othez terms of payment, such amounte ahall be payable upon ~ notice 5^om Lender to Borrower requeating payment thereof, and ehall bear intereet from the date of disbursement at the rate payable from ~ time to time on outatanding principal under the Note unleae payment of intereat aL auch rate woald be oontrary to applicable law, in which ~ event such amounte ahall bear inLereat at the higheat rate permiaeible under applicable law. Nothing contained in this paragraph 7, shaU reqnire I.ender to incor any eupense or take any action htreunder. ~ ~ - BOOK ~?i71 PJIGf ~ ~g . ~ ~ ~ ` ~ : - - . ~~.~~ce r~:~:_ c~~ .v 3~ '~'~'°r~? ~ ~ ~ ~ ' x. P . ~~~b ~ ~ 6.. ~ T~.~ _ " ~ • , ",S.f' ~ ' '