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HomeMy WebLinkAbout0104 Borrower and [.ender cove~ant a~d agree ns'follows: 1. Payment of Prlncipal snd Intereet. 13orrowe~ ehall promptly pay when due the principal of and internet on the indebtrdneua evidenced by the Note, p~epeyment and late charges aa pt~ovided in lhe Note, and the principal of and interest on any ~ture Advancea secured by this Morfgage. 2. fl~nde [or Tues and Insur~?nce. Subject b applicable law or to a written waiver by I.ender, l3orn~wer ehall pay to l.eoderon the day monthly inetaliments of principal and interest are payable under the Note, until the Note ie paid in full, a sum (herein "~nde") equal to one twelRh o[the yearly t~uces and asseaamer?ts which may attain priority over thia Mortgage, a~d ground rentx un the Piroperty, i[any, plua one twelfth of yearly premium installments [or hasard ineurance, plua onetwelflh of yearly premium installme~ta for mortgiyce ineurance, if any, all as reaeonably eatimated initially and from time to time by l.ender on the basis of aeaeasments and billa and rensonable estimatea thereof. The F1nds ahall be held in an institution the deposit8 or accounts of which are insured or guaranteed by a Federal or State aECency (including I.ender if I.ender ia auch an institution). Lender ehall apply the Funde to pay said taxes, asaeeamente, inaurance premiums arid ground rents. Lender may not charge fos eo hoMing and applying the FLnde, analyzing said account, or verifying and compiling aaid aseessmenta and biUs. unleea Lender paya Borrower intereat o~ the ~nda nnd applicable law permita Lender to make such a charge. Borrower an~ l.ender may agree in writing at the time of execution o[ thie Mortgage that intereat on the ~nds shall be paid to Borrower, and unless such agreement ia made or epplicable law requiree such intereat to be paid, I.ender ahall not be required to pay Borrower any interest or earnings on the ~nda. Lender ehall give to BQrrower, without charge, an annual acoounting of the Funds showing credita and debite to the Flinds and the pnrpoee for which each debil to the HLnds was made.'1'F~e Funda are pledged as additional security for the auma eecured by this Moctgage. lf the amount of the ~nda held by I.ender, together with the future monthly installments of Funda payable prior to the due datee of taxee, aeseesments, insurance premiuma and ground renta, ehall exc~ed the amount required to pay said taxes, assesamente, insurance premiums and ground rents as they fall due. auch e:ceas sliall be, at Borrower's option, either promptly repaid tu Eiorrower or credited to Borrower on monthly installmente oi fi~ndB. V the amount of the Funda held by l.ender ahall not be sufficient to pay ta:es, seseasmenta, insurance premiuma and gro~ind rents as they fall due. Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requeadng payment thereof. Upon payment in fuU of all sums eecured by this Mortgage, I.ender ahall prompdy refund to Borrower eny funds held by Lender. If under paragraph 18 hereoi the Property ie eold or the Property is utherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite aoquisition by I.ender, any ~nda held by Lender at the time of application as a credit againat the aums eecured by thie Mortgage. 3. Applieation of Payments. Unless applicable law providea otherwiee. all payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts 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. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a prioritp over this Morigage, and leasehold payments or ground renta, if any, in the 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 ahali promptly fumish to Lender aU noticea of amounts due under this paragraph, and ia the event Borrower shall make payment directly, Borrower ahall promptly furniah to Lender receipts evidencing such paymente. Borrower shail promptly discharRe any lien which has priority over thia Mortgage; provided, that Botrower ehall not be required to diacharge any such lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of auch lien in, legal proccedinga which operate to prevent the enforcement of the lien or for[eiture ot the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the improvements now e:ieting or hernafter erected on the Property insured againat losa by fire, hazarde included within the term "extended rnverage," and auch other hazards ae Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender ahall not require such coverage amount e:ceeding the minimum, as may be required by etate or federal regulations governing activitiea of I.ender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Borrower eubject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insuranee policies ahall be paid in the manner provided under paraqraph 2 hereof or, if not paid in such manner, by Borrower making payment, when d~e, directly to the insurance carrier. All insurance policies and renewals thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form acceptable to i.ender. Lender shall have the right to hold the policies and rnnewals thereof, and Borrower ahail promptly furniah to i..ender all renewal noticee and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the inaurance camer and Lender. Lender may make proof of losa if not made promptly by Borrower. Unleea I.ender and Borrower otherwiae agree in writing, inaurance proceeds ahaU be applied to restoration or repair of the Property ! damaged. provided such restoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired. It euch ~ reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahal~ be applied , to the sums secured by thia Mortgage, with the exceae, if any, paid to Borrower_ Itthe Property ie abandoned by Borrower, orif Borrower fails to E reapond to Lender within 30 daye from the date notice ia mailed by I.ender to Borrower that the ineurance carrier offers to eetde a claim for ~ ineurance benefite, Lender ie authorized to collect and apply the insurance proceeds at Lender'a option either to reatoration or repair of the Property or the aums eecured by thie Mortgage. Unleae Lender and Botrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or poatpone the due date of the monthly inatallments referred to in paragraphs l and 2 hereof or change the amount of auch inatallmenta_ If under paragraph 18 hereof the Property ie aoquired by I.ender, all right, title and intereat of Borrower in and to any inaurance policiee and in and to the proceeds ~ thereof reeulting from damage to Property prior to the eale or acquiaition shall pass to L"ender to the eatent of the suma secured by thie ~ Mortgage immediately prior to auch sale or aoquiaition. ~ 6. Preaervation and Yaintenance of Property; Lease6olde; COOdOID1RtlII1B~ Planned Unit Devetopmente. Borrower ahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shell comply with the pmviaiona of any leaee if thie Mortgage is on a leasehold. If this Mortgage ie on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulatione -of the condominium or planned unit development, and oonstituent documents. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and agreementa of auch rider shall be incorporated into and shall amend and supplement lhe covenants and agreements of this Mortgage as if the . rider were a part hereof. ~ Protection of Lender'~ 9ecurity. If Borrower feila to perform the oovenant8 and agreemente oontsined in this Mortgege, or if any action or prooeeding is commenoed w6ich materially affects Lender's intereat in the Property, including, but not limited to, eminent domaia, insolvency, oode enforcemen~ or arrangements or proc~eedings involving a bankrupt or deoedent, then I.ender at I.ender's option,upon ~ notioe to Borrower may make auch appearances, diaburse such aums and take such action ea ie neoeeeary to protect I.ender's interes~ ~ - inclnding, bnt not limited to, disbureement of reseonable attorney's fces and entry upon the Property to malce repairs. If I.ender required mortgage insurance as a oondition of mal~ing the loan eecured by thie Mortgage, Borrower ehaU pay the premiums required to maintain snch ineurance in effect nntil snch time ae We requirement for euch ineurance terminates in accordance with Borrower's and I.euder's ~ written a~reement or applicable Law. Borrower shall pay the amount of all mortgege insurance preiniume in the manner provided under ~ paragraph 2 henof. ¢ Any amounte disbureed by Lender•persuant to this paragraph 7, with intereat thereon, ehall become additional indebtednebs of ~ Borrower secured by thia Mortgage. Unleea Borrower and Lender agree to other t.erme of payment, auch amounte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and shall bear intereat from the date of diabursement at the rate payable from ~ time to time on outatanding principal ander the Note unleee payment of interest at auch rate would be oontrary to applicable law, in which ~ event such amounte ehall beas inter~t at the highest rate permieaible under applicable lew. Nothing contained in this paragraph 7, ehall require Lender to incur any espenee or take any action hereunder. ~ • , ~ . ~ ~ . ~ 29i : s,: _ ~_04 ~ ~ - ~ 4 ~ -.~'r-aN~~,~ , _ . _c-...~_ . ' _ _ ~r r-"~~ -Zr . _ . 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