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HomeMy WebLinkAbout0390 E3orrower and [Rnde~ covenant and agree a= followa: 1. Peytae~t of Principal and lnterest. Borrower ehali prompUy pay when due the principal of and inte~est o~ the indebtednesa evidenced by the Note, prepaytnent and late chargea as provided i~ the Note, and the principal of and intereet on any Future Advances aecured by thia Mortgage. 2. I~lu~ds tor Ta~tee aqd Ineurance. Subject to applicable law or b a written waive~ by l.ender, E3orruwerahnll pay to l.ender on the day , mo~thly installmente oiprincipal and intereat are payable u~der the Note, until the Note ie paid in full, a eum (herein "Funda") equal to one twelfih of the yearly taxea and asaessmenta which may attuin priority over this Mortgage, and ~und renta on the Yroperty, if any, plua one twelfth otyearly premium inatallmenta for hazard inaurance, plua onetv?elRh ofyearly premium installmenta for mortgage insurance, if any, all as reasonably eetimated initially and from time to time by I.ender on the basia of asseae~nenta ~nd bilis and reasonable eatimates thereof The ~nda ehall be held in an institution the depoeits or accounte oi which are inaured or guaranteed by a Federal or State agency (including [.ender if I.ender is such en inatitution). Lender shall apply the ~nds to pay aaid taxes, eaeeasmenta, inaurance pmmiuma and ground rents. l.ender may not charge for so holding and applying t6e ~nda, analyzing eaid account, or verifying and compiling esid asaesamenta and bills, unleae I.ender paya Borrower interest on the ~nde and applicable law permits I.enderlo make such a charge. liorrower and l.ender may agree in writing et the time of execution of thia Mortgage that intemet on the Funda ehall be paid co Rorrower, and unleas such agreeme~t is made or applicable law requiree Buch intereet to be paid, I.ender shall not be required to pay Borrower any intereat or earninge on the ~nda. l.ender ehall give to Borrower. without charge, an annual accounting of the Funda showing credita and debits to the Funds and the purpoee for which each d'ebit to the Funds was made. The Funda are pledged as additional security for the suma secured by this Mortgage. If the amount of the F~nda held by I.ender, together with the future monthly instaUmente of Funds payable prior to the due dates of taxea, aeeesementa, ineurance premiuma and ground rents, shall exczed the amount required to pay said taxea, aaseasments, inaurance premiuma and ground rente ae they tall due, auch exceas ahall be, at Borrower's option, either promptly repaid to Aorrov~er or credited to Borrower on monthly inatallmenta of ~nds. If the amount of the Funda held by Lender ahall not be aufficient to pay ta:ea, assesamente, inaurance premi~une and ground renta as they fall due, Borrower shall pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all suma eecured by thia Mortgage. Lender ahall promptly refund to Borrower any funde hetd by l.ender. If under paragraph 18 hereof We Property ia ewld or the Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ita aoquiaition by L.ender, any ~nda held by Lender at the time of application as a credit against the aums aecured by thie Mortgage. 3. Application of Paymente. Unless applicable law provides otherwise, all payments received by I.ender under the Note and paragrt~phs 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower ahall pay all taxea, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground rentx, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directiy to the payee thereof. Borrower shall promptly fumish to I.ender all notices of amounts dne under this paragraph, and in the event Borrower ahail make payment directly, Borrower shall promptly furnish to Lender receipts evidencing auch payments_ Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge 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 Lender, or ehall in good faith contest such lien by, ordefend enforcementof such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any parl thereof 5. Hazard Insurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property inaured against loss by fire, hazarda included within the term "e:tended coverage," and auch other hazards as I.ender may require and in such amounts and for such perioda ae Lender may require; provided, that I.ender ahall not require such ooverage amount exceeding the minimum, as may be required by atate or federal regulationa goveming activitiee of L.endet, or that amount of coverage required to pay the auma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance ehall be chosen by Borrower subject to approval by l,ender, provided, that such appruval shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under paragraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the inaurance carrier. All ineurance policies and renewala thereof ehall be in form acceptable to Lender and ahaD include a atandard mortgage clause in favor of and in form aoceptable to I.ender. I.ender shall have the right to hold the policiea and renewals thereof, and Borrower ahall ptompdy fumish to i.ender all renewal noticea and all receipte of paid premiums. In the event of losa. Bc~rrower shall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loea if not made prompdy by Borrower. ~ Unlesa I.ender and Borrower otherwiee agree in wtiting, insurance proceeds shall be applied to restoration or rnpair.of the Property E damaged. provided auch reetoration or repair is economically feasible and the security of thia Mortgage is not thernby impaired. If auch ~ restoration or repair ie not economically fesaible or if the security of thia Mortgage would be impaired, the ineurance proceeda ahall be applied E to the suma eecured by thie Mortgege, with the exceas, if any. paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower fails to E reepond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance catrier o~ere to settle a claim for - ineurance benefite, Lender ia suthorized to collect and apply the inaurance proceede at Lender's option either to reatoration or repair of the Property or the auma eecured by thie Mortgage. Unleae Lender and Botrower otherwiae agree in writing, any such application of proceeds to principal ahall not eatend or postpone thedue date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any ineurance policies and in and to the proceeds thereof reaulting from damege to Property prior to the sale or acquisition shall paas to Lender to the e:tent of the aume secured by thia Mortgage immediately prior to auch sale or aoquisition. 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ehall rnmply with the provisione of any lease if this Mortgage ie on e leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower a obligationa under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawe and regulationa of the rnndominium or planned unit development, and rnnstituent documenta. If a condominium or planned unit development rider is executed by Borrower and recorded together vrith thia Mortgage, the oovenants and agreements of such rider shall be incorporated into and ahall amend and supplement the covenanta and agteements of this Mortgage as if the rider were a part hereof ' 7. Protection o! I.ender'e Secvrity. If Borrower faile to perform the oovenante and agreementa oontained in thia Mortgage, or if any ~ action or proceeding is rnmmenced which materially affecte Lender's interest in the Properfy. including, but not limited to, eminent domain, ineulvency. oode enforcement, or arrangementa or proceedings involving a banicrupt or decedent~ then I.ender at Lendei s option,upon notice to Bormwer may make such appearances, diaburse such eums and take euch action as ie necessary to proted Lender's interest, Y including, but not limited to, diebureement of reasonable attorney's fces and entry upon the Property to make repairs. If Lender required ~ mortgage insurance as a oondition of making the loan eecured by this Mortgage. Borrower ahall pay the premiums required to maintain ~ euch insnrance in effect until euch time as the requirement for auch insurance terminalea in aooordance wiW Borrower'e and Lender's ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiuma in the manner provided nndtr ' paragraph 2 hereof. Any amounta diebureed by I.ender persuant to thia paragraph with interest thereon, shall become additional indebtednees of ~ Aoreower secured by thie Mortgage. Unleas Borrower and Lendet agree to other tercne of payment, auch amountt~ ahall be payable upon notice firom Lender to Borrower requesting payment thereof, and ehaq bear interest from the dete of diabureement at the rate payeble from ~ time to time on outstanding principal under the Note anless payment of interest at euch rate would be contrary to applicable law, in which s~ event auch amounte ahall bear internet at the highest rate permisaible under applicable law. Nothing contained in this paragraph ahaU - require Lender to incur any expenee or take any action hereunder. ~ ~ , - a~P~ 291 ~a~z 390 ~ ~ ; v~. ~ - - - - - " _ ~ ~ u~ ~ ~ ~ ~ r~~~ -