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HomeMy WebLinkAbout0394 Borrower and l.ender covenant and agrt~ ae folluws: 1. Payment of Principal and lntereat. &~rrowe~ ahall prompUy pay when due the principal of and intereat on the indebledneas evidenced by the Note, prepayment and late chasges ae pmvided in the Note, and the principal of and intereat on any Future Advancre aecured by this Mortgage. 2. I~nds forTa:es and lnaurance. Subject to epplicable luw o~ to a written waiver by l.ender. Horrowereht~ll puy to l.ende~on theday mon?hly inetallmenta of principal and i~tereat are paynbie undes the Note, until the Note ie paid in full, a sum (herein "Funde") equal to one- twelRh of the yearly taxes and asaeasmenta which may attuin priority over this Mortgage, and gn?und rentx on the Property, if any, plua one twelfth of yearly premium installmenta fo~ hazard inaurance, plus o~etwelfth ofyea~ly premium instnllments for mortguge insurance, if nny, all as reaeonably estimated initially and f~om time to time by l.ender on the basis of aasessmenta and billa and reasonable eatimatea thereof. The ~nds shall be held in an inotitution the deposita or eccounts of which are inaured or guaranteed by a Federal or State age~cy (including L.ender if L,ender ia auch an institution). l.ender ehall apply the Funde to pay eaid taxes, aaaesamenta, ineurance premiums and ground rents. I.ender mqy not charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling eaid asseesmenLs and billa, unless Lender pays Borrower intereet on the ~nde and applicable law permits l.ender to make such a charge. Borrower and Lender may agree in writing at the tune of execution of thia Mortgage that intereet on the Funda ahali be paid to ~3orrower, and unleas auch agreement is made or applicable law requires auch intereat to be paid, Lender ehall not be required to pay Borrower any interest or earnings on the ~nde. Lender ehaU give to Borrower. without charge, an annual accounting of the I~tinda ahowing credita and debits to the ~nds and the purpoee for which each debit to the Funda was made. The Funda are pledged ae additional security tor the euma eecured by thie Mortgage. If the amount of the FLnda held by Lender, together with the future monthly instalimenta of Funds payable prior to the due datee of taxea, asaesaments, ineurance premiums and ground rents, ahall exered the amount required to pay said taxea, assessments, insurance premiums and ground rente as they fall due, auch e:ceae shall be, at Borrower's option, either promptly repaid to E3orrower o~ credited to Borrower on monthly inatallmenta of fi~nde. If the amount of the Funds held by Lender shall not be aufficient to pay tazea, asseasments, insurance premi~ms and ground rent8 as they fall due, Borrower ehall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requesting payment thereof. Upon payment in full of aU suma secund by this Mortgage, Lender ahall promptly refund to Borrower any fnnds held by [.ender. If under paragraph 18 hereof the Property ie aold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite acquisition by Lender, any ~nda held by Lender at the time of application ae a credit against the sums secured by thie Mortgage. 3. Application of Payments. Unlesa applicable law providea otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to I.ender by F3orrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargea; Liens. Borrowerahall pay all taxes, tissessments and otherrharges, fines and impositions attributable to the Property which may attain a priority overthis Morigage, and leasehold payments or ground rents, if anv, in the manner pruvided under paragraph'l hereof i~r, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. BorrowershaU promptly furnish to l.ender all noticea of amounts due under thie paragraph, and in the event Borrower shaU make payment directly, Borrower shall promptly furnish to Lender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortguge; provided, that Borrower shall not be rryuired to discharge any such lien so long ns Borrower shall agree in writing to the payment of the obligation sec~red by such lien in a manner acceptable to Lender, or shall in good faith conteat such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hezard Ineurence. Borrower shall keep the impro~ ements now existing or hereafter erected on the Property insured against loss by fire, hazarda included within the term "eatended coverage; ' and auch other hazards as l.ender may require and in such amounts and for such periode as I.ender may require; provided, that Lender ahall not requim such coverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums aecured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shnll be chosen by Borrower subjeM to appm~ al by I.ender, Rroeided, that such approval shall not be unreasonably withheld. All premiums un insurance policies shall be paid in the manner pmvided under paraKraph 'l hereof ot, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewala thereof ahall be in form acoeptsble to Lender and ahall include a atandard mortgage clause in favor of and in form acoeptabTe to Lender. Lender ahall have the right to hold the policiee and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipta of paid premiums. In the event of loss, Borruwer shatl give prompt notice to the insurance carrier and Lender. Lender m~y make proof of losa if not made promptly by Borrower_ ~ Unlesa Lender and Bonower otherwiee agree in writing, insurance proce~ds shall be applied to restoration or repair of the Property ~ ~ damaged, provided auch restoration or repair is economically [easible and the security of this Mortgage is not thereby impaired. If euch ~ reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance praceeda ahall be applied to the suma eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to E reapond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier of~ers to settle a claim for ~ inaurance benefits, Lender is suthorized to rnllect and apply the inaurance proceeda at Lender'a option either Lo restoration or repair of the Property or the aums secured by thia Mortgage. Unlees I.ender snd Borrower otherwiae agree in writing, any auch application of pr«.~eeds to principal shall not extend or postpone the due ~ date of the monthly inatallmenta referred to in paragraphe 1 and 2 hereof or change the amount of auch inatallments. If under paragraph l8 hereof the Property ia aoquired by Lender, all right, tiUe and interest of Borrower in and to any insurance policiea and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or acquieition ahall pasa to Lender to the eatent of the auma secured by this Mortgage immediately prior to such eale or acquiaition. 6. Preeervadon and Maintenance of Property; Leaeeholda; Condominuma; Planned Unit Developmente. Borrower ehall keep the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Propetty and ahall oomply with the provisiona of any lease if this Mortgsge ie on a leasehold_ If this Mortgage ia on a unit in a oondominium or a planned nnit developmenE, Borrower ehall perform all of Botrower a obligations under the declazation or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documenta. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and agreements of such rider shall be incorporated into and shal) amend and supplement thecovenants and agreements of this Mortgage as if the ~ , rider were a part hereof. 7. Protection ot I.ender'e $ecurity. If Borrower faila to perform the wvenante and agreemente contained in this Mortgage, or if any ~ a c t ion or p r o c e e d i n g ie rnmmenoed which meteriall y affects Lender'e interest in the Pro p e r t y, includin g, but not limited to, eminent domain. ineolvency, oode entorcement~ or arrangements or prooeedinga involving a bankrupt or deoedent, then Lender at Lender e option,upon ~ notice to Borrower may make euch appearances, diaburee such sume and'take ench action se ie neceaeary to protect Lender'a interest, including, bat not limited to, disbiueement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender reqnired mortgage ineurance aa a condition of mal~ing the loan eecvred by thie Mortgage, Borrower ahall pay the premiume required to maintain ~ 6uch ineurance in effect until auch time ae the requirement for euch ineurance terminatee in accordance with Borrower'e and I.ender'e ~ written agreement or applicable Isw. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under ~ paragraph 2 hereof. ~ My amounts disbursed by Lender pereuant to thia paragraph 7, with intemet thereon, ahall beoome additional indebtedneas of ~ Borrower eecured by thia Mortgage. Unlese Borrower and L.ender agree to other terms of payment, anch amounfe ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and shall bear interest from the date of diebureement aL the rate.payable from ~ ume f~o bme on ou~anding principal under the Note unleea payment of intereat at such rate would be contrary to applicable law, in wwch ~ event euch amounte shall bear intereat at the higheat rate permiasible under applicable law. Nothing contained in thie paragraph 9, ehaU require I.ender to incur any expenae or take any action hereunder. g~ ~ zg~ ~ 394 ~ ~ ~ ~ ~ ~ _ ~ - - - - - ~ ~ :~~...~=.4~~-~ > ~;~y - -