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HomeMy WebLinkAbout0552 Borrower a~d I.ender covenant and a~rce as follow~ : 1. Payment ot Principal and laterest. Aorrows~ ehall promptiy pay when due the principal ot and intercat on the indebtednesa evidenced by the Note. prepayment and late chargea aa provided in the Note, and the pri~cipal of and interest o~ any Ftiture Advancee aecured by this Mortga~e. 2 Ptitnds [or Te~ea and Insurance. Subject to applicable law or to a written waiver by l.ender, Borrower ahall pay to l.ender on the day monthly inatallmenta of principal and intereat are p~yable under the Nute, unW the Note ia paid in full, a eum (herein "Funda'7 equal to ono- twelfth of the yearly taxes and asResemeqta which may attain priurity over thia Mortgage, and ground rents on the Property, itany, plua ooe a twelfth o[yearly premium installmenta [or hazard inaurance, plue onetwelfth ofyearly premium inatallmente for mortgage insurance. if any, ~ all as reaeona5ly eatimated initially and from time to time by I.ende~ on the brisia of asaeasmenta and biils and rexsonabte extimatea thereoE ~ The FLnds ahall be held in aa inatitution the depoeite os accounts of which are ineured or guaranteed by a Federal or State agency (including Lend~ if Lender is such an inatitution). I.ender shall apply the I~'unda to pey aaid ta:es, assesaments, inaura~ce premiums and ground tents. Lender we~y not charge for so holding and applying the Ftinds, analyzing 8aid account, or verifying and compiling eaid aesesaments and bilb, unless Lender pays Bormwer interest on the F~nde and applicable law permits Lender to make auch a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the F~nda shall be paid to Borrower, and unleas euch agreemeat is made or applicable law requires such intereat to be paid, Lender shall not be required to pay Borrower any interest or eaminge on the FLnds. Lender shall give to Boroower, without charge. an annual accounting of the Funda ahowing credits and debite to the Funds and the purpoee [or which each debit to the Funde was made. The Funds are pledged as additional security for the auma eecured by this Mortgage. . If the amount of the fi~nds held by [.ender, together with the future monthly inatatlmente of Funda payable prior to the due datea of taxea, aaaeeaments. ineurance premiums and ground renta, ehall exered the amount required to pay eaid ta:es. aasesamente, inaurance premiums and ground rente aa they fali due, euch exceas ahall be, at Borrower e option, either prompdy repaid to Borrower or credited to Borrower on monthly installmenb of flinde. If the amount of the Funds held by [.ender ehall not be aufficient to pay ta:es, asseesmente, inaurance preminms and grouad rente ae they fall due, Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of sU sume eecured by this Mortgage, I.ender ahall promptiy refund to Borrower any funde held by Lender. If under paragraph 18 henwf the Property ia sold or the Property ie otherwiee acquired by Lender, Lender ahall apply~ no later than immediately prior to the eale of the Property or its aoquieition by Lender, any Ftinds held by I.ender at the time of application as a credit againat the sums secured by thie Mortgage. ~ 3. Applieation ot Payments. Unleas applicable law providee otherwiae, all paymenta received by Lender under the Note and paragrapha 1 snd 2 hereof shall be applied by Lender firat in payment of amounts payable to Gender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advanc~es. 4. Charges; Liene. Borrower shall pay all taxes, asaessments and other charqes, fines and impositions attributable to the Property which ' may attain a priority over this Mortgage, and leasehold payments or ground renis, if any, in the ma{~[~e~ rovided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. f~6~vwer shai{ promptly furnish to I.ender all noticea of amounts due under this paragraph, and in the event Borruwer aha11 make payment directly, Borrower shall promptly furnish to Ixnder receipta evidencing auch paymente. Borrower shall promptly discharge any lien which has priority over this Mortqage; provided, that Borrower shall not be required to discharge any such lien so long aa Borrower shall agtee in writing to the payment of the obligation scrured by such tien in a manner acceptable to L.ender, or shall in good faith conteat auch lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture o[ the Property or any part thereof. ~ 5. Hazerd Insurance. Borrower shall keep the itnprovemente now exiating or hereafter erected on the Property insured against loss by fire, hazarde included within the term "r~tended coverage," and auch other hazards as Lender may require and in such amounts and for such periode as I.ender may require; pmvided, that Lender shall not require such ooverage amount ezceeding the minimum, as may be required by state or federal iegulations governing activitiea of I.ender. or that amount of coverage required to pay the aums aecured by this Mortqage, whichever ia the greater. . The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, pmvided, th~tt such approval shall not be unreasonably withheld. All premiums on ineurance policies shall be paid in the manner provided under paragraph 'L hereof nr, if not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. All inaurance policiea and renewals thereof ehall be in form acceptable to I.ender and shall include a atandard mortgage clause in favor of and in form aoceptable to I.ender. Lender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all reaewal notioea and all receipta of paid premiums. In the event of losa, Borrower ahall give prompt notice to the insurance carrier and I.ender. Lender may make proof of loes if not made prompdy by Borrower. Unlesa I.ender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property damaged, provided auch restoration or repair is ecopomically feaaible and the eecurity of this Mortgage ia not thereby impaired. If auch ~ reatoration or repair ia not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeds shall be applied E to the eums secured by thia Mortgage, with the ezoeas. if any. paid to Borrower. If the Property ia abandoned by Borrower. or if Borrower faila to ~ respond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the insurance carrier offers to settle a claim for i ineurance benefita, I.ender ie authorized to rnllect and apply the insurance proceeda at Lender e option either to restoration or repair of the p Property or the suma eecured by thie Mortgage. - ~ Unleas Lender and Bortower otherwiee agree in writing, any auch application of ptnoeede to principal ahall not e:tend or postpone the due ' date of the monthly inetallmenta referred to in paragraphe 1 and 2 hereot or change the amount of auch inatallmente. If under paragraph 18 € hereof !he Property ia aoquired by Lender, all right, title and interest of Borrower in and to any insurance poliries and in and to the prceeeda ~ thereof rnenlting from damege to Property prior to the sale or aoquieition ehall pasa to Lender to the extent of the anma eecared by thia 14ortgage immediately prior to such eale or aoquisition. 6. Preaervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developments. Borrower aha11 keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Propedy and shall comply with the pmvisiona of any leane if thie Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit devetopment, Borrower ahall perform all of Borrower a obligations under the declaration or rnvenants creatingor governing the condominium or planned ~ unit development, the by-Iawa and regulations of the oor.dominium or planned unit development. and rnnstiEuent documents. If a ~ condominium or planned unit development rider ia eacecuted by Borrower and recorded together with thia Mortgage, the covenante and agreements of such rider ahall be incorporated into ~d ehall amend and supplement the covenants and agreemente of this Mortgage as if the ~ rider were a part hereof. ~ ~ 7. Protection of Lender's Security. If Borrower faile to perform the oovenante and agreement8 oonteined in this Mortgege. or if any ~ act:on or proceeding ie commenced which materially affects Lendei a interest in the Property. including, but not limited to, eminent domain. insolvency. oode enforoement, or anangemente or prooeedinge involving a benkrnpt or deoedeat, then Lender a! Lender's option,npon notice to. Borrower may make suc6 appearancee, disburse such eums and take such action as is neceesary to protect Lender's interest, ~ inclsding, but not limited to, disbureement of reasonable attoraey's foea and entry upon the Property to make repaira. If Lender required ~ mortgage inenrance as a condition of making the loan sacured by thia Mortgege, Boirower ehaU pay the premiume required to maintain ~ euch insurance in el~ect until such time as the requirement for ench ineurance t~erminates in aooordance with Borrower'e and I.ende~s ~ wriqen agreement or appticable Law. Borrower ehaU pay the amount of all mortgage insurance premiume in the manner provided under . ~ paragraph 2 hereof. ~ My amounts diebureed by I.ender pereuant to thia paragraph with intereet thereon, shell beoome additional indebtednees of ~ Borrower secured by thie Mortgage. Unleea Borrower and Lender agree to other ter~ns of payment, euch amounte ahall be payable upon g notice firom Lendez to Borrower requesting payment thereof, and shall bear intereat from the date of disburaement at the rate payable from ~ time to time on outstanding principal under the Note unleas payment of intereat. at such rate would be oontrary to applicable law, in which ~ - event sach amounts ehall bear inlereat at the higheat rate permiasibie under applicable law. Nothing contained in thie paragraph 7, ehall ~ ~ require Lender !o incur any e:pense or take any action hereunder. = : ~ gaoK 291 ~A~~ 552 ~ - ~ ~ ~ ~ ~ . _ a ; - _ . . _ _ _ - ~ - ~ ; ~ } ~ ~ 9' ~ ~.1F~_,_:-: