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HomeMy WebLinkAbout0762 Horrower and L.ender covenant and agree ae followe: 1. Paymeat of Principal and Interest. Borrower ehall promptly pay when due ihe principal o[ and interest on the indebtedneaa evidenced by the Note, prepayment and laLe chargee as provided in the Note, and the principal of and intereat on any ~Lture Advances eecured by this Mostgage. • 2. Ftinds for Ta~tes and Ineurance. Subject to epplicable luw or to a written waive~ by l.ender, E3or~ower ehall pt~y to t.enderon the day monthly inatallments otprincipal and intemut are payable under tha Note, until the Note ie paid in full, a sum (herein "F`unda") equal to one twelfth of the yearly taxes and aaseaeme~ta which may attain priority over thia Martgage, and ground rents u~ the Pruperty, if any, plue on~ twelRh of yearly premium inatallments for hazard insurance, pluso~etwelfth ofyearly premium inetallments for mortgage inaurance, if any, all ae reaeonably eatimated initiaUy and from time to time by I.ender on the baais of aaseaementa and billa nnd reusonable eatimutes thereof. The ~nds shall be held in an institution the deposits or accounts of which are inaured or guaranteed by a Federal or Stnte agency (including L.ender if l.ender is auch an institution). I.ender shall apply the ~nde to pay eaid taxea, xsseeamente, inaurunce premiume and ground rents. Lender may not charge for so holding and applying the ~nde, analyzing said aa.~ount, or verifying and compiling said asseeaments and bills, unlese [.ender pays Borrower intereat on ihe F unde and applicable law permite I.ender to make euch a cha~e. Borrower end I.ende~ may agree in writing at the time of execution of thia Mortga~ce that interest on the F~nda shall be paid to Borrower, and unleas auch agreement is made or applicable law requires such interest eo be paid, I.ender shall not be required to pay Borrower any interest or earninge on the Fl~nds. Lender shall give to Borrower, without charge. an annual accounting of the Funde ahowing credits and debits to the Funde and the purpose for which each debit to the ~nds was made. The Funds arE pledged as additional eecurity for the aume eecured by thia Mortgage. If the amount of the ~nde held by Lender, together with the future monthly inatallmente of Funde payable prio~ to the due datee of taxea, easesements, ineurance premiums and ground rente. ehall exc~ed the amount required to pay said taxes, assesaments, inaurance premiuma aad ground sente as they fall due, euch exceae ahall be, et Borrowei s option, either ~romptly repeid to Borrower or credited to Borrower on monWy inataUmeats oi l~nds. If the amount of the Funds heW by I.ender ehal! not be sutficient to pay taxee, aeseeamenta, insurance premiums and ground rents as they fall due. Borrower ahall pay to Lender any amount necrssary to make up the defiaency within 30 days from the dste notice is`mailed by Lender to Borrower requeating payment thereoL Upon payment in fuU of all aume secured by thia Morigage, Lender shall promptly refund to Borrower any funde hetd by Lender. If under paragrapA 18 hereof the Property ia aold or the Property is othe~wiee acquired by i.ender, Lender ahall appiy, no later than immediately prior to the sale of the Propeity or its aoquisiaon by Lender, any Funda held by Lender at the time of application as a credit againet the sums secured by thia Mortgage. 3. Appllcation oi Payments. Unlese applicable law provides otherwise. all paymente received by Lender under the Note and parttgraphs 1 and 2 hereof shell be epplied by Lender firat ia payment of amounts payable to Lender by Borrower under paragtaph 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 Advances. 4. C6arges; Liene. Borrower sha11 pay all taxes, assesamenta and other chargee, fines and impositiona attributable to the Property which may attain a ptiority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner. by Horrower making payment, when due, directly to the payee thereof. Bornower shall promptly fumish to I.ender all noticea of amounfs dne under this paragraph, and in the event Borrower ahall make payment directly, Borrower shall promptly furniah to Lender receipte evidencing auch paymenta. Horrower shall prompUy diacharge any lien which hua priority over this Mortgage; provided, that Borrow~ ahall not be reQuired to discharge any such lien eo long as Borrower shall agree in writing to the payment of the o~ligation secured by auch lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which oper'ate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the impmvements now e:iating or,hereafter erected on the Property insured against losa by fire. hezarda included within the term "e:tended coverage." and auch other hazards a8 Lender may require and in such amounts and for auch periods ae I.ender may require; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be r~eyuired by state or federal regulationa governing activitiea of Lender. or that amount of coverage required to pay the aums aecured by this Mortgage. whichever ie the greater. The insurance carrier providing the insurance ahall be chosen by Borrower subject to approval by I.ender, pruvided, that such approval ahaU not be unreasonably withheld All premiuma on insurance policies ahall be paid in the manner provided under parugraph 'l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier_ All inaurance policies and renewals thereof ehall be in form acceptable to I.ender and at~all include a atandard mortgage clause in favor of - and in form aooeptable to Lendes. L.ender ehall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the event of loes. Borrower shall give prompt notice to the insurance carrier ! and Lender. Lender may make proof of loee if not made prompdy by Borrower. I Unlees Lender and Borrower otherwise agree in writing, ineurance proceeda ehall be appiied to restoration or repair of the Property ~ damaged, provided such restoration or repair ia economicaUy feasible and the aecurity of this Mortgage ie not thereby impaired. If such reatoration or repair is not economically feaeible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the suma eecured by thie Mortgage, with the exceae, if any. paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the ineurance carrier offers to settle a claim for ~ ineurance bene5ts. Lender is authorized to rnllect and apply the insurance proceeda at Lendei e option either to reetoration or repair of the Property or !he auma eecured by this Mortgage. Unleae Lender and Borrower otherwise agree in writing, any euch application of pioceeda to principal ahall not extend or poatpone the due date of the monthly inataUmente referred to in paragraphs 1 and 2 hereof or change the amount of euch inatallmenta. If under paragraph 18 hereof the Property is aoqaired by Lender, all right, tide and intereet of Botrower in and to any inaurance policies and in and to the proceeda thereof rESUlting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the auma secared by thia Mortgage immediately prior to such sale or aoquisition. 6. Preservation and Yaintenance of Property; Leaeeholds; Condominums; Planned Uait Developments. Borrower ahall keep the Property in good repair and shaU not coasmit waste or permit impairment or deterioration of the Property and ahall rnmply with the provieions of any lease if this Mortgage is on a leaeehold. If thia Mortgage ie on a unit in a oondominium or a planned unit development, Borrower ahall perfotm all of Borrower a obligationa under the declaration or rnvenants creatingor governing the condominium or planned unit development, the by-lawe and regnlaaone of the condomini~un or planned unit development, and rnnatituent dceumente. If a rnndominium or planned unit development rider is e:ecuted by Borrower and recorded together with thie Mortgage, the oovenants and agreementa of auch rider ahall be incorporatecl into and shall amend and supplement the covenanta and agreementa of thia Mortgage as if the rider were a part hereof. 7. Protection ot Lender's Securjty. If Borrower fails to perform the aovenants end agreements contained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affects Lender s interest in the Property, including, but not limited to, emineat domain, insolvency. oode enforcemeat, or errangements or peoccedings involving a banlQUpt or decedent, then I.ender at Lender s option,upon ~ notice to Barrower may make such appearanc~. disburse such sums and tate euch aMion as is nec~ary to prot,ect I.ender's intereat, including, but not limited to, disbureement of reasonable atbrney's fces and entry upon the Propedy to make repairs. If Lender required wortgage inaurance as a coadition of ineking the loan eecnred by thia Mortgage, Borrower ehall pay the premiums required to maintain euch inenrance in eftect until wch time ae the requirement for such insurance terminatee in accordance with Borrower'e and L~der's wriq~en agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiuma in the manner provided undez ~ ParaerePh 2 hereof. ~ My amounts disbureed by Lender pereuant to this paragraph 7, with interest thereon, ehall beoome additional indebtedness of ~ Borrower eecured by thie Mortgage. Unleee Borrower and I.ender agree to other terma of payment; such amounts ahall be payable upon ~ notice from Lender to Borrower requedting payment thereof, and ahall bear interest from the date of disburaement at the rate payable from time to time on outetanding principal under the Note unleea payment of interest at auch rate would be oontrary to epplicable law, in which event euch amounte shall bear interest at the higheet rate permiaeible under applicable law. Nothing oontained in this paragraph 7, ehall require Lender to incur any expense or take any action hereander. ~ R w/ ~ . L F~V~ r ¦ PAGC ; - , , _ - _ ~ ~ A,~ ~ f > ~ ; ~ ' ~ ~ ~ . ~ ~ ; ~ , i ~ ,fi~% ~ ~ r ~ ~ y - + -