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HomeMy WebLinkAbout0811 Borrower and I.ender covenant and agree as followa: 1. Payment of Principal end lnterert. [iorrowe~ shall promptly pay when due the principal of and intereet on the indebtednese evidenced by the Note, prepayment und late chargea as provided in the Note, and the principal otand intereat on eny Future Advances secured by this Mortgage. 2. ~tnds tor Taxes and l~surance. Subject tu applicable law or to a written waiver by I.ender, Ro~,wer shall pay to I.enderon the day mo~thly inetallments ot principal and intereat are payable under the Note, until the Note ie paid in full, a aum (herein "Fuoda") equal w one twelfth of the yearly taxes and assesamenta which may attnin priority over thie Mortgage, and ground renta on the Propeirty, if any, plue ont twelRh of yearly premium inatallmenta for hazard inaurance, plua one~twelRh ofyearly premium in8tullmenta for morlgage inaurunce, if any, all eia reasonably estimated initialty and from time to time by I.ender on the baeia of i~asesaments s~nd bills and reasonable eatimatea thereof. The ~nda shell be held in an inatitution the depoeits or aocounts of which are insured or guaranteed by a~ederal or State agency (including l.ender if I.ender is such an inetitution). [.ender ahall epply the Funde to pay aaid taxee, aeseaementa, ineurance premiuma and ground rents. Lender may not charge fos so holding and applying the Ftinds, analyzing said account, or verifying and compiling eaid asseeements and bills, unleea Lender pays Bonower intereet on the ~nde and applicable law permite [.ender to make auch a charge. Borrower and I.eader may agree in writing at the time ote:ecution of this Mortgage that intereat on the ~nda shall be paid to Borrower, and unleae euch agreement is made or applicable law reqrirea auch intereat to be paid, Lender shaU not be required to pay Boerower any intereat or earnings on the Flu~ds. Lender ahall give to Borrower, without charge. an annual accounting of the Funde showing credite and debite to the Funds and the purpose tor which each debit to the Ftinda wae msde. 71~e Funds are pledged as additional eecurity for the auma eecured by this Mortgage. Itthe amount of the Funda held by I.ender, together with the future monthly inetslimenta of Funda payable prior to the due dates of taxea, aeaeaementa, inaurance premiuma and ground rente, ahall excaed the amount required to pay eaid taxea, asaeaementa, inaurance premiums and ground rente aa they fall due, such e:ceea shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of ~1nds. If the amount of the F~nde held by Lender ahall not be sufficient to pay tauee, aseeasmenta, ineurance premi~uaa and ground rnnte se they fali due, Borrower shall pay to Lender any amount neceasery to make up the deficiency within 30 daye from the date notice is mailed by i.ender to Borrower requeating payment thereof. Upon payment in full of all sums secured by tt~ia Mortgage. Lender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property ia otherwise acquired by I.ender, I.ender ahall apply, no Iater than imme~diately prior to the sale of the Property Qr,jt~aoq~jaitipn.by I.end~qy 1~ltnds held by l.ender at the time of application as a credit againat the auma secured by this Mortgage. 3. Appticatlon o! Payments. Unless~applic~bl~ilaw provides otherwiae, all payments received by l,ender under the Note and paragraphe 1 and 2 hereo~~a~plied by I.ender fitet in payme~ d~amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable oqlire~)iotq thea to the principal of the Note. atta'then to interest and principal on any Future Advances. 4. Chargee; Liene. al{ pay a11 taxea, asaessmente and other,uharges, finea and impositions attributable to the Property which may attain a priority over t is ortgage, and leasehold payments or ground rents, 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. E3orrowershal! promptly furnish to Lender aU noticea of amounta due under thia paragraph, and in the event Iiorrower shall make payment directly, Borrower shall promptly fumiah to L.ender receipts evidencing auch payments. Borrower ahall promptly discharge any ?ien which has priority over thia Mortgage; provided, that Borrower ahall not be requited to discharge xny such lien ao long as Borrower shaU agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahaU in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or [or[eiturn of the Property or any part thereof. 5. Hazard Insnrance. Borrower ahall keep the improvemente now e:iating or hereafter erected on the Property insured against loas by fire. hazarda included within the term "extended coverage," and euch other hazards as Lender may require and in such amounta and for such perioda as Lender may require; provided, that Lender ahall not require euch coverage amount exceeding the minimum, as may berequired by state or federal regulationa governing activitiea of I.ender, or that amount of rnverage required to pay the sums aecured by this Mortgage, whichever ia the greatet. . The insurance carrier providing the insurance ahall be chosen by E3orrower aubject to approval by l.ender; provided, that such approval • ahall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Iiorrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ehall be in form acceptable to Lender and ahall include a etandard mortgage clauae in favor of and in form acoeptable to Lender. Ler.der shal) have the right to hold the policiea and renewals thereof, and Botrower ahall promptly fumish to iender all renewal noticea and all receipta of paid premiuma_ In the event of loss, Borrower ahaU give prompt notice to the insurance carrier and Lender. Lender may make proof of loea if not made prompdy by Borrower. ~I Unlesa Lender and Borrower otherwiee agree in writing; insurance proceeda ahall be applied to rnatoration or repair of the Property ~ damaged, provided such restoration or repair ia economically feaeible and the eecurity of this Mortgage ia not thereb I y impaired. If such reetoration ar repair ia not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds ahall be appGed to the aume secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date natice ia mailed by I.ender to Borrower that the insurance carrier ot~era to eetde a claim for i insurance benefits, Lender is suthorized to collect and apply the insurance proc.~eeda at I.ender's option either to restoration or repair of the Property or the eume secured by thie Mortgage. Uniess Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not e:tend or poatpone the due date of !he monthly instalimente referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 ~ hereof the Pmperty is aoquired by Lender, a,ll right, title and interest of Borrower in and to any ineurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquiaition ahall paea to Lender to [he extent of the s~uns aecured by this Mortgage immediately prior to auch eale or aoquiaition. 6. Preeervation and Maintenance of Property; Leaeeholds; Condominuma; Planned Unit Developmente. Borrower ahall keep e lhe Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisione of any leaee if this Mortgage ia on a leaeehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower shall perform al) o! Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominiusn or planned unit development, and rnnatituent documents. If a oondominium or planned unit development rider iB executed by Borrower and recorded together with this Mortgage, the oovenante and agreementa of such rider shall be incorporated into and ahall amend and aupplement thecovenanta and agreemente o[thia Mortgage aa ifthe rider were a part hereof. 7. Protection of Lender's $ecurity. If Borrower fails to perform Lhe wvenante and agreemente contained in this Mortgege, or if any action or prooeeding is rnmmenoed which materially affecte Lender'e interest in the Property. including, but not limited to, eminent domain, insolveacy. oode eaforcement, or arrangements or pmoeedings involving a banlm~pt or deoedent, then Lender at I.ender's option,npon ~ notice to Borrower may make such appearances, diaburee such aume and ta~e such action ae ie neoeeeary to protect I,ender's inteieet~ ~ inclnding. but not limited to, disbursement of reneonable attomey's feee and entry upon the Property to make npaire. If Lenda required ~ mortgage insursnce es a oondition of making the loan eecured by thie Mortgage, Borrower shall pay the premiums required to maintain a each insurance in effect until euch time as the requireme~ for ench ineurance terminatee in aocor~ance with Borrower's and Lendds ~ written agreement ~ir appliceble Law. Borrower shall pay the amount of all mottgage inawance premiume in the manner prnvided under ~ paragraph 2 hereof. k My amounts diaburaed by I.ender pereuant to thie pazagraph 7, with intereet thereon, ahall beoome additional indebtedneea of ~ Borrower secured by thie Mortgege. Unlese Borrower and Le.mder agree to other terme of payment, such emoanta ahall be payable upon ~ notice from Lender to Borrower requesting payment thereof, and ehell bear interest from the date of disbureement et the rate payable from ~ time to time on outetanding principal under the Note unless payment of intereet at euch rate would be oontrary to applicable law, in which ~ event auch amounts shall bear intereat at the highest rate permiseible under applicable law. Nothing rnntained in this paragraph 7, ehail ~ require Lender to incur any e:pense or take any action hereunder. ~ ~ aooK 291 PACE 803 ~ ~ ~ , . _ _ _ ~ _ :~:~-~~~-r'~~. - .rx ~z ° ; _ ~ a : +