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HomeMy WebLinkAbout0963 liorn~we~ and lender cove~ant and a~ree as folluws: 1. Payment of Principal and Interest. E3orrower ahall promptly pay when due the principal of and intereat un the indebtednesa evidenced by ihe Note, prepayme~t and late charges a8 pmvided in the Note, a~d the principal of and intereet on xny Ftiture Advancea secured by this Mortgage. 2. ~nda tor Taxee and lnsurance. Subject to applicable law or to a written waiver by l.e~der, Borrower shiiil pny to l.ende~ on the day inonthly i~etallmenta of pri~cipal and intereet are payable under lhe Note, until the Note is paid in fuU, a aum (herein "Funde") equa) tu une twelRh of the yearly tnxea and uaseasmenta which may attain prio~ity uver thie Mortgage, und ground renta on the Property, i[any, plus on~ twelfth of yearly premium installmenta for huzard inaurance, plua onetwelfth ofyearly premium inslallments [or mortgt+gr inaurance, if any, ~iil se reaeonably eatimated initially and from time to time by I.ender on the bxsis of nsaessmenta nnd bills and ~easonable eatimates thereof. The ~Lnds ahal) be held in an institution the deposita or accounts of which are insured or guaranteed by a Federal or State agency (including I.ender i[ I.ender is euch a~ inetiwtion). Lender ehall apply the Funds to pay eaid taxee, aseeeame~ta, inaurance premiuma and ground rents. Lender may not charge for eu holding and applying the Ftinds, analyzing said account, or verifying and compiling said ,~saeasmenta and bills, unleae L.ender paye Borrower intereat on the Funda and applicable law permita l.ender to make auch a charge. Borrower Hnd Lender may agree in writing at the time of execution of thia Mortgage that interest on the Funds ahall be ~?aid to Borrower, and unleae auch agreement ie made or applicable law requiree auch interest to be paid, l.ender ahall not be required to pay Borrower any intereat or earninga on the Ftinda. I.ender ehall give to Borrower, without charge, an annual acoounting of the Funda showing credits and debite to the Funda and the purpose [or which each debit to the Funds was made. The Funde are pledged as additional eecurity for the auma eecured by this Mortgage. If the amount of the F~nde held by Lender, together with the [uture monthly installmenta of Funds payable prior to the due datea of taxea, asaesamente, inaurance premiuma and ground renta, ehaU exc~red the amount required to pay said ta:ea, asseaementa, ineurance premiums and ground rents as they faU due, such excees ahall be, at Fiorrower a option, either prompdy repaid to Borrower or credited to Borrower on monthly instaUmente of ~nde. If the amount of the ~nds held by l.ender ehall not be sutficient to pay ta:es, asseasmenta, inaurance premiume and ground renta as they fall due, Borrower ahall pay to Lender any amount necesaary to make up the deficie~cy within 30 days frvm the date notice ie mailed by [.ender to E3orrower requeating payment thereof. ~ Upon payment in full of all suma eecured by this Mortgage, I.ender ahall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ia othervr-iae acquired by [.ender, l.ender ahall apply. no later than immediately prior to the sale of the Property or its aoquisition by Lender, any Funda held by t.ender at the time of application aa a credit againat the aums secured by thie Mortgage. 3. Applieation of Payments. Unlese applicable law provides otherv?1ee, all payments received by I,ender under the Note and paragrapha 1 and 2 hereof ehall be applied by l.ender first in payment ot amounts payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on nny Future Advancea. 4. Chargea; Liens. Borrower ahall pay all taxea, assessments and other rharges, fines and impositions attributHble to the Property which ~nay attain a priority overthis Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directiy to the payeethereof Borrowershall promptly fumiah to Ixnder all notices of amounfs due under thia paragraph, and in the event Borrower shall make payment directly, Borrr~Ner ahall promptly furnish to [,ender receipts evidencing such paymente. Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that E~orrower ahall not be required to discharge any such lien ao long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate'to'pievent the en[orcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineuragce. Borrower ahall keep the improvements now exieting or hereafter erected on the Ptoperty inaured against loss by fire, hazarda included within the term "e:tended rnverage," and auch other hazards as I.ender may require and in such amounta and for such perioda as Lender may require; provided, that I.ender ehall not require such coverage amount e:ceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mottgage, w•hichever ia the greater. 'The inaurance carrier providing the inaurance shall be chosen by E3orrower subject to approva! by Lender, provided, that such approval sh all not be unreasonably withheld. All premiums on insurance policies shaU be paid in the manner prc?vided under paragraph `l hereof or, if nnt paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clauee in favor of a nd in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furniah to i.ender all renewal notices and all receipts of paid premiums. In the event of loas, Borrower shal) give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made prompdy by Borrower. j Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to restoration or repau of the Ptoperty damaged, provided auch reatoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If auch . ~ restoration or repair is not economically feseible or if the eecurity of this Mortgage would be impaired, the insurance proceeda ahall be applied to the sume secured by this Mortgage, with the eacesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ re+pond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the ineurance carrier of~ere to eetde a claim for ~ insurance benefita, I.ender is authorized to collect and apply the insurance proceeda at Lender's option either to reatoration or rnpair of the i Propertyr or the euma eecured by thie Mortgage. ~ Unlese I.ender and Borrower otherwiae aRree in writinq, any such application of proceeds to principal ahall not eztend or poatpone the due date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change t}ie amount of euch inatallments. If under paragraph 18 hereof the Property ie soquired by Lender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda thereof reaulting from damage to~ Property prior to the aale or aoquiaition shall pase to Lender to the extent of the aums eecured by this Rtortgage immediately prior to auch eale or aoquisition. ~ 6. Preeervstion and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ahall not rnmmit waate or permit impairment or deterioration of the Property and shall comply with the ~ proviaiona of any lease if this Mortgage ia on a leaeehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Eiorrower ahall perform all of Borrower e obligationa under the declaration or covenante creatingor governing the rnndominium or planned ~ unit development, the by-Iawa and regulationa of the condominium or planned unit development, and rnnatituent documente. If a condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thie Mortgage, the oovenanta and ~ aKreemente of auch rider ahaU be incorporated into and shall amend ana supplement the covenanta and agreementa of thia Mortgage as if the ~ rider were a part hereof. ~ ~ 7. Protection of Lender'e Security. If Borrower faila to perform the oovenante and agreemente contained in thie Mortgsge, or if any _ action or proceeding ia commenoed which materially affecta Lender'e interest in the Property, including. but not limited to, eminent domain, insolvency, oode enforcement, or arrangemente or proceedings involving a bantrupt or deoedent, then Leader at I.ender'e option,upon = notice to Borrower may meke auch appearances, diaburse each aums and take such action ~ ia neoeaeary to protect Lender e intereet, ~ including, bat not limited to, diebureement of reasonable attorney'e fcee and entry upon the Property to make repairs. If I.endrr required ~ mortgage inanrance as a rnndition of making the loan eecured by thie Mortgege, Borrower shall pay the premiume required to maintein Y such insurance in effect until such time ae the requirement for euch ineurance terminatee in accordance with Borrower's and Lender e ~ written agreement or applicable Lew. Borrower ehall pey the amount of all mortgage insurance premiume in the manner provided under ~ paragraph 2 hereoL = My amounte disbureed by Lender pereuant to this paragraph 7, with intereet thereon. ahall become additional indebtedneea oi ~ ~ E3orrower secured by thie Mortgage. Unieea Borrower and Lender agree b other terme of payment, euch ameunts ehall be payable upon ~ notice from Lender to Borrower teqaeating payment thereof, and ehall bear intereet from the date of diabureement at the rate payable from time to qme on outstanding principal under the Note unleee payment of intereet at auch rate would be oontrary to applicable law, in which event auch amounta ehall bear intereat at the highest rate permisaible under applicable law. Nothing rnntained in this paragraph 7, ehall ~ require I.ender to incur any expenee or take any action hereunder. ~ z ~ ~ . ~9 • 955 ~ ~ Pnl;c ~r = - - - - : ~ ~ ~ ~ r~ : ~ s ~ ~ ~ ~ ~ _ . , ~ g..