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HomeMy WebLinkAbout0634 Rorrower and l.ender covenant and agree as foUows: ~ 1. Paytaent ot Princip~l and Interest. E3orrower ahall promptly pay when due the principal ot and intereat on the indebtedneas evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal of a~d intereeton any Futu~e Advancea secured by thia Mortgage. ~ - 2. Ftiu~d. [or Ta~ces aad lnsurance. Subject to applicable !aw o~ to a written waiver by I.ender, Burn?wer ehall pay to l.ender on the day monthly inatallmente of principal and interest are payable under the Note, until the Note ia paid in full, a aum (herein "F'unda") equal to one twelRh of the yearly taxee and asseaementa which may attain priori/y over thie Morigage, and ground renta un the Property, itany, plus one twelRh of yearly prernium inatalimenta for hazard inaurance, plua onetwelfth of yearly premium inatallments for murtgage ineurunce, if any, ~~11 as reseonably estimated initially end firom time to time by I.ender on the baeis of asseasmente and biUa and reusonable eatimates thereot. The ~nds shall be held in an institutio~ the depoeite or accounte of which are insured or guaranteed by a Federal or State agency ~including l.ender if Lender is such an inetitution). Lender sheli apply the Funds to pay said taxes, aaeeaementa, insurance premiuma and Kround rents. l.ender may not charge for eo holding and applying the ~nda, analyzing eaid account, or verifying and compiling eaid asaeeaments and bills, unleea Lender pays Borrower intereat on the Funds and applicable law permits I.ender to make auch u charge. Borrower and l.ender may agree in writing at the time of axecution of thia Mortgage that interest on the ~nds shall be paid to Borrower, and unleae such agreement is made or applicable law requires auch intereat to be paid, Lender ehaU not be required to pay Borrower any interest or earninga on the ~nds. I.ender ahali give to Borrower, without charge, an annua! ~ceounting of the Fun~s xhowing credita and debits to the 1 O F unds and the purpoee for which each debit to the Funda was made. The Funda are pledged as additional aecurity for the suma secured by this Aiortgage. If the amount of the ~nda held by Lender, together with the future monthly inatallments of Funda payable prior to the due datee of taxes, ss~esaments. insurance premiume and ground renta, ahall exc+~ed the amount required to pay said taxea, asseasmenta, ineurance premiums and ground rents aa they fall due, auch excese ahall be. at Borrower's option, either prompdy repaid to Borrower or credited to Bor~ower on monthly inetaliments of ~ndis_ lf the amount ot the Funda held by Lender ahall not be aufficient to pay taxea, assessmenta, insurance premiums and ground rente ae they [all due, Borrower ehall pay to Gender any amount neceseary to make up the def ciency within 30 days from the date notice ie mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all eums eecured by thie Mortgage, Lender ahall prompUy refund to Borrower any funda held by Le.k?der. If under pa ragraph 18 hen.wf lhe Property is aold or the Property is otherwise 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 l.ender at the time of apptication as a credit against the sums secured by this Mortgage. • 3. Application of Paymenta. Unlesa applicable law pmvidea otherwiee, ail payments received by L.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by I.ender firet in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to inter~eat and prinripal on any Futum Advances. 4. Charges; I.iene. Borrower ahali pay all laaea, assessmenta and other chargea, finea and impositiona attributable to the E'roperty which :n ay attain a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to I.ender ;tl l noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Burrower shull promptly [urnish to l,ender receipta evidencing such paymente. E3orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Rorrower shall not be required to discharge any such lien so long as Borrower ahall agree in writing to the pa~ ment of the obligation secured by ,uch lien in a manner acceptab?e to Lender, or shall in good [aith contest such lien by, ordefend enforcement of such lien in, legal proceedings ~vhich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. • 5. Hazard Ineurance. Borrower ahall keep the improvemente now existing or hereafter erected on the Property insured against loss by Yi re, hazarde included within the term "eatended coverage," and 8uch other hazards as Lender may require and in such amounta and for such periode aa Lender may require: proeided, that Lender ahall not requim auch coverage amount exceeding the minimum, as may berequired by ~tate or federa! regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums secured by thia Mort{tage; whichever ie the greater_ The insurance carrier providing the insurance shaU be chosen by Borrower subject to approval by l.ender, pruvidrd, that such appruval ~hall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paraKraph 2 hereof or, if n~~t paid in such manner, by Eiorrower making payment, when due, directly to the inaurance carrier. All ir.sutance policies and renev? ala thereof ehall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of ~ a nd in form acceptable to Lender_ L.ender shall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender s11 rnnewal notioea and all receipta of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of lose if not made promptly by Boc nwer. _ ~ Unless Lender and Borrower otherwise agree in writing, inaurance procceda shall be applied to restoration or repair of the Property ' damaged, pravided auch restoradon or repair ie economically feasible and the eecurity of this Mortgage ia not thereby impaired. If auch ~ restoration 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 secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faile to ~ reapond to I.ender within 30 daye from the date notice is mailed by Lender to Borruwer that the insurance carrier offers to settle a claim for ~ insurance bene6te, I.ender ia authorized to collect and apply the insurance proceeda at Lender a option either to restoration or repair of the ~ Pmperty or the suma eecured by this Mortgage. ~ Unlese Lender and Borrower otherwiee agree in writing, any auch appiication of pmceeda to principal ahall not extend or postpone the due ~ d~te of the monthly instaUmente referred to in paragrapha i and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Property is aoquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda ~ chereof reaulting from damage to Property prior to the sale or soquieition ahall paes to Lender to the eatent of the auma secured by this ~ Mortgage immediately prior to auch aale or acquiaition. 6. PreservaNoa and Maiatenance of Property; Leaseholde; Condominume; Pianned Unit Developments. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ pruvisions of any lease if this Mortgage ia on a leasehold. If thie Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perforno all of Borrow~'s obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-laws and regulationa of the rnndominium or planned unit development, and oonatitnent documents. If a condominium or planned unit development rider is execated by Borrower and recorded together with this Mortgage, the covenante and t ~ aRreements of auch rider ehaU be incorporated into and ahali amend and supplement the covenants and agreemente of this Mortgage as if the k rider were a part hereof. ' ~ 7. Protection of Lender's Security. If Borrower isile to perform the oovenante and agreementa oontained in thie Mortgage, or if any ~ action or proceeding is commenoed which materially affecte Lender s interest in the Property, induding, bnt not limited to, eminent domain, - ineolvency, oode enforcemeat, or arrangements or pmceedinge involving a banlQapt or deceden~ then Lender at Lender'8 option,upon notice to Borrower may make such appearances, disbnrse euch aums and take such artion ea is aeoessary to protect Lendei a intereet, including. but not limited to, disbureement of reaaonable attorney'e fees and entry npon the Propedy to meke npairs. If I.ender required a mortgage insurance as a rnndition of making the loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain ~ auch insurance in eftect until anch time as the requirement for euch ineurance terminatee in accordance with Borrower's and I.ender e _ written agreement or applicable Law. Borrower ahall pay the amount of a11 mortgage ineurance premiuma in the manner provided under ~ paragtaph 2 hereof. ~ My amounta disbursed by Lender persuant to thie paragraph 7, with intereet thereon, ehall become additional indeMedaeas of = Borrower secured by thi~ Martaage. Unleas Borrower and Lender agree to other terme of payment, euch amounts ehall be payable upon notice from Lender to Bonower reqnesting payment thereof, and ahall bear intenat from the date of diebursement at the rate payable fro_m ~ time to time on outstanding principal under the Note unleea payment of interest at euch rate would be oontrary to epplicable law, in which event euch amounts shall bear intereat at the higheet rate pemueeible under epplicable law. Nothing rnntained in this paragreph 7, shall ~ require Lender w incur any e:penee or take any action hereunder. a w g00!! ~.J~. i:.L: .'x ~ ~k'~ ~ ~ ~~K~ ~ ie r~ . ~ ~ r . .s-.. ~~s -~k,,,~ ¢ . . . -s&`i`?:. .