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HomeMy WebLinkAbout0215 Borrowet and.l.ender rnvenant and agree aa [olluwa: , 1. Payment o[ Principal and Internat. Horrower ahnll promptly pay when due the principal ot and intereat on the indebtedneas evidenced by the Note, prepayme~t and latechurgea ue pn,vided in the Note, andthe principal of and intereat on any Future Advuncea secured by this Mortgage. . 2. ~nde for TaYee and Inaurance. Subject to applicuble law or to a written waiver by l.ender, t~,rruwer shs~ll puy tu L.ender on the day monthly inatallments of principai and interest are payable under the Note, until the Note ia paed in full, a sum Iherein "Nunds") equAl to one twelRh of the yearly taxee and usseasmenta which may attain priority over ihis Mortgage, and ~ou~d rents un Ihe I'roprrly, if any, plus one twelfth of yearly premium installme~ts for hazard insurance, plua onetwelfth of yearly premium installmentx for mortgi+ge insurunce, if any, ail as repsonably eatimated inilially and from time to tirne by I.ender on the bt+ais of assesezments and bills nnd reasonnble estimates ?hereof. The ~Lnde ehall be held in an inetitution the depoeite or accounta of which are inaured or guaranteed by a Federal or State agency (including L,ender if [.ender ia such an inatitution). I.ender ahall apply the Funds to pay said taxea, asaeasmente, inaurance premiume and ground rents. Lender may not cherge for eo holding and applying the ~Lnds, analyzing said account, or verifying and compiling said asaesamenta and bills, unlesa l.ender paya Borrower interest on the Funda and applicable law permits I.ender to make such a charge. Borrowe~ and L.ender may agree in writing at the time of execution of this Mortgage that intereet on the F unda shall be paid b Borrower, and unlesa euch agreement is made or applicable law requires such intrrest to bc paid, Lender ahall ~ot be required to pay Borrower any intereat or earnings on the Fl~nda. I.ender ahall give to Borrower, without charge, an annual accounting of the Funda showing credita a~ debita to the Funda and the purpoae for which each debit to the Funda was made. The Funda are pledged es additional security for the auma secured by this Mortgage_ If the amount of the FLnda held by Lender, together with the future monthly inetallmente of H~nd~ payable ptior to the due datea of taxes, assesaments, inaurance premiume and ground renta, shall excYed the amount required to pay said taYea,Ae~ementa, inaurance premiuma and ground rente na they fall due, auch ezcess ahall be, af Borrower's option, either prompdy mpaid to Bprrower or credited to Borrower on monthly inatallmenta of ~nds. If the amount of the Funds held by Lender shaA not be.au!'ffleleht tdpay ~axes, assesaments, insurance premiums and ground rnnta as they fal! due. Borrower ahall pay to LendeS any amount nec.~eesary to m~ke np t}ie deficiency within 30 daya from the date notice is mailed by Lender to E3orrower requeating payment thereof: Upon payment in full of all sums secured by this Mortgage, Lender ehall promptly refund to Borrower any funds held by l.ender_ If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, l.ender shall apply, no later than immediately prior to the sale of the Property or ita acquisition by I.ender, any Funds held by Lender at the time of application as a credit againat the suma secured by this Mortgage. , 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to Lender by ~rrov?•er under paragraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advances. 4. Ch: rgea; Liene. Borrower shall pay all taxes, as.sessments and other charKes, fines and impositions attributable to the E'roperty which may attain a priority over this Mortgt?ge, and leasehold paymenls or ground rents, if any, in the manner provided under pa*agraph 2 hereof or, if not paid in such manner, by Borrower making payment, w hen due, directly to the payee thereof Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shalt maike payment directly, ~3orrower shall promptly furnish lo Lender receipts evidencing such payments. E3orrower shaU promptly disch~rge an~ lien which has priority ~ver this Mortgage; pmvided, that f3~rrower shall not be required to discharqe any such lien so long as F3orrower shall agree in writinK to the payment of the obliKation secured by - such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceeciings which operate to prevent the enforcemeet of the lien or forfeiture of the 1'roperty or any part thereof. . 5_ Hazard Insurance. $orrower ahall keep the improvements now exiatinq or hereafter erected on the Property insured against losa by fire, hazards included within the term "e:tended coverage," and auch other hazards as I.ender may requirn and in such amounta and for such i periods as I.ender may require; provided, that Lender shall not n~uin; such ooverage amount exceeding the minimum, ss may be required by ' atate or federal regulations governing aMivitiea of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, ~ whichever is the greater. ~ The insurs~nce carrier providing the insurance shall be chusen b~• Borrouer subject to approval b~• I,ender, pmvided, that such appro~•al [ shall not be unreasonablv withheld. Ai) premiums on insurance policies shajl be paid in the manner pmvided under paraKraph 2 hereo[or, if ~ not paid in such manner, by Borrow•er making p.lyment, w•hen due, directly to the insurance carrier_ ~ All inaurance policiea and rnnewals thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favor ot and in form acceptable to Lender. Lender shall have the right to hold the policiea and renew als thereot, and Borrov?er shall pmmptly fumish to ~ ixnder all renewal notices and aU receipts of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ ~ Unless Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. [f auch restoration or repair is not economically fensible or if the security of this Mortgage wauld be impaired, the insurance proceeda shall be applied ~ to the suma secured by this Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to reepond to Lender within 30 days from;he date notice ia mailed by Lender to Borrower that the insurance carrier ofters to aettie a claim for inaurance benefita, Lender is authorized to collect and apply the inaurance proceeda at I.ender s option either to reatoration or repair of the ~ Property or the sums aecured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principai ahall not extend or postpone the due date of the monthly inatallments reterred to in paragrapha 1 and 2 hereof or change the amount of such inatallments_ If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any inaurance poliries and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the a~uns secnred by thia Mortgage immediately prior to auch eale or aoquiaition. ~ 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Develapmeote. Borrower sha11 keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall compiy with the provieione of any lease if thie Mortgage is on a leasehold. If this Mortgage is on a u~lit in a condominium or a planned unit development, ~ Borrower shall perform all of BorroMer's obiigations under the declaration or covenante creatinRor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documents_ If a ~ condominium or planned unit development rider is executed by Barrower and recorded together with this Mortgage, the oovenants and agreements of such rider ahali be incorporated into and shal) amend and supplement the covenants and aqreements of this Mortgage as if the rider were a part herec~f. ~ 7. Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreements rnntained in thie Mortgage, or if any ~ action or proceeding ia commenced which materially aftecte Lender'a intereat in the Property, including, but not limited to, eminent domain, inaolvency, oode enforcem~nt, or arrangementa or proceedinga involving a bankrupt or decedent, then Lender at I.ender's option,upon ` notice to Borrower may ma1~e euch appearancee. dieburse auch eums and take auch action se ie neoeeeary to protect Lender'e interest, ~ including, but not limited to, disbureement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required - mortgage inaurance as a condition of making the loan secured by this Mortgage, Borrower ehall pay the premiuma required to maintain ~ such ineurance in effect until auch time as the requirement for auch ineurance terminatee in acc:ordance with Borrower'e and Lender s written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereoL My amounte diebursed by Lender persuant to this paragreph 7, with intereet thereon, ahall become additional indebtednees of Borrower eecured by thie Mortgage. Unleae Borrower and [.ender agree to other terme of payment, auch amounfe ehall be payable upon notice from Lender to Borrower requeating payment thereof, snd ahall bear intereet from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note unleea payment of intereet at such rate would be oontrary to applicable law, in which event such amounte ehall bear intereet~at the higheat rate permiasible under applicable law. Nothing contained in this paragraph 7, ehall ~ require Lender to incur any expense or take any action hereunder. ~ ~ ~a . 294 215 ?r`_i _ _ . ' ~ ~ . ' ~..~~.~*'.~.Kx. .,:'~l-~~ _~"w-w ~~a ,r , ..~e ~'~`~.~',r.s