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HomeMy WebLinkAbout0523 Borrowe~ and I.ender covenant and agree aa followe: 1. Payment ot Principa) end Intereet. Borrower ehaU promptly pay when due the principal of and intrmst on the indebtednesx evidenced by the Note, prepayment and late chargea aa provided in the Note, and the principal of and intereat on any Future Advancea aecured by thia Mortgage. 2. ~nde for Taxee and Ineurance. Subject to applicable IAw or to a writlen waiver by I.ender, I;or?rower sha11 pay to Ixnder un the day monthly ir?atallments of principal and inte~est are payable under the Note, until the Note ia paid in full, a sum (he~ei~ "Funde") equal to one twelfth of the yearly taxes and asscsamenta which may attuin priority over thia Mortgage, and ground renta o~ the 1'roperty, if any, plua one twelRh of yearty premium inatallmente for hazard inaurance, plua onetwelfth ofyearly premium inat~llmenta for mortgage iosurance, if any, all as reasor.ably eatimated initially and from time to tirrie by I.ender on the basis of assessmenta And billa and reasonuble estimatea thereuf. The FLnds ahall be held in an institution the depoaita or accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender ia auch an institution). Lender shaU apply the Funds to pay said taxea, aeaeasmente, inaurance premiuma and ground rents. Lender may not charge for eo holding and applyinq the Funde, analyzing said account, or verifying and compiling eaid esseasmenta and bille, unleae Lender paye Borrower intereat on the ~nde and applicable law permita Lender to make such a charge. E3orrower and Lender may agree in writing at the time of execution of thia Mortgage that interest on the Funds ahaU be paid !o Borrower, and unless such agreement ia made or applicsble law requires auch intereat to be paid, l.ender ahall not be required to pay Borrower any intereat or eamings on the ~?nde. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debita to the Fundn and the purpoae for which each debit to the Funde was made. The Funda are pledged as additional security for fhe aume secured by thie Mortgage. . If the amount of the ~nda held by I.ender, together with the future monthly inatallmenta of Funda payable prior to the due dates of taxea, aseesamenta, inaurance premiume and ground renta, shall excxd the amount required to.pay said taxea, asseasmenta, inaurance premiuma and ground rents ae they fall due, auch excesa ahall be, at Borrower's option, either promptly repaid to Borrower or ctedited to Borrower on monthly inslallmente of ~nda. If the amount of the Funds held by I.ender ahall not be aufficient to pay taxea, assesaments, inaurance premiiuns and ground rents ae they fall due, Borrower shall pay to Lender any amount neceasary to make up the deficiency within 30 days • from the date notice ie mailed by Lender to Borrower• requesting payment thereof. Upon payment in full of all suma secured by this Mertgage, Lender ahall promptly refund to Borrower any funds held by l,ender. If under paragraph IS hereof the Property ia eold or the Property is otherwise acquired by Lender, l.ender shall apply, no later than immediately prior to the eale of the Property or ita acquisition by l,endei, any Funda held by Lender at the time of application as a credit against the sums secured by thi8 Mortgage. ~ 3. Application of Paymente. Unlese applicable law provides otherwise, all payments received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to Lender by Borrower under paragraph 'l hereof, then to intereat payable on the Note, theo to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liena. E3arrower ahall pay all taxes, assessments and other rharges, fines and impositions attributable fo the Property which may attain a priotity over this Mort~age, and leasehold payments or ground rents, if any, in the manner provided under p$ragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direcily to the payee thereo[ Borrower shall promptly fi~rnish to I.ender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Morigage; provided, that Borrower ahall nut berequired to discharge any such lien so long as Borrower shaii 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, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured againat toss by fire, hazarda included within the term "e:tended coverage," and auch other hazards ae Lender may require and in such amounts and for such periode as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal rngulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this biortgage, whichever is the greater. ~ The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender; provided, that such appro~•al shall not be unreasonably withheld_ All premiums on insurance policies shall be paid in the manner providecl under paraRraph 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 ahali be in form acceptable to Lender and shali include a standard mortgage clause in favor of and in form acceptable to L.ender. Lender shell have the right to hold the policies and renewals thereof, and $orrower ahall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. 1n the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may malce proof of loas if not made promptly by Borrower_ - j Unleas Lender and Borrower otherwise agree in writing, insurance proceeda ahall be applied to restoration or repair of the Property i damaged, provided auch restoration or repair is economically feseible and the security of thia Mortgage ia not thereby impa'ved. If auch ~ reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the ineurance proceeda shall be applied ~ to the auma secured by thia Mortgage, with the excess, if any, paid to Borrower. If the Ptoperty is abandoned by Boaower, or if Borrower faila to " respond to Lender within 30 daya from the, date notice is mailed by Lender to Borrower that the•inaurance carrier otTers to eettle a claim for inaurance benefits, Lender is authorize~ to collect and apply the insurance proceeda at Lender's option either to restoration or repair of the Property or the sums secnred by this Mortgage. - Unlesa Lender and Borrower othetwiae agree in writing, any such appiication of proceeds tq principal ahall not extend or postpone the due date of the monthly installments referred to in paragraphe 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property is acquired by Lender, al) right, title and intereat of Borrower in and to any insurance policies and in and to the proceeds ~ thereof resnlting from damage to Property prior to the sale or acquiaition shall paea to Lender to the eatent of the auma secured by this ~ ~iortgage immediately prior to euch sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Uait Developments. Borrower shall keep the Property in good repair and ahall not commit wasfe or permit impairment or deterioration of the Property and ahall comply with the = provisions of any lease if this Mottgage is on a leasehold. If this Mo ~ rtgage is on a unit in a oondominium or a planned unit development, m Borrower ehall perform all of Bonower e obligationa under the d~claration or co~ enanta creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and conetituent dceuments. If a condominium or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the covenants and ~ agreementa of such rider shall be incorporated into and ahall amend and supplement the covenanta and agreements of this Mortgage as ifthe ~ rider were a part hereof. ~ 7. Protection of Lender'e 3ecurity. If Borrower feila to perform the oovenante and agreements contained in thie Mortgage. or if any ~ action or proceeding ie commenoed which materially affecte I.endei a intereet in the Property, including, but not limited to, eminent domain, inaolvency, aode enforcement, or arrangementr~ or proceedings involving a banl~rupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrower may make such appearancee, dieburee auch eums and take such action se ie neceaeary to protect Lender i interea~ . including, but not limited to, diaburaement of reasonable attomey e feee and enby upon the Property to make repaire. If Lender required ~ mortgage ineurance as a rnndition ot making the loan eecured by this Mortgage. Borrower ehall pay the premiums required to maintain euch ineurance in effect until such time ae the reqairement for euch ineurance terminatea in accordance with Borrower'e and Lender'e v~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage inaurance premiume in the manner provided nnder paragraph 2 hereof. F Any amonnte diebureed by Lender pereuant to thie paragraph 7, with intereet thereon, shall become additional indebtedneae of ? Borrower secured b this Mo y rtgage. Unlesa Boaower and L.ender agree to other terms of payment, euch amounts shall be payable upon notice from Lender to Borrower requ~ting payment thereof, and shall bear interest from the date of diebnraement at the rate payable from - time to time on outetanding principal under the Note unieas payment of interest at such rate would be oontrary to applicable law, in which event such amounte shall bear intereet at the higheet rate permisaible under applicable law. Nothing contained in thie paragraph 7, ehall require I.ender to incur any expense or take any action hereunder. ,a ~ . i ~ ~JIST i~N~i ~ ' ag - , ~ . . - ~ _ " . 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