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HomeMy WebLinkAbout0675 . . Bormwer and Lender covenant and agrne aa followr r, • • 1. Psytaeat of Principal and Interest. Borrower ehall pmmptly pay when due the principal ot and intereet on the indebtedneae evidenced by the Note. prepayment and late chargea as provided in the Note, and the principal of and i~tereet on any fl~ture Advancea secured by thie Mortgage. 2. C~nds for Tasea aad lnsurance. Subject to applicable law or to a written waiver by [.ender, Eiorruwer ahall pay to l,ender on the day monthly inatallments of pri~ppal and inte~est are payable under the Note, until the Note ia paid in fult, a eum (herein "F~nde"! equal to on~ twelfth otttze yearly taxes and asaessments which may attain priority over thia Mortgage. and ground renta on the Property, if any. plua one twelfth of yearly premium installments for hazard inaurance, plue one~twelRh of yearly premium inutaUmente for morigage inaurance, if any, ell as reasonably estimated initially and fmm time to time by l.ender on the t~asie of assessmenta and billa and reasonable eatimatea thereoL The I~lutida sbc~U be heW in an institution the deposit+~ or accounts of which are ineured or guaranteed by a Federat or Stete agency (including Lender it I.ender ia auch an inatitution). I.ender ehall apply the ~nda to pay eaid ta:es, aeaessments. ineutance premiums and ground nats. Leader may not charge for so holding and applying the Funds, analyzing aaid account, or verifying and compiling aaid assessments and bills, unless l.ender pays Borrower irteteat on the Pti?nda snd applicable law permits I,ender to make auch a charge. Borrower and I.ender may agree irt writing at the time of execution of this Mortgage that intereat on the F~nde ehall be paid to Borrowe~, and unleas auch egreement is made or applicable law requires such inte~est to be paid, l.e~der shall not be tequired to pay Borrower any intereat or earninga on the fi~nds. I.e~der ehall give to Borrower, wiLhout charge, an annual accounting of the Funda ahowing credite and debite to the Flu~ds and the parpose for which each debit b the F'anda wae made. The Funds are pledged as additional eecurity fo: the aums eecured by thia Mottgage. I[the amount of the FLnds held by Lender. together with the luture monthly inatallmente of Funda payable prior to the due datea oCtaxes, aseeeaments, insurance premiuma and ground rents, ahall e~cc~ed the amount required to pay said taxea, asaeasmenta, inaurance premiums and ground rentg ae they fall due, eucb e:oess shal! be, at 8orrower's option, either prompdy repaid to Iiorrowet or credited to Borrower on monthly inatallments of fl~nds. Ii the amount of the Funds held by [.ender ahall not be sutficient to pay ta:es. aesesamenta, insurance premiama and ground rents as they faU due, Borrower ahall pay to Lender any amouat neoeseary 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 al) eume secured by this Mortgage, Lender eha11 prompUy refund to Borrower any funds held by I.eader. If under paragraph 18 hereof the Property ie eold or the Propetty is otherwise acquired by Lender. Le~der shall apply. no later then immediately prior tn the eale of the Property or ite aoquiaition by I.ender. any Funds held by I.ender at the time of application as a credit againat the euma secured by thie Mortgage. 3. Applieetion of Payments. Unlese applicable law pravidea otherwise, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any Futam Advances. 4_ Chargee; Liens. Rorrowershall pay all texes, asseasmenta and other rhargea, fines and impositions attributable to theProperty which may attain a priority over thia Mortgage. and leasehold paymenta or ground rents, if any, in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by Borrovver making payment, when due, dinrtly to the payee thereoC Borrower ahall promptly furnish to I.ender all noticea of amounte due under thia paragraph, and in the event Borrower shall make payment directly, Bormwer shall pmmptly furniah to I.ender receipte evidencing auch paymenta. Borrower shall promptly discharge any lian which has priority over this Mortgage; pn,vided, that Borrower ahall not be required to diacharge any auch lien ao long aa Borrower shall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or ahall in good faith conteat auch lien by, ordetend enforcement ofsuch lien in, ~egal proceedinga which operate to prevent the enforcement of the lien or forfeitere of !he Properiy or any part thereof. 5. Hazard Insurance. Borrower shall keep the itnprovementa now exiating or hereafter erected on the Property ineured againat losa by fire, hazards included within the f~m "e:tended coverage; ' and auch other hazarde as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender ehail not require such coverage amount eaceeding the minimum, as may be required by state or federal tegulatione goveming activities of Lender, or that amuuat of ooverage reqaired to pay the suma secured by this Mortgage, whichever ie the greater. The inaurance carrier providing the insurance shall be chasen by Borrower subject to approval by I,ender, novided, that such approval shall not be unreaeonably withheld. All premiums on ii:eurance policies shal) be paid in the manner provided u; ider paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, whee due, directly to the insurance carrier. All insurance policiee and renewala thereof ehall be in form acceptable to Lender and ahall inciude a standard mortgage clauee in favor of and in form acceptable to I.ender. Lender ehall have the right to hold the policiea and renewals thereof, and Borrowerahal! pmmptly turniah to i i.ender all renewal notic~8 and a11 receipts of paid premiuma In the event of loss, Borrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of losa if not made promptly by Botrower. . Unlesa Lender and Borrower otherwiee agree in writing. insurance prooeeds shall be applied w reetor~ation or repair of the Property damaged, provided euch ceetoration or repair ia economically feasible and the security of this Mortgage is not thereby impaired. If auch reatoration or repair ie not economically feasible or if the eecarity of thia Mortgage would be impaired, the ins~irance proceede ahall be applied to the anma secnred by ihia Mortgage. with the ezeesa, if any. paid to Botrower. If the Property is abandoned by Borrower, or if Borrower faile to respond to I.ender arithin 30 daya from the date notice ia mailed by Lender to Borrower that the insarane~e carrier offera to setue a claim for insurance benefits. Lender ie anthorized to collect and apply the insnrance proceeda at Lender's option either to restoration or repair of the i Yroperty or the awns eecured by this Mortgage. ; Unleea I.ender and Borrower othetwine agree in writing, any euch application olproceeds to principal ahatl not extend or postpone the due ; date of the monthly installmente referred to in parsigraphe 1 and 2 hereof or change the amount of sach inatallmenta. If under ~?aragraph 18 hereof the Property ia aoquirad by Lender, all right, dUe and intereet of Borrower in and to any inaurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the eale or aoquieition ahall pase to Lender to the e:tent of the aume secured by this Mortgage immediately prior to such aale or aoquisition. 6. Preeervation and btaintenance of Property; Leaseholda; CondominumH; Planned Unit Developmente. Borrower shall keep the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and ahall oomply with ihe pmviaiona of any lease if this Mortgage is on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, Rorrower ehall perform all of Borrower'a obligations under the declaration or covenants creatingor governinq thernndominium or planned unit developmen~ the by-lawa and tegulationa of the condominium or planned unit development, and oonetituent documente. If a rnndominium or planned unit development rider ie e:ecuted by Borrower and recorded together with this Moctgage. the wvenants and agreements of auch rider ehall be incorporated into and ahall amend and supplement the covenanta and agreements ofthia Mortgage as if the rider were a part hereof 7. Protection o! Lender's Secnrity. If Borrower fails to perform the oovenants and agreements oontained in this Mortgage, ot if any action or prooeeding is c~mmenced which materially affecte Lender a interest in the Property. induding, but not limited to. eminent domain, insolvency, oode enforcemen~ or arrangemeats or pmceedinge iavolving a bankrnpt or deeedent, then Lender at Lender'a option.npon ° notice to Borrower may malce euch appearanoes, dlHbllleC at~C~f tlUIDS HAd ~@ BIICII BCCIOA 88 IE AECCl89TS/ t0 ptO~L L.Eild2[~s lAtC[C6t. ' including, but not limited to, disbursement of reaeonable attomey's fees end entry upoa the Propedy to make repairs. If I.ender required ~ mortgage ineurance as a rnndition of making the loan secured by thia Mortgege, Borrower ehall pay the premiums tequired to maintain such insurance in effect until tuch time as We requirement for euch inaurance terminates in accordance with Borrower'a and Lendds writtete agrcement or applicable Lew. Borrower shaU pay the amount of all mortgage insurance premiume in the manner provided under paragraph 2 hereof. My amounta disbureed by I.ender persuant to this paragraph with intereet th+ereon, ahall beoome additional indebtedness of Bor?~ower secured by this Mortgege_ Unless Borrower and Lender agree to other terms of payment, auch amonnte shall be payable upon notice hom Lender to Borrower requeeting payment thereof, and ahall bear interest from the dste of diaburaement at the rate payable from time to time on outetanding principal under the Note unleee payment of intereat at anch rate would be oontrary to applicable law, in which event auch amounte ehall bear intereet at the highest rate permisaible under applicable 1aw. Nothing contained in this paragreph 7. ahall require I.ender b incur any ezpenae or take any action hereunder. fI IiWC 4~ k - z; ~ ..,g . , _w... , . .