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HomeMy WebLinkAbout0169 ~ E3orrower and Lender covena~t and aQree as follows: l. Psymeat ot ~'riacipe~l Rnd Intere~t. Borirower shall promptly pay when due the principal of and intereat un tt~e indebtedness evidenced by the Note, prepuyment and late charges as provided in the Note, and the principai of and interest oo any Future Advancen eecured by this Mort~ege. 2. F~unds forTeses and In~uranoe. 3ubject So appiicable law or to a writte~ waiver by I.e~der, BoROwer shall pay to I.ender un the day mo~thly ir~stallments of principal and intere~t are payable under the Note, until the Note u paid in full, a dum (herein "E~nd~") equal to one twelRh of the yearly taxee and assessments which may attain priority over this Mort~ane, and ground rents on the Property. i[any. plus ono- twelfth of yearly premium installments for hazard inaurance, plus on~twelRh ofyearly premium inatallmente for morigAge ineurance, if any, all as reasonably eatimated initially and trom time to tirne by I.ender on the basis of asaesamenta and billa a~d re~aonable eatimatee thereof. . The Fl~nds shall be held in an institution the deposits or eccounta of which are insured or ~uaranteed by a Federal or 3tate agency (ihcluding Le~det i! Lender is such an institution). I.endar ahall apply the Funds to pay said taxes, aeeeasmen(s, insurance premiums and ground rents. Leader may not churge for so hoWinQ and applyin~ the F~nd~, analyzing said aceaunt, or verifying und campiling eaid assesaments and biib, unless I.ender pays Borrowe~ interest on the Funds and applicable law permits Lende~ to make such a charge. Borrower and Lend~ may agree in writing at the time of execution of thie Mortgage that interest on the H'unda ehall be paid to f3orrower. and unleae . such agreement ia made or applicable law requine such interest to be paid. I.endK ahall not be requind to pay Aorrower any intereet or earnings on the FLnds. [.ender shap give to Borrower, wilhout charge, an annual accounting of the Funda ahowing credits and debits to the Fund~ and the purpoae for which each debit to the f~nds waa made. The Funda are pledged as additional security for the sums secured by thit Mortgege. ~ I[the amount of the ~nds held by Lender, together with the tuture monthly inatallmenta of Funda payable prior w the due datea of taxe~, asaeeaments, inaurance premiuma and ground rents, shall ezc~ed lhe amount required to pay said taxes, eaeessmenta, insurance premiums and ground rents es they fall due, such exceae shall be, at Boirower'a option, either promptly repaid to Borrower or credited to Borrower on monthly installmenta o! P1~nds. lf the amount of the Funds held by Lender ahaU not be aufficient to pay taxes, aseessments, inaurance premiums and ground re~ts as they fall due, Bormwer ehall pay" to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of aU suma secured by this Mortgege, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is eold or the Property ie otherwiee acquired by Lender, Lender ehall apply, no later than immediately prior to the aale of the Property or ita aoquieition by I.ender, any I~nde held by I.ender at the time of application as a credit againat the suma secured by this Mortgage. _ 3. Applicatlon of Paymente. Unlesa applicable law providea otherwise, all paymente received by Lender under the Note and peragraphs 1 and 2 hereot ehall be applied by Lender firet in payment of amounte payable to Leader by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to i~tereat and principal on any Futui+~ Advancee. 4. Chargee; Llens. f3orrower shalt pay all taxea, asaesamenta and other chargee, fines and imposiliona attributable bothe Property which may attain a priurity over thia Morigage, pnd leasehold payments or ground renta, if any, in the mannerprovided under paragraph 2 hereofor, if not paid in auch manner, by Borrower making pnyment, when due, directly to fhe payee thereof. E3orrower shall promptly furnish to l.ender all notices of nmount8 due under this para~aph, and in lhe event I3orrower shall make payment directly, Borrower shall promptly fumiah to Lender receipta evidencinR such paymente. $orrower ahall promptly diecharge any lien which has priority nver this Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long ~e Rorruwer shaU agree in writing u~ the pflymentottheobligation secured by auch lien in a manner acceptable to l.ender; or shaU in good faith conteal such lien by, ordefend enforcement of such lien in, leqal pra,~eedinge which operate to prevent the enfomement ot the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the improvementa now existing or hereafter erected on the Property inaured against luas by fire, hazards induded within the term "extended coverage, ' and auch other hazarde ae I.ender may require and in auch amounte and for such periode ae Lehder may require; pravided, that I.ender shall not require such ooverage amount e:ceeding the minimum, as may be required by ~ state or federal rngulationa governing activities of Lender, or that amount of rnvetage required to pay the eums eecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by [.ender; provided, that such approval ehall not be unreaeonably withheld. All prnmiums on inauranre policira ahall be ps~id in the manner provided under paraKraph 2 hereof or, if not paid in such manner, by Bor'ower making payment, when due, directly to the ineurance carrier. All ineurance policiea and renewala thereof ahall be in form acceptable to Lender and ahall include a etandard mortqage clause in favor o[ and in torm aoceptable to [.ender. Lender ahall have the right to hold the policiea and renewale thereof, and E3orruwer shall promptly furnieh to i.ender all renewal noticea and all receipta of paid premiuma. In the event of losa, Borrower ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof oi losa if not made prompdy by Borrower. Unlese Lender and Borrower otherwise agree in writing, inaurance proceeds ahall be applied to restoration or repair of the Yroperty ~j damaged, pmvided euch restoration or repair ia economically feasible and the security of thie Mortqage ie not thereby impaired. I[ such reetoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the inaurance proc,eeda ehall be applied to the euma eecnred by thie Mortgage, with !he exceas, itany, paid to Borrower. If the Property ia abandoned by Borrower. or if Borrower faile to ~ reapond to Lender within 30 daye from the date notice ie mailed by Lender to Borrower that the inaurance carrier offera to eetde a claim for E ineurance benefite, I.ender iB authorized to collect and apply the inaurance proceeds at Lender'a option either to reetoration or repair of the ; Property or the sams secured by thia Mortgage. ~ Unleae Lender and Borrower otherwiee agree in writing, any auch application of proceede to principal ehaU nat eadend or poetpone the due ; date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or cbange the amount of such inetellments. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and intereat of Borrower in and to any ineurance policiee and in and to the proceed8 ~ thereof reeulting from damage to Property prior to the sale or acquieition shall paes to Lender to the extent of the eume aec~red by thia s Mortgage immediately prior to such sale or $oquisition. ~ 6. Preaervation and Maintenance olProperty; Leaeehotde; Condominums; Planned Unit Develop~nents. Borrower shall keep the Property in good repair and ahall not commit wa8te or permit impairment or deterioration of the Property and ahall comply with the ~ provisione of any lesee if thie Mortgage ia on a leasehold. If this Mortgaqe ie on a unit in a oondominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the condominium or planned F unit development, the by-lawa snd teguletione of the rnndominium or planned unit development, and oonetituent documenta. If a ~ oondominium or plenned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreements of euch rider shall be incorporeted into and ahal! amend and aupplement the rnvenanta and agreementaof this Mortgage as if the rider were a part hereof. a 7. Protectioa ot Lender's Security. If Borrower faile to pertorm the oovenante and agrcementa oontained in thia Mortgage, or if any ; action or proceeding is commenoed which materially affects Lender's interest in the Property, including, but not limit~ed to, emiaent domain, ~ insolvency, oode enforoeaient, or. arrangements or proceedings involving a banlwpt or deoedent~ then I.ender at I.ender's option,upon = notice to Borrower may ma1~e such appearanoes, disburee such 6uma and take euch action as is neceeaary to protect Lender's intere~t, ' including, bnt not limited to, diebureement of reasonable attorney e feea and entry vpon the Propedy to malce npairs. If L,erider required mortgage insurance as a oondition of making the loan aecured by thie Mortgage, Borrower shall pay the premiums reqaired to maintain such insuranoc in ePfect until such time e~a the requirement for such insurance tern~inates in aooordance with Borrower's and Lendds written agrcement or applicable IBw. Borrower ehall pay the amount of all mortgege insurance premiums in the manner provided under paregraph 2 hereof. s My amounte disbursed by Lender pereuant to this paragraph 7, with interest thereon, ehall beoome additional indebtedn~s of Borrower eecvred by this Mortgage. Unlese Borrower and I.endeT agree to other terme of payment, euch amounte ahall be payeble upon , notice from Lender to Borrower requesting payment thereof, and ehall bear intereet from the date of disbursement at the rate payable from time to time on outetanding principal under the Note unless payment of intereet at euch rate would be oontrary to applicable law, in which ` event such amounte ehall bear intereat at the higheat rate permieaible under applicable law. Nothing contained in this paragraph 7, shall 5 require Lender to incur any e:pense or take any action hereunder. € ~ F _ ~ ga~K 2~? ~~E 1 ~ ~ - ~ . ~ - - - - - ; . . ~