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HomeMy WebLinkAbout0343 ~ E3ortuwer and L.ender covenant and agnr as foUowa: 1. Paymen/ ot Principa) snd lnterest. Horn~we~ ehall prvmptly pay when due lhe principal ot end interret un the indebtarlneue evide~ced by the Note, prepayment a~d latr chargee as provided in Ihe Note, and the principal ot and interest on any F uture AdvanceB secured by this Mortgaga 2. F~nde tor Ta:es andlnsurance. Subject to applicable law o~ tu a written waive~ by I.ender, fiorruwrr ehall piiy lu I.ender on the day monthly installments of principal and intereet are payable under the Nute, uotil the Note ia pgid in full, a aum (herei~ "Funda"1 equnl to onP twelfth of the yearly taxes and assesaments which may attuin priarity over thia Mortgage, ~nd ground ~enta on the Pruperty, if nny, plua une tweltth of yearly premium inatallmenf8 for hnzard inaurance,plus onetv?elEth of yeArly premium inatxllmenta for mortguge inaurance, if nny, all aa reasonably eetimated initially and hom time to ti~r~e by l.ender on tbe buais of asaeaementa and bill.s and reasonable eatimntea thereof. The ~nda shall be held in a~ institubion the deposita or accounts of which are ineured or guaranteed by a Federal or State aRency (including l.ender if l.ender is auch ~n institution). l.ender ahall apply the Funde to pay aaid ta:ea, asaexaments, insurance premiume and ground rente. I.ender may not charge for so holding and applying the flinda, analyzing said account, or verifying and compiling said aeaeeamente and bille, unleea Lender paya Borrower intereet on the Funds and applicable law permita l.ender w make such a charge. Borrower and l.ender may agree in writing at the time of execution o[ this Mortgage that intereat on the Funda ehall be paid w E3orrower, and unteaa such agreement ie made or applicable law requires auch intereat to be puid. I.ender ahull not be required tu pay Borrower any intereat or earninge on the ~nde. I.ender shall give to Borrower, without charge, an annua) accounting of the Funde ahowing credite and debits W the Funds and the purpoee for which each debit to the Funda was made. The Funda are pledged ae additional security [or the aums aecured by thie Mortgo~ge. ~ If the amount of the ~nds held by L.ender, togeiher with the future monthly inatallmente of Funda payable prior to the due dates of taxes, aeaeasmente, inaurance piemiuma and ground rente. ahaU exared the amount required to pay said ta:es, asaeasmenta, i~surat~ce premiuma and grouad rente as they fall due, such e:ceee ehall be. at Borrower'e option, either promptly repaid to Bor~ower or credited to Borrower on mon~hly installmente of ~nde. If the amount of the Funde held by I.ender ehaU not be aufficient to pay taxes, asseesmenta, inaurance premiuma and ground rents as they lall due, Bor~ower ehall pay to l.ender any amount neceseary to make up the deficiency within 30 daye froai the date notice ia mailed by [.ender to Borrower requesting payment thereoL Upon payment in full of al! suma eecured by this Mortgage, I.ender shall prompdy refund to~orrower any funde held by Lender. If under paragraph IS hereof the Propertv is sold or the Property is otherwiae acquired by L.ender, l.ender ahall apply, no later than immediately prior to the sale of the Propecty or its acquiaition by [.ender, any Funde held by I.ender at the time of application as a credit againat the aums aecured by this Mortgage. ~ 3. Application of Payments. Unlesa applicable law providea otherwise, all paymeote received by I.ender under the l~iote and paragraphs 1 and 2 hereof shall be applied by l.ender firxt in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargee; Liena. Borrower shnll pay aii tnxes, as.gessments and otherchargea, fines and impositions attributable to the Pmperty which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner pruvided under paragraph `L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the pa~ ee thereof. Borrowrr shall promptly furniah to I.ender all notices of amonnts due under this paragraph, and in the event Borrower shall make payment directly, E3~rrower sha11 promptly furnish to Lender receipts evide~cing such payments. E3~rrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharqe any such lien so long as Borrower shall aKree in writing to the payment of thevbligation secured by such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal procecdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Insuraace. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazarda included within the term "e:tended coverage," and auch other hazards as Lender may require and in such amounts and for such . - periods ae Lender may require; provided, that Lender aha11 not require such ooverage amount e:ceeding the minimum, as may be required by atate or [ederal regulatione governing activitiea of Lender, or that amount of coverage required to pay the eums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing ihe insurnnce sh~ll be chosen by Rorrower subject to appro~•al by I.ender, pmvidecl, that such approva) shall not be unreasonably withheld. All premiums on insurance pulicies xhal) be paid in the manner pmvided under paraKraph `L hereof or, if not paid in such manner, by E3orrower mukinQ payment, when due, directh• to the insurance camer. ~ All inaurance policies and renewals thereof ahall be in form acceptable to [.ender and ahall include a atandard mortgage clause in favorof ~ and in form acceptable to Lender. Lender shall have the right to hoid the policies and renewals thereof, and Borrower shall promptiy fumish to i.ender all renewal noticea and all receipts of paid premiums_ In the event of loas, Borruwer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower_ I [Jnless Lender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to restoration or rnpair of the Property ~ damaged, provided auch restoration or repair ia economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or rnpair is not economicaUy feseible or if the security of this Mortgage would be impaired, the inaurance proceeda shal! be applied f to the sums secured by thie 6lortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 days from the date noticv is mailed by Lender to Borrower that the insurance carrier ofFers to aetde a claim for inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at I.ender s option either to restoration or repair of the Property or the suma secured by this Mortgage. Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ahall not extend or poatpone the due. date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property ia acquired by L.ender, all right, titie and interest of i3orrower in and to any ineurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the sale or acquisition shall pasa to Lender to the e:tent of the suma secured by thie Mortgage immediately prior to auch sale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and aha~l not commit waste or permit impairment or deterioration of the Property and ehall comply with the proviaions of any leaee if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ahall perform all nt Borrower's obligations under the declaration or covenanta creatinKor goveming the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the covenante and agreementa of such rider ahall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender'r 3ecurity. If Borrower faila to perform the oovenante and agreemente contained in thia Mortgage, or if any action or proceeding ia commenced which materially affecta I.ender'e intereat in the Property, including, but qot limited to. eminent domain, insolvency, oode enforcement, or arrangementa or proccedinge involving a bankrupt or decedent, then I.ender at L.ender's option,upon notice to Borrower may mate such appearancea, disburee euch aume and take euch action aa is necessary to protect Lender'a interest, inclading, but not limited to, disbureement of reseonable attorney's fees and entry upon the Property to make repa'vs. If Lender required ~ mortgage inaurance as a condition of making the loan aecured by thie Mortgage, Borrower ahall pay the premiume required to maintain ~ snch inaurance in etfect until such tiroe aa the requirement for such insurance terminatee in accordance with Borrowei s and I.ender s written agreement or applicable Law. Borrower ehall pay the amount ot all mortgage inaurance premiums in the manner provided under paragraph 2 hereof. ~ My amounts dieburaed by Lender persnant to thie paragraph 7, with interest thereon, ahall become additional indebtedneae of ~ Borrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terma of payment, auch amounfs ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ahall bear intereet from the date of diebursement at the rate payable from time to dme on outatanding principal under the Note unleae payment of intereet at auch rate would be oontrary to applicable Law, in which - event euch amounts ahall bear intereet at the higheet rate permissible under applicable law. Piothing contained in thie paragraph 7, ahall require Lender to incur any expense or take any action hereunder. BOCK ~9~ Pq~c 343 • , . . - _ _ _ ~ r.. _