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HomeMy WebLinkAbout0349 Borrower and l.ender covenant and agree aa fulluws: 1. Payment ot Principal and Intereet. E3orcowe~ ehall promptly pey when due the principal of and intereet un the indebtedneea evidenced by the Note. prepayment and late charges ae provided in the Note, and the principal of und intereat oo any Futum Advancea secured by this Mortgage. 2. ~nds for TaYes a~d lnsurance. Subject to applicable Ic~w or to a written waivec by l.ende~, I3orrower ahall pay to l.ender on the day , munthly inetallments of principal und interest ure payable under tne Note, until the Note is paid in full, a sum (he~ein "Funda") equal to one tweltth of the yearly ti+xes and uaseaements which may uttain priority over this Mortgage, and gruund rrnta un the Propeiriy, if any, plua one twelfth of yearly premium inatallmente for hazard inauranc~, plua onetweifth o[yearly premium inatullmente fo~ mortgn~e inaurance, i[any, all as ret~aonably eetimated initially and from time to tirne by I.ender on the baais of aeeeasmenta und billa and reusonable estimatea thereof. The Ftinde ahall be held in an inatitution the depoeite or accounta of which are insured or guaranteed by a Federal or State agency (including Lend~ if I.ender ia euch an inatitution). I.ender ahall apply the Funda to pay said ta:ea, ueaesamente, inaurance premiume and ground rents. [.ender may not charge for eo holding and applying the Ftinds, analyzing eaid account, or verifying and compiling said sea~amenta and bille, unleee lxnder peya Borrower interest on the Funde and applicable law permits l.ender to malce such a charge. Borrower and Lender may agree in writing at the time of e:ecution ot this Mortgage that intereet on the h~nde shall be paid to E3orrower, and unlesa euch agreement ia made or applicable law requirea euch intereat to be paid, Lender shall not be required to pay Borrower any interest or , earnings on the ~nds. I.ender ahall give to Borrower, without charge, ao annual accounting of the Funda ahowing credite and debite w the Funds and the purpose for which each debit to the Funda was made.l'he Funde are pledged as additional aecurity tor the eums eecured by thie Mortgage. If the amount of the ~nds held by I.endet, together with the futute monthly installments of Funds payable prior to the due datea of tazee, asaeasmenta, inaurance premiuma and ground rents, ahall excred the amount required to pay said taxes, aesearmenta, inaurance premiumn and ground rents as they fall due, auch e:cess shall be, at Borrower'a option, either promptly repaid to Rorrower or credited to Borroweron monthly inataltmenta of Flinde. If the amount of the Funds held by •I.ender ehall not be sufficient to pay taxea, aseesamente, ineurance premiwne and ground renta as they fall due, Borrower ahall pay to Lender any amount ~ecessary to make up the deficiency within 30 daya from the date notice ia mailed by I.ender to t3orrower requesting payment thereof. Upon payment in full of all euma secured by this Mortgage, I.ender shall promptly refund to Botrower any funda held by I.ender. lf under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or its acquiaition by l.ender, any Funda held by l.ender at the time of application as a credit againat the sums secured by this Mortgage. • 3. Application ot Payments. Unlesa applicable law providea otherwiae..all P~ymenir roc+~ived bx Lender under the Note and paragraphe 1 and 2 hereof shall be applied by I.ender first in payment of amounte payable to Lender by Borrower under paragrnph 2 hemuf, then to intereat payabte on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. Chargea: Liene. E3orrov?er ahall p~y all taxes, ~ssessments and other rhnrges, fines and impositions attributuble to the Property which may attain a priority over this Mortgnge, and leasehold p~yments or ground rents, if nny, in the manner provided under paraqraph `l hereof or, if not paid in such manner, by Boaower making pnyment, when due, directly to the payee thereof. Borrower shall promptly fumish to I.ender al! notices of amounts due under this parnKraph, nnd in the event Borrower shall make payment directly, F3ormwer shall prumptly furnish to (.ender receipts evidencing such payments. Borrower shall promptly dischar~r any lien which has priority over this;Nortgage; pro~ ided, that Korrower shall not be required to discharge any such'lien so long as Borrower aha11 agree in writing to the payment of the obligation secured by such lien in a manner accept~~ble to l.ender, or shall in qood faith conteat such lien by, ordefend enfomement of such lien in, legal procecdings .ti•hich operate to prevent the enfortement of the lien or Corfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured against loss by 5re, hazarda included within the term "e:tended coverage," and euch other hazards as Lender may require and in auch amounta and forsuch perioda as L.ender may require; provided, that I.ender ahall not require such coverage amount exceeding the minimum, as may be required by state or federul rngulationa governing acti~-ities of I.ender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the grester. The inaurance carrier providing the inaurance shall be chosen by E3orrower subject to approval by Ixnder, pnivideci, that such appro~•al R :hall not be unreasonubly withheld. All premiums on in~uranm policies shall be paid in the manner pro~•ided under paraRraph'l hereof or, it , _ ~ nut paid in such manner, by &~rrower making payment, w•hen due, directly to the insurance carrier_ j Ali inaurance policies and rnnewals thereo[shall be in form acceptable to Lender and ahall include a standard mortgage claaee in favorof ~ and in form acceptable to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Borruwer ahall promptly turnish to ~ ~.ender all renewal notices and all receipta of paid premiums_ In the event of losa, Borruwer aha11 give prompt notice to the inaurance carrier E and Lender. Lender may make proof of loae if not made promptly by Bor.ower_ a Unlesa Lender and Borrower otherwiae agree in writing, inaurance proceeda ahaA be applied to restoration or repair of the Property : damaged, provided such restoration oz repair is econoq~ically feaaible and the security of this Mortgage ia not thereby impaired. If snch ~ restoration or repair is not economically feasible or itthe security of this Mortgage would be impaired, the inaurance proceeds ahall beapplied E to the aums secuted by this Mortgage, with the excess, if any, paid to Aorzower. Itthe Property ie abandoned by Borrower, or if Borrower fails to respond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier of~era to setUe a claim for ~ insurance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender's option eitlwr to restoration or repair of the Property or the auma eecured by this Mortgage. Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ehall not e:tend or postpone thedue r ~ date of the monthly installmente referred to in paragrapha I and 2 hereof or change the amount of such inatallments. If under pa~agraph 18 ~ hereof the Property ia acquired by Lender, all right, title and intereat of F3orrower in and to Any insurance policies and in and to the procEeds ~ thereof reaulting from damage to Property prior to the sale or acquiaition ahall pasa to Lender to the extent of the aume secured by this htortgage immediately prior to auch sale or sequiaition. L 6. Preservation and Maintenance of Property; Leaeeholda; Condominums; Planned Unit Developmenta. Borrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaions of any lease if thia Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development. ~ F3orrower ahall perform all of Borrower'e obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documente_ If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of auch rider shall be incorpnrated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. ~ 7. Protection ot Lender'e 9ecurity. If Borrower faile to perform the covenante and agreementa rnntained in this Mortgege, or if any p g " y perty,includin acrion or roceedin ~e commenced which materiall affecte Lender's intereet in the Pro g, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at [.ender'e option,npon notice to Borrower may make euch appearances, diaburee such sums and take euch action as ie neceaeary to protect Lendez's interee~ including, bnt noL limited to, diebureement of reasonable attomey'8 fees and entry upon the Property to make repei~. If Lend~ required mortgage ineurance ae a condidon of making the loan aecured by this Mortgage, Borrower ahall pay the premiums required to maintain ' V auch inauranee in effect until euch time se the requirement for such ineurance terminates in accordance with Borrower's and Lendez s written agreement or applicable Law. Borrower ahall pay the amount of aU mortgage insurance prnmiuma in the manner provided under paragraph 2 hereof. • ~ My amounte dieburaed by Lender pereuant to thia paragraph 7, with intereet thereon, ehall become additional indebtedneae of Borrower secured by thie Mortgage. Unleae Borrower and Lender agree to other terma of payment, auch amounte eha11 be payeble upon - notice from Lender to Borrower requeating payment thereof, and ahall bear intereet from the date of diabureement at the rate payable from time to time on outetanding principal under the Nole unleee payment of intereet at such rate would be oontrary to applicable law~ in which . event euch amounte ahall bear intereat at the higheet rate permiaeible under applicable law. Nothing contained in tl~ia paregraph 7, shaU ~ require Lender to incur any expenee or take any action hereunder. • ~ ~ ~o~K 297 PACE 349 - 4 . G , Y':~ AL'; ~ ~g ~ - .i~ ~F - . . . . .