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HomeMy WebLinkAbout0368 Homower and l.ender covenan? and agree ae follows: 1. Payment ot Principal and lntereBt. Eiorruwer shall promptiy pay when due the principal ot and interest on the indebtedneeia evidenced by the Note, prepayment and latcchargee aa pn?vided i~ the Note, a~d the principal of a~d interest nn any Future Advances aecured by t~is Mortgage. 2. Funde !or Te:ea and Ineu~ance. ~ubject to applicuble law or to a wTitten wuiver by l.ender, fiorruwer ahall p~y to I.ender on the day monthly inataliments of principal and inter~st are payable under the Note, until the Note is paid in full, a sum (herein "M unda") equal to o~e twelRh o[the yearly taxes and naseaamenta which may attain priority over this Mortgpge, and ground renta on the Property, if any, plus on~- twel.fih of yearly premium i~stallmente for hazard inaurance, plua onetwelfth of yearly premium installmenta for morigage inaurance, itany, all as masooably estimatecl initially and fmm time to time by l.ender on the b~ia of asseeiements nnd bitis and reusonnble eatimatea thereot. The ~nde ehall be held in an inetitution the deposite or accounta ot which are insured or guaranteed by e Federal or State agency (including l.ender if l.ender ia auch an inetitution). l.ender ahall apply the Fu~da to pay eaid taxes, aeaesementa, inaurance premiuma and Etround renta. I.ender may not charge for eo holding and applying the Ftinds, anatyzing said account, or verifying and compiling eaid assesamente and bills, unleas Lender pays F3orrower intereet on the Ftinda and Applicable law permite I.ender to make sucl~ a charge. E3orruwer and Lender may agree in writing at the time of execution of thia Mortgage that interest on the [~'unda ehall be paid to f3orrower, and unleaa euch agreement ie made or applicable.law requiree such intereat to be paid, Lender ehall not be required to pay Borrower any intereet or earninge o~ the ~nds_ l.ender ahall give to Borrower, without charge, an annual accounting of the Funds showing credita and debita to the . Funda and the purpoae for which each debit to the Funds was made. The Funda are pledged as additional eecurity for the aume aecured by thie Mortgage. If the amount of the ~nda held by I.ender, together with the future monthly installmenta of Funda payable prior to the due dates of taxea, assesamenta, inaurance premiums and ground mnta, ahall excYed the amount required to pay eaid tazes, aesessmenta, inaurance premiums and ground tente ae they [all due, such excess ahall be, at Bo?tower'a option, either promptly repaid to Borrower or credited to Borroweron monthly inetalimenta of ~nda. If the amount of the Funds held by [.ender ehall not be aufficient to pay taxea, assessmenta, inaurance premiuma and ground rents ae they fall due, Borrower shall pay to l.ender any amount ncti~eaeary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of all auma secured by thia Mortgage, [.ender ahall promptly rnfund to Borrower any funda held by l.ender. If under paragraph 18 hereof the Property is eold or the Property is otherwise acquind by Lender, I.ender shall apply, no later lhan immediately prior to the sale of lhe Property or ita acquiaition by [.ender, any ~nda held by l.ender at the time of application as a credit againat the aums secured by this Mortgage. 3. Application of Paymente. Unleas applicable law provides otherwiee, al) paymenta received by Lender under lhe Note and paragrapha 1 and 2 hereof shall be applied by Lender tirut in payment of amounta payable to I.ender by Borrower under paragraph `l hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Chargea; Liene. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which mny att~in a priority o~•er this Mortgage, and leasehold puyments or Rr~ound renta, if any, in the manner pmvided under para~graph 2 hereof or, if not p~id in such manner, hy Borrower making payment, when due, direMly to the payee thereof. Borrower ahall promptly furnish to [xnder a~ll notices of amounts due under this para~ph, and in the event 13orrovver shall make payment directly, I3orrower ahaD promptly furnish to l.ender receipts e~~idencinK such payments. F3orrower shall promplly discharKe any lien which hna priority over this MortKage; pro~•ided, that Fiorrower shall not be required to discharge any such lien so tong as Borrowershall agree in writing to the payment of theobligation secured 6y ,uch lien in a manner acceptable to [.ender, or shnll in gcwd faith conteat such lien by, or defend enformment of such lien in, lega) proceedings K•hich operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now eaiating or hereafter erected on the Property insured againat lose by fire, hazarde included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and for such periods ae Lender may require; provided, that Lender ahali not require such coverage amount e:ceeding the minimum, as may be required by ~tate or federal regulations governing activitiea of I.ender, or that amount of rnverage re~uired to pay the suma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chuserr by Korrow•er suhject to approval by I.ender; provided, that such approval j .hall not be unreasonably withheld. All premiums on ingurance policies shall be paid in the manner provided under para~ruph `l hereof or, if ; not paid in such manner, by I3orrower muking payment, when due, directly to t6e incurance carrier. _ ~ All insurance policiea and renewats thereof ehall be in form acceptable to Lender and ahall include a standard mortgageclause in favor of ~ and in form acceptable to I.ender. Lender shali have the right to hold the policiea and renewals thereof, and Boaower ahall promptly turniah to i.ender all renewal noticea and all receipts of paid premiuma. In the event of loss,~Borrower shall give pmmpt notice to the insurance carrier s and Lender. Lender may make proof of loss if not made promptly by Borrower. - Unless Lender and Eiorrower otherwise agree in writing, inaurance proceeds shall be appiied to reatoration or repair of the Property i damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If auch ~ restoration or repair is not economicaUy fessible or if the security of this Mortgage would be impaired, the insurance pra.~eeda ahall be applied ~ tn the aums aecured by Lhia Mortgage, with the excess, if any, paid to Borrower. If the Property ie abandoned by Borrow er, or if Borrower faile to i respond to Lender within 30 days from the date notice ia mailed by Lender to Borrower that the ineurance carrier of[ers to settle a claim for F inaurance benefits, l.ender is authorized to co?lect ar.d apply the insurance proceede at I.endei s option either to restoration or repair of the s Yroperty or the snms aecured by this Mortgage. Unless Lender and f3orrower otherwiae agree in writing, any such appiication of proceeda to principal ahall not e=tend or poatpone the due ~ date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 ~ i~ereof the Property is acquired by Lender, all right, title and interest of I3orrower in and to any insurance policiea and in and to the proceeds ~ thereof reaulting from damaqe to Property prior to the sale or acquiaition shall pass to Lender to the extent of the sums aecured by this ~ !ltortgage immediateiy prior to auch eale or aoquisition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ehall keep the Property in qood repair and sha1) not commit waste or permit impairment or deterioration of the Property and ahall comply with the ' proviaione of any lease if this Mortgage ie on a leasehold. If this Mortgage ia on a unit in a condomininm or a planned unit development, F3orrower ehall perform all of Borrower's obligations under the declaration or covenante creatingor governing the condominium or pianned unit development, the bylaws and regulationa of the condominium or planned unit development, and rnnatituent documente: If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the oovenants snd ~ agreementa of such rider ahall be incorporated into and shall amend and supplement the covenants and agreements of this Mortqage as if the rider were a part hereof. 7. Protection ot Lender'e 3ecurity. If Borrower faile to perform the oovenants and agreemente contained in thie Mortgage, or if any ~ action or proceeding ie commenoed which materially affecte Lender'a interest in the Property, including, but not limitrd to, eminent domain, ineolvency, oode enforcement, or errangementa or proceedinge involving a bankrupt or deoedent, then Lender at I.ender e option,upon = notice to Borrower may make auch appearances, diaburee euch aume and take auch action as ie neceeeary to protect Lender's interea~ ~ includin but not limited to, diebureement of reasonable attorney a feee and entry upon the Pro rt to make re _ g, pe y paira..If Lenda requue~ - mortgage inaurance as a condition of making the loan eecured by thia Mortgage, Borrower shall pey the premiums required to maintain ~a auch inanrance in effect until euch time ae the requirement for auch ineurance terminatee in accordance with Bonower e and L.ender's = written agrcement or applicable I.aw. F3otrower ahall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. My amounta diebursed by Lender perauant to thie paragraph 7, with intereat thereon, ehall become additional indebtednesa of = F3orrower eecured by thie Mortgage. Unleae Borrower and Lender agree to other terme of payment, euch amonnte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear intereet from the date of disbureement at the rate payable from time to time on outetanding principal under the Note unleas payment of intereet at such rate would be contzary to applicable law, in which event euch amounte ehall bear interest at the higheat rate permiaeible under applicable law. Nothing contained in thie paragraph 7, ahall a require Lender to incur any e:penee or take any action hereunder. bOL~ ~ 7~ PAGf J6p ~ ~ _ _ : ~ _ _ . . ' _ _ ~