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HomeMy WebLinkAbout0878 Iiorrower and l,ender cove~ant and i~gree ae tollows: 1. Payane~t ot Principal and Interest. Aorrower ehall promptly pay wAe~ due the principal of and intereat on lhe indebtrd~eas evidenced by the Note. prepayment and latechargea ae provided in the Note, and Ihe principal of and intereaton any ~ture Advances secured by this Mortgage. 2. Ftiu~de [or Tanes and Inrurence. Subject to applicable law or to a written waiver by l.e~der, l3urn~we~ shal) puy to l.ender on the day munthly installmente of prirtcipal and interest are payable unde~ Ihe Note, until lhe Note ia paid in full, a aum (herein "Funde") equal to one twelRh otthe yenrly taxes and assesaments which may attain priority over thia Mortgage, and ground rents on the Property, if any; plus one- tweltih of yearly premiwn inataUmenta for hezard inaura~ce, plua onelweiRh of yearly premium inatellmenta [or mortgage ineurance, i[any, all as reasonabiy eutimated initiaUy and from ti~ne to tiR~e by I.ender on the basis of su~eesamenta and billa and reasonable estimatea thereot. The Fltnds shall be held in aa inatitution the deposits or accounts of which an insured or guaranteed by a Federal or State agency (including l.ender it Lender is euch an institution). L.ender ehall apply the Funda to pay said taxes, aeeeaaments, ineurance premiums and ground rents. l.ender may not charge [or ao holding artd applying the ~nds, analyzing said account, or verifying and compiling said aseesaments and bills, unlese l.ender pnys Borrower intereet on the F~nda and applicable law permits Lender W make such a charge. E3orrower and Lender may agree in writing at the time of execution of thia Mortgage that intereat on the ~nda ahall be paid to Bormwer, and unlesa auch agrcemenL ia made or applicable law requiree such interest to be paid, Lender ehall not be required b pay Borrower any interest or earninge on the ~Lnds. Lender shall give to t3orrower, without charge, an annual accounting of the Funda showing ccedite and debite to the Funda and the purpoee fo~ which each debi! to the Funda was made. The Funda are pledged as additional aecurity for lhe sums eecured by thie Mortgage. If the amount Qf the Ftinda heid by I.ender, together with the future munthly inatallmenta of Funda payable prior to the due datea of taxee, aaeeaementa, inaurance premiuma and ground renta, ahall e:caed the amount required to pay eaid taxea, asscreamente, insurance premiume and ground rente aa they fall due, euch e:ceee shall be. at Horrower a option, either prompdy repaid to Borrower or credited to Borrower on monthly insLallmenta of ~nda. If the amount of the Funde held by Lender shell not be aufficient to pay tauea, aeeesamente, inaurance premiume and ground rents as they fall due. Borrower ahall pay W l.ender any amount necessary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all auma secured by this Mortguge, Lender ahali promptly refund to Borrower any funds held by Lender. Itunder paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by l.ender, Lender ahaU apply, no later than immediately prior W the eale of the Property or ita acquiaition by Lender, any Funds held by I.ender at the time of application ae a rredit againat the eums aecured by thie Mortgage. 3. Application of Paymenta. Unleas applicable law providea otherwiee, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shal) be applied by l.ender firxt in payment of amounts payable to Lender by Borrov?er 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 Future Advances. ~ 4. Chargee; Liens. Iiorrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground ren~. ~f any, in the manner provided ynder p~ragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof i3orrowershall promptly furnish to Lender all noticea of amounts due under this paraECraph, and in the event E3urrower shall make payment directly, Borrower ahall promptly [urnish to I.ender receipts evidencing such payments. E3orrov~er shall promptly discharge any lien which~#?aspriority a*~ thie blOitgage; pro~ ided, that F3orrower ahall not be required to disch 2rge any such lien so long as E3orruwer shall agree in writing to the payment of the obligation secured by such lien in a manner accept~ble to l.ender, or shall in good faith contest such lien by, ur defend enforcement of such lien in, legal proceedings which operate W prevent the enforcement of the lien or forfeiture of lhe Property or any part thereof. 5. Hazard Ineurance, Borrower ahall keep the improvements now existing or hereafter erected on the Property insured againat loss by ~ fire, hazarda included within the term "extended rnverage," and auch other hazards as Lender may require and in such amounts and for such periods as I.ender may require; provided, that Lender ahalt not require such coverage amount e:ceeding the minimum, as may be required by atate or federal regulations governing activitiPa of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ie the greater. . The inaurance carrier providing the inaurance ahall be chosen by Borrower subject to apprnval by l.ender, pmvided, that such approval shall not be unre~ac?nably withheld. All premiums on inaurance policies shall be paid in the manner providecl under paragraph 2 hereof or, if not paid in such manner, by Bonower making payment, when due, directiy to the insurance carrier. All insurance policies. and renewala thereof ahall be in form acceptable to Lender and shall inciude a standard mortgage clauae in favor of i and in form acceptable to Lender. I.ender ahall have the right to hold the policiee and renewala thereof, and Borrower shall promptly fumiah to ~ i.ender all renewal notices and all receipta of paid premiuma. In the event of losa, Borrower shali give prompt notice to the insurance carrier and I.ender. Lender may make proof of losa if not made promptly by Borrower. ~ Unlese Lender and Borrower otherwise agree in writing, ineurance proceede Shali be applied to restoration or tepair of the Property E ~ damaged, provided auch restoration or repair ia economically feasible and the security of this Mortgage ie not thereby impaired. If such ~ restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda shall be applied € to the auma secured by thia Mortgage, with the exceea, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier o~ers to aettle a claim for ~ ineurance benefite, I.ender is authorized to collect and apply the inaurance proceeda at Lender e option either to restoration or repair of the ~ Property or the aums aecured by this Mortgage. Unleas L.ender and Borrower otherwiae agree in writing, any such application of procreda to principal shall noCeatend or poatpone the due ~ date of the monthly inetallments referred Lo in para~raphe 1 and 2 hereof or change the amount of auch inetallmenta. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and intereat ot Borrower in and to any insurance policiea and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acqutaition ahall pase to Lender to the e:tent of the auma eecured by this ~ Mortgage immediately prior to auch sale or aoquisition. ~ 6. Preaervation and Meintenance of Property; Leaeeholde; Condominume; Planned Unit Developmeate. Borrower ehall keep ~ the Property in good repair and ahall not commit waste or pennit impairment or deterioration of the Property and shall comply with the ~ proviaiona o[ any leaee if thie Mortgage ie on a leseehold. I[ this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower'a obligations under the declaration or covenanta creatingor governing the condominium or planned m unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documenta. If a ~ rnndominium or planned unit development rider ie executed by Borrower and recorded togetheT with thie Mortgsge, the oovenante and ~ agreementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the ;y rider were a part hereof. =s 7. Protection oi I.ender's 3ecurity. If Borrower faile to perform the oovenante and agreemente contained in thie Mortgage, or if any F~ artion or prooeeding ie commenced which materially af'fecte Lender's intereet in the Property, including, but not limited to, eminent domain, ~ insolvency, oode en[orcement, or arrangements or proceedings involving a banim~pt or deoedent, then I.ender at Lender'e option,upon aotice to Borrower may make euch appearances, dieburee such same and take euch aMion as ie neceaeary to pmtect Lender's interest, = including, but not limited to, diebursement of reaeonable attomey e feee and entry upon the Property to make repaire. If Lender required - mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower ehall pay the pn~nniums required to maintain euch inaurance in effect until such time as the requirement for euch insurance tem?inatea in accordance with Borrower's and Lender s ~ written agreement or applicable Law. Borrower shall pay the amount of aU mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounte diebureed by Lender pereuant to this paragraph T, with intereet thereon, shall become additional indebtednees of - Borrower eecured by thie Mortgage- Unless Borrower and Lender agree to other terms of payment, auch amounta ahall be payable upon = notice from Lender to Borrower requeating payment thereof, and ahall bear interest from the date of diebureement at the rate payable from - time to time on outatanding principal under the Note unleae payment of intereet et auch rate would be contrary to appGcable law, in which : 3 event euch amounta ekall bear intereat at the higheet rete permiseible under applicabie law. Nothing contained in this paragraph 7, ehall : requ've Lender to incur any expenae or take any action hereunder. ~ ~ ~ $~K 29 _ 7 ~.r; 8?5 ~ - . - ~ _ _ « t _ ; ~ . . ..j _ : . . - . - _ . ~