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HomeMy WebLinkAbout0214 Bormwe~ and [.ender covenent and a~ree as follows: 1. Psymeat ot Priacipal and Iaterea~ Borrower shall prompUy pay when due the principal of and intereat on the indebted~ese evidenced by the Note. prepayment and late chargee as provided in the Note, and the principal of and i~tereat on any ~Lture Advances secured by thu Mortgage. 2. F1~nds for Ta=es and [nsurance. Subject to applicable law or to s written waiver by [.ender, Borrowe~ ahall pay to I.ender on the day tnonthly inetallmenta of principal tsnd inLereat are payaDle under the Note, until the Note ie paid in [ull. a aum (herein "Ftinds") equal to one twelRh of the ycarly t~uces and aesessmente which may attain priority over thie Mortgage. and ground renta on the Property, if any, plua one twelfth of yearly premium inatallmenta for hazard insura~ce, plus onetwelRh of yearly premium inetallmente for mortgage inaurance, if any, : aU as reasonably eatimated initially and from time to time by I.ender on the basis of asaeasments and billa and reaaonable estimates thereof. The binds shall be held in an ir?stitution the deposits or accounb of which are ineured or guaranteed by a Federal or State agency (including Lender if l.ender ie such an institutioa). I.ender shaU apply the Ftinda to pay eaid taues. asseeaments. ineurance premiume and grouad rents. Lender may not charge for so holding and applying the Funds, analyzing eaid account, or verifying and compiling said asseeameata and biUa. unleea Lender pays Borrower interest on the Flu~ds end applicable law permits Lender to make auch a charge. Borrower end I.ender may agree in writing at the time of execution oi thia Mortgage that intereat on the FLnds ehall be paid to Borrower, and unleas euch agreement is made or appUcable law requirea snch interest to be paid, Lender ehall not be required to pay Horrower any interest or ` earnings on the Phnds. Lender ahali give to Bormwer. writhout charge, an annual acoounting of the ~nds ehowing credits and debite to the ~ F~nde and the purpose for which each debitto the Ftinds was made. The Funds are pledged ae additional eecurity for the eums eecured by thie Mortgage. , If the amount of the ~Lads held by Lender, together wiih the future monthly inatallmente of Funds payable prior to the due dates of taxes, ~ aasessmente, inauranoe premiums and ground rents, ahall exazed the amount required to pay said ta:ea, asaeaamenta. inaurance premiuma ~ ; and gro~d reats as they fall due. such ezcees shall be. at Borrower's option. either promptly npaid to Borrower or credited to Borrower on moathly installments of P4nds. If the amount of the Funds held by Lender shall not be aufficient to pay taxea. aeaesemente. inaurance premiums and ground reata as they fall due, Borrower ahalf pey to Lender any amount nece8sary to make up the deficiency within 30 daye from the date notice ie mailed by Leader to Botrower requesting payment thereof. Upon psyanent in full of sU sua?s secured by thie Mortgage. Lender ahaU prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property. is sold or the Property is otherwiae acqaired by Lender, Lender ahall apply, no later than immediately prior to the eale of We PropeKy or ite aoquiaition by I.ender, any Pt~nda held by Lender at the time of applicetion ae a cndit againet the auma eecured by this Mortgage. ~ 3. Application of Paymenta. Unlese applicable law provides otherwiee, all paymenta received by Lender under the Note and paragrephe 1 and 2 hereof shall be epplied by Lender first in payment of amounte payable to I.ender 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 aay Future Advances. 4. Charges; Liens. Borrower ahall pay all t~ea, asaessments and other charges, fines and imp~itions altributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground rents. if any, in the manner provided under paragraph 2 hereof or. if not paid in such manner. by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furniah to Lender all noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall pmmptly furniah to Lender receipts evidencing such payments. Borrower ahall prompdy discharge any lien which has priority over thia Mortgage; provided, that Borrower shall not be required to discharge any auch lien ao long ae Rorrower shali agree in writing to the payment of the obligation sec~red by . such lien in a manner aoceptable to Lender, or shall in good faith oontest such lien by, ordefend enforcement of auch lien in, legal proceedinga which operate to prevent the enforcement of the liyn or.forfeiture of the Property or any part thereof. 5. Haaard Insuranoe. Borrower shall teep the ian~rovementa now e~ciating or hereafter erected on the Property insured againat losa by fire, hazarde included within the term "eztended coveiagb,~' and auch other hazarda sa Lender may require and in auch amounta and for auch periods aa I.ender may require; pmvided, that Lender ahall not require auch aoverage amount e:ceeding the minimum, as may be required by state or federal reg~latione goveming activitiee of Lender, or that amount of coverage required to pay the aums seewed by this Mortgage, whichever is the greater. The insurance carrier providing the inaurance shall be chosen by Borrower subject to approval by Lender, provided, that auch approvai shali not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. • A!1 ineurance policies and renewele thereof ahall be in form acceptable to Lender and ehall include a standard mortgage clause in favor of and in form aoceptable b Lender. Lender ehall have the right to hold the policiea and renewals thereof. and Borrower ah all promptly furniah to i.ender all renewal notices and all receipte of paid premiume. In the event of lose. Borrower ahall give prompt notice to the inaurance carrier ! and Lender. Lender may make proof of loss if noi made promptly by Borrower. ~ Unless Lender and Borrower otherwiae egree in writing, insurance proceeds a6a11 be applied to reetoration or repair of the Property damaged, provided such restoration or repair is economicaiiy teasi~ie anu ii~e securiiy of iaia morigayse ie nv~ ti~ereby impaired. If such. restoration or repair ie not economically feasible or if the eecurity of this Mortgage would be impaired, the ineurance proceede shall be applied ~ to the suma eecured by this Mortgage. with the eucese. if anY, paid to Bormwer. If the Property ia abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offers Lo eettle a claim for ~ insurance benefite, Lender ie authorized to rnUect and apply the inaurance proceeds at I.endei a option either to rratoration or repair of the Property or the aume secnred by this Mottgage. Unleee Lender and Borrower otherwiee agree in writing. any snch application of proceeda to principal shaU not e:tend or postpone the due date of the montlily installmenta referre~ to in paragraphs 1 and 2 hereof or change the amount of auch inetallments. If under paragraph 18 hezeof the Property is aoquired by Lender. all right, tide and intereet of Borrower in and to any ineuranoe policiee and in and to the prooeede thereof reaulting from damage to Property prior to the sale or soquisition shall pasa to Lender to the ~tent-of the suma eecured by thia Mortgage immediately prior to such sale or soquiaition. 6. Preservation and ~ainteaance of Property; Leaeeholde; Condominums; Plaaned Unit Developmente. Borrower ahall keep i the Property in good repeir end ahall not oommit waste or permit impairment or deterioration of the Property and ahall oomply with the ~ proviaione of any lesee if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a oondominium or a plenned unit development, Borrower ahall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planaed = unit development, the by-Iawa and regulations of the oondominium or planned nnit development, and oonatituent documente. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with thia Mortgage. the oovenant8 and agreementa of auch rider ahall be incorporated into and ehall amend and supplement the covenante and agreemente of thie Mortgage as if the rider were a part hereof. 7. Protectton oi Lender'~ $ecurih. If Borrower fails to perform the oovenanta and agreemeats ooatained in this Mortgage. ar if any action or procseding is commenoed which meterially affecta Lender's interest in Lhe Property. including, but not limited to, emineat domain, insolvency. oode enforcement, or arrangementa or prooeedings involving a bankrupt or deoedenk ~en I.ender at Lender'a option.apon s - notice b Borrower may make euch appearances, dielwrre such enms and take such aMion as is neoessary to protect I.ende: ~ interest, ~ ~ inclnding, but not limited b, disbursement of nasonable attorney's fees and entry upon the Propertyr to make repairs. If L.ender reqnired ' mortgage insurence as e condition of malring the loen secnred by thia Martgage, Borrower ehaU pay the preminms reqnired to maintain snch insarance ia effect until snch time as the requirement for snch insuranoe terminates in accordaace with Borrower'e and Leader's ~ w?ritten agreemeat or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums ia the manner provided uader r Pa~ePh 2 hezeof. - € Any amaunts disbursed by Lende: perauant to this paragraph with interest thereon, shall bco~me additional indebLedness of ~ Borrowrr eecnred by this Mortgage. Unless Borrower and Lenda agree to other Lerma of paymen~ euch amaunte shall be payable upon ~ notice from Lender b Borrower requeeting payment thereof, and shall bear interest from the date of disbursement at the rate payeble from time to time on outatanding principal under the Note nnlesa payment of interest at such rate would be oontrary to applicable law, in which ~ event such amounts ahall bear interest et the higheat rate permiaeible under applicable law. Nothing oontained in this paragraph 7, shall require Lender to incur any e:pense or take any action herennder. ~ ~j y F . ~tlV71I~ ~ . & _ i ~ : . _ _ . . f~~.. ~ a~~:u?~~+~:x,~e ~'°~..n~.~ss~,a~_ 3 s ...cY..