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HomeMy WebLinkAbout0040 Borrower and Lendu rnvenant and aQree as lollowr 1. P~,ymeat ot Prlacipal end Iatere~t, Borrowu shall promptly pay when due the principal of and inLeresL on the indebtedness evideaoed by the Note. prepayment aad late cher8er as provided in tho Note. and the principnl of snd interest on any Ftiture Advances ~ocured by thi~ Mortgags. 2. FLndo Ior Ta~ce~ and Iruuranoe. Subjed to applicable law or to a written waiver by I.ender, Borrower ahall pay co [.ender on ihe day monthly installments of principal and intere~t are payable under the Note. until the Note is paid i~ fiill. a sum (hereirt "fl~ndi") equal b one~ twelRh of the yearly taxes and aeaessments which may attain pr~~aty over thia Mort~age. and ground re~ts on the Property. if any. plus oao- twelRh of yearly premium inatallmeab for hasard insuranoe. Flus onptwelRh ofyea~ly premium inatallments [or mortgage inaurance. if any. aU as reasonably estimated initially and from time to time by t.ender on the basis o! aase~amcnta and bille and reasonable estimates thereoL The ELnd~ shaU be held in aa inetitution the depoaib or aocounta oi which are insured os guaranteed by a Fedezal or 3tete agency (includin~ Lender if I.eAder is such aa institution~ Leader shaU apply the Funda to pay said tases, aaseeame~ts. insuranoe preminms aad grouad rents. I.ender me~y not char~e for eo holding and applying the FL~ds. analysing said aocount, or verifying and compiling said asse~sments and bills, unless Lender pays Bor~ower int~e~st on the FLnds and applicable law pennita I.ender to make such a charge. Borrowe: aad I.ender meU? agree in writing et the time of execation of this Mortgage that ir?tereet on the.F~nde shall be paid to Borrower, and unless such aQreement ie made or applicable law requires such interest to be paid, Lender shall uot be required to pe~y ~orrower any interest or ~rnings oa the F1u?ds. Lend~r ahall give to Borrower. withoat chnrge. an ar?nual acoounting of the F~nda showiag credita and debits to the Funds and the purpose for which ~ch debit to the PLnds was made.'11~e Funda are pledged as additional security for the suma secured by thi~s - Mortgage. ii the nmount of the Fuads held by Leader. together with the future awnthly inetaAments of fl?nds pa~yable prior to the due dates of tases. aseeesa~eats, inauranoe premiums and ground renta. shall e~cYed the amount required to pay aaid ta:es. aaeesamente. insuranoe premiums aad grouad rents as they fall dne, such w~ass aball be. at 8orrower s option. either pmmptly repaid to Borrower or credited to Borrower on monthly installmenb of P1?nda. If the amouat of the Plueds held by Lender shaU no! be sufficient to pay ta:es. aseeemoaents. inaumnoe premiums and ground renfs as they fali due. Borrower shall pey to I.ender any aiaount necessary to mal~e up the de6ciency within 30 days from the date notioe is mailed by Lender to Borrower requestiag payment thereof. - Upon payment in fuU otell snms aecured by this Mortgege, Lendes ahall promptly refund to Borrower any funda held by L,ender. If nnder paragraph 18 hereof the Property is sold or the Property ie otherwise acquired Dy Lender. Lender shall apply. no later than immediately prior to the sale of the Property ~ ite aoquiaition by I.ender, any Ftinda held by I.ender at the time of application ae a credit againat the sums eecured by this Mortgage. - 3. Applicatton of Payments. Unleas applicable law provides otherwise. all paymenLs received by Lender under the Note and paragraphs 1 and 2 hereof ahaU be applied by L.ender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to intereat payable on the Note. then to the ptincipal of We Note, and thea to interest and principal on any Ftiture Advanoee. Charges; Liena. Bormwer shal! pay al! taxes, asseasmenta and other charg~, fines and impositions attributable to the Pc+operty which ~ may attain a priority over thia Mortgage, and leasehold paymenta or ground renta, 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 I.ender all notices of amounta due under this paragraph, and in the event Borrower shall make payment dirertly. Borrower shall promptly fu'mish to Lender receipts evidencing euch paymenfa. Borrower ehall promptly disch8rge any lien which has priority over this Mortgag~ pmvided, that Borrow~ shall not be required to diacharge any auch lien eo long as Borrower ahall agree in writing to the payment of the obligation eecared by auch lien in a manner acceptable to I.ender, or ahall in good taith contest auch lien by, or defend enforcement of such lien in, legal prooeedings wMch operate to prevent the enforcement of the lien or forteiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the impmvemente now eziating or hereafter erected on the Property insured againat toee by fi4e, hazarda included within the tetm "eztended ooverage; ' and ench other hezards as Lender may require and in auch amounts and for such periods ae Lender may require; provided, that Lender ahall not require auch ooverage amount e:ceeding the minunum, as may be reqnired by etate or federal regulationa governing activities o! Lender, or that amount of eoverage required to pay the euma eecure~ by thia Mortgage. whichever is the greater. The insurance carrier providit~g the inaurance shall be chosen by Borrower subject to approval by [.ender; provided, that such approval shall not be unreaeonably withheld. !:!1 prnmiums on insurance policies ahall be paid in the manner provided under paragraph 2 hereof or, if not paid in such mann~, by Borrower making payment, when due, directly to the insurance carrier. . All inenrance poliriee and renewals thereof ehaU be in form aoceptable to Lender and shall include a standard mortgage clauee in favor of and in form acceptable to Lender. Lender ehall have the right to hold the policies and renewala thereof, and Borrower shail prow j,::~ ~~ish to iend~ all renewal notic~s and all receipts of paid premiume. In the event of loea, Borrower ahall give pmmpt notice to the ine~uance carrier _ ~ and Lender. Leader may make proof of loes if not made prompdy by Borrower. ~ Unlesa Lender and Borrower otherwise agree in writing, insurance proceede ehall be applied to reatoration or repair of the Property ~ damaged, provided such reatoration or repair is econoonically feaaibte and the security of thie 11~origage ie not thereby impaired. If euch reetoration or rtpair is not eoonomically feasible or if the eecurity of this Mortgage would be impaired. the inaurance pmc~eds ahaU be applied ~ to the aume secured by this Mortgage, with the PacceBS, if anY. paid to Borrowu. If the Property ie abandoned by Borrdwer, or if Borrower fails tb ~ reapond to Lcnder within 30 days from the date notice ia mailed by Lender to Borrower tha! the insurance carrier offers to setUe a claim for ~ inenrance benefita. Lender is anthorized to collect and apply the inaurance proceede at Lende~a option either to restoration or repair of the Property or the aums eecured by this Mortgege. ~ Unleas Lender and Borrower otherwiee agree in writing, any such appl~cation of p:oceede to pTincipal ehall not eztend or poetpone the due ~ date of the monthly inatallmenta referred to in paragraphe 1_and 2 hereof or change the amount of euch inatallmente. If nnder paragraph 18 ~ hereof Lhe Property is aoquired by Lender, all right, title and intereat oi Borrower in and to any inaurance policies and in and to the proeeeda thereof resulting from dsmage b Prop~ty prior to the sale or soquieition shall pase to Lender to the e:tent of the sume eecuted by this Mortgege immediately prior to auc6 aale or aoquisition. 6. Preeervatton and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmenta. Borrower shall keep the Property in good repair and shall not commit waete or permit impairment or deterioration of the Prope~rty and she11 oomply with the proviaions of any lesse if this Mortgage ia on a leaeehold. If thia Mortgage is on a unit in a oondominium or a planned nnit development, Borrower ehall perform all of Borrower e obligstiona under the declaration or oovenanta creatingor governing the oondominium or planned nnit development, the by-lawa and ngulationa of the rnndominium or planned unit development, and oonstituent d~menta. If a condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenante and agn~ementa of auch rider ehall be incorporated into and ahall amend and supplement the covenants and agreements of thia Mortgage as if the - rider were a part hereof. ~ 7. Protedion ot Lender'~ Securit7. If Borrowes faila to pe:form tbe oovenante and agreemente oontained in thii Mortgage. ar if any action or prooeeding is commeaced which meterially affxt, I.ender's interest in the Propaty. including. bnt not limited to. eminent domain, s insolvency. oode eaforcemenk or arrangemeats or prooeedings involvin~ a ban~uupt or decedent, then Lender at Lendds option,upon notioe b Bormwer may make snch appearanoes. disbune ~nch snm~ and take sach action as is neoessary to prota~ Lende='~ inta~est, ~ induding. but not limited to, di~bursemeat of reasonabk attomey's fees and entry npon the Properiy to ma1~e repain. If Lender reqaired ~ mortgage insurance as a condition of mating the loan secured by this Mortgege, Borrowe~ ahall pa3? the preminms reclnind to maintaia snc6 insuranoe in effed nntil snch time as the requirement for such insaranoe terminaLes in aooordanoe with Borrower's and Leadd~ ~ w~rittcn agreement ar applicabk Law. Borrower shall pay the amoun! of all mortgage inaurance premiums in the manner provided ande~ ~ paragrsph 2 hereof. ~ Any amounts diabnrsed by Lender persuant to this paragraph 7. with interest thereon, shall beoome additional indebtedness of Borrower secnred by this Mortgag~ Unlesa Borrower and Lender agree to other terms of peymeat, such amounts ehell be payable npon ~ notioe fram Lender to Borrower requesting payment thereof, and shall bear intenat irom the date of diebursement at We rate payable fronp time to time on outetanding principal under the Note unless payment of inlerest at such rate would be aontrary to applicable law, in ahich event such amounts ehall bear interest at the highest rate permissible under applicable law. Nothing ooatained in this paragraph 7, ahall reqnin Lender to inwr any ~penee or take any action hereunder. ~ ~ ~G . ~ _ ~Q - . ~ _ - _ _ _ _ ~ ~ 5re.`___. -