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HomeMy WebLinkAbout0599 Borrower and I.ender covenant and aQree a~ follows: 1. P~ymeat o[ Peincipwl and Interes~ Borrower shall promptly pay when due the p~incipal of a~d intereat on the indebtedneu~ evidenced by the Note. prepayment and late charges as pmvided in the Note, and the principa! of and intereaton ai?y [~ture Advancea secured by tl,is Mortrt~age. FLnd~ [ot TaueY and Ituuranoe. Subject to applicable !aw o~ to a written waiver by l.ender, Borrower shall puy 1o L.ender on the day monthly inatallments of principal and interest are p~yable under the Note. until the Note is paid in full, a sum (herei~ "~ndi'7 equal to oaa twelfth o[the yearly taues and asseesments which may attain priority over this Mort;age. and.ground rente on the Property, if any, plue one twelRh otyearly pcemium instaliments for hazard insurance, plue onetwelfth of yearly premium iaata!lmenta for morlgage insurance. if any, aU as reaeonably estunated initially and trom time to time by I.end~ on the baeia of aseesamenta and biUs and reasonable eatimatea thereo[ 1~e I~nd~ shaU be held 'u? an institution the deposita or aooounts o[ which are insured or guaranf~eed by a Federai or 3tate a~ency (including I.ender if Lender u such an inrtitution). I.eader sha11 apply the'~u?ds to pay said taxes. saseasmenfs, ineurance premiums and groaad renta. Lender may not charge for w holding aad applying the Flinds, ana~yaing said accoun~ or verifying aad rnmpiling said asaeesmenta and biW. unless Lender pays Borrower interest on the ~nds and applicable law permita I.ender to mate such a charge. Borrower ~ad Lender me~y agree in writing at the time of eaecution of this Mortgage that interest on We F1ada ehall be paid to Borrower. and unlees such agreement ia made or applicable law requiree such interest to be paid, Lend~ shall not be required to pay Borrow~ any interest or earnings on the FLads. Lend~ shali give to Borrower. without charge. an annual accounting of the ~nde showing credita and debita to the Funds and the purpose for which each debit to the FLada was made. The Funda are pledged as additional security for the sums secured by this Mortgage. ~ If tha emount of the ~Lnds held by Lender. together with the future awnthly inatallmente of Flu?da payable prior to the due dates of t~es, ~ assesaments. ine~usnoe premiuma and ground rents, ahall euoaed the amount required to pay said taxea, aesesame~ts. insurance premiums aad ground renL as they fall due. stich e~cess ahaU be. at Borrowei s option. either pmmpdy repaid to Borrower or credited to Borroweson monWly iastallments of ~nds. If the amount of the fi~nda heW by Lender shaU not be auPficient to pey ta:es, aseeesmente. iasurance premiums and ground renfa as they fall due. Borrower shall pay to l.eader any amount neceeaary to make up the deficiency within 30 days from the date notice is mailed by I.ende~ to Borrower requesting payment thereof. . Upon p~yment ia full otall ayms eecured by thia Mortgege, I.ender shall pmmptly refund to Borrowe~ any tunda held by [.ender. If under peragraph 18 hereof the Property is eold or the Property ia othe~wise acquired by Lender, Lend~ ahall apply, no later than immediately prior to the sale of the Property or ita soquisition by Lender, any ~nda held by Leader at the time of application aa a credit agaiast the eums eecured by this Mortgage. - 3. Applieatioa of Payments. Unless applicable law providee otherwiee, all paymenta received by Lender under the Nole and ~ paregraphs I and 2 hereof ahall be applied by Lender firet in payment of amounte payable to Lender by Borrower under paragraph 2 hereof. then to interest payable on the Note. then to the principal of the Note, and then to intereat and principal oa any Future Advanc~. 4. Charges; Liens. Borrower ahall pay ali ta~cea. asaesaments and other chargea. finea and impoeitione attributable to the Property which may attein a priority ov~ thia Mortgage. and leasehold payments or ground rents, if any. in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompdy furniah to Lender aU noticea of amounta due under thia paragraph, and in the event Borrower ahall make payment dirrctly, Borrower ahall promptly tumiah to Lender receipta evidencing auch paymente. Borrower shali prompdy discharge any lien which has priority over thia Mortgag~ provided. that Bormwer ahall not be required Lo diacharge any such lien eo long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner aooeptable to Lender, or shall in good faith contest such lien by, or defend en[orcement of such [ien in, legal proceedinga which op~ate to prevent the enforoement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurauce. Borrowe9r ahall keep the impmvementa now e~eting or hereafter erected on the Property inaured against loas by fire, hazards included within the term "e:tended ooverage," and auch other hazarda ae Lender may require and in auch amounts and for auch periode aa I.ender may require; provided, that I.ender ahall not require such ooverage amount ezceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of rnverage required to pay the suma eecured by this Mortgage. whichever ia the greater. . ~ The inaurance carrier pro~~ding the inaurance ahall be chosen by Borrower subject to approval by Lender provided, that auch agproval ahall not be unreasonably withheld. All prnmiums on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. All insurance policiea and renewala thereof ahall be in form ac:oeptable to Lender and ehsll include a etandard mortgage clauee in favor of and in form acceptable to I.ender. I.ender ahaQ have the right to hoW the poGciea and reuewals thereof, and Borrower shell promptly fumiah to i.ender all renewal noticee and all receipts of paid premiuma. In the event of loea, Borrower shall give prompt notice to the inaurance carrier ' and Lender: Lender may make proof of loes if not made promptly by Borrower. ~ Unless Lender and Borrower otherwiae agree in writing. ineurance proceeda shall be applied to reatoration or repair of the Property ! damaged. provided such reatoration or repair ia economically feaaible and the eecurity of thie Mortgage ia not thereby impaired. If sach reatoration or repair is not economically feasible or if the security of thie Mortgage would be impaired. the iasurance proceeds shall be applied ~ to the anms eecured by thia Mortgege. with the eaceas. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails b respond to Lender within 30 daye from We date notice is mailed by Lender to Borrower that the inaurance carrier offere to eettle a claim for ~ insarance benefits. Lender is anthorized to rnUect and apply the ineurance pmoeeda a! Lender's option either to re8toration oi repair of the ~ Property or the suma eecur~d by this Mortgage. ~ Unlesa LendeT and Borrower otherwise agree in writing, any euch application of proc~eeds to principal ahall not eutend or poatpone the due date of the monthly inataUmenta referred to in paragraphe 1 and 2 hereof or change the amount of auch inetallmente. If under paragraph 18 hereof the Propaty is aaquired by I.ender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeda thereof naulting fmm damage to Property prior to the eale or acquisition shall paea to Lender to the e:tent of Ehe sume secured bq thie - Mortgage immediately prior to such eale or soquisition. ~ 6. Preeervation and Mainteneace of Property; Leaeeholde; Condominums; Planned Unit Developments. Borrower ahall keep the Property in good repair and shall not oommit waste or permit impairment or deterioretion of the Propedy and shaU oomply with the~ proviaions of any leaae if thie Mortgage ia on e leaeehold. If this Mortgsge ie on a unit in a oondominium or a planned unit development. - Borrower ehall perform all o! Borrower's obligations under the declaration or covenante creatingor governing the condominium or planned unit development, the by-laws and regulationa of the oondominium or planned unit development, and oonstituent docnments. If a rnndominium or planned unit development rider ia e:ecuted by Borrower and recorded together with this Mortgage, the oovenants and agreementa of such rider shall be inrnrporated into and ahall amend and supplement the covenants and agreemente of thia Mortgage as if the rider were a part hereof. ~ . 7. Protection of Lender'~ Secnritp. If Borrower fails to pe~form the oovenants and agreanenta oontained in this Mortgege, or if any action or prooeeding is commenced which materially affecte I.ender s incereet in the Property. including, but not limited to, eminent domain, insolveacy, oode enforoement, or arrangements or proceedings invoiving a bankrnpt or deoedent, then Lendu at Lendds option,npon ~ notice to Borrower may malce such appearances. diaburse such sums and take euch action as ie neassary to protect Leadd~ interesf, ~ including, but not limited to. disbunwn~t of reawnable attorney's fees and mtry upon the Property? to meke npaiis. If Lende: nquired mortgage insuranoe as a condition of ineking the loan aec~ired by this Martgage, Borrower shall pay the premiums reqnired to maintain ~ snch insuranoe in effect antil euch time as the requirement for snch insurance tezminates in eooordanoe witb Borrovrer's and Leade~'e written agreement or applicabk Law. Borrower ehall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereoL My amounta diebursed by Lender pereuant to thia paragreph 7, with- inte.reat thereon. shall beoome additionel indebtedne~ of Borrower secured by thia Mortgage. Unl~s Borrower and Lender agree b other terms of payment, snch amonnts shall be payable npon notice from Lender to Borrower requeeting payment thereof, and ehall bear in~t from the date of diebunement at the rate payable firom S ~ • time b time on outatanding principal ander the Note unlese payment of interest at anch rate would be oontrary to applicable law, in which ~ event sach amounts shall bear intereat at the higheet rate permisaible under applicable law. Nothing contained in this paragraph 7. ~hell require Lender to incur any e:pense or take any action hereunder. ; ~ Bo` ~ ~~9 P~cE 599 ; ~ ~ _ _ _ _ ~ ~ ~n~ _ _ ~ - . _ _ _ . _ ~