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HomeMy WebLinkAbout0627 Borrower and Lender covenant and aQree eu lolbws: 1. P~yment of PrincipRl aad Interes~ Borrower ~hall pmmptly pay when due the principal of and interest on the indebtedness widenced by the Note, prepsyment and lab charQe~ as pmvided in the Note. and the principal of end i~lenat on any iliture Advances oecured by thi~ Mo~tsase. Z. F~nd~ tor Tase~ and lnsurrutee. 3ubject to applicable law or to a written waiver by Lender, Borrower ahall pay to I.ender on the day monthly inatallment~ of principel and interest are payable under the Note. unW the Note ia paid i~ full. a aum (hecein "F`unds") equal to oa~ twelRh of the yencly ta:es and assessmenta which may attain priority over thi~ Mortgage, aad ground rents on 1he Property. if any, plus ono- tweiEth of yearly pranium installmenta for hatard ineurance. plus one~twelRh of year~jr premium inatallmenta for mort~a~e insuranoe. if any. aA aa rea~onably estimated initially end from time to time by Lender on the basia o! aasesamenta and bills and reasonable estimetea thereo! The P1ind~ shsU be held in an institution the depoeiL or~accounts of which are iasu~ed or guaranteed by a Federal or State egency (iacluding L.end~ J Lender is such an inatitution~ l.eader shsll apply the Ptinds to pay eaid taxe~. assessments. insuranoe prcmiwus ar?d Qronad rents. Lend~ m~y not char~e ~o holding and applying the PLnds, ane~ysing daid account, or verifyiwg and compiling said a~sasments aad biW. unlw I.ender pays 8orrower inf~erest on the P'unds and applicable law pesmits I.end~ to make such a charge. Borrowez and I.end~ may a~ree in vnritinB at the time of esecution of this Mort~age thet intenst on the I~nds ehall be paid to Borrower. and unless snch agreemeat ia anade or applicsble Isw requires such int~est to be paid. Leader ~haU Aot be required to pay Borrower any interest or ~rniags on the FLnda. Lender shall give to Borrower. aathout charge. an annual acoounting of We ~nds showing credifa and debite to the P~nds and the purpose fos which each debit to the ELnda waa mada. 71~e Funds en pledged as additional sec~uity for the auma secvred by this Mortgage. ~ ~ If the amount of the I~nda hdd by Lender. together with the future monthly inatsllments of Funds payable prior to the due dates of taxes. asaesamepts. inauranca pr~iua~s aad grouAd reats. shall ea~aaed the amount required to pay said ta:es. asaesaments, insuranoe premiums and ground rents as they fall due. such e:cess shall be, at Bormrver's option. either pmmptly npaid to Borrower or rredited b Sorrower on monthly inetaliments of I~nds. If the amount of the I~nda heW by Lender shall not be sufficient to pay taxes, asaesaments. inaurance premiuma and ground rents as they fall due. Borrower ehall pay to Lendez any amount necesaary to malce up the defiriency virithia 30 days from the date notioe ia mailed bY Lenda to Borrower requestin8 Payment thereof. Upoa pqyment in fall of all suma secured by Wis Moztgage, Lender shell promptly refuad to Bormwer any funds held by Let?der. If under parngraph 18 hereof the Property is sold or the Property is othetwiee acquired by Lender, Lendv shall apply. no later ehan immediately prior to the sale of the Propedy or its aoquisition by Lender, any I~nda held by [.ender at the time of application aa a credit againat the eums eecured by this Mortgage. 3. Applleation of Paymeate. Unlese applicable law piovidea otherwiee. all paymenta received by Lender under the Note and paragraphs 1 end 2 hereof ahall be applied by Lender first in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. then to interest payable oq the Note. then to the prinripal of the Note, and then to interest and principal on any Future Advances. 4, Chargea; Liens. Borrowershall pay al1 ta:es. asaesements and other charges, finee and impoaitiona attributable to the Property which may attain a priority over this Mortgag~ and leasehold payments or ground renta, if any, in the manner pr~vided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment~ when due, directly to the payee thereof. Iiorrower ahall promptly furnieh to L.ender all noticea of amounta due under thia paragraph, and in the event Borrower shall maJce payment directly, Borrower shall pmmpdy [urnish to I.ender receipta evidencing auch paymente. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any auch lien eo long aa Borrower shall agree in writing to the payment oithe obligation secured by • such lien in a manner acceptable to L.ender, or ahall in good faith rnnteat such lien by, or defend enforcement of auch lien in, legal proceedinga which ope~ate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuranoe. Borrow~ ahall keep the improvementa now exieting ar hereaf~er erected on the Property inaured against loes by 5re, hazarde iacluded within the term "e:tended rnverege," and euch other hazarde as Lender may require and in such amounts and for auch periods as I.ende~r may require; pmvided. that Lender ahall not require such ooverage amount e:ceeding the minimum, as may be required by state or federal regulatione governing activitiea of I.ender, or that amount of coverage required to pay the auma secured by thie Mortgage, whichevr~ i's the greatet. The insurance carrier providing the insurance shall be chosen by Borrower aubject to approval by Lender, provided, that such approval ahall no; be unreasonably withheld. All premiums 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 policies and renewala thereof ehall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form aoceptable to Lender. I.ender ehall have the right to hold the policies and renewala thereof. and Borrower ahall promptly furniah to ' i.ender all renewsl notices and all receipts of paid preoniums. In the event of loea, Borrower ahall give prompt notice to tt~e insuranoe carrier ead Lender. I.ender may make proof of lose if not made prompdy by Borrower. Unless I.ender and Borrower otherwiee agree in writing, insnrance proceeds ehall be applied to restoration or repair of the Property damaged, provided such reatoration or repair ia economically feaaible and the eecurity of this Mortgage ia not thereby impaired. If such ~ restoration ar repair ie not economically feaaible or if the security of thie Mortgage would be impaired, the inaurance proceede ehall be applied to the suma secured by thia Mortgage, witA the e:cees. if any. paid to Borrower. If the Property ia abandoned by Borrower. or if Borrower faile to reapond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the inanrance carrier offers to aetde a claim for insuranoe benefits, Lender is suthorized to oollect and apply the ineuranoe proceeds at Lende~s option either to restoration or repair of the Property or the auma secured by this Mortgage. Unleea Leader and Borrower otherwiee agree in writing, any euch application of proceeda to principal ahall not ~tend or postpone the due date of the monthly inataUmenta referred to in paragraphs 1 and 2 heeeof or change the amoant of auch inatallmenta. If under paragraph 18 hereof the Property ie soquired by Lender. all right, title and intereat of Borrower in and to any ineurance policies and in and to the proceeds Wereof resulting ~om damage to Property prior to the eale or aoquiaitioa shall pass to Lender to We eztent of the auma eeeured by this Mortgage immediately prior to such sale or aoqnisition. 6. Preeervation and Yaintenance of Property; Leaeeholde; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and shaU not canmit waate or permit impairroent or deteriocation of the Property and ehall oomply with the ~ pmvisione of any lease if this Mortgage ia on a leaeehold. If this Mortgage is on a nnit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrow~ a obligationa under the declaration or oovenante creatingor governing the condominiam or planned unit development, the by-laws and regulations of the condominium or planaed anit development, and constituent docnmente. If a condomininm or planaed unit development rider ia aecuted by Borrowrr and reoorded together with thia Mortgage, the oovenants and agreementa of euch rider ehs!! be insurg~*sied ':nto and shall ar~end arid aupplement the covenanta and agreementa of this Mortgage as if the ' rider were a part hereof. ' ~ 7. Protection of Len~er'~ Secnritp. If Borrowe: fails to parform the oovenants and agreemente coataiaed in this Mortgage. or if any i action or prooeeding is oommenoed which mate~iallY eg'ecte Lende~s intere~t ia the Property. inclading, bnt not limited to, eminent domain. ~ insolvency, oode ex~forcement, or arrangementa or prooeedings involving a banlmipt or deoedent, thea Lender at I.endds option,npon aotice b Barrower may ma1~e snch sppearanoes. disburse ~uch snms and take such action as is neoessarY to proted I.enda'~ int~rest, , including. but not limited to, disbnrsement of reaeonabk attorneq's fees and entry npon the Property to make npair. If Lender required ~ mortgage insnrance as a oondition of inelring the loen secured by this Mortgage. Borrower ~hall pay the preminms reqnired to maintsin auch insnranoe in dfect nntil snch time ae the reqnirement for anch insurance tuminates in aocordance ~viW Borrower's and I.mdds written agreement or applicable I.aw. Boreower shell pay the amonnt of all mortgage inanrance premiums in the manner provided nnder P~~Ph 2 hereof. ~ Any amounts diabarsed by Leader persuant to this paragraph 7, with interest thereon. shall beoome additional indebtedness of Borrower ~ecured by this Mortgage. Unless Borrower and Lender agree to other Lams of paymen~ soch amounta ahall be payable upon notioe irom Lender to Bonvwer reqneeting payment thereof, and ahall bear interest from the date of disbureemeat at the rate payable 5rom time to time on outstending principel undrr the Note iu?lese payment of interest et euch rate would be oontrary to applicable law, in which ' event ench amounb shall bear interest at the higheat rate permissible ander applicable law. Nothing oontained ia thi~ paragraph 7, shall reqnire Leader to incnr any e~cpense or take any action haennder. ~ R ~ _ L~fx299 627 ~ . . ~ . _ - - ~,~;e,~• -iS »~^~~.~£ir_.?~ .3....._ : ~ .