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HomeMy WebLinkAbout0926 Borrowes and l.ender cove~ant and a~res aa followr 1. Paymeat ot Princip~l ~nd Intesest. Bormwer ~hall promptly pay whe~ due the principal of and interest on the iadebtednes~ evidenosd by the Note. peepayenent ~nd Iste charQes e~ provided in the Note, and the principal of end in~ton eu~y FLture Advanoe~ ~ecured by tRu Mart~a~e. Z. Ftiurd~ [or T~e~ and In~uranoe. Subjecl fo applicable law or to a written waiver by l.ender. Borrower shall peiy to l.ender on the de~y monthly installmeats of principal and i~terert are payable under the Note. unW the No1e i~ paid in full. a sum (herein "i~'unda") equal to oas twelRh of the yearly tase~ and asaes.menta which may attain priority over thia Muri~a~te. and ~round rents on the I'roperty. if any, plus onc tweltth of yeuly premium in~tallment~ for hasard ituurance, plw onatwelRh of yearly premium i~stal)ments for mortgage i~uurance, if any. sU as reawnably estunated initially and Aom time to time by I.ender on the baab of asseasments and bills and reaso~able eslimate~ thereof. 'l~e Fbnd~ ~hall be heW in an inditution the depoaits ~ sooou~ts ot Mrhich are iruured or ~uaraateed by a Fedesal or 3tste u~eacy (u?cluding L.ender it Leada iu such an iastitutio~). I.ender shall apply the Fun3r Lr. ~.sy said tases. as~e~ameata. insurance premium~ and ~rrouad e~eats. I.ender oaqy not cAarge for w holdin~ and aPplyin~ the I~ndi. analysinQ said account, or verityin~ and compiling aaid ' e~ae~smeats and biW. unle~s I.ender psy~ Borrowet intere+t on the Ftind~ and appGcable law pernrits Lender to make such a char~e. Borrower ~ and i.eader may u~ree in writing at the tinae of e:ecution o! this Mortga~e that interest ot~ the ~nda shali be paid to Borrower. and unla~a ~uch a~reement is ma~de or applicabk law requisa sueh interal to be paid. Lenda shsA not be required to psy Borrowet any interat or earnin~ on the ~nds. Lender ~haq give to Borrower, withaut charQe. an annual aooounting of the ~nda ahowiag credits e~d debits b the Ftind~ and the purpose for which each debit b the [~nds was made.'[~e Fuads are pled~ed as additional eecurity for the suau ~ecured by this Mort~age. { If the aawunt of the Phnds held by Lender. to~ether wiLh the future awMhly irutallments olFunds payable prior to the due dates of tazes, asaesaraeat~. insuranoe premiuma and ~round rents. ~hall eaa~ed the amount required to pay said ta:es, aaseaamenfe. inrurenoe premiumi and ground nnb as they tall due. ~uch e:oas shall be. at Borsower's option, either pmmpdy repaid to Borrower or credited to Bormwer on monthly izutallmeats of F1~nds. If the amouat of the FWnds held by L.ender shall not be suf~icient to pay tases. aweasments. inauranoe preauums and ground rents a~ Wey fall due, Borrower shall pay to Lender eny amount neceasary to make up the deHciency within 30 days from the date notice is wailed by I.ender to Borrower requesting peYmenC thereof. Upon paym~t in full of aU suma secured by this Mort~age. Lender ~hall promptly refand to Borrower any funds heid by I.ender. If under peragraph 18 henuf the Proper.ty is wld or the Property is otherwise acquired by Lendrr, i.ender ahall apply. no later than immediately prior to 1he eak of the Proprrty or ita aoquisition by [.e~der. any F'unds held by Lender st the time of application as a credit egainst the sums secured by this Mortgage. ~ 3. Applicatioa ot Paymeata. Unleaa applicable law providea otherwise. aU payments received by Lender under the Note and paragraphs 1 and 2 hereof ahaA be applied by I.ender firet in payment of amounts payable to Lender by Borrower under paraqraph 2 hereof. then to interest payable o~ the Note. then to the principal of the Note. and then to intereat and principal on any Future Advbuir:es. 4. Char~es; I.iens. Borrower shall pay all ta~cea, asseeamenta and other chargee, finea and impoeitiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground re~ta, i[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. Borrowershall promptly furnish to I.ender all noticea of amounta due under thia paregraph, and in the event Borrower ahall make payment directly, E3orrower shali pmmptly turniah to I.ender receipta evidencing auch payments. [iorrower shall promptly discharge any lien which has priority over thia Mortgage; provided, that Bomower shall not be required to discharge any auch lien so lung es Borrower shall agree in writing to the payment of theobligation secured by such lien in e manner acceptab.le to Lender, or shall in good faith conteet auch lien by, or defend enforeement of such lien in, legal proccedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. _ 5. Hazard Insursace. Borrower shell keep the improvements now existing oT hereafter erectcd on the Property inaured against loss by fire, hazards iacluded within the-term "e:tended ooverage," and such other hezerda as I.ender may require and in such amounts and for auch periods as Lender may require; pmvided, that Lender shall not require such ooverage amount exceeding the minimum; as may be required by atate or federal regulatione governing activitiea o[ Lender, or that amount of rnverege required to pay the e~une secured by thia Mortgage, whichever is the greater. ' Tfie insurance carrier providing the ineurance ahaU be choaen by Borrower aubject to approval by l.ender; provided, that such approval ehall not be unreasonably withheld. All premiums on inaurance policiex ahall be paid in the mannec 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 poiiciea and renevirals thereof shall be in form acceptable to I.ender and shall include a etandard mortgageclauee in [avor of and in form acoeptable to Lender. Lendershall have the right to hold the policiex and renewals thereof, and Borrower shall promptly furnieh to i.ender all renewal noticea and all ncxipts of paid pr~iuma. In the event oi loss. Borrower ahaU give prompt notice to the insurance carrier ai a Lender. Lender may make proof of loss if not made promptly by Borrower. - ' Unleas Lender and Borrower otherwise agnee in writing, inaurance proceeda ahall be applied to reatoration or repair of the Property t ~ demaged, provided such reatoration or repair ia economically feasible and the security of thia Mortgage is not thereby impaired. If auch restoration or repair is not economically feaaible or if the eecurity of this Mortgage would be impaired. the ineurance proceede shall be applied ~ to the sume secnred by this Mortgage. with the rxcees, if any, paid to Borrower. If the Property is abandoned by Borrower. or it Bo:rower [aila fo reapond to I.ender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrie~ ot~ers to settle a claim for I insurance benefits, Lender is euthorized to rnllect and apply the insurance proceede at Lendei s option either to restoration or repair o[ the ~ ~ Property or the swne eecured by~hia Mortgage. Unless Lender and Borrower otherwise agrce in writing, any anch epplication of proceedB to principal shall not extend or postpone the due ~ date of the monthly inatallmente referred to in paragrepha 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 ~ hereof the Property is aoquired by Lender, all right, title and intereat of Borrower in and to any inawairce poGciee and in and to the proceeda ~ thereof resulting from damsge to Property prior to the sele or soquieition ahall paae to Lender to the eztent of the eums eecured by this y Mortgege immediately prior Lo such sale or soquiaition. E 6. Preservation and Mainteaaace otProperty; l.eaeehotds; Condomiauma; Plaaned Unit Developments. Borrower shall keep the Property in good repair and ehall not oommit waste or pennii impai~~.-.rnt or deterioration of the Property and shall oomply with the pmviaions of any lesee if thia Mortgage is on a leasehold. If thi~ Mortgage is on a unit in a oondominium or a ptanned unit development, Borrower shall perform all of Borrower's obligatione under the declaretion or covenanta creatingor governing the condominium or plenned unit developmen~ the by-laws and n~guiaiiona of the condominiwn or planned unit developmen~ and conatituent doeuments. It a oondominium or planned unit development rider ia execvted by Borrower and recorded together with thie Mortgage, the oovenants and egreements of such rider ehall be incorporated into and ahall amend and eupplement the rnvenants and agreements of this Mortgage as if the rider were a part hereoL 7. Protectbn ot Lender'~ Securltp. it Borrower fails to perforna the oovenant~ and agreement~ oontained in this Mortga~e. ar if any actioa or p~rorxeding ia oommtnoed which materially aflecfe Lender's interett in the Property, including, bnt not limited to, enaineflt domain, uuolvency, oode eaforoemeat, ar arrangement~ or pmoeeding~ involving a bankrupt or deoedent, then I.ender at I.ender'~ option,upon notice to Borrower may make such appearanoe~, disbnr~e snch sums and take snch action as is neoesaary to proted l.end~'~ inte~ros~ a inclnding. but not limited to, disbursernent ot reawnable attoruey's fe~s and entry apon the Property to make repairs. It I.ender required s mortgaae insurance_ a~ s conditioa ot waking the loan iecnred by this Mortgege. Borrower ehaU pay the pnanium~ reqnired to maintain ~ ~uch. ineurance in etfect nntil snch time as the requirem~t for snch insnraaae tezminates in aocordanoe with Tower's and I.~der'a s writtea eQreement ar applicabk Iaw. Borrower shall pey the amount of all mortgage uuurance premiams in the maaner provided unde: ~ paragraph 2 hereof. ~ My amounta disburoed by Lendet penuant to this paragraph w*ith intereet thereon, shall beoome additionel indebtednes~ of a Borrowrer ~ecured by this Mortgege, Unleaa Horrower and Lenda agree to other terms of paymen~ ~uch amounb shall be payable upoa ~ notioe from Lender to Borrower requesting payment thereof, and shall bear intenst from the date of diebursement at the sate payable firom time to time on outstanding principal under the Note unlees payment of intenat at such rate would be oontrary to applicable law. in which ~ tvent euch amounts shell bear interest et the highest rate perwissible under appUcable law. Nothing contained in this paragreph 7, shall require L~der to incur any e:pense or take any action hereunder. ~ ~ ~ . ,r ~ ~ x 299 F~~ 92S t- ~ . , ~ r ' ~ - . ~.r. _ _ ~ . y ~ . < ~ ~ ~ s ~"'~z-„~.,s,6 .r.. ' ' _ .rs~`'t~~ S~~-'~'~'.~"~.i°' _ ~ ~ .