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HomeMy WebLinkAbout0010 Borrower a~d Lender covenant and agree as followa: 1. Payment ot Priacipal and Interest. Borrower shall promptly pay when due the pri~cipal of and ir~tereat on the indebtedness evidenced by the Note. prepayme~t and late charges aa pmvided in the Note. and the principal of and intereat on any Fliture Advancee eecured by thie Mortgage. • 2. Il~nda for Ta~es and Insurance. Subject to applicable law or to a written waiver by I.ender, Borrower ahall pay to [.ender on the day monthly inatallments of principal and interest are payeble under the Note, until the Note ia paid in full, a eum (herein "Funde") equal to one~ twelRh of the yearly taxee and assessments which may attain priority over this Muetgage, and ground renta on the Property, if any, plua one twelRh of yearly premium inatallments for hazard inaurance, plue one~twelRh o[yearly premium installmente for mortgage insurance. if any. all as reaaonably eatimated initially and from time to time by I.ender on the baais of aeseasmenta and billa and rnaaonable eatimatea thereof. The Pti?ads shall be held in a~ institution the deposita or accounts of which are inaured or guaranteed by a Federal or State agency (including Lend~ if I.ender ia such an institution). Lender shall apply the ~nda to pay said tsxee, asaesament.. inaurance premiume and ground renta. Lender mayr not charge fos eo holding and applying the Flu?ds, analyzing said aocount, or verifying and compiling esid aeaeesmenta and bills. unleae Lender pays Borrower intereat on the Flir?de and applicable law permite Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of thie Mortgage that intereet on the Funda ahall be paid eo Borrower, and unleea such agreement ie made or upplicable law requires auch interest to be paid, Lender ehall ~ot be requind to pay Borrower any i~tereet or earninge on the F1nds. I.ender shall give to Borrower, without charge, an annual accounting of the Funda ehowing credits and debits to the Phnda and the purpoee for which each debit to the I~?nda wea made. The ~nda are pledged ae additional aecurity foT the eume secured by this MortBaBe• If the amount of the Hlu~da held by l.ender, together with the future monthly installments of ~nda payable prior to the due datee of tauea, asseeementa. inaurance premiuma and ground renta. ahall Paca~ed the amount required to pay said taxea. aseesaments, inaurance premiume and ground rente aa they fall due, such excess ehal! be. at Borrowei s option, either promptly repaid to Botmwer or credited to Borrower on monthly instaUments of ~nds. If the amount of the Funda held by Lender shall not be autficient to pay ta:es, aseeasmente, inaurance premiums and ground renfa ea they fall due, Borrower shall pay to I.ender any amount neceasary to make up the deficiency within 30 days from the date notice is meiled by Lender to Borrower'requeating payment thereof. Upon payment in fuU of all sume secured by thie Mortgage, Leader shall prompdy refund to Borrower any funds held by I.endrr. If under paragraph 18 hereof the Property is sold or the Property ie otherwiae acqnired by Lender, Lender ahall appiy, no later than immediately prior to !he eale of the Property or its aoq~isition by Lender. any I~nde held by Lendes at the time of application as a credit against the suma eecured by this Mortgage. 3. Applicadoa ot Paymeats. Unlesa applicable law providea otherwiee, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firet in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then ta interest peyable on the Note, then to the principa? of the Note. and then to interesE and principal on any Future Advances. 4. Charge8; Liens. Borrower ehall pay all ta~cea. assessmenta and other chargea, fines and impositions attributable to the Property which may attajn a priority over this Mortgage, and leasehold paymenta or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner. by Borrower making payment, when due, directly to the payee lhereof. Borrower ahall promptly furnish to I.ender all noticea of amounts due under thia paragraph, and in the event Borrower ahall make payment directly. Borrower shaU promptly furnish to Lender rec:eipta evidencing such payments. Borrowrr shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharge any euch lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acoeptable to I.ender, or ehall in good faith cont~t such lien by, or defend enforcement of such lien in, legal proc~eedinga which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Ineuraace. Borrower shall keep the improvements now exiating or hereafter erected on the Property inaured againet losa by . fire, hazarda included within the term "eztended rnverage," and auch other hezards as Lender may require and in auch amounta and for auch periode as Lender may require; pmvided, that Lender ahall not require auch ooverage amount eaceeding the minimum, as may be required by state or federal regulations goveming activities of Lender, ot that amount of coverage required to pay the aums aecured by thia Mortgage, whichever ia the greater. The insurance carrier providing the inaurance shall be chosen by Borrower subject to appTOVaI by Lender, provided, that such approval shall not be unreasonably withheld_ All pmmiums on insurance 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, directiy to the insurance carrier. All ineurance policiea and renewale thernof shall be in form acseptable to Lender and shall include a atandard mortgage clanee in favor of , and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Bormwer shall give prompt notice to the insurance carrier and Lender. Lender may m~ce proof of lose if not made promptly by Borrower. ~ Unlese Lender and Borrower otherwise agree in wtiting, inaurance proceeds shall be applied to reatoretion or repair of the Property E damaged. provided such reatoration or repair is economicaU~ feasible and the security of this Mortgage ia not thereby impaired. If such ! ~restoration or repair ie not eoonomically feasible or if the eecurity of this Mortgage would be impaired. the inaurance proceedB ahall be applied ~ to the sums aecured by thia Mortgage, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to L.ender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for ~ inaurance benefite, I.ender is suthorized to collect and apply the inaurance proceeda at I.ender's option either to restoration or repair of the Property or the eums eecured by this Mortgage. 3 Unlesa Lender and Borrower otherwiee agree in writing, any such application of pra.~eede to principal shall not eatend or poetpone the due ~ date of the~monthly inetallments refetred to in paragraphs 1 and 2 hereof or change the amount of such installments_ If under paragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any ineurance policiea and in and to the procceds ~ thereof resultiag from damage to Property prior to the eale or acquisition ahall pase to i,ender to the extent of the sums secured by thia ~ Mortgage immediately prior to. such sale or acquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower ahall keep the property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provieions of any lease if this Mortgage ia on a leasehold_ If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower ehall perform all of Borrower's ebligations under the declpration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawe and regulationa of the condominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit development rider iB executed by Borrower and recorded together with thia Mortgage, the oovenante and agreements of such rider ahall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. • 7. Protertion ot Lender's $ecurtty. If Borrower faila to perform the oovenante and agreemente conteined in thie Mortgege, or if any action or proceeding ia commenced which matezially affects Lender'e interest in the Property, induding, but not limited to, eminent domain, insolvency. oode enforcement, o: arranBemente or proceedinBa involving a bankrnpt or deceden~ then I.ender at Lender'e option,npon ~ notice to Borrower may make euch appearances. diebnree euch aums and take auch action ae ie neoessary to protect I.endrr's interest, - including, but not limited to, diebursemeat of reasonable attomey's feee and entry upon the Property to make repaire. If Lender required mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrowec ahall pay the premiums required to maintsin ;x such insurance in effect nntil snch time as the requirement for euch ina~rance terminatee in aocordence with Borrower's and Lende~e written agreement or applicable I.aw. Borrowe; shall pay the amount of all mortgage inau:ance premiame in the manner provided under ~ paragraph 2 hereof. ~ Any amounte diebureed by Lender pereuant to thia paragraph with intereat thereon, ahall beoome additionel indebtedneae of Borrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terma of payment, euch amounts ehall be payable upon i ~r notice from Lender to Borrower requeeting payment thereof, and ahaU bear intereat from the date of disbureement at the rate payeble from time to time onoutatanding principal under the Note unieee payment of interest at such rate would be o~ntarary to applicable law, in which , ~ event auch amounts ahall bear intereat at the higheat rate permiasible under applicable lsw. Nothing contained in thie paragraph 7, ehall ~ require Lender to incur any e:penee or take any action hereunder. . t':f Fi"~ c ~ ~ g:';,r 1 P~ _ f 10 ~ ~ - _ _ _ - ~ ~ ' ~ ° r:,r ° + .~`e~ . ~.%xa, -x,-.v ~s~..~.,~:K..~~- ~z`.~;.,~ M1 , I y3~' ~*'a . -?~s,., i w~ a=.~ _ ~ r :s . „s ~