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HomeMy WebLinkAbout0043 Borrower and Lender rnvenant and agree as follows: , 1. Pe?ymeat ot Princlpal and l~tereat. Borrower shall promptly pay when due the principal of and intereat oa the indebtedneas evide~ced by the Note. prepayment and late chargea ae providedin the Noto, and the principal of and interest on any Fl~ture Advancee secured by this Mortgage. 2. F`unds [or Te~ea and Inaurance. Subject to applicable law or to a written waiver by L.ender, Borrowe~ ahall pay to l.ender on ihe day monthly inetallments of priacipal and intereat are p~vable under the Note, untit the Note ie paid in full, a sum (herein "Funda") equal to one twelfth oi the year~jr taxes and aaeessmenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plua one twelfth of yearly premium instaltmenta for hazard ineurance, plus onetwelfth of year~jr premium inatallme~ta [or mortgage inaurance, if any, all as reaeonably estunated initially and firom lime to time by l.ender on the beaie of assesaments and billa and reasonable eatimatea thereoL . ~ The P1?nds uhaU be held in an inatitution tha deposits or accounts of which an inaured or guaranteed by a Federal or State agency (including Lender if Lender is such an inatitution). [.ender shall apply the Funda to pay said taxes, asaeeamenta. inaurance premiums and , i ground rents. Lender may not charge for eo hoiding and applying the Fl~nds, analyzing said acoount, or verifying and compiling said asaeeamente and bille, unl~a I.ender paye Borrower intereet on the ~nds and applicable law permite Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that interest on the Ftinds ehsll be paid to Botrower. and unlesa auch agrcement ia made or applicable law requiree euch interest to be paid, [.ender shall not be required to pay Borrower any intereat or eaminge on the FLnds: I.ender shall give to Borrower. without charge, an annual acooundng of the ~nde showing credita and debita to the ~ Funds and the ~urpoee for which each debit to the Fl~nde wae made. The Funde are pledged ae additional aecurity for the aume eecured by this Mortgage. If the amount of the Funde held by Lender, together with the future monthly inatalimenta of F~nds payable prior to the due datrs of taxee. aeaessments. inauranoe preaniume and ground rents, shall e~ceed the amount required to pay said taxes, eaeeeamenta, inaurance premiume and ground renta aa they fal! due. such eaccees sball be, at Borrower's aption, either prompdy repaid to Borrower or credited to Borrower on monthly iaetallments of Flinda. If the amount of Lhe Funds held by Lender ahal! not be auffirient to pay ta~cee, aeeeeamente, inaurance premiums and ground rente aa they faU due, Borrower ahaU pay to Lender any amouat neceesary to make up the deficiency within 30 days from the date notice is mailed by L.ender to Borrower requeating payment thet~eof. Upon payment in full of all aume secured by this Mortgage. I.ender rhall prompt~y refund to Borrower any funds held by L.ender. If under paragraph 18 hereof theProperty ia sold or the Property is otherwiee acquired by L.ender, Lender shall apply._no later than immediately prior to the eale of the Property or its aoquieition by Lender, any Flinda held by Lender at the time of application as a credit againet the aume aecared ° by thia Mortgage. ~ 3: Application o! Paytnents. Unleas applicable law ptovidea otherwise. all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender firat in payment of amounts payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then to the psincipal of the Note, and then to interest and principal on any Future Advancee. 4. Cbarges; Liene. Borrower ehall pay all taxea, asseaementa and other chargea, fines and impositions attributable to the Property-which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, 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 amounts due under this paragraph, and in the event Borrower shail make payment directly. Borrower ahali promptiy furniah to E Lender reoeipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to dischargeany auch lien ao long as Borrower ahall agree in writinB to the payment of the obligation secured by auch lien in a manner soceptable to Lender. or aha11 in good faith contest such lien by, ordefend enfotcement of such lien in. legal proceedinga which operate tu prevent the enforcement of the lien or forfeiture of the Property or any parf thereof. 5. Hazard Ineurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured againet lose by fire, hazaede included within the term "e:tended ooverage." and Such other hazarde ae Lender may require and in such amounts and for such periode se Lender may require; provided, that Lender shall not require such ooverage amount exceeding the minimnm, as may be required by ~ etate or federal regulations governing activitiea of Lender, or that amount of rnverage required to pay the sama eecured by this Mortgage. i whichever is the greater. - f The insurance carrier providing the inaurance ahall be chosen by Borrower subject to approval by L.ender; pmvided, that such approval ahall not be unreaeonably withheld. All premiums on insurance policie$ shall be paid in the manner provided under paragraph 2 hereof or, if ` not paid in such manner, by Borrower maki~g paymenl, when due, directly to the insurance carrier. All insurance policies and renewala thereof shall be in form acceptable to Lender and ahall include a atandard mortgage claaee in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewala thereof, and Borrower sha11 promptly furnish to i,ender all renewal noticee and all receipta of paid premiume. In the event of lose, Borrower shall give prompt natice to the insurance carrier and Lender. I.ender may make proof of loss if not made promptly by Borrower. - Unlesa Lender and Borrower otherwiee agree in writing, insurance procceds ahall be applied to restoration or repair of the Property damaged, pmvided such reatoradon or repair ie economically fessible and the eecurity of this Mortgage is not thereby impaired. If such reetoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired. the insurance proceeda ahall be applied _ to the euma eecured by this Mortgage, with the ezceea, if any, paid to Borrower. If the Property is abandoned by Borr+ower, or if Borrower faila to reepond to Lender within 30 daye from the date notice ig mailed by L.ender to Borrower that the ineurance carrier offers to eettle a claim for ' insurance benefita, Lendei is authorized to collect and apply the insurance proceeda at Lender s option either to reatoration or repair of the Property or the suma secured by this Mortgage_ Unless I.ender and Borrower otherwiae agree in writing, any auch application of proceeda to principal ahall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmenta_ If under paragraph 18 hereof the Property is aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceede thereof resulting from damage to Property prior to the sale or aoquieition ahall ptaes to Lender to the extent of the eums secured by thia Mortgage immediately prior to auch sale or aoquisition. 6. Preeervation and maintenance of Property; Leaeeholds; Condominume; Planned Unit Developments. Borrower ahall keep the Property in good repair and aball not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaione of any leaee if this Mortgege is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of Borrower's obligations under the declaration or covenants treatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documenta. If a oondominium or planned unit devebpment rider ia executed by Borrower and recorded together with thia Mortgage, the oovenanta and agreements of such rider shnll be incorporated into and ahall amend and supplement the covenante and agreements of this Mortgage as if the ' ~ rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to prrform the oovenante and agrcemente oontained in this Mortgage, or if any - action or proce;eding is oommenced which materially affecta Lender s interest ia the Property, including, bnt not liauted to, eminent domain, ineolveacy. aode enforcemen~ or anangemente or proceedings involving e banlm~pt oT decedent, then I.ender at Lender'e option.upon notice to Borrower may make such appearances, disbaree such snms and take euch action as ie neoeeeary to protect I,endez's interest, " includiag, but not limited to, disbursement of reaeonable attomey's fees and entry upoa the Property to make repaire. If Lender required ~ mortgage insurance aa a condition of making the loan eecured by t}ue Mortgage, Borrower ahall pay the premiume required to maintain ~ such insurance in effect antil sach time ae the requirement for euch inanrance terminatee in accordance with Borrower's and Lender's ~ written agreement or applicable I.aw. Bocrower ehall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ My amounts dieburaed by Lender perauant to thie paragraph 7, with intere~t thereon, ehall beoome additional indebtedness of ~ Borrower aecured by thie Mortgage. Unleea Borrower and Lendec agree to other terms of payment, euch amounte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ehall bear intereet from the date of diabureement at the rate payable from ~ time to time on outstanding principal under the Note unless payment of intereat at anch rate would be oontrery to applicable law, in which ~ event such amounts shall bear intereat at the highest rate permiesible under applicable law. Nothing oontained in thia paragraph 7, shall require Lender to inc~r any expenee or take any action hereunder. ~ `s ~ `'r ~0~ rr' ~ 4`3 ! ~ ~ ~ ~ . ~ - _ _ _ - - - - 1 ~~J _ Y _ ~ ~ - _ _ ~ ; ~ ~ . .