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HomeMy WebLinkAbout0183 I3orrower and l.ender covenant and agree as tollowe: • 1. Paymeat of F~i~cipal and Intere~t. l3orrowe~ ahall promptly pay wfien due the priocipal of and intereat o~ the indebtedneae evidenced by the Note, prepayment and late chargea as provided in the Note, and the principal of and intereat on any ~ture Advancee eecured by this Mortgage. 2. bl~nds for Teu~ee end Ineurance. Subject to applicable law or to e written waiver by l.e~der, E3orrQwer ehail pay ?o Ixnder on the day monthly inatallmenta of principal and intereat are payable under the Note, until the Note is paid in full, a aum (herein "Funda") equal to one twelfth of the yearly taxes and a,sseaementa which may attain priority over this Mortgage, and qround rente on the Properiy, if any, plua one twelfth of yeariy premium installmente for hezard inaurance, plua onetwelfth ofyearly premium inatallments for mortgage inaurance, if any, all as reasonably estimated initially and itom time to lime by l.ender on the basie of aeseeamenta and bills and rn~sonable eatimates thereof. Tha fi?nda nhall be held in an institution the deposits or accounle of which are ineured or guaranteed by a Federal or State agency (including I.ender if I.ender ia euch an it?atitutio~). I.ender shall apply the fi~nda to pay aaid taxee, assesamente, inaurance premiuma and ground rente. Lender may not charge for eo holding and applying the Ftinda. analyzing said account, or verifying and compiling said aeaeasments and bills, unlesa I.ender pays Borrower intereet on the fi~nda and applicable law permite I.ender to make auch a charge. Borrower and Lender may egree in writing at the time of e:ecution of thia Mortgage that interest on the Funda ahall be paid to Borrower. and unleas euch agreement is made or applicable law requirea such intereat to be paid, Ixnder ahall not be required to pay Borrower any intereat or earnings on the ~nds. Lender ahall give to Borrower, withoui charge, an annual accounting of the Funde ahowing credit$ and debite to the Funds and the purpoee for which each debit to the ~nda wae made. The Funde are pledged as additional eecurity for the auma eecured by this Mortgage. If the amount of the FLnds held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due dates of taxes, assesamenta, inaurance premiums and ground rents. ehall exc2ed the amount required to pay eaid taxes, asseeamenta, insurance premiuma and ground rente as they fall due, such ea~ceas shell be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallments of ~nde. If the a~nount of the Funda held by I.ender ehall not be eufficient to pay tanea, assessmenta, insurance premiums and ground rente aa they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the datc notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all auma eecured by thie Mortgage, Lender ahaU promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite aoquiaition by Lender. any Ftinds held by Lender at the time of application as a credit against the sums secured by thie Mortgage. 3. ApplicatiAn of Paymente. Unlese applicable law providea otherwiae, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firet in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advancea. 4. Chargea; Liena. Borrower shall pay all taxes, asseasments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereoCor, if not paid in such manner, by Sorrower making payment, when due, directly to the payee thereof. Borrower shall prompdy turnish to Lender all noticea of amounte due under this paragraph, and in the event ~3orrower sha11 make payment directly, Borrowez shall pmmptly furnish to l.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower ahail agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or ahaU in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5: Hazard Insurence. Borrower shall keep the unprovementa now exiating or hereafter erected on the Property insured against loss by fire, hazarde included within the term "eztended rnverage; ' and auch other hazards as Lender may require and in such amounta and for such periods as Lender may require; provided, that Lender ahaU not require such ooverage amount exceeding the minimum, as may berequired by atate or federal regulations governing activitiea of I.ender, or that amount of rnverage required to pay the auma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by i.ender, pmvided_ that such approval shall not be unreasonably withheld. All premiums on insurance policies shali be paid in the manner pruvided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier_ All inaurance policies and renewale thereof shail be in form acceptable to L.ender and ahall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lender ahall have the right to hold the poliries and renewals thereof, and Borrower aha11 promptly furnish to i,ender all renewal notioea and all receipts of paid premiume. In the event of losa, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loas if not made promptly by Borrower. Unleas Lender and Borrower otherwiee agree in writing, it?surance proceeda ahail be applied to restoration or repair of the Property damaged, provided such reatoration or repair ie economically feasible and the security of this Mortgage ia not thereby impaired. If auch ~ restoration or repair is not economicslly feasible or if the security of this Mortgage would be impaired, the inanrsnce proceeds shal! be applied t to the aums secared by thie Mortgage, with the e:cess, if any, paid to Borrower. If the Propedy is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daye from the date notice is mailed by I.ender to Borrower that the inaurance carrier oPfers to setde a claim for ~ insurance benefite, Lendet is authorized to collect and apply the inaurance proceeda at I.ender's option either to restoration or repair of the Property or the sume eecured by =hie Mortgage. ~ Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due ~ ~ date of the monthly inetallmente referred to in paragrapha 1 and 2 hereof or change the amount of such installments_ If under paragraph 18 hereof the Property is aoquired by I.ender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or aaquisition shall paea to Lender to the e:tent of the aums secured by thia ~ Mortgage immediately prior to auch eale or acquisition. ~ 6. Preservation and Maintenance of Property; Leaee6olds; Condominums; Planned Unit Developments. Borrower ahall keep _ ~ the Property in good repair and eha11 not commit waste or permit impairment or deteriotation of the Property and ahall comply with the ~ provieions of any lease if this Mortgage is on a leasehold. If thie Mortgage ie on a unit in a oondominium or a planned unit development, ~ Borrower shall perform all of Borrowei e obligations under the declaration or covenanta creatingor governing the condominium or planned ~ unit developraent~ the by-lawa and regulatione of the condominium or planned unit development, and oonatituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the aovenanta and ~ agreemente of auch rider shali be incorporated into and shall amend and supplement the rnvenanta and agreementa of thia Mortgage as if the ~ rider were a part hereof. - Protection of I.ender'e Security. If Borrower faile to perform the covenante and agreement8 contained in thie Mortgage, or if any ~ adion or proceeding is rnmmenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvenry, oode eaforoe~?ent, or arrangementa or pmceedinga involving a banlm~pt or deceden~ then Lender at Lender's option,upon ~ notice b Borrower may ma1[e such appearances, dieburee such sums and take such action ae ie nec~eeary to protect I.ender'e intereet, r including, but not limited to, disbureement of reseonable attorney's feee and entry upon the Property to make repaire. If Lender required mortgage inaurance as a rnndition of making the loan secured by this Mortgage, Borrower shall pay the premiume required to maintain ench inaurance in effect until such time as the requirement for auch inaurance terminateA in accordance with Borrower'e and Ll.mder'e written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiuma in the manner provided under _ paragraph 2 hereoL - My amounta diebureed by Lender pereuant to thja paragraph 7, with intereat thereon, ehall become additional indebtedneae of Borrower secured by thia Mortgage. Unlees Borrower and Lender agree to other terms of payment, auch amounte ehall be payable upon notice from Lender to Borrower requesting payment therc~f, and ahall bear intereat from the date of diebursement at the rate payable from ~ time to time on outstanding principal under the Note unlees payment of intereet at auch rate would be oontrary to applicable law, in which ~ event euch amounte ehall bear intereat at the highest rate permiseible under applicable law. Nothing cont~?ined in thie paragraph 7, ahall ~ require Lender to incur any expense or take any aMion hereunder. ~ :t ~ r ~7W~Vo~. .183 ~ ~ ~ ~ ~ ~a~Y'~ry.e:u~ ~az`c"'...~ „--,t?v~;:. I ~ ~ ~ . . ~ ~'~'6'' . . . . . 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