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HomeMy WebLinkAbout0517 E3orrower and Gender cove~ant and agree as follows: 1. Payment ot Pri~cipal and Intereat. Borruwer ehall promptly pay wher? due the principal ot and intereet on the indebtedneeia evidenced by the Note, prepayment end late chargee ae provided in the Note, a~d the principal oiand intereat on a~y Ruture Advancge secured by thie Mortgage. 2. Funds for Tsxee antl Insurance. Subject to applicable law or to a written wniver by I.ender, Rorn?vvrr ehall pay to l.ender un the day monthiy installmente of principal and intereat are payable under the Note, until the Note ia paid in full, a sum (hemin "Funde") equal to one twelfth of the yearly taxee and aseeasmente which mpy atlain priority over thia Mort~age, and ~und rents on the Property, i[any, plua one twelRh of yearly premium installments fo~ hazard inaurance, plus onetwelflh otyearly premium inetAllments fo~ morlgage inaurance, if any, all as reaeonably estimated initially nnd from time to time by l.ender on ~he basis oi asse~mente und bills and reasunable eatimatea thereof. The ~nde ahal! be held ia an institution the depoaite or accounts of which are insured or guaranteed by a Federal or State agency (including L.ender if Lender is euch an institution). I.ender ehall apply the Funda to pay said taxes, esseasments, ineurance premiuma and ground rents. Lender may not charge for so holding and applying the ~nde, analyzing said account, or verifying and compiling said aasesements and bille, unleaa I.ender paya Borrnwer interest on the F`unda and applicable Iaw permits Lender to make euch a charge. Borrower and Lender may egree in writing at the time of e:ecution of this Morigage that intereat on the F~nda ahall be paid to Borrower, and unleas euch agreement is made or applicable law require~a auch intereat W be paid, [.ender shall not be required to pay Horrower any intereat or earninga on the ~Lnda. Lende~ shall give to Borrower, without charge, an annuel accounting of the Funda showing credits and debite to the Funda and the purpose for which each debit b the Funde waa made. The Funda are pledged as additional aecurity for the aume eecured by this Mortgage. If the amount of the Flinde held by I.ender, together with the future monthly installments of Funda payable prior to the due dates of ta~ces, seee8smente, inaurance premiuma and gTOUnd renta, ahall exc~red the amount required to pay eaid taxes, asseaementa, insurance premiuma • and ground rents ea they fall due, such exceae ahall be, at BoiTOwer's option. either prompdy repaid to Borrower or credited to Sorroweron monthly inatallmente oi F1nde. If the amount of the Funds held by I.ender ehall not be aufficient to pay t~ee, seeessmenta, insurance premiums and ground rents as they fall due. Borrower shall pay to Lender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Horrower requesting payment thereof. Upon payanent in futl of all eume eecured by thie Mortgage. [.ender ehall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is aold or the Property ia otherwise acquired by I.ender, I.ender ehall apply, no later than immediateljr prior to the eale of the Propedy or ita acquiaition by L.ender, any FLnda held by Lender at the time of application as a credit againat the auma aecured by this Mortgage. 3. Application of Paymente. Unlesa epplicable law providea otherwise, all paymente received by I~nder under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amonnte payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the prinripal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liene. Borrower ahall pay all taaee, assessments and other charges. 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 hereof or, if not paid in such manner, by Borrower making payment, when due, directly~to the payee thereof. Borrower shall promptly furnish to l.ender all noticea of amounts due under thia paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly furnish to Lender t~eceipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Rorrower shall agree in writing to the payment of the obligalion secured by such lien in a manner acceptable to Lender, or shail in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvementa now exiating or hereafter erected on the Property inaured against loss by firn; hazarda included within the term "eatended coverage," and ~uch other hazards ae Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not requim such eoverage amount exceeding the minimum, as may be reyuired by stste or federal regulationa governing activitiea of Lender, or that amount of coverege required to pay the aums secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance ahall be chosen by E3orrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld. All prnmiums on insurance pcrlicies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All ineurance policiea and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage claose in favor of and in form acceptable to Lender. I.ender shall have the right to hold the policies and renewale thereof, and Borrower shall prompdy furnish to i.ender all renewal noticea and all receipts of paid premiuma. In the event of losa, Borrvwer ahall give prompt notice to the insurance carrier j and i.ender. I.ender may make proof of loss if not made promptiy by Borrower_ ~ ~ Unlesa Lender and Borrower otherwiae agree in writing, inaurance proceeds ahall be applied to reatoration or rnpair of the Property f damaged, provided auch reatoration or repair is economically feasible and the eecurity of this 4lorigage is not lhereby impaired. If such restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda shall be appl'[ed ~ to the eums eecured by thia Mortgage, with the e:cess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 daya from the date notice is mailed by I.ender to Botrower that the insurance carrier offers to settle a claim for ? insurance benefite, Lender is authorized to collect and apply the insurance proceeda at Lender'a option either to restoration or repair of the ~ Property or the aume aecured by this Mortgage. ~ Unleas Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal ehall not extend or postpone thedue ~ date of the monthl mstallmenta referred to in ara y' p grapha 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 e hereof the Property ia acquired by I.ender, aU right, titie s~nd intereat of Borrower in and to any ineurance policiea and in and to the proceeds a thereof resulting from damage to Propetty prior to the sale or acquiaition ahall pasa to I.ender to the extent of the eums aecured by this ~ Mortgage immediately prior to auch eale or aaquisition. ~ 6. Preservation end ~+Iaintenance of Property; Leaseholda; Condominuma; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisions of any lease if this Mortgage ia on a leaeehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Barrower's obligatiune under the declaration or covenanta creatingor governing the condominium or planned ~ ~u?it development, the by-laws and regulationa of the condominium or planned unit development, and oonetituent.documenta. If a ~ condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thia Mortgage, the oovenants and agreementa of such rider ahall be incorporated into and shall amend and supplement thecovenanta and agreements of thia Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower faile to perform the oovenante and agreementa oontained in thie Mortgage, or if any ~ action or proceeding ie commenced which materially affecte [.ender e interest in the Property, including, but not limited to, eminent domain. ; insolvency, oode enforcecnent, or arrangemente or proceedinge involving a banlm~pt or deoedent, then L.ender at I.ender's option,upon ~ notice to Borrower may make euch appearancee, disburee auch aums and ta1~e such action ae ia neceeaary to protect Lender e intereet, including, but not limited to, disbureement of reaaonable attorney e feee and entry upoa the Property to make repairs. If I.ender teqaired ~ mortgage ineurance ee a oondition of making Lhe loan eecured by thia Mortgage, Borrower ehall pay the premiums required to maintain such insurance in effect ~nti1 such time as the requirement for euch inaurance terminatea in accordance with Borrower'e and Lender's writt~en agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereoL - My amounte dieburaed by I.ender pereuant to thie paragraph 7, with intereet thereon, shall become additional indebtedneee of ~ = Borrower eecured by thia Mortgage. Unleea Boaower and Lender agree to other t.erme of payment, such amounte ehall be payable upon I rt notice ftom Lender to Borrower requeeting payment thereof, and shall bear intereet from the date of diebursement at the rate payable from ~ ~ time to time on outatanding principal under the Note unleee payment of intereat at auch rate would be contrary to applicable law, in which ~ event auch amounte ahall bear intereet at the higheet rate permiseible under applicable law_ Nothing rnntained in thie paragraph 7. ahall require Lender to incur any expenee or take any action hereunder. ~ 3~1 f'.: ~ 517 ~ } ~ . , ~ - d~ _ - - - _ w~ ~~y ~ ~ - - ~ ' ~ ~ - . _ - - - ~ ~