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HomeMy WebLinkAbout0531 Borrowe~ and I.ender covenant and agree as followa: 1. Payment of Priacipal a~d I~tereet. Eiorruwer ahull prumptly pay when due the principal of and intereat on the indebteclneee evidenced by the Note, prepayment and lute charges as provided in the Note, and the principal of and intereat on any Future Advnncea aecured by thia Mortgage. 2. PLnde tor Tuee a~d Insurance. Subject to epplicable law or to a~vritten waiver by l.ender, f3orn~wer ahall pay to l.ender on the day monthly inatxllmente of principal and intereat are payable under lhe Note, until the Nute is paid in fuU, u sum (herein "Fu~de") equal to one twelfth of the yearly taxea and asaeasmenta which may attain priority ove~ thie Morigage, and ground rents un the Property, if any, plue one twelfth of yearly premium inatallmente for hazard ineurance, plua onetweiRh of yearly premium inatallmente fo~ mortgnge insurance, if any. all ae reasonably estimated initially and frum time to tirr?e by I.ender o~ the boaie of asaesamenta nrtd billa und reusonable estimatea thereof. '[~e Funds shall be held in an inatitution the deposita or accounta of which are ineured or guaranteed by a Federa) or State age~cy (including Lender if l.ender ia auch an institution). I.ender shall apply the Funda to pay aaid taxee, nsaesaments, ineurance premiuma and ground renta. I.ender may not charge tor ao holding and applying the F~nde, analyaing said acrount, or verifying and compiling aaid assesements and bills, unlese t.ender pays ~iorrower interest on the ~nda and applicable law permits Lender to make euch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that intereat on the Htinds shall be paid to Borrower, and unleas such agreement ia made or applicable law requiree auch interest to be paid, L.ender shall not be required fu pay Borrower uny intereat or. eamings on the ~nde. I.ender ehal) give to Borrower.~without eharge, an annual accounting of the Funda ahowinq credita and debite to the ~1nde and the purpoee for which each debit to the ~nda was made. The Funda are pledged ae additional necurity for the aume aecured by thie Mortgage. _ If the amount of the F`unde held by I.ender, together with the future monthly inatallmente of Funda payable prior to the due dates of taxea, assesamente, inaurance premiume and ground rente, ahall excred the amount required to pay aaid taxea, aseesements, inaurance premiume and ground rents as they faU due, such excees ahall be, at Boirower a optiQn, either promptly repaid to F3orrower or credited to Borrower on monthly installmenta of ~nds. If the amount of the Funda held by I.ender shall not be sufficient to pay ta:ea, aseesaments, inaurance pre~aiums and ground rente as they fall due. Borrower ahall pay to I.ender any amount ~eceseary to make up the de6ciency within 30 days from the date notice is mailed by Lender to Borrower requeating payment thereoL Upon payment in full of all auma secured by thie Mortgage, Lender shall promptly refund to Borrower any funda held by l.ender. If unde~ paragraph 18 hereof the Property ia eold or the Property is otherwiee acqaired by Lender, L.ender shall apply, no later than immediately prior to the eale of the Property or ita eoquisition by I.ender. any ~nda held by I.ender at the time of application as a credit againat the sums secured by thie Mortgage. 3. Application of Paymenta. _Unleas applicable law provides otherwiae, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrouer under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereet and principal on any Future Advances. 4. Chargee; Liena. E3orrower ahall pay all taxes, assessmenta end other churges, finea and impositions attributable to the Property which may attain a priority over thie Mortgage, and leasehold payments orgmund rents, if any, in the manner provided under paragraph 2 fiereofor, if not paid in such manner, by E3orrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to l.ender all noticea of amounta due under thia paragraph, and in the event Borrower shal! make payment directly, 8orrower ahall promptly furnish to Lender receipts evidenciog such payments. E3orrowershall promptly discharge any lien which has priority uver this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Eiorrower shall agree in writing to the payment of the obligation secured by such tien in a manner aeceptable to I.ender, or ahali in good faith contest such lien bp, or defend enforcement of such lien in, lega) proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazaed Ineurance. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured against loss by fire, hazatds included within the term "eatended coverage," and auch other hazards as Lender may requirn and in such amoanta and for such periods ae I.ender m~y require; provided, that Leirder ahall not require such eoverage amount exceeding the minimum, as may berequired by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums secured by thia Mortqage, whichever is the grester. The insurance carrier providing the insurance shall be chosen by Borrower subject W approval by~ Ixnder, pn?vided, that such appruval shall not be unreasonably withheld. All prnmiums on insurance policies sh~ll be p~id in the m:~nner pro~•ideel under paraKraph 'l hermtor, if not paid in such manner, by E3orrower makinR payment, when due, directly to the insurance carrier: All insurance policies and renewals thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form acceptable to Lender. l.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Borrower shail give pmmpt notice to the insurance carrier ' and L.ender. L,ender may make proof of losa if not made pmmpdy by Borrower. ~I Unleae Lender and Borrower othenvise agree in writing, insurance proceErds ahall be applied to reatoration or repair of the Property ~ damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If auch ~ restoration or repair is not economically feasible or if the aecurity of Lhis Mortgage would be impaired, the insurance proceeda shaU be applied ~ to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Bonower, or if Borrower fails to reapond to I.ender within 30 days from the date notice is mailed by Lender to Borrower that the inaurance carrier ofCera to settle a claim for f inaurance benefita, I.ender is authorized to collect and apply the insurance pmceeds at Lender's option either to reatoration or repair of the Property or the suma secured by this Mortgage. ~ Unless Lender and Borrower otherwiae agree in writing, an auch a lication of roceeds to nnci al ahall not extend or ~ Y pp p p~ p postponethedue date of the monthly instaliments referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. If under paragraph 18 4 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds ~ thereof reaulting from damage to Property prior to the sale or acquiailion ahall pase to I.ender to the e:tenE of the eums secured by this ; Mortgage immediately prior to auch sale or soquiaition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developmente. BorrowerahaU keep ` the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ proviaione of any lease if thie Mortgage ie on a leasehotd. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahali perform all of Borrower g obligationa under the declaration or covenanta creatinKor governing the condominium or planned unit development, the by-lawa and regulationa of the rnndominium or planned unit development, and conetituent documenta. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thie Mortgage, the oovenanta and ' agreementa of such rider shall be incorporated into and ahall amend and supplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. _ Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreemente oontained in thie Mortgage. or if any - action or proceeding ie commenced which materially affecte Lender e intereet in the Property, including, but not limited to, eminent domain, insolvency, oode enforaement, or arrangemente or proceedinge involving a bsnicrupt or decedent, then I.ender at Lender's option.upon } notice to Borrower may make such appearanoee, diaburee euch aums and take euch action ea ia neceseary to prot,ect Lender's intereet, ~ including, but not limited to. disbureement of reaeonable attorney'a feee and entry upon the Property to make repaire. If Lender required - mortgage inaurance as a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiuma required to maintain ; snch inaarance in effect until euch time as the requirement for such ineurance terminatee in aocordance with Borrower'e and Lender's i ~ writLen agreement or appiicable Law. Borrower ehall pay the amount of all mortgage ineuTance premiuma in the manner provided under paragraph 2 hereof. My ainounte diebuteed by Lender persuant to thia paragraph 7, with intereet thereon, ahall become additional indebtedneea of Borrower eerured by thie Mortgage. Unlees Borrower and Lender agree to uther terme of payment, euch amounta ehall be payable upon notice from Lender to Borrower tequeatin~ payment thereof, and ahall bear interest from the date of diebureement at the rate payable firom a time to time on outstanding principal under the Note unleae payment ot intereet at ench rate would be contrary to applicable Iaw, in which ; event such amounte ahaU besi intereat at the highest rate permiseible under applicable law. Nothing conlained in thie paragraph 7, shall require Lender to incur any expenee or take any action hereunder. ~ z ~ BQOr ~Ol F',1~;c 531 ~ ~ ~ ~ ~ ,ma_ ~ ; - - - - _ ^ ~ ~ ~ ~ n ~ ' rfK ~k'-~`~,~ ~ ; .x- - ~ _