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HomeMy WebLinkAbout0679 Borrower and l.ender covenant and agree ae follows: 1. Peymant of Principal end Intereet. Borrower ehall promptly pay when due the principa) of and interest on the indebtednesa evidenced by the Note, prepayment and late chargea ae provided in the Note, and the principal of and intereet on any F~ture Adva~cee secured by thia Mortgage. 2. FLnds [or Tasee and Ineurance. Subject to applicable law or to a written waiver by I.ender, Burrower ehall pay to [.ender on the dey monthly inatalimenta of principal and i~tereet are payable under the Note, until the Note ia paid in full, a sum (herein "Funds") equal to one~ tweltih of the yearly tascea and asaesamenta which may attain priority over thia Mortgage, and ground renta on the Yroperty. if uny, plua ont,? twelfth of yearly premium installments fo~ hazard ineurance, plus onetwelfth o[yearly premium inatallmente for mortgage inaurance, if any, all as reaeonably estimated initially and from time to time by I.ender on the basis of aeaeasmenta and biUs and rnaeonable eatimates thereot. ` The I~nds shall be held in an inatitution the depoeita or accounta of which are iaeured or guarantsed by a Federal or State agency (including Lender if I.ender is such an institution). l,ender ahall epply the Funde to pay eaid taxes, aaeeeamente, inaurance premiume and ground rents. l.ender may not charge for ao holding and applying the ~nds, analyzing said account, or verifying and compiling eaid assesaments and bills, unlese Lender paya Borrower intereat on the Ftinds and applicable law permits I.ender to make such a charge. Borrower and I.ender may agree in writing at the time of ezecution of thie Mortgage Lhat intereat on the Funde ahall be paid to Borrower, and unlesa auch agrcement is made or applicable law requires auch interest to be paid, I.ender shall not be required to pay Borrower any intereat or eamings on the FLnds. Lender ehall give to $orrower, without charge, an annual accounting of the ~nde showing credits and debita to the Funds and tLe purpoee for which each debit to the F1nds was made. The Funde are piedged as additional eecwity for the auma secured by this Mortgage. ~ If the amount of the fi~nds held by I.ender, together with the future monthly inatallments of Funda payable prior to the due datee of tsxee, asseaements, insurance premiums and ground rents. ehall exc~ed the amount required to pay eaid taxea, aeaessmenta, inaurance premiums and groand rente ae they fall due, auch ezcxss ahall be. at Bo~TOwer a option, either prompdy repaid to Borrower or credited to Borrower on monthly inataUmenta of Fltnda. If the aarount of the ~nda held by_ Lender ehall not be sufficient to pay ta:ea, aesesamente. insurance premiiuns and ground rents as they fall due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 daya from the date notice.is mailed by I.ender to Borrower requesting payment thereof. Upon payment in full of all eume secured by thia Mortgage, L.ender ahall promptly rPfund to Borrower any funds held by Lender. If u~der paragraph 18 hereof the Property is eold or the Property ie otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite soquisition by Lender, any ~nda held by Lender at the time of application as a cndit againat the suma secured by fhis Mortgage. 3. Applieation of Payments. Unleae applicable law providea otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by I.ender first in payment of amounts payable to I.ender by Borrower under paragrtiph 2 hereof, then to inter~t payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances_ 4. Charges; Liens. Borrower ahall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or qround rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Bor;ower making payruent, when due, directly to the payee thereof. Borrower ahall promptly furniah to Lender all notices of amounta due under thia paragraph, and in the event F3orrower ahall make payment directly, Borrower shall promptly furnish to [,ender rcceipta evidencing aueh pay~nents. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any auch lien so long as Borrower shall agree in writing to the payment otthe obligation secured by such lien in a manner acceptable to Lender. or ahall in good faith conteat such lien by, or defend 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 Ineurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property inaured against loss by fire, hazarda included within the term "e:tended coverage," and auch other hezards as Lender may requite and in sach amounte and for such periods as Lender may require; provided, that I.ender ahall not require euch coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of I.ender, or that amount of coverage required to pay the sume aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that sach approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner providecl under paragraph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acoeptable to Lender. Lender eha11 have the right to hold the policies and renewals thereof, aad Borrowet ahati prompdy furnish to i.ender all renewal noticea and all receipta of paid premiume. In the event of loea, Borruwer shall give prompt notice to the inaurance carrier and Lender. Lender may make proof of losa if not made promptly by Borrower. Unleea Lender and Borrower otherwiae agree in writing, ineurance proceeds ahall be applied to reatoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the security of thie Mortgage is not thereby impaired. If auch reatoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance proceeda ahall be applied to the aume secured by this Mortgage, with the exceas, if any. paid to Bortower. Itthe Property is abandoned by Borrower, or if Borrower faila to respond to I.ender within 30 daye ftom the date notice ie mailed by I.ender to Borrower that the inaurance carrier offers to setde a claim for insurance benefita, Lender is authotized to collect and apply the insurance proceeda at Lender's option either to restoration-or repair of the ; Property or the suma secured by thia Mortgage_ E Unless Lender and Borrower otherwise agree in wtiGng, any auch application of proceeda to prinripal ahall not extend or postpone the due ¢ date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of auch installmenta. If nnder paragraph 18 F hereof the Property is aoqnired by Lender. all right, title and intereat of Borrower in and to any insurance policies and in and to the proceede ~ thereof reaulting from damage to Property prior to the sale or acquisition ahall pasa to Lender to the eztent of the aums secured by thia Mortgage immediately prior to anch sale or acquisition. ~ 6. Preaervation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall oomply with the ; proviaions of any lease if this Mortgage ia on a leasehold_ If thie Mortgage is on a unit in a rnndominium or a planned unit development, ~ ~ Borrower shall perform all of Borrower's obligatiana under the declaration or covenants creatingor governing the condominium or planned ` unit development, the by-laws and regulatione of the condominium or planned unit development, and conatituent dcewnenta. If a ; condcminium or pianned unit development rider is eaecuted by Borrower and recorded together with this Mortgage, the•oovenante and a agreements of such rider ahall be incorporated into and ahall amend and aupplement the covenants and agreementa of this Mortgage as if the ~ rider were a part hereof. _ 7. Protection of Lender's Security. If $orrower fails to perform the oovenante and agreementa oontained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lendei a intereat in the Property, including, but not limited to, eminent domsin, z ineolvency, oode enforcement, or arrangemente or proceedinge involving a bankiupt or decedent, then I.ender at Lender'e option,npon ~ notice to Borrower may mai[e euch appearancee, diaburee euch aume snd take such action ae ie aeoeesary to proted I.ender's intrresk including, but not limited to, diebareement of reaeonable atbmey's feee and entry upon the Property to make npaire. If Lender required mortgage ineurance as a condition of making the loan eecured by thie Mortgage, Borrower ahall pay the premiuma reqaired to maintain euch ineurance in effect until euch time as the requirement for euch ineurance terminatee in aocordance with Borrower's and L.ender'e written egreement or applicable Law. Borrower ahall pay the amount of all znortgage insurance premiume in the manner pmvided ander paragraph 2 hereof. My amounta diebureed by Lender perauant to thie paragraph 7, with intereet thereon, shall become additional indebtedneae of _ Borrower secured by thia Mortgage. Unlese Borrower and L.ender agree to other terme of payment, euch amounta shall be payable upon notice from Leader to Borrower requeeting payment thereof, and ehall bear interest from the date of diebureement at the rate payable from time to time on outetanding principal under the Note unlesa payment of interest at such rate would be oontrary to applicable law, in which ~ event euch amounta ehall bear intereet at the highest rate permiasible under applicable law. Nothing contained in thia peregraph 7, ahall y require Lender to incur any eupenae or take any action hereunder. t ~ ' ~ ~ t . Boo~ 301 rr,~~ 679 ~ 1 ~~i ~ Fi ' _ . 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