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HomeMy WebLinkAbout0683 Borrowe~ end l.ender covenant and agree aa folluwr 1. Payment o! Principal and Intereat. E3orrower ahall promptly pay when due the principal of nnd intereet on the indebtednesa evidenced by the Nota. prepayment and late charges as pmvided in the Note, and the principal of and interest on any ~Lture Advances secured by this Mortgage. 2 I~`undr [or Te=es and Ineurance. Subject to applicable law or to a written waive~ by l.ender. Borrower ahall pay to l.ender on the day monthly inatallmente ot principal and intereat are payable under the Note, until the Note is paid in fu11, a eum (herein "~nds") equal to one twelfth of the yearly taxes and aesessmenta which may attain priority over Ihia Mortgage. and ground renta on the Property, if any, plua one twelfth of yearly premium inatallmenta for hazard inaurance, plua onetwelfth of yearly premium inatallmente for mortgage iasurance, if any, all ae reaeonably estimated initially and trom time to ti~r.e by I.ender on the baeis of asecebments and billa a~d reasonable eatimatea thereof. ' The Fl~nds shaU be held in an institutian the deposita or aocounta of which an insured or guaranteed by a Federal or State agency (including Lender if Lender is auch an institution). I.e~der ahall apply the fl~r?ds to pay said taxes, asaeeamenta, inaurance premiuma and ground rents. Lender may not charge for so holding and applying the FLnds. analyzing said account, or verifying and rnmpiling said asseesmeats and bills, unleea I.ender pays Borrower intereat on the ~nds and applicable law permits I.ender to make euch a charge. Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the Fnnda shall be paid to Borrower, and unleas such agreeraent is made or applicable law requirea euch intereet to be paid, Lender ehall not be required to pay Borrower any intereat or earninga on the Ftinds. Lender ehall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the ~nda and the purpose for which each debit to the Funds was made. The Funda are pledged as additional eecurity for the suma eecured by thie Mortgage. If the amount of the FLnda held by Lender, together with the future monthly inetallment9 of Funds payable prior to the due datee of tsxea, aseesamente, ineuranoe premiums and ground renta. shall exaaed the amount required to pay aaid taxee, asseasments, inaurance premiuma and ground rente as they fall due, such ezcese shall be, at Barrowei s option, either promptly rPpaid b Borrower or credited to Borrower on monthly installments of F~nds. If the amount of the F~nda held by L.ender ahall not be auf'ficient to pay taxes, aaeeasmenta, insurance premiums and ground rents as they fall due, Borrower shell pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payme~t tliereof. Upon payment in full of all auma eecured by thie Mortgage, Lender ehall pro~ffptly refund to Borrower any fnnds held by I.ender. I#' under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender, [.ender shall apply, no later than immediately prior ~ to the aale bf the Property or its aoqu'isition by Lender, any ~Lnde held by I.ender at the time of application as a credit againet the aums secured by this Mortgage. 3. Applicatioa of Peymenta. Unlese applicable law provides otherwiee. all payments received by Lender under the Note and paragraphe 1 and 2 hereof ahall_be applied by I.euder first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to intereet payable on the.Note, then to the prinripal of the Note, and then to intereat and principal on any ~ture Advaneea. 4. Chargea; Liene. Borrower ahall pay ali taxea, assessments and other chargea, fines and impositiona attributable to the Property which muy attain a priority over this Mortgage, and leasehold payments or ground mnts, if any, in the manner provided under paragraph 2 hereof or, i f riot paid in auch manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shall prompt[y furnish to Lender all noticea of amounls due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing auch payments. Borrower shall prompdy disrharge any lien which has priority over this Mortgage; provided, that Sorrower shall not be required to discharge any such lien so long as Bosrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings K•hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ehall keep the imptovements now exiating or hereafter erect~ on the Property insured against loss by fire, hazards included within the term "e:tended coverage; ' and auch other hazards as Lender may require and in such amounts and for such periods as Lender may reqaire; pmvided, that Lender ahall not require such ooverage amountexceeding the minimum, as may be required by state or federal regulationa goveming activities of Lender, or that amount of rnverege required to pay the auma secured by thie Mortgage, whichever ie the greater. The insurance carrier ptoviding the insurance shall be chosen by I3orroKer subjeci to approval by [.ender, provided, that such approval shAll not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under parttgraph 2 hereof or, if not paid in such manner, by Boaower making payment, when due, directiy to the insurance carrier. All insurance policies and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to Lender. Lenderahali have the right ta hold the policies and renewale thereof, and Boaower shall promptly furnish to i.ander sU renewal notices and all receipts of paid premiuma. In the event of loss, Borrower ahall give prompt notice to the inaurance carrier snd I.ender. I.ender may make proof of losa if not made prompdy by Borrower. Unlese Lender and Borrower otherwiae agree in writing, ineurance proceeda shall be appiied to restoration or repair of the Property ~ dameged, provided such restoration or repair ia economically feasible and the security of this Mortgage ia not thereby impaired. If such reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda ahall be applied ; to the enms eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Boaower, or if Borrower fails to ` respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to settle a claim for inaurance benefite, Lender is authorized to collect and apply the insurance proceeda at I.ender'a option either to restoration or repair of the ~ Property or the auma eecnred by this Mortgage. ~ Unless I.ender and Borrower otherwise agree in writing, any such application of ptoceeda to principal shall not eztend or postpone the due date of the monthly inatallmenta referred to in paragrapha i and 2 hereof or change the amount of such installmenta. If under paragraph 18 : hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to.the proceeds ; thereof reeulting from damage to Property prior to the sale or aoquiaition shall pass to Lender to the eztent of the auma secured by this ~ Mortgage immediately prior to such eale or aoquiaition. ~ 6. Preaervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Bonower ahall keep I ~ the Property in good repair and ahall not commit waste or permit impairnoent or deterioration of the Property and ahall comply with the i ~ provisione of any lease if this Mortgage is on a leaeehold. If thia Mortgage ia on a unit in a condominium or a planned unit development, ~ # E;orrower ahall perform all of Borrower'e obligations under the declaration or covenants creatingor governing the condominium or planned x unit development, the by-laws and regulationa of the rnndominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit devebpment rider is executed by Botrower and recotded together with thie Mortgage, the aovenants and s ~ agreements of such rider shall be incorporated into and ahall amend and supplement the covenanta and agreementa of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of I.ender'e Security. If Borrower faila to perform the oovenants and agrcemente. oontained in thie Mortgage, or if any ~ action or proceeding ia commenced which materially affecte Lender a interest in the Property, including, but not limited to, eminent domain, 4 ineolvency, oode enforoemen~ or arrangemeate or proceedinge involving a bankrupt or deoedent, then Lender at I.endec'e option,upon ~ notice to Borrower may make euch appearanoes, diaburee euch eums and take such action as is neoeeaary to proteet Lender's interee~ inclnding, but not limited to, disburoement of reasonable attorney'e feea and eatry upon the Property to make repai:s. If Lender required _ mortgage insurance ae a rnndition of mal~ing the loan aecured by thie Mortgage, Sorrower ehall pay the premiums required to maintain ~ euch inaurance in effect until snch time ae the requirement for auch inaurance terminates in accordance with Borrower's and I.ende~s ' written eement or a hcable I.aw. Borrower shall agr pp ~ pay the amount of all mortgage insurance premiuma in the mann~ pmvided under paragraPh 2 hereof. My amounte diaburaed by Lender perauant to this paragraph 7, with intereat thereon, ahall beoome additional indebtedneea of ~ Borrower secnred by thie Mortgege. Unleas Borrower and L.ender agree to other terme of payment, auch amounte ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ehail bear intereat from the date of diabursement at the rate payable from time to time on outatanding principal under the Note nnleae payment of intereat at auch rate would be oontrary to applicable law, in which _ event such amountn ahal) bear intereat at the higheet rate permiesible under applicable law. Nothing contained in thie paragraph ehall require Lender to incnr any e:pense or take any action hereunder. ~ ~ s~o~ 1,n,,E 3 ~ °~30 68 ~ ~ ~ ¢ ~ - - ~hb y . _ _ ~ ` ~ s ~ - m .