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HomeMy WebLinkAbout0692 Bor~ower and l.ender covenant and agree as lollowe: 1. Payment ot Principal and Interest. Borrower shall promptly pay when due the principal of end interest on the i~debtednees evidenced by the Note, prepayme~t a~d late chargea as provided in the Note, and the principal of and intereat on any ~ture Advances aecured by this Mortgage. ~ 2. I~ltnda far Taxes end Ineurance. Subject to applicable law or to a writte~ waiver by I.ender, Borrower ehall pay to Lender on the day monthly i~etallments of principal and intereat are payable under the Note, until the Note is paid in full, a aum (herein "F~nda") equal to one twelfth of the yearly taxes and aaeeasmenta whlch may attain priority over this Morigage, and ground rente on the Property, if a~y, plus one- twelfth of yearly premium inatsllments for hazard ir?9urance, plus onetwelM of yea~ly premium instalimente for mortgage inaurance, if any, all as reaeonably eatimated initially and from time to time by I.ender on the ba8is of assesaments and bilta and reasonable estimatea thereof. The ~nds shall be held in an institution the depoeits or acoounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an inatitution). I.ender shall apply the ~nda to pay said taxea, asseeamenta, inaurance prnmiume and ground rents. Lender me~y not charge for so holding and applying the ~nds, analyzing eaid account, or verifying and rnmpiling eaid aesesaments and bills, unlees L.ender paye Borrower intereat on the ~nda and applicable law permite Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that interest on the Ftinde ahall be paid to Borrower, and unleae such agreement is made or applicable law ~equires euch intereat to be paid, Lender shaU not be required b pay Borrower any interest or earnings on the ~ltnda. Lender ahall give to Borrower, without charge, an annual accounting of the F~?nde ehowing crediLe and debits to the F`unds and the purpoee for which each debit to the Funda wae made. The Funde are pledged as additional security for the sums aecured by this Mortgage. If the amount of the Flinda held by I.ender. together with the future monthly i~etaliments of Funds payable prior to the due dates of taxes. aeeeeamente. insurance premiume and ground rents, ahall exczed the amount required to pay eaid taxes, aseeasmenta, inaurance premiums and ground rents as they faU due, auch eacceae shall be, at Borrower a option, either pmanptly repaid to $orrower or credited to Borrower on monthly installmenta of FLnda. If the amonnt of the ~nde held by Leader shaU not be aufficient to pay ta:ea, seeeasmenta, inaurance premiums and ground rente aa they fall due, Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 daya from the date notice is mailed by l.ender to Borrower requesting payment thereof. Upon pay~nent in fi~ll of all euma eecured by thia Mortgege. I.ender ahall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Praperty ia sold or the Property ie otherwise acquired by Lender, Lender shali apply, no later than immediately prior to the sale of the Property or ite aoquiaition by Lender, any ~nda held by I.ender at the time of application as a credit egainat the sume eecured by this Mortgage. . 3. Applicatlon of Paymeate. Unleas applicable law providea otherwise, sll paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounte payable to Lender by Borrower under paragraph 2 hereof. ' then to interest payable pn the Note. then to the principal of the NoEe. and then to intereat and principal on any Future Advancee. 4. Chargee; Liene. 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 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. Borrov~ er shall promptly furnish to Lender all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment directly, Borrower ahall pmmptly furniah to Lender receipts evidencing such payments.. Borrower shall promptly discharge any lien which has priority over thia Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to I.ender. or ahall in good faith contest such lien by, or defend enforcement of such lien in, legai proceedings which operate to prevent the enforcement of the lien or forfeiture of the Prope~ty or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the improvementa now exieting or hereafter erected on the Property inaured against lose by fire, bazarda included within the term "extended coverage," and auch other hazardB as Lender may require and in such amounts and for such periods ae I.ender may require; provided. that Lender ahall not require euch ooverage amount exceeding the minimum, as may be reQuired by state or federal regulationa governing activitiee of Lender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever ia the greater. The ineurance carrier providing the insurance shall be chosen by Bonower subject to approval by [.ender, provided, that such approval shall not be unreaeonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in foran acceptable to Lender and ahall include a atandard mortgage clause in favor of and in form acoeptable to Lender_ Lender ahail have the right to hold the policies and renewals thereof, and Borrower ahall promptly fumiah to i.ender all renewal noticea and all nceipts of paid premiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made prompUy by Borrower. Unleae Lender and Borrower otherwiae agree in writing, insnrance proceeda ahall be applied to restoration or repair of the Property E damaged. provided euch restoration or repair is economically feasible and the eecurity ot this Mortgage ie not thereby impaired. If auch i reatoration or repair ia not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeds shall be applied ; to the sums eecured by thie Mortgage, with the e:ceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 days firom the date notice is mailed by I.ender to Borrower that the inaurance carrier offers to settle a claim for ' inaurance benefits, Lender ia authorized to collect and apply the insurance proc,~eeda at Lender's option either to reatoration or repair of the ! Property or the eume aecured by thia Mortgage. ~ Unless Lender snd Borrower otherwiae agree in writing, any auch application of proceeda to principal ahall not extend or poatpone the due ~ date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property ia aoquired by Lender, all right, tide and interest of Borrower in and to any insurance policies and in and to the proceeda ~ thereof reeulting from damage to Property prior to the sale or acquisition shall pass to I.ender to the extent of the aums secured by this Mortgage immediately prior to auch eale or aoquieition. 6. Preaervation and Mainteaance of Property; Leaseholda; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and ahall rnmply with the ~ provisions of any leaee if thie Mortgage ia on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower s obligations undet the declaration or covenants creatingor governing the rnadominium or planned ; unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documents. If a y condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of auch rider ahall be incorporated into and shall amend and supplement the covenants and agreementa of this Mortgage aa if the rider were a part hereof. ~ 7. Protection of Lender's 3ecurity. If Borrower feile to perform the oovenante and agreemente oontained in this Mortgage, or if any 3 aMion or pmoeeding is commenced which materially affects Lender'e interest in the Property, iaclnding, but not limited to, eminent domain, ~ insoivency, aode enforcement, or arrangements or proceedinge involving a banlcrupt or decedent, then Lendec at Lender'e option.upon a notice to Borrower may malce euch appearances, diebnree euch eame and take auch action ae ie neceesary to protect Leader's inte~st. ~ including, bnt not limited to, disbureement of reaeonable attomey's feee and entry upon the Property to make repairs. If Lender required mortgage ineurance ae a condition of making the loan aecured by tiiia Mortgage, Borrower ehall pay the premiums req~ired to maintein anch insurance in effect until snch time aa the requirement for euch ineurance terminatee in aocordance with Bosrower'a and I.endez e _ written agreement or applicable Law. Borrower ehall pay the amount of all mortgege insurance premiuma in the manner provided undtr ' paregraph 2 hereof. My amounts diebursed by Lender persuant to this paragraph 7, with intereat thereon, ahall become additional indebtednees of ~ _ Borrower secured by this Mortgage. Unleae Borrower and L.ender agree to other terma of payment, auch amounte ehell be payable upon ;y notice from I.ender to Borrower requesting payment Lhereof, and ehall bear intereat from the date of diebureement at the rate payable 5rom ~ ~ time to time on outatending principal under the Note uniess payment of intereat at auch rate would be oontrary to applicable law, in which ~ event auch amounte ahall bear intereat at the highest raie permiaeible under applicable law. Nothing cantained in this paragraph 7, shall ; require I.ender to incnr any e~cpenee or take any action hereunder. ~ ~ z - ~ ~ ~ B~(1K ~01 F;,i;,c ~c7~, ~ ~ p ~ _ - - - : _ ; ~ _ -z-~=~ ~ - - e. L ~ _ ~ :