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HomeMy WebLinkAbout0639 Borrower and l.ender covenant and a~ree as follows: 1. Pay~nent of Principal and lnteresf~ Borrower ahall prompUy pay when due the principal of and interest on the indebtednee~a evidenced by the Note, pnpayment and late charges ea provided in the Note, and the principal of a~d interest on any ~ture Advar?cee aecured by this Mortgage. . 2. f~tnde for Taxes end Inaurance. Subject to appliceble law or to a writle~ waiver by l.ende~, Borrower ehall pay to Lender o~ the day monthly inatallmenta ot pri~cipal and intereat are payabie under the Note, until the Note is paid in full, a sum (herein "Funda") equal to one tweltih of tbe year~jr taxee and aeaesamenta which may attain priority oves thia Mortgage, and ground renta o~ Ehe Property, if any, plus one twelRh of yearly premium inatallmenta for hazard inaurance, plus onetwelfth of yearly premium inatallments for mortgage inaurance, if any. all as reaeonably eatimated initially and from time to time by I.ender on ihe basis of essEraementa and bills and reaeonable eatimates the~eof. Tfie Flu?da ahall be held in an institution the deposits or aocounte of which are insured or guaranteed by a Federat or State agency (including Lender if Lender ia such an inetitution), l.e~der ahall apply the Funda to pay said taxes, asaessmente, inaurance premiums and ground rente. I.eader may not charge for so holding and applying the Flinds, analyzing eaid account, or verifying and compiling eaid aeaesameats and bills, unlees I.ender pays Borrower intereat on the Funde and applicable law permite l.ender to make such a charge. Borrower and [.ender may agree in writing at the time of execution of thia Mortgage that interest on the F1nds ehall be paid to Borrower, and unleas auch agrcement is made or applicable law requiree auch intereat b be paid. I.end~r shall not be required to pay Borrower any inLereat or eamings on the ~nds. l.ender shall give to Borrower, without charge, an annual acoounting of the Funda ehowing credite and debite to the Etiu?da and the purpoae [or which each debit to the fi~nds was made. The ~nda are pledged as additional eecurity [or the aums secured by thia ` Mortgage. ' - If the amount of the fi~nds held by Lender, together with the future monthly inetallments of Funds payable prior to the duedaLea of taxes, aeaee~aments, inaurance premiume and ground renta, shall Pacozed the amount required to pay eaid taxea. eaeesamenfa, inaurance preauums and ground rents as they fall due. such excess ahall be, at Borrowei a option, either promptly repaid to Borrower or credited to Borrower on monthly installmenta of Fltnds. U the amount of the fl~nda held by Lender ehall not be eufficient to pay taxea, aseeaemente, iasurance • premiums and ground renfa as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days - from the date notice ia mailed bY Lender to Borrower requesting payment thereof. Upon payment ui full of aU sume secured by thia Mortgage. Lender shall pmmptly refund to Borrower any funde held by Lender. If undet ~ paragraph 18 hereof the Property is eold or the Property is otherwiee acquired by Lender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ita aoquisition by Lender. any Ftinds held by Lender at the time of application ae a credit againat the suma secured by this Mortgage. _ 3. Application ot Pay~ents. Unleae applicable law providee otherwise. all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounte payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to interest and prinripal on any Future Advancea: 4. Chargee; Liens. Borrower shall pay a11 taxes, assessmenta and othercharges. fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold paymente or ground renta, if any. in the tnanner provided under paragraph 2 hereof or. : if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shaU promptly fumieh to I.ender all notices of amounts due under thia paragraph, and in the event Borrower ahall make payment directly, f3orrower ahall promptly furnish to Lender receipte evidencing such payments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to diacharqe any euch lien ao long as Borrower ahall agree in writing to the puyment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good taith conteat such lien by, or defend enforcement of such lien in, legal proceedinge which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahaU keep the improvements now exiating or hereafter erected on the Property insured against losa by fire, hazards included within the term "e:tended coverage." and auch other hazards as Lender may require and in such amounta end for such periods as Lender may require; provided, that Lender ehall not require such ooverage amount exceeding the minimum, as may be requirQd by atate or federal regula,tione governing activities of Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unressonably withheld. All premiuma on insurance policies ahall 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 insurance policies and renewals thereof shall be in form acceptable to L.ender and shall include a standard mort~age clause in favor of - a nd in form aoceptable to I.ender. Lender ahall have the right to hoW the policies and renewals thereof, and Borrower ahall promptly fumish to : i.ender all renewal noticee and all receipte of paid pr~iutna. In the event of loss, Bol~+ower ahall give prompt notice to the insurance carrier ! and Lender. Lender may make proof of loes if not made prompdy by Borrower. ; Unless Lender and Borrower otherwiae agree in writing, inaurance pra.~eeda ahall be applied to reatoration or repair of the Property ~ damaged, proyided ench restoration or repair ia economically feaeible and the eecurity of this Mortgage ia not thereby impaired. If such i reatoration or repair is not economically feasible or if the security of thie Mortgage would be impaired, the insurance proceede shall be applied ~ to the suma eecured by thie Mortgage. with the excesa, if any, paid to Borrower. If the Property ie abandoned by Borrower, orif Borrower faila to f reapond to I.ender within 30 daya from the date notice ia mailed by I.ender to Borrower that Lhe inaurance carrier offere to eettle a claim for ~ ineurance benefite, Lender is authorized to rnllect and apply the inaurance proceeda at L,endei a option either to reatoration or repair of the Property or the suma secured by thia Mortgage. Unlese-Lender and Borrower otherwise agree in writing. any such application of proceeda to principal ehall not extend or poatpone the due ~ date of the monthly instaUmente referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmente. If under paragraph 18 hereof the Property ia aoquired by I.ender, all right, tide and intereat of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof reeulting from damage to Property prior to the eale or aoquiaition shall paae to L,ender to the eztent of the sums secured by thia a Mortgage immediately prior to such eale or aoquiaition. ` 6. Preeervation and Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developments. Borrower ahall keep the Property in good cepair and ahall not commit wasle or petmit impairment or deterioration of the Propedy and shall oomply with the proviaions of any lease if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, E3orrower ehall perform all of Borrower e obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent documents_ If a condominium or planned unit development rider ia eaecuted by Borrower and recorded together with thia Mortgage, the oovenanta and e agreements of such rider shall be incorporated into and shall amend and aupplement the covenants and agreementa of thia Mortgage as if the rider were a part hereof. 7. Protection of Lender's 3ecarity. If Borrower fails to perform ihe oovenante and agree~nente contained in thia Mortgage, or if any action or proceeding is commenced which materially affecta Lendei e interest in the Property, including. but not limited to, eminent domain. ~ ineolvency. oode enforcement, or arrangements or pmc~edinge iavolving a hanlmipt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may make suc6 appearanaes, disburse sucb aums and take wch action as is necessary to pmted L,ender s interesi. , including, but not limited to, diebureement of reasonable attomey's fees and entry upon the Property to malce repairs. If Lende~ required ; mortgage ineurance as a rnndition of mal~ing the loan Becured by this Mortgege, Borrower ahall pay the premiums required to maintsin ~ such insurance in effect until such time as the requirement for'sueh ineurance terminates in aocordance with Borrower's and I.endds ~ ~ written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage inaurance premiums in the manner provided undez ~ paragraph 2 hereof. i ~ Any amounta diabursed by Lender pereuant to thie paragraph 7, with intereat thereon, ehall beoome additional indebtednees of ~ payment, euch amounta ahall be payable u F3orrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terma of pon notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of disbureement at the rate payeble firom ~ time to time on outatanding prinripal under the Note unleas payment of intereet at euch rate would be contrery to applicable law, ~n which ~ event such amounts ahall bear intereet at the highest rate permisaible under appliceble law. Nothing contained in this paragraph 7, shall ~ require Lender to incur any e:pense or take any action hereunder. d ~ w- - . . 8001( t~O~ PqGE h~w ~ ~ , . ~ - ~ . ~ . _ _ _ . _ _ ~--T - _ - . . _ _.~~r:a. a - `u4 ~ _w ~ _ -.i: ~ . I~ ,p' ~ ~ -