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HomeMy WebLinkAbout0690 Bor~ower and I.eader covenant and agree aa fopows: 1. Payment ot Principal and Intereat. Borrowe~ shall promptly pay when due the principal ot and interest an the indebtedneee evidenced by the Note. prepeyment and late charges as pmvided in the Note. and the principal of and intereet on any ~ture Advuncea secured by this Mortgage. 2. ~nds for Ta:ea and Ineurance. Subject to applicable law or eo a written waive~ by l.ender, Borrower shaU pay tolxnder on theday monthly inatallmenta oI principal a~d intereat are payable undet the Note, until the Note ia paid in full, a sum (herein "F unds") equal to one twelRh of the yearly taxes and assesaments which may attain priority over this Mortgage, and qrou~d rente on /he f'roperty, i[any, plua one twelRh of yearly premium inatallmente for hazard insurance, plua onetwelfth of yearly prnmium installmenta for mortgage inaurance, if any, all ae reaaonably estimated inilially and from time to tirne by I.ende~ on the basia of asseasmenta and billa and reusonable ee?imalea thereof. The fitnds sha11 be heW in an institupoa the depoeite or accounte of which are ineured or guaranteed by a Federai or State agency (including I.ende~ it I.ender is euch an inatitution). Lender ehall apply the Funda to pay eaid ta:ea, aseesamente, insurance premiuma and ground renta. l.ender may ~ot charge for so holding at?d applying the' FLnds, analyzing said accou~t, or verifying and compiling said assessmeate and bills, unleae Lender paye Borrower intereet o~ the ~nde and applicable law permite Lender to make auch a charge. Bormwer and I.ender may agree i~ writing at the tune of execution of this Mortgage that i~terest o~ the Funds ahall be paid to Borrower, and unleas euch agreement is made or applicable law requirea auch intereat to be paid, Lender ehall not be required to p~y Borrower any intereat or • earninge on the Ftinds. Lender shaU give to Borrower, without charge, an annual accounting of the I~'unds ahowing credits and debite to the • Funds and the purpose for which each debit to the ~nda was ~nade. The Funds are pledged aa additional eecurity for the aums secured by thie Mortgage. • ~ If the amount of the Ftinds held by I.ender, together with the future monthly inetallmenta of Funds payable prior to the due dates of ta~cee, assesamenta, inaurance premiums and ground rents, ehall e:cred the amount required to pay said ta:ea, asseaementa. insurance premiume ~ and ground rente as they fall due, such esceae shall be, at Borrower's option, either prompdy repaid tn Borrower or credited to Borrower on ' monthly inatallmente of fi~nda. If the amount of the Funde held by Lender ahall not be sufficient to pay taxes, assesamente, inaurance premiume and ground rents aa they fall due, Borrower shall pay to [.ender any amount neceeeary to make up the deficiency within 30 daya ' from the date notice ia maited by Lender to Borrower requesting payment thereof. Upon payment in full of all auma eecured by this Mortgage, Lender shall prompUy refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ie aold or the Property ie otherwiee acquired by L.ender, Lender shall apply, no later lhan immediately prior to the eale of the Property orits soquieition by l.ender, any fi~nds held by I.ender at the time of application ae a credit against the sums aecured by thie Mortgage. 3. Application of Payments. Unleas applicable law providea otherwiee, al! paymente received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, : then to intereat payable on the Note. then to the principal of the.Note, and then to interest and principal on any Future Advances. 4. Chargee; I.iens. Borrower ahall pay all taxes, asaessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground re~ts, if any, in the manner pmvided under paragraph 2 hereotor. i f not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3orrower shall promptly furnish to Lei?der all noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower ahall promptly furnish to I.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this 4lortgage; provided, that F3orrower ahall not berequired to discharge any such 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 shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings ~ which operate to prevent the enforcement of the lien or forfeiturn ot the Property or any part thereo[ 5_ Hazard Inaurance. Borrower shall keep the improvements now existing or hereafter erected on the Property inaured against loss by fire, hazarde included within the term "extended coverage," and auch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require euch ooverage amoutit e:ceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the sums secured by this Martgage, ~ whichever ie the greater. . The insurance carrier providinq the insurance shall be chosen by Borruwer subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shaU be paid in the manner provided under paragraph `l hereof or, if not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. All inaurance policies and tenewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all rec~eipts of paid premiums. In the event of loas, Borrower ahall give prompt notice to the insurance carrier and I.ender_ Lender may make proof of loss it not made promptly by Borrower. Unlesa I.ender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided auch restoration or repair ia economically feasible and the eecurity of this Mortgage is not thereby impaired. If such ; restoration or repair ie not economically feaaible or if the eecurity of this Nortgage wouldbe impaired. the insurance praceeda shall be applied ~ to the suma secured by thie Mortgage, with the eacesa, if any. paid to Borrower. If the Property ie abandoned by Borrower, or if Borrower faila to ' respond to L,ender within 30 daya frum the date notice is mailed by Lender to Botrower that the inaurance carrier oflera to settle a daim for ~ insurance benefite, Lender is authorized to collect and apply the inaurance proceeds at Lender e option either to reatoration or iepair of the f Property or the aume secured by this Mortgage. ~ Unleas Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal ahall not eztend or postpone the due ~ date of the monthly installmente rnferred to in paragrapha 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 , ~ hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and b the proceeds s thereof reaulting from damage to Property prior to the sale or aoquisition ahall pass to Lender to the extent of the auma eecured by this ~ biortgage immediately prior to such eale or aoquieition. 6. Preeervation and Maintenance of Property; Leaseholds; Condaminums; Plenned Unit Developmente. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or peranit impairment or deterioration of the Property and ahall comply with the provieions of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform aD of Borrowet's obligationa under the declaration or covenants creatingor governing the condomini~un or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenants and ~ aqreementa of auch rider aha11 be incorporated into and shall amend and aupplement the covenanta and agreements of thia Mortgage as ifthe rider were a part herec~t. 7. Protection o! ~nder'e Security. If Borrower fails to perform the oovenants and agreements oontained in thia Mortgage, or if any ~ aMion or protxeding ia commenced which materially affecte Lender'e interest in the Property, including, but not limited to, eminent domain, ' ~ ineolvency. aode enforcement, or arrangemente or proceedinge inyolving a banlwpt or deoedent, then Lender at I.endei e option,upon notice to Borrower may make euch appearancee. dieburee euch aums and ta1~e such action ea is necessary to protecE Lender's intereat, ~ including, but not limited to, diabnraement of reasonable attorney'e feea and entry upon the Property to ma]~e repairs. If Ixnder required - mortgage inaurance aa a condikion of making the loan eecured by thie Mortgage, Borrower ehall pay the pre~iuma required to maintain ~ auch ineurance in effect until such time as the requirement for auch ineurance t~erminatea in aocordance with Borrower'e and Leader a = written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided under k paragraph 2 hereof. 5 My amounte diebureed by Lendet persuant to this paragraph 7, with intereet thereon, ahall become additional indebtedneae of - Borrower eecured by thie Mortgage. Unlees Borrower and I.ender agree to other tem~s of payment, such amounte shall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahaU bear intereat from the date of disbureement et the rate payable from ~ time to time on outetanding principal under the Note unless peyment of interest at anch rate would be contrary to applicable law, in which • ~ event euch amounte shall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragreph 7, ehall require I.ender to incur any e:pense or take any action hereunder. ~ - ~ ~ [I Q s r) ; 3C'OK ~U3 ~Arf 6'89 ~ ~ ' ~ ~ ~ ~ • ~ ~ -ri.,~ - ~...~y~: - - _ - ~F . _f .