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HomeMy WebLinkAbout0714 Borrower and l.ende~ covenant aad aQree aa [ollowe: 1. Pay~nent ot Principal and Interest. Borrower ehall prompUy pay when due the principal of and interest on the indebtedneae evideaced by the Note. pnpayment and late charges as provided in the Note. and the prirtcipal of and interest on any ~Lture Advances secured by this Mortgage. 2. Ptinde tor Teuces and Insuranoe. Subject to applicable law or W a written waiver by l.ender. E3orrowe~ ehall pay to I.ender on the day ~ monthly installments of pri~cipal and intereat are payable u~der the Note, until the Note ie paid i~ fuU, a sum (herein "~nda") equal to o~e tweltth of the yearly ta~cea and aeseaemente which may attain priority over this Moirtgage, and ground rents on the Piroperty. if any, plue one twelfth of yearly pcemium i~stallmenta for hazard inawrance, plus onelwelRh of yearly premium inataUmente for mortgage inaurance, if any, alI se reaeonably eetimated initiallv and from time to time by I.ender on the baeie of asaeasmenta and billa and reaaonable e~stimatea the~eot. The FLnds ahall be held in an institudon the depoeits os accounts of which sre inaured or guaranteed by a Federal or State agency (including Lender if l.ender is such an inatitution). I.eader shall apply the ~nds to pay eaid taxes. aeseasmente, inautance premiums and ground rents. I.ender may not charge for eo holding and applying the ~nds, analyzing eaid account, or verifying and compiling said aesesamente and biils, unleea L.ender paya Bonower intereet on the ~nde and applicable law permita I.ender to make such a charge. Borrower and Lender may agrce in writing at the time ote:ecution ot this Mortgage that interest on the F~nda shal! be paid to Borrower, and unlese auch agreement ia made or applicable law requires auch interest to be paid, I.ender shall not be required to pay Borrower any interest or earnings on the I~Lnda. Lender shell give to Borrower, without charge, an annual accounting of the ~nds shawing credits and debita to the Funds and the purpose for which each debit to the FLnda was made. The Funds are pledged se additional security for the suma secured by thia Mortgege. If the amount ot the ~Lnds held by I~nder, together with the tuture monthly inetallmenta of Funds payable prior to the due datee of taxes, aeaesamente. insurance premiums and ground rente. shall exc~ed the ainount required to pay said taxea, aseesaments, ineurance premiums and ground rente ae they fall due, ench eaoesa ehall be, et Borrower's option, either promptly repaid to Borrower or credited to Borrower on moathly inatallments of fi~nds. If the aa~ount of the Funds heW by Lender ehall not be eufficient to pay t~ea, aeaesamente, ineurance premiua~a and ground rents as they fnll due, Borrower ahall pay to Lender any amount neceeeary to make up the de5ciency within 30 days from the date notice ia mailed by I.ender to Borrowet requesting p~yment thereof. Upon payment in fuU of all sume secured by thie Mortgage. Lender ahall pmmptly cefund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is eold or the Property is otherwiee acquired by Lender, I.ender ahall apply. no lster then immediately prior to the eale of the Property or ita aoqaieition by I.ender, any fi~nds held by Lender at the time of application se a credit againat the sums aecnred by this Mortgage. 3. Application o[ Payments. Unlees applicable law providea otherwise, all paymerita received by Lender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender firat in payment of amounfa 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 intereat and principal on any Future Advancea_ 4. C6arges; Liena. Borrower ahall pay all taxea, xsaessmenta ar.d other charges, finea and impositions attributableto the Property which may attain a priority ov~ this Mortgage, and leasehold paymenta or ground rnnts, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower malcing payment. when due, directly to the payee thereof. Borrower shaU promptly furnish to I.ender all noticea of amounts due under thia paragraph. and in the event Borrower ahall make payment directly, Borrower ahall promptly fumish to l.ender rec~eipts evidencing auch paymenta_ Borrower ahal! promptly diacharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to diacharge any auch lien so long as Borrower ahall agree in writing to the payment of the obligation aecured by auch lien in a manne: acceptable to Lender, or ahall in good faith rnntest such lien by, or defend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof.. 5. Hazard Insurenoe, Bormwer ehall keep the unprovemente now exiating or hereafter erected on the Property insured against loes by fire, hazarda included within the term "e:tended coverage," and such other hazards as I.ender may require and in such amounts and for such perioda as Lender may require; pmvided, that Lender ahall not require auch ooverage amount exceeding the minimum, as may be reyuired by state or federal regalatione goveming activities of I.ender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. . The ineuranrn carrier providing the insurance ahall be chosen by E3orrower subject to approva) by Iknder, provided, that such approval shall not be unreasonably 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 insurance policiea and renewala thereof ehall be in form acceptable to Lender and shsll include a standard mortgage clause in [avor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof. and Borrower ahall promptly furnish to i.ender all renewal noticea and all receipte of paid premiuma. In the event of loea, Borrower ahall give prompt notice to the insurance carrier and I.ender. Lender may make proof of lose if not made promptly by Borrower. ; Unless Lender and Boaower otherwiee agree in writing, inaurance procceda shall be applied to restoration or repair of the Property ' damaged, ptovided auch restoration or repair is economicaUy feasible and the eecurity of thia Mortgage ie not thereby impaired. If such F restoration or repair i8 not economically feseible or if the security of thie Mortgage would be impaired. the insurance proceede shall be applied i to the suma eecured by this Mortgage, with the ezceae, if any. paid to Borrower. If the Property ie abandoned by Borrower. or if Borrower faila to re8pond to Lender within 30 daya from the date notice is mailed by I.ender to Borrower that the insurance carrier of~ers to aettle a claim for ~ inaurance benefite, Lender ie authorized to collect and apply the inaurance proceede at l.ender s option either to restoration or repair of the ~ Property or the sums eecured by thia Mortgage. Unlese Lender snd Borrower otherwiee agree in writing, any such application of proceeds to principal shall not ~tend or poatpone the due ~ date of the monthly installments referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallment8. If under paragrsph 18 - hereof the Property ie acquired by Lender, all right. title and intereat of Borrower in and to any i~aurance policiea and in and to the proceeda ~ thereof reaulting from damage to Property prior to the aale or aoquisition shall pase to Lender to the e:tent of the aums aecured by this Mortgage immediately prior to auch sale or soquisition. 6. Preeervation and blaintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower ahall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahaU comply with the proviaions of any leane if thie Mortgage ia on a leasehold. If thie Mortgage ie on a unit in a oondominium or a planned unit development, Botrower shall perform all of Borrower's ouligations under the declaration or rnvenanta creatingor governing the condominium or planned unit development, the by-Iawe and regulatione of the condominium or planned unit development, and conatituent documents. If a condominium or planned unit development rider ie executed by Borrower and recorded together with thie Mortgage, the oovenants and ~ agreementa of auch rider shall be incorporated into and shall amend and aupplement the covenants and agreements of thia Mortgage as if the rider were a part hereof. ~ 7. Protection ot Lender's Security. If Borrower faila to perform the oovenante and agreemenfs contained in thie Mortgage, or if any ~ action or proceeding is commenced which materially affecte Lender'e intereat in the Property, including, but not limited to, eminent domain, ~ insolvency. oode enforcement, or arrangements or proceedings involving a banlQUpt or decedent, then Lender at Lender's option.upon ~ ~ notice to Borrower may make such appearances, disbucse such aams and take snch actioa es is neoeeaary to protect Lender's interest, including, but not limited to, disb~usement of reasonable attomey'e fees and entry upon the Property to make repairs. If Lender required ; mortgage insurance ae a condition of making the loan eecured by thie Mortgage, Borrower shall pay the preminma required to maint~in ~ ench insarence in effect until such time aa We requirement for ench inaiuance terminatea in aocordance with Borrower's and I.ender's 3 written egreement or applicable i.aw. Borrower ehall pay the a~nount of ell mortgage inawance premiume in the menner provided under ~ paregraph 2 hereof. Any amounte diabursed by Lender pereuant to thie paragtaph 7, with intereet thereon, ahall become additional indebtednees of ~ Borrower secnred by this Mortgage Unleae Borrower and Lender agree to other terma of payment, euch amounfs shell be payable upon ~ notice from Lender to Borrower requesting peyment thereof, aad ehall bear intereet from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note unlese payment of interest at euch rate would be aontrery to applicable law, in which ~ event auch amounts ahall bear intereat at the higheet rate pe~miasible under applicable law. Nothing contained in thie paragraph 7, shall ~ require I.ender to incur any e:penee or talce any action hereunder. ~ - ~ gCC!! ~O~ P~GF ~ ~ _ ~ ~ . ~ ~ ~ ~^~~-.3,.x-~n _ 4 _ ~ ` ~ ~u• y'T - _ _ ~s-` F