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HomeMy WebLinkAbout0734 Borrower and Lender rnvenant and agree as followe: ' 1. Psyment of Principal and lhterest, Borrower shall prompAy pay when due the principal ot and intereat on the indebtedneas evidenced by the Note. prepayment and late chargea ae provided in the Note, and the principal of and intereat o~ any Future Advancea secured by thia Mortgage. 2~nds for Ta:es and Ineurance. Subject to epplicable law or to a written waiver by l.ender, Borrower ehall pay to l.ender on lhe dayr monthly inataliments o[ principal and intereat are payable under the Note. until the Note ia paid in full, a aum (herein "F~nda") equal to one twelRh of the yearly tanes and axaeasments which may attai~ priority over this Mortg~e, and ground rents on the Pruperiy, if any. plue ono- twelfth of yearly premium inatallmenta for hazard inauraoce, plua onetwelRh otyearly premium inatalimenta for mortgage inaurance, if any, all as reaeonably estimated initially and [rom time to time by I.ender on the baeie of easeasmenta und bills und reasonable estimatea thereot. The PLnds shall be held in an institution the deposita or acoounte of which are insured or guaranteed by a Federal or State agency (including I.ender if Lender ia such an inatitution). Lender ahall apply the Funda to pay said taxee. aseesamenta, inaurance premiuma and ground renta. Lender raay not charge for so holding and applying the ~nds, analyzing eaid account, or verifying and compiling enid asaesements and bills, unlese Lender paye Borrower interest on the Funde and applicable law permite I.ender to make such a charge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that intereet on the ~Lnda ahal! be peid to Borrower, and unleae auch agreement is made or applicable law requires auch interest to be paid, l.ender shall not be required to p~y Borrower any intereat or earnings on the ~nde. I.ender ehaU give to Borrower, without charge, an annual acoounting of the F unda ahowing credita and debita to the Funde and the purpoee for which each debit to the ~Lnds wae made. The Funda are pledged as additional security for the aumB eecured by this Mortgage. ' If the amount of the F1nds held by Lender. together with the future monthly inatallments of Funda payable prior to the due datea of /auea. aesessmenfa. inaurance premiums and ground rents, ahali exc~.d the amount required to pay said taxes, saeessmenta, inaurance premiums and ground rente as they fall due, auch e:ceas ahall be, at Borrower a option, either promptly repaid to Borrower or rndiEed to Borrower on monthly installmente of FLnde. If the amount of the Funda held by I.ender shall not be eufficient to pay ta:ea, aaseeamenta, inaurance . prEmioms and ground rente as they [all due. Borrower ahall pay to Lender gny amount necessary to make up the deficiency within 30 daye from the date nosice ia mailed by [.ender to Borrower requesting payment thereof. Upon payment in fuU of all aums secured by thia Mortgage. I.ender ehall promptly refund to Borrower any funde held by I.ender. If under paragreph 18 hereof the Property ie sold or the Property is otherwiee acquired by Lender, Lender ahall apply. no later than immediately prior to the eale of the Property or its aoquieition by L.ender, any Flinds held by Lender at the time of application as a credit againat the aums secured by this Mortgage. 3. Application of Paymeats. Ualess applicable law providea otherwise. all paymenta received by I.en~der under the Note and paragraphe 1 and 2 hereof ehall be applied by l.ender firat in payment of amounts payabie to Lender by Borrower under paragraph 2 hereof. then to intereet payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Charges; I.iet~s. Eiorrower ahall pay all taxea, assessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rnnts, if uny, in the manner provided under paragraph 2 hereof or, if not paid in euch manner, by Borrower making payment, when due, directly to the payee thereoL Borrower ahall promptly furnish to I.ender all noticea of amounta due undeir this paragraph, and in the event Borrower ahall make payment directly, E3orrower shall promptly fumish to I.ender receipts evidencing euch payments. Borrower ahall promptiy discharge any lien which hux priority over this Mortgage; provided, that Borrower ahall not be required to discharge any auch lien so long t+s Borrowet shall agree in writing to the payment of the obligation secured by such lien in a man~er acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prnvent the enfotcement of the lien or forfeiture of the Property or any part thereof 5. Hazard Insurance. Borrower ahall keep the improvements now e:iating or hereafter erected on the Property insured againat losa by fire, hazarde included within the lerm "extended coverage; ' and auch other hazards aa Lender may require and in such amounte and for such periode as Lender may require; provided, that Lender ahall not requirn such coverage amount exceeding the minimum, as may be required by state or federal regulatione governing activitiea of I.ender, or that amount of coverage required to pay the sums aecured by thie Mortgage, whichever ia the greater. The insurance carrier providing the inaurance shall be chosen by Borrower aubject to approvnl by Lender. provided, thnt such approval shall not be unreasonably withheld. AU premiuma on insurance policies sha11 be paid in the manner pmvided under paragraph'L hereof or, if. not paid in auch manner, by Borrower making payment, when due, directly to the inaurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of and in form acceptable b Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower ahall prompdy furniah to i.end~ all renewal notices and all receipta of paid premiume. In the event of losa, Borrower ahall give prompt notice to the inaurance carrier and I.ender. I.ender may make proof of losa if not made promptly by Borrower_ _ ~ Unless Lender and Borrower otherwiee agree in writing, insurance proc~eeda ahali be applied to reatoration or repair of the Property ''I dameged, provided such reetoration or repair is economically feasible and the security bf this Mort{;age is not thernby impaired. If auch f restoration or repair ie not economically feasible or if the security of thie Mortgage would be impaired, the inaurance proceede shall be applied ~ to the auma secured by this Mortgage, with the ezcess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daye from the date notice ia mailed by [.endeT W Borrower that the insurance carrier offera to settle a daim for 'E inaurance benefita. Lender ie authorized to collect and apply the inaurance pra.~eeda at l.ender a option either to restoration or repair of the Property or the sums aecured by this Mortgage. ~ Unlesa Lender and Borrower otherwiae agree in writing, any auch application of proceeda to principal shall not eatend or poatpone the due date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such inetallments. If under paraqraph 18 hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceede thereof resulting from damage to Property prior to the eale or aoqu~sition ehall pass to Lender to the eztent of the auma secured by this Mortgage immediately prior to auch sale or acquisition. 6. Preaervation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrowerahall keep the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall oomply with the proviaione of any lease if this Mortgege ia on a leasehold_ If this Mortgage ie on a unit in a oondominium or a planned unit development, E3orrower aha11 perform all of Borrower a obligationa under the declaration or rnvenants creatinqor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatituent documente. If a condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreementa of such 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 I.ender'e Secur[tp. If Borrower faile to perform the oovenante and agreements contained in thia Mortgage, or if any ~ action or prooeeding is commenced which materially affecte. Lender a interest in the Property, including, but not limiled to, eminent domain, ineolvency, oode enforcement, or anangements or pra~edings involving a banlwpt or deoedent, t6en Lender at Lender's option.upon ~ notice to Borrower may make snch appearanoee, dieburse euch eums and take snch action as ie neoeseary to pmtect Lender's interest, including, but not limited Lo, disbureement of reasonable attorney'e fees and entry upon the Property to make repeirs. If I.ender required mortgage inaurance ae a rnndition of ineking the loan secured by this Mortgage, Borrower ahal! pay the premiums required to maintain ~ auch insnrance in eftect until such tune aB the requirement for euch inaarance terminatee in accordance with Borrower'e and Lendel's ~ - written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. ~ My amounte dieburaed by Lender pereuant to thia paragraph 7, with interest Lhereon, shall beoome additional indebtednees of ~ ~ ~3orrower eecured by thiH Mortgage. Unlese Borrower and L,ender agree to other terme of payment, euch amounts aha11 be payable upon ~ ~ notice from Lendec to $orrower requeating payment thereof, and ehall bear interest from the date of diabursement at the rate payable from ' time to dme on outatanding principal under the Note unleee payment of interest at auch rate would be oontrary to applicable law. in which ` event euch amounte ehall bear intereet at the higheat rate permieaible under applicable law. Nothing rnntained in thie paragraph 7. ehall ~ require Lender to incur any e:pense or take any action hereunder. ~ uR . I ~ ~~~r3U3 ~a~,~ 733 . ~ - ~ _ ~ _ - - . - _ - ~:~T_ _ . ~ . _ ,