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HomeMy WebLinkAbout0081 Fiorruwer and l.ender covenant and agree us fullowa: t. Payment ot Principal and Interest. f3orrower ahxll pmmptly pay when due the principal o! s~nd intereat un 1he indebtedneas evidenced by the Note, prnpayment and late chargrs ae provided in the Note, and the principal oi and intereat un any F~ture Advanrea aecured by thia Mortgage. 2. F~tnde for Tsxee a~d Ineurance. Subject b applicnble luw or to a written waiver by I.endcr, f;urrower shull pny to l.ender un the dey monthly inat~llments of principal und intrrest are payable under the Note, until the Note ia paid in full, a sum (herein "F unda") eyual to one twelfth of the yrarly taxea a~ i asaesamenta which m~?y attain priority over thia Mortgage, and ~uund renlx on the Property, if any, plus one Iwe1Rh of yearly pmmium instnliments for hazard inaurance, ptus one-twelRh of yearly premium inataUmenta for murtgage insurance, i[any, ull aa reasonably eatimated initially and firom time to titue by l.ender on the busie of aaseasmentx and bills nnd renaonable estimatra thereof. The ~L~de shall be held in an instilution the deposits or accounta of which are ineured or guaranteed by a Federal or State agency (including Lendet if I.ender ie auch an ir.atitution). l.ende~ ahall apply the Funda to pay aaid taxea, assesamenta, insurance premiums and ground renta. Lender may not charge for eo holding and applying the Flinds, analyzing aaid account, or verifying and compiling said asseesmente and bille, unlesa l.ender paye Borrower inferest on the F unde and applicable law permite I.ender to make auch a charge. E3orrower and I.ender may agree in writing at the time of execution of thie Mortgage that interest on the Funda shall be paid to Borrower, and unlesa auch agreement ia made or applicable law requirea auch interest to be paid, I.ender ehall not be required to pay Borrower any intereat or earnings on the F~nde. Lender ahall gi~ e to Borrower, without charge, an annual accounting of the Funds showing credite and debite to the Funda and the purpoae for which each debit to the Funds was made. The F unda are pledged ae additional security for ihesums eecured by thie Mortgage. I[the amount of the Fl~nda held by I.ender, together with the future monthly inetallmtnts of Funds payable prior to the due dates of taxea, aseeeamenta, inaurance premiuma and ground renta, aha11 exc~d the amount tequired to pay said tpxes, aasesements, inaurance premiums and ground rente ae they lall due, such eaceas ahall be, af Bo~tower'a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of FLnda. If the amount of the Funde held by Lender ehall not be aufficient to pay ta~cee, asaeasments, inaurance premiume and ground rents as they fall due, Borrower ahall pay to I.ender any amount necessary to muke up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in full of all aums eecured by this Morigage, Lender ahall promptly refund to Borrower any funda held by Ixnder. If under paragraph 18 hereof the Property ia sold or the Property is othetwise acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Property or ite acquiaition by [.ender, any F~nda held by I.ender at the time of application as a credit againat the auma secured bv this Mortgage. - 3. Applieation ot Paymenta. •Unleea applicable law pmvides otherwiee, all payments received by Lender under the Note and paragrephs 1 and 2 hereof ahal) be applied by Lender first in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargee; Liens. Borrower shall pay all taxes, asseasments nnd other rharges, fines and impositions attributable to the Pmperty which ms?y attain a priority over this Mortgage, and leasehuld payments orgmund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Fiorrov?er makinq payment, when due, directly tu the payee thermC Borrower shall promptiy furnish to Ixnder all notices of amounts due under this paragraph, and in the rvent Iiorrower ahall make payment directly, Borrower shall promptly furnish to lxnder receipts evidencing such payments. fiorrower shaU promptly dischargr any lien which has priority over this Morigage; pmvided, that Rorrower shali not be required to discharge any such lien so long as E3orrow er shall agree in writing to the payment of theobligation secured hy such lien in a manner acceptable to [.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedinga K•hich operate.to prevent the enforcement of the lien or forfeiture of the Property or any part thermL . 5. Hazard Insurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended rnverage," and xuch other hazarda as I.ender may require and in such amounta and for such periods as Lender may require; provided, that I.ender shall not require such eoverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the eums aecured by this Aiortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by BurroNer subject to approval by I.ender, pro~•idrd, that such appruv.~l shall not be unreasonably withheld. All premiumx on insurance policies shall be paid in the manner pro~•ided under paraKraph 'l hereof or, if nut paid in such manner, by I3orrower making pa~ment, when due, direcUy to the insurnnce carrier. All inaurance policiea and renewals thereof ahall be in form acceptable to I.ender and shall include a standard mortgageclauae in favor of and in form acceptable to Lender_ I.ender shall have the right to hold the policies and mnewala thereof, and Borrower ahAll promptly furnish to i.ender all renewal notices and all receipts ot paid premiuma. In the event of losa, E3orruwer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. - € Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda shal) be applied to restoration or repair of the Property ; damaged, provided such reatoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If auch restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance prooeeda ahall be applied ( to the auma secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if [iorrower faila to reapond to L,ender within 30 days from the date notice is mailed by Lender to Borrower that the ineurance carrier offera to settle a claim for ' inaurance bene6te, l.ender is authorized to collect and apply the inaurance proceeda at I.ender's option either to restoration or repair of the ~ Property or the suma secured by this Mortgage. t ~ Unlesa Lender and Borrower otherwiae aEtree in vrriting, any such application of proceeds W principal shall not extend or postpone the due ~ date of the monthly inatallmenta referred to in paragrapha i and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and interest ot Borrower in and to any insurance policiea and in and to the proceeds { thereof reaulting from damage to Property prior to the sale or acquiaition shall pass to Lender to the e:tent of the aums aecured by this ~ Mortgage immediately prior to auch sale or acquisition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developments. Borrower shall keep the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall rnmply with the pro~ieions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Rorrower ahall perform all of Borrowei s obligationa un~ier the declaration or covenanta creatingor governing the condominium or planned ~ unit development, the by-laws and regulatione of the condominium or planned unit development, and conatituent documenta. If a ; condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and aRreements of surh rider shall be incorporated into and ahall amend and supplement the covenants and aqreementa otthis Mortgaqe as if the ~ rider were a part hereof. 7. Protection ot Lender's 3ecurity. If Borrower faile to per[orm the oovenante and agreementa contained in thie Mortgage, or if any ~ action or proceeding ia commenced which materially affecta Lender'a interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangementa or proceedings involving a bankrupt or dececient, then Lender at Lender'e option,upon ~ notice to Borrower may make euch appearancea, dieburee euch euma and take euch aMion as is neceaeary to proLect Lendei s intereet, including, but not limited to, diabursement of reseonable attorney's feee and entry upon the Property to ma1~e repaire. If Lender required mortgage ineurance aa a condition of making the loan aecured by this Mortgage, Borrower ahall pay the premiums required to maintain ci such ineurance in effect until euch time ae the requirement for auch ineurance terminatea in accordance with Borrower'e and Lendei s written agreement or applicable Law~ Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided under } paragraph 2 hereoL Any amounta dieburaed by Lender persuant to thia paragraph 7, with intereet thereon, ehall become additional indebtedness of E3orrower eecured by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, such emounts ahall be payeble upon notice from Lender to Borrower requeeting payment thereof, and shall bear intereet from the date of di~bureement at the rate payable from _ time to time on outatanding prinripal under the Note unleas payment of intereat at euch rate would be contrary to applicable law, in which - event euch amounte eha11 bear interest at the higheat rate permiseible under applicable law. iVothing contained in thie paragraph ahall require Lender to incur any expense or take any action hereunder. ~ ~ ~ ~ ~ R)~J`f ~V4 ~1~1,~ V~ ti. ~ - , _ ~_f ~ ~ - - - - . ; ~~a,~. ~ ~v ' ' ~ _ ~ ~ _ . . _ , . ~.G "