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HomeMy WebLinkAbout0253 E3orrower and I.ender covenant and agrre ue f~~iluwe: 1. Payment of F'rincipal end Intereet. E;orruwer shnll pmmptly pay when due the principxl ot and intereet on the indebtednexe evidenced by the Note, prepayment and late chargee e+a pruvided in the Nute, and the principal uf and intereat on any Ftiture Advnncee aecured by thia Mortgage. 'l. ~tnda for TaY~a artd Ineurance. Subject to npplicnble luw or W u writtrn wAiver by !A ~der, t3orrowe~ ehuU puy to l.rnder un the day munthly inatallmenta of principal and intereat are payable under the Nute, until the Note ia pxid io full, ti eum (herein "h unda") equal to one- twelfth of the yexrly tiuces nnd assesements which may uttuin priurity over this Mortgnge, And ground renla on the Pruperly, if any, plua one twelRh otyearly premium installmeMe for haznrd inaurance, plua onetwelfth of yeurly premium installmenta for mortguge i~a~~rance, if aoy, all us reasonably eatimated initially and frum time to time by l.ender on the basis of s+saeaaments nnd bills and re:isunable eatimutes thereof. The i~l?nds ahall be held in an inetitution the depoaits or accounta of vahich a~e i~eured ur guaranteed by a Federal or State agency (including I.ender if l.ender ia such an inatitution). l.ende~ ahall apply the Funda to pay eaid taxea, asaeeamente, ineurance premiume and grout~d rente. l.ender may not charge for eo holding and applying the Funde, unalyzing said accc?unt, or verifying and compiling eaid aseeeements and bills, unleas Lender payb Sorrower intereat on the Funda a~d applicable law permits l~ender to make auch a charge. E3orrower end l.ender may agree in writing at the time of execution of thia Mortgage that intereat on the Funda ahall be paid to F3orrower, and unleas auch agreement ia made or applice~ble law require8 auch interest to be paid, l.ender ~hall not be required to pay Borrower any interest or earninga on the I~tinds_ Lender shall give to Borrower, w~thout charge, an annual accounting of the F unda ehowing cndita und debite to t1~e Funds and the purpoae for which each debit to the btinds wus made. The I~'unde are pledged as additionai security for the aums aecured by thie Mortgage. ~ If the amount of the ~nda held by I.ender, together with the future monthly installments of Funds payable prior to the due datea of taxee, asaeeame~ts, insurance premiums and ground mnte, ahall exeretl the amount required to pay said tnxea, asaeeaments, insurance premiuma and ground rente as they fall due, euch exceae shall be, at Borrower's option, e'ither prompdy repaid to Borrower or rredited to Borrower on monthly installmenta of F~?nde. If the amount of the Funda held by l.ender shall not be aufficient to pay taxes, assesamenta, insurance preiniums and ground rents ae they fall due, Borrower shall pay to l.e~der any amount neceaeary to make up the deficiency within 30 days from the date notice is mailed by I.ender to E3orrower requesting payment thereof. Upon payment in fiill of all sume eecured by this Mortgage, Lender ahall prompUy refund to Borrower any funda held by Lender. If under peragraph 18 hereuf the Property ie sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the aale of the Property or ita acquisition by I.ender, any F~nda held by Lender at lhe time of application as a credit againat the auma secured by this Mortgage. 3_ Application of Paymente. Unlesa applicabie law provides otherv~~se, al! paymenta received by I.ender under the Note and paragrapha 1 and 2 hereof shall be applied by i.ender firxt in payment of amounts 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. Chargea; Liene. Bormwer shall pay all taxes, assessments and other charges, fines and impositions attributable tn the Praperty which may attain a priority over this Alortgage, and leasehold payments ur Kmund rents, if uny, in the manner provided under paragraph 2 hereof or, if nut paid in such manner, by ~3orrower makinK pnyment, when due, directly to the payee thereof. Bormwer shall pmmptly furnish to I.ender :~11 noticea of amounts due under this paraECraph, and in the event E3orrower shall make payment directly, E3orrower shaD promptly furnish to I.ender receipts evidencing such payments. Rorrower shall promptl~ discharge any lien W hich has priority over this Mortgage: provided, that ti~rrower shal~ not berequired to discharge any such lien eo long :is E3urrower shall agree in writing to the payment uf the obliKation secured by sach lien in a manner acceptable to l.ender. or sh~ll in Rcwd faith contest such lien by, urdefend enforcement of such lien in, leKal proceedings which operi~te to prevent the enforcement of the lien or forfeiture of thr 1'roperty or any part thereof. 5. Hazard Inaurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property inaured against losa by fire, hazarda included within the term "extended coverage," aud auch other hazards as I.ender may require and in auch amounta and for such periods as Lender may require; provided, that I.ender ahall not requim such coverage amount exceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. The insurance carrier providinK the insurance shall be chosen by I3orrower su6ject to appro~~al by [.ender, provided, that such appro~•al shafl not be unreasonnbly ~+•ithheld. All premiums on insurance policies shail be paid in the manner pruvided under paragraph'l hereof or, if not paid in such manner, by Rorrower makinR payment, when due, directh~ to the insurance carrier. All inaurance policiea and renewals 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 poli~riea and renewals there~f, and Borrowerahall promptly furnish to ~ i.ender all renewal notices and all receipts of paid prnmiums. In the event of loss, E3orn,wer ahall give prompt notice to the inaurance carrier I and Lender_ Lender may make proof of loss if not made promptly by Borrovrer. ; Unleas Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feseible and the security of this Mortgage is not thereby impaired. If such i restoration or repair ia not economically feasible or if the security of lhis Mortgage would be impairnd, the inaurance proc~eeda shall be applied ; to the sums secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daya from the date notice ia mailed by Lender to ~3orrower that the insurance carrier offers to aettle a claim for t ineurance 6enefita, Lender is authorized to collect and apply the insurance proceeds at Lender's uption either to restoration or repair of the s Property or the suma secured by this Mortgage. 8 g Unlesa [.ender nnd Borrower otherwise agree in writing, any such appiication of proceeda to principat shall not extend or postpone thedue 3 date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Property is acquired by [:ender, all right, title and interest of $orrower in and to any insurance policies and in and to the proceeda ~ thereof reeulung from damage to Property prior to the sale or acquiaition ahali pasa to Ixnder to the extent of the suma secured by this ~ Mortgage immediately prior to auch sale or aoquiaition. ` 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaiona of any leaee if this Mortgage is on a leasehold. If thie Mortqage is on a unit in a condominium or a planned unit development, i F3orrower ehall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and reguladona of the condominium or planned unit development, and constituent documents_ If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreementa of such rider shall t?e incorporated into and shall amend and supplement the covenante and agreements of this Mortgage as if the ride~ were a part hercoL ~ 7_ Protection of [.ender's 3ecurity. If Borrower faile to perform the oovenanta and agreemente contained in thie Mortgage, or if any ~ action or proceeding ie commenced which materially affecta Lender'e interest in the Property, including, but not limited to, eminent domain, ~ s ineolvency, oode enforcement, or arrangemente or proceedings involving a bankrupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrower may make auch appearancee, diaburee euch eume and take euch aMion as ie necessary to protect Lender's intereet~ , - inclading, but not limited to, diabureement of reseonable attorney'e fees and entry upoa the Property to make rnpaira. If Lender required mortgage inearance ae a condition of mal~ing the loan aecured by thie Mortgage, Borrower ehall pay the premiume required Lo maintain - auch ineurance in effect until euch time ae the reqnirement for auch inaurance terminatea in accordance with Borrower'e and Lender'a written agreement or applicable Law. Borrower ahal) pay the amount of all mortgage inaurance premiuma in the manner provided under - paragraph 2 hereof. My amounts diBbursed by Lender perauant to thie paragraph 7, with intereet thereon, ahall become additional indebtedneae of ~ Borrower eecured by thia Mortgege. Unleae Berrower and Lender agree to other terme of payment, auch amounts ehall be payable upon - notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of dieburaement at the rate payable from ; time to time on outatanding principal under the Note unlees payment of intereat at such rate would be contrary to applicable law, in which event auch amounte ahall bear intereet at the higheat rate permisaible under applicable law. Nothing contained in thie paragraph 7, ahall ~ require L.ender to incur any expense or take any aMion hereunder. ; H ~ ~ 50G!! JU4 ~ U ~ t ~e.1tJ - - - - - - , ~ ~ ~r ~ s~~ ~ ~ ~ ~