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HomeMy WebLinkAbout0811 E3orrower and I.ende~ covena~t and ag~ee ae folluwe: 1. Payment of Principal and l~tereat. 13o?TOwer ehul) promptly pay when due the principal oi And interest un the indebtedneus evidenced by the Note, prepayment and late chargee ae provided in the Note, a~d the principal of and interest on any Future Advuncee aecured by thia Mortgage. 2. P1~nds for Teuces and Inaurance. Subject to applicable law or to a writtrn waiver by Ix~der, l;urrower xhall pay tu l.ender on the day monthly inatallments uf principal and interest are payable under the Note, until the Note ia paid in full, a eum lherein "Munds"1 eyual to one twelfth of the yearly taxea and asseaamenta which may attnin priority over thia Mortgage, and ground rentss un the Prupecty, if any, plue one twelfth of yearly premium installmenta for hazard inaurance, plua onetwelfth af yearly premium inatallmente for mortgage inau~ance, if any, ali as reasonably estimated initially and from time ta tiR~e by l.e~der on the baaia of assessmente t?nd bills and reuaunable eei/imatrei thereof. The F1nde Rhall be held in an inatitution the deposits or accounts of which are inaured or guaranteed by a Federal or State agency (inctuding l.ender if l.ender is such an inatitutioo). Lender ahall apply the Funds to pay eaid taxea, asaesaments, insurance premiuma and giround rents. I.ender may not cha~ge for eo holding and applying the Flinda, analyzing said account, or verifying and compiling said aseeeements and bilis, unteae i.ender paye Borrower intereat on the Fu~ds and applicable law permits l.ender to make such a charge. E3orruwer and Lender may agree in writing at the time oi execution of thia Mortgage that intereat on the ~nda ahall be paid to Borrower, and unleae auch agreement is made or applicable law requitea such intereat to be paid, [.ender ahall not be required to pay Borrower any interest or eaminga on the F`unds. l.ende~ ehall give to Borrower, without charge, an annual accounting of the Funds ahowing credits and debita to the Funda and the purpoae for which each debit to the Funda was made. The Funde are pledged as additional security for the aume eecured by thie Mortgage. If the amount of the F1nda held by Lender, together with the future monthly inetallmenis of Funda payable prior to the due dates of taxea, seseaemente, ineurance premiums and ground renta, ahall excxd the amount requimd to pay aaid taxes, assesaments, insurance premiuma and ground rents ae they fall due, auch excesa shaU be, at Borrower s option, either promptly rnpaid to Borrower or credited to Borrower on monthly inatallmenta of Ftinda. If the amount of the Funda held by Lender shali not be aufficient to pay taxee, asseasmenta, insurance premiume and ground rents ae they fall due, Borrower ahall pay to L.ender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by I.ender to liorrower requesting payment thereof. Upon payment in full of all suma secured by this Mortgage, I.ender ahall promptly refund to Borrower any funda held by l.ender. If under paragraph 18 hereof the Property ia eold or the Property is otherwiae acquired by I.ender, I.ender ahall apply, no later than immediately prior to the sale of the Property or ite acquiaition by Lender, any ~nda held by I.ender at the time of applicntion ae a credit against the suma secured by thie Mortgage. 3. Application ot Payments. Unlesa applicable law providea otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by I.eader firet in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principal on any F uture Advances. 4. Chargea; Liena. Borrower shall pay all taxea, assessments and otherrharges, fines and impositions attributable W the I'roperty which may attain a priority over this Mortgage, and leasehold pnyments or Kround rents, if any, in the manner provided under paragraph 2 hereotoT, if not paid in such manner, by E3orrower making payment, when due, dicectly to the payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower ahall make payment directly, Borrower shall prumptly fumish to Ixnder receipts evidencing such paymenta. Bonower shall promptly discharge any lien which has priority over this MortKage; pro~ ided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obliQation secured by such lien in a manner acceptable to LPnder, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedinQs which operate to prevent the enforcement of the lien or forfeiture of the I'roperty or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvements now eaisting or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounta and for such periods ae L.ender may require; provided, that Lender ahall not require such coverage amount exceeding the mini~num, as may be required by . state or federal regulationa governing activities of Lender, or that amount of coverage requireif to pay the aums aecured by this Mortgage, whichever is the greater. ' The insurance carrier providing the insurance shall be chosen by Borruwer subject to apprnval by I.ender, pn~vided, that such ~ppro~~al shall not be unrnasonably withheld. All pmmiums on insurance F?olicies shall be paid in the manner pn~~ ided under paraKraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ rtgagec ausein avoro ~ All ineurance poliries and renewala thereof shall be in form acceptable to Lender and shall include a standard mo ; and in form acceptable to Lender_ Lender ahall have the right to hold the policiea and renewala thereof, and Borrower shall promptly f~mish to ; i.ender all renewal noticea and all receipte of paid premiuma. In the event of losa, Borruwer shall give prompt notice to the insurance carrier j and Lender. Lender may make proof of loes if not made promptly by Borrower. ~ Unleas Lender and Borrower otherwise agree in writing, inaurance proc~ecds shall be applied to restoration or repair of the Property ; damaged, provided such reetoration or repair is economically feasible and the security of thix Mortgage ie not thernby impaired. If such ; reatoration or repair ie not economically feseible or if the security of this Mortgage would be impaired, the insurance proceede ahall be applied ~ to the auma secured by this Mortgage, with the exceas, if any, paid to Borrower_ If the Ptoperty ie abandoned by Borrower, or if Ebrrower faila to # respond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the inaurance carrier offera to aettle a claim for ~ inaurance benefite, I.ender ie authorized to rnllect and appiy the insurance proceeda at I.ender's option either to reatoration or rnpair of the ~ Property or the suma eecured by this Mortgage. ~ L'nless Lender and Borrower otherwiae agree in writing, any such application of proceeda to principal ehall not extend or poatpone the due ~ date of the monthly inataliments rnferred to in paragraphs 1 and 2 hereof or change the amount of such instt?liments. If under paragraph 18 hereof the Property ia aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquiaition ahaH paea to Lender to the extent of the aums aecured by this ~ Mortgage immediately prior to auch eale or aoquieition. ~ 6. Preaervation aad Maintenance of Property; Leaeeholde; Condominume; Planned U'nit Developmente. Borrower ahall keep ~ the Propetty in good repair and ahal) not commit wagte or permit impairment or deterioration of the Property and ahall comply with the ~ proviaions of any lease if thie Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower's obligationa under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulatione of the condominium or planned unit development, and constituent dceumenta. If a - condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the covenanta and % agreementa of such rider shall be ineorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereoL ~ 7. Protection o! Lender'e 3ecurity. If Borrower fails to perform the aovenants and agrcemente contained in thie Mortgage, or if any action or proceeding ie rnmmenced which meterielly affecte Lendei e interest in the Property, including, but not limited to, eminent domain, - ineolvency, oode enforcement, or arrangements or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon _ notice to Borrower may make euch appearences, diaburee euch snms and take auch action as is neceeeary to protect Lender's interest, ~ induding, but not limited to, diebursemeat of reasonable attorney's feee and entry upon the Property to make repairs. If Lender required mortgage ineurance as a rnndition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums reqnired to maintain ; ench insurance in effect until such time as the requirement for auch ineurance terminates in accordance with Borrower e and Lendels : written agreement or applicable Law. Borrower ehaU pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereof. My amounte dieburaed by Lender persuant to thie paragraph with intereat thereon, ehall beoome additional indebtedneae of Borrower aecured by thia Mortgage_ Uniees Borrower and [.ender agree to other terma of payment, such emounts ehall be payable upon u' notice ftom Lender to Borrower requeating payment thereof, and shall bear intereet from the date of diebureement at the rate payable from - time to time on outetanding principal under the Note unleea payment of interest at euch rate would be contrary to applicable law, in which ~ event euch amounte ahall bear interest at the higheat rate permiasible under applicable law. Nothing contained in thia paragraph 7, ehall require Lender to incur any expenae or take any action hereunder. ~ ~ ~ ~ ~'o`r ~U4 811 } ~ - _ _ - - - _