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HomeMy WebLinkAbout0283 E3ors~ower and l.eoder covena~t and agree as follows: 1. Payment of Principal and tntereat. Eiorrower ahall promptly pay when due the principal of and intereat on the indebtednees evidenced by the Note, prepeyment and latechargee as provided in the Note, and the principul of and intereat on any Future Advancee aecured by this Mortga~e. . 2. Funds tor Taxea and lnaurance. Subject tn applicuble law or to a written waiver by i.ender, E3nrrower shall puy to l.ender on the day monthly inataUmenta of principal and intereet are payable under the Note, until the Note ia paid in full, a aum (he~ein "Funda") eyual to one twelRh of the yearly taxea und aaeeaame~ta which may attain priority over thia Mortgage, and ground ~enta on the f'ruperty, if any, plua one twe!Rh of yearly premium inatallmenhs for hazard inaurance, plus on~twelfth of yearly pmmium inetullments for mortguge insurance, if any, all ae reasonably eatimated initially and from time to tirne by l.ender on the basis of assesaments and billa und reusunable eatimatee thereof. 'IT~e t~nds ehall be held in an inatitution the deposits or accounts ot which are insured or guaranteed by a Federal or State agency (including Lender if Lender ie euch an inetitntion). l.ender ahatl apply the Funda to pay said taxea, usaesaments, ineuranc~e premiums and ground renta. i.ender may not charge for eo holding and applying the Funde, analyzing said account, or verifying and compiling said asaeasments and bills, unleee Lender pays Eiorrower interest on the Funda and applicable isw permite I.ender to make auch a charge. Borrower and l.ender may agree in writing at the time of~xecution of this Mortgage that intereat un the htinda shall be paid to f3orrower, and unleas euch agreement ia made or applicable law requirea such intereat to be paid, Lende~ ahall not be required to pay Borrower any interest or eaminge on the F~nds. I.ender ehaU give to Borrower, without charge, an annual accounting of the Funda showing credite and debits to the Funde and the purpoae for which each debit to the Funda wae mude_ The F unds aee pledged as additional eecu~ty for the auma aecured by this Mortgege. If the amount of the fi~nde held by Lender, together with the tuture monthly installments of Funda payable prior to the due datea of ta~cee, aseesamente, insurance premiume and ground rente, shall excaed the amount required to pay said taxea, asaesamente, inaurance premiums and ground re~ts as they falt due, auch e:ceas ehall be. at Borrower s option, either pmmpdy iepaid to Borrower or credited to Borrower on monthly inatallmente of FLnde. It the amount o! the Funda held by Lender ahall not be eufficient to pay taxea, assesaments, inaurance premiums and ground renfe ae they fall due, Borrower ahall pay to Lender aay amount neceaeary to make up the deficiency within 30 days from the date notice is mailed by Lender to F3orrower requeating payment thereof. Upon payment in full of ait sums secured by thia Mortgage, l.ender shall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Ptoperty is otherwise acquired by Lender, l.ender ahall apply, no laterthan immediately prior to the sale of the Property or its acquieition by I.ender, any Funds held by Lender at the time of application ae a credit against the auma secured by thie Mortgage. 3. Applieation of Paymenta. Unleae applicable law pro~~des otherwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender fimt in payment of amounte payable to Lender by Borrower under paragraph 2 herc~f, then to interest payable on the Note. then to the principal of the Note, and then to intereat and prinripal on any Future Advancea. 4. Chargee; Liene. Borrower ahall pay all taxes, assesaments and other charges, fines and impositions attributabie to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under para~aph 2 hereof or, it not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptiy furnish to Lender all noticea of amounts due under this paragraph, and in the e~•ent Borrower shall make payment directly, Bc~rrower ahall promptly furnish to Lender receipts evidencing such payments. I3orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrow er ahall not be required to dischary~e any such lien so long as Borrower ahall agree in writing to the payment of the obliKation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the E'roperty or any part thereof. 5. Hazard Inauraace. Borrower shaU keep the improvements now existing or hereafter erected on the Property insured againat losa by fire, hazards included within the term "eztended coverage," and auch other hazards as I.ender may require and in auch amounts and for such periods as I,ender may require; provided, that Lender shall not requirn auch ooverage 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 sums aecured by this Mortgage, whichever is the greater_ The insurance carrier providing the insurance shall be chosen by E3orrower subject to approval by Ixnder; pmvided, ihat such approval . shall not be unreasonably withheld. All premiume on insurance policies shalt be paid in the manner pro~ ided under paraKraph 2 hermf or, if ; not paid in such manner, by E3orrower making payment, when due, directly to the insurance carrier. I All insurance policiea and renewala thereof ahall be in form acceptable to lxnder and shall include a standard mortgage clauae in favor of ; and in form acceptable to Lender. Lender ehall have the right to hold the policiea and renewals thereof, and Borrower shall promptly €urniah to i i.ender all renewal noticee and all receipts of paid pmmiums. In the event of loss, Borrower ahali give prompt notice to the insurance carrier ' and Lender_ Lender may make proof of loas if not made promptly by Borrower. ~ Unlese I.ender and Borrower oiherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair ie economically feasible and the security of this Mortgage is not thereby impaired_ If auch reatoration or repair is not economically [easible or if the aecurity of thia Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the suma secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to , respond to Lender within :30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offera to settle a claim for I inaurance benefite, L.ender is suthorized to collect and apply the insurance pcoceeda at Lender's option either to restoration or repair of the ~ Property or the suma eecured by this Mortgage. ~ Unlesa Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or postpone the due ~ date of the monthly inetallmente referred to in paragraphs 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Peoperty is acquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the aale or acquiaition ahall pase to L.ender to the eatent of the suma eecured by thie ~ Mortgage immediately prior to such eale or aoquieition. ~ 6. Preservation and Maintenance of Property; Leaaeholds; Condominume; Planned Unit Developmente. Borrower shall keep ~ the Property in good repa'u and ahall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the proviaiona of any lease if this Mortgage ia on a leasehoid. If this Mortgage is on a unit in a condominium or a planned unit development, ~ F3orrower shall perform ail of Borrower'e obligatione under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, a~d conatituent documenta. If a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreementa of such rider shali be incorporated into and shall amend and supplement the covenanta and agmementa of thia Mortgage as ifthe _ rider were a part hereof. ~ 7. Protection o! I.ender'e 9ecurity. If Borrower faile to perform the wvenante and agreements oontained in thia Mortgage, or if any _ action or proceeding ie commenced which materially affects Lendei e intereet in the Ptoperty, including, but not limited to, eminent domain, ineolvency, oode enforcemen~ or anangementa or praceedinge involving a bankrupt or deoedent, then Lender at Lender'e option,upon j notice to Borrower may make ench appearancea, diaburee such aums and Lake auch action as ie neceaeary to protect L,ender's intereat, including, bat not limited to, diabureement of reasonable attorney'e feee and entry upon the Property to make repaire. If Lenda required ~ mortgage insurance as e condition of making the loan eecured by thie Mortgage, Borrower shall pay the premiuma required to maintain euch inaurance in effect until euch time ae the requirement for auch ineurance terminatea in accordance with Borrower e and Lender'e ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance prnmiume in the menner provided under ~ paragraph 2 hereof. ~ My amounte diebureed by Lender perauent to this_paragraph 7, with intereet thereon, ehall become additional indebtedneas of = E3orrower secured by thie Mortgage. Unleea Borrower and [.ender agree to other terma of payment, auch amounts ehall be payable upon ~ ~ notice from I.ender to Borrower requeeting payment thereof, and ahatl bear intereet from the date of disbureement at the rate payable from ~ ~ time to time on outstanding principal under the Note unleae payment of intereat at auch rate would be contrary to appiicable law, in which i ~ event auch amounte Ahall bear intereet at the highest rate permiaeible under applicable law. Nothing contained in thie paragraph ahall ~ requ'ue Lender to incur any e:penae or take any action hereunder. I ~ I - > ;,~r ~Ut,r) z~z • ~ ~ ~ ~