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HomeMy WebLinkAbout0287 Born~wer and I.ender covenant a~d agree aa follows: 1. Payment of Principal and Intereet. E3orrower shall promptly pay when due the principa) of and intere6t on the indebtedneea evidenced by the Note, prepayment and lete charges aa provided in the Note, and the principal of and inlereet on any Future Advancee eecured by this Mortgage. 2. E~tnds [or T~ucea and Ineurance. Subject to applicable luw or to a written waiver by I.en~e~, Borrower ahull pay to l.ender on theday monthly installmenta of principal and intereet are payable under the Note, until the Note ie paid in full, a eum (herein "hl~nde"1 equa! to one twelRh of the yearly taxes and assesamenta which mpy attain priority over this Mortgage, and ground rents o~ the Property, if any, plue one~ twelRh of yearly premium installments fur hazard inaurance, plus unetwelfth of yea~ly premium installmenta fur morigage ineurance, if any. all as reasonably eatimeted initially and from time to time by I.ender on the basia of asaeeamente and bills and reasonabie estimatea thereof. The ~nda shall be heW i~ an institution the deposits or accounta of which are insured or guarenteod by a Federal or State agency (including L.ender if l.ender ia auch an inetitution). Lende~ ehaU apply the Funds to pay said taxes, aaeesamenta, inaurance premiume and ground rente. I~ender may not charge for eo holding and ppplying the Ftinde, analyzing said account, or verifying and compiling aaid aseesamente and bille, unleae Lender paya Borrower intereet on the Funde and appliceble law pern?ita Lender to make auch a charge. Borrower and I.ender may agree in writing at the time ot e:ecution o[ this Mortgage that intereat on the F~nda ahall be paid to Borrower, end unleas such egreement is made or applicable law requir~ such intereat to be paid, [.ender ehall not be requind to pay Borrower any interest or earninga on the ~nda. Lender shaU give to Borrower. without charge, an annual acoounting of the Funda ahowing credite and debita to the Funda and the purpoee for which each debit to the Funda waa made. The F unde are pledged as additional security for the euma aecured by thia Mortgage. _ If the amount of the ~nds held by Lender, together with the future monthly installments of Funda payable prior to the due datea of taxee, asaesamente. inaurance premiums and ground rente, ahaU e:cred the amount required to pay said ta:es, aseessmenta, inaurance premiuma and ground rents ae they fall due, such e:cesa ahall be, at Borrower'a option, either prompUy repaid to Borrower or credited to Borrower on monthly inatallmenta of Funda. If the amount of the Funda held by I.ender ehall not be aufficie~t to pay taxea, aeseasments, inaurance premiums and ground renta as they fall due, Borrower ahall pay to Lender any amount neceseary to malce up the deficiency within 30 days firom the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all eums eecured by this Mortgage, l.ender shall promptly refund to Borrower any funde held by [~e~der. If under paragraph 18 hereof the Property is sold or the Property is otherwiee acquired by I.ender; l.ender ahall apply, no later than immediately prior to the sale of the Rroperty or ita aoquiaition by Lender, any Funds held by Lender at the time of application as a credit againet the suma secured by thie Mortguge. 3. Application of Paymente. Unleas applicable law provides otherwiae, all payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to l,ender by Borrower under paragraph 2 hereof, then to inteteat payable on the Note. then to the principal of the Note, and theo to interest and principal on any Futnte Advancea. 4. Chargea; Liene. Borrower shnil pay all taxes, asseasments and other charges, fines and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly fumish to I.ender all noticea of amounts due under thia paragraph, and in the event E3orruwer shall make payment directly, Borrower ahall promptly furnish to I.ender receipts evidencing auch payments. E3orrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that FZorrower shall not be required to discharge any such lien so long as E3orrower shall agree in writinq to the puyment of the obligation secured by such lien in a manner acceptable to [.ender, or ahall in good faith contest such lien by, urdefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Insurence. Borrower ahnll iceep the impmvements now exiating or hereafter erected on the Property inaured againat loss by fire, hazarda included within the term "e:tended coverage; ' and such other hazards as Lender may require and in such amountsand forauch periods se Lender may require; provided, that Lender ahall not reqs~ire such rnverage amount exceeding the minimum, as may berequired by state or federal regulations governing activitiea of I.ender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. , The insuranee carrier providinq the insuraner shall be chosen bs• F3~rrower subject to appro~•ai by [xnder, provided, that such approval j shall not be unreasonably withheld. All premiums on insurance pnlicies shaU be pHid in the manner pmvided under paraKraph 'l hereof or, if ~ not aid in such manner, b E3orrower makin y to the insurance carrier. f p y q payment, when due, directl ~ All insurance policiea and mnewala thereof ehall be in form acceptable to Lender and ahall include a standard mortgage clauee in favor of i and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptiy furnish to i i.ender all renewal notices and all receipta of paid premiuma. In the event of loss, Iiorruwer shall give prompt notice to the inaurance carrier ! and Lender. Lender may make proof ot loae if not made promptly by Borrower. ` Unlesa Lender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ( damaged, provided auch restoration or repair is economically feasible and the security of thie Mortgage is not thereby impaired. If such ~ restoration or repair ie not economically feaaible or if the security of this 1~lortgage would be impaired, the insurance proceeda ehall be applied to the auma secured by this Mortgage, with the eacesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Aorrower fails to respond to L,ender within 30 daya from the date notice is mailed by I~ender to Borrower that the inaurance carrier ot1'ers to aettle a claim for j ineurance benefita, Lender is nuthorized to collect and apply the inaurance proceeda at Lender a option either to reatoration or repair of the ~ Property or the suma eecured by this Mortgage. Unlesa [.ender and Borrower otherwise agree in writing, any such application of proceeda to principal shall not extend or postpone the due ~ date of the monthly instalimenta referred to in paragrapha 1 and 2 hereof or change tfie amount of auch inatallmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquisition ahall pasa to Lender to the extent of the eums secured by thie Mortgage immediately prior to auch sale or aoquiaition. ' ~ 6. Preeervation and Maintenance of Property; Leaseholde; Condominums; Planned Unit Developmente. Borrower ahall keep ~ the Property in good rnpair and ahall not commit waate or permit impairment or deterioration of the Properiy and ahal) rnmply with the ~ provisions of any lease if thie Mortgage is on a leasehold. If thie Mortgage is on a unit in a oondominium or a planned unit development, ~ E3orrower ehall perform all of Borrower's obligationa under the declaration or covenanta creatingor goveming the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documente. If a ~ rnndominium or planned unit development rider ie executed by Borrower and recorded together with thie Morigage, the oovenanta and agreementa of such rider ahall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the ~ rider were a part hereof. r~ 7. Protection of Lender's 3ecurity. If Borrower faila to perform the oovenante and agreements oontained in thie Mortgage, or if any ~ action or proceeding ie commenced which materially affecte L,ender'e intereet in the Property, including, but not limited to, eminent domain, -3 ineolvency, oode enforcement, or arrangemenis or proceedinga involving a bankrupt or decedent, then I,ender at L.ender's option,upon y aotice to Borrower may make auch appearancee, diaburee euch aume and take auch artion as ie necessary to protect L.e~er's interest, = including, bnt not limited to, dieburaement of reaaonable attorney'e feee and entry upon the Property to make repairs_ If Lender required mortgage ineurance ae a condition of making the loan necured by thie Mortgage. Borrower ehall pay the premiuma required to maintain - euch ineurance in effect until such tirne as the requirement for euch ineurance terminatee in accordance with Borrqwer i and I.ender's written agreement or applicable Law. Borrower ehall pay the amount of all mortgage insurance premiums in the manner provided under ti paragraph 2 hereof. ~ My emounte diaburaed by Lender pereuant to thie paragraph 7, with intereet thereon, ehall become additional indebtedneas of ~ Borrower secured by thie Mortgage. Unleee Borrower and Lender agree to other terma of payment, auch amounta ahall be payable upon notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of diebureement at the rate payable [rom ~ time to time on outatanding principal under the Note unleae payment of intereet at such rate would be oontrary to applicable Iaw. in which event auch amounte ehail bear intereat at the highest rate permisaible under applicable law. Nothing contained in thia paragraph 7, ehall requ've Lender to incur any expenee or take any action hereunder. ~ ~ ~ ~ ~''_~r~~V~ "~~:t `-V~ ~ ~