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HomeMy WebLinkAbout0301 Borrower and Lender covenant and ag~ee ae lollowe: 1. Payment of Principal and Interest. I3orrower ahall prompily pay whe~ dua the principa! of and intereat on the indebtedneae evidenced by the Note, ptYpayment and late charges as peovided in the 1ote, and the principal of and intereat on any Future Adva~cea Becured by this Mortgage. ~ 2. I~1u~ds fo~Ta~ces and Ineurance. Subject to applicuble law or to a written waiver by I.e~der, F3orrower ehall pay tu I.enderun the day monthly inetalimente of principal and intereet are payable unde~ the Note, until the Note ia paid in full, a sum (herein "Funds") eyual to one- twelfth of the yearly ta~cea and ane~asmenta which may attain priority over this Mortgage, and ground renta on the Property, if any, plua one twelflh of yearly p~emium inatallmenta fot hazard inaurance, plua unetwelfth of yearly premium instt~llmenta for mortgage inaurance, if any. aU ae masonably estimated initially and from time to time by l.ender on the baeia of asaeasmenta and bills and reasonable estimates thereof. Tfie ~nde ahall be held in an inatitution the depoeite or accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if Lender ia such an inatitution). Lender ahaU apply the Funda to pay said taxes, aeaesame~te, ineurance premiume and ground rente. I.ender may not charge for ao holding and applying the Funda, analyzing said account, or verifying and compiling said aaaeasmenta and bills, unleae I.ender paya Borrower interest on the Funds and applicable law permite I.ender to make euch a charge. E3orrower and Lender may agree in writing at the time of execution of thia Mortgage that interest o~ the F~nda ehall be paid'to Borrower, and unleas such agreement is made or applicable !aw requires such intereat to be paid, L.ender ahall not be required to pay Borrower any intereat or earninga on the Flinds. Lender ahaU give to Borrower, without charge, an annual accounting of the Funda showing credits and debita to the Funda and the purpoee for which each debit to the Funds was made. The Funde are pledged as additional security for the aums secured by thia Mortgage. If the amount of the FLnds held by Ixnder, together with the future monthly installmente uf Funda pnyable prior to the due datee of taxea, seseaementa, inaurance premiume and ground renta, ahaU euczed the amount required to pay said ta:ea, asaessmenta, ineurance pmmiume and ground rente aa they fall due. euch e:ceas ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borroweron monthly installmenta of Funda. If the amount of the Funde held by I.ender ehall not be aulficient to pay ta:ea, assessments, insurance preminme and ground rente ae they fail due, Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 daye from the dete notice is mailed by I.ender b Borrower tequeating payment thereot. Upon payment in full ot all eums eecured by this Mortgage, Lender ahall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender. I.ender shall appiy, no later than immediately prior to the eale of the Property or ite acquiaition by Lender, any ~nda held by l.ender at the time of application as a credit againat the sums secured by thie Mortgage. 3. Application of Paymente. Unlesa appiicable law providea otherwise, all payments recei~~ed by l.ender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of amountn payable to Lender by Eiorrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Borrower ahall pay all taxes, assessments and other charges, fines and impositions attributuble to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner ptovided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereot. Horrower shall promptly furniah to Lender all noticea of amounts due under thia paragraph, and in the event Borrower ahaU make payment directly, Borrower ahall promptly furnish to [xnder receipts evidencing such paymenta. ~3orrower sha11 promptly discharge any lien which has priority over this Mortqage; provided, that f3orrower shall not be required to discharge any such lien so long as E3~rrower shall aKree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in Qood faith contest such lien by, or deCend enforcement of such lien in, tegai proceedings which operate to prevent the enforcement of the lien or [orfeiture of the Property or any part thereof. 5. Hazard [nsurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property inaured againat losa by fire, hazarda included within the term "e:tended coverage,° and euch other hazards as Lender may require and in such atriounta and !or such periods as I.ender may.require; provided, that Lender shall not require auch coverage amount e:ceeding the minimum, as may 6e required by state or federal regulations goveming activitiea of Lender, or that amount of coverage required to pay the aums secured by this blortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by E3orrower ~ubjeM to approval by l.ender, provided, th~t such approv~l shal! not be unreasonably withheld_ All premiuma on insurance policies shall be paid in the manner pro~•ided under paragraph 2 hereof or, if ; not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. j All insurance policies and renewals thereof shall be in form acceptable to I.ender and ahall include a standard mortgaqe clause in favor of ; and in form acceptable to Lender. Lender ahail have the right W hold the policies and renewals thereof, and Boaower shall pmmptly furnish to ` i.ender all renewal noticea and all receipts of paid premiuma_ In the event of losa, Borruwer shall give pmmpt notice to the insurance carrier ~ and Lender. Lender may make proof of loes if not made promptly by Bonower. € Unlesa Lender and Borrower otherwiae agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ' dam ed, vided auch restoration or re air is economicall feasible and the securit of this Mo a e is not thereb im red. If such ~ a8 Pro P Y Y ~8 8 Y Pa~ ~ restoration or repair ie not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda ahali be applied ~ to the sums aecured by thie Mortgage, with the eaceae, if any, paid W Borrower. If the Property is abandoned by Borrower, or if Borrower fai?a to 9 reapond to [.ender within 30 daye from the date notice ie mailed by Lender to Borrower that the inaurance carrier of~ers to aettle a claim for ~ inaurance benefite, L.ender ie authorized to collect and apply the inaurance proc~eeds at Lender's option either to restoration or repair of the ~ Property or the suma eecured by thia Mortgage. f ~ Unleas Lender and Borrower otherwise agree in writing, any auch application otproc~eeda tc, principal ahall not extend or poatpone thedue ~ date of the monthly inetallments referred to in paragrapha 1 and 2 hereof or chenge the amount of such instalimente. If under paragraph 18 ~ hereof the Property is acquired 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 soquisition aha11 paas to [.ender to the extent of the aums eecured by this ~ Mortgege immediately prior to such sale or acquieition. ~ 6. Preeervetion and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developmente. Borrower ahali keep ~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaions of any lesee if this Mortgage ia on a leasehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, ~ Bonower eha11 perform all of Borrower e obligationa under the declaration or covenant8 creatingor governing the condominium or planned ~ unit development, the by-lawa and regulatione of the condominium or planned unit devetopment, and conatituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenants and agreements of auch rider ehall be incorporated into and shali amend and supplement the covenants and agreementa of this Atortgaqe as i[the rider were a part hereof. ~ 7. Protection of I.ender's 3ecurity. If Borrower faile to perform the oovenante and agreemente oontained in thia Mortgege, or if any action or proceeding ie commenced which materially affects Lender'e intereet in the Property, including, but not limited to, eminent domain, = ineolvency, oode enforcement, or arrangemente or proceedinga involying a banlwpt or decedent, then Lender at Lender e option,upon f notice to Borrower may make such appearanc~ee, dieburee euch eums and take auch action ae ie necessary to pmtect Lender'e intr~esi. including, but not limited to, diebursement of reasonable attorney'e feee and entry upan the Propedy to make repairs. If Lender required ~ mortgage inaurance ae a condition of making the loan eecured by this Mortgage, Borrower ehall pay the premiuma reqtrired to maintain " auch ineurance in effect until euch time as the requirement for such inaurance terminatea in accordance with Borrower'e and Lendeti'e written egreeroent or applicable Law. Borrower shall pay the amount of all mortgage inaurance pmmiume in the manner pmvided under paragraph 2 hereof. ~ y persuant to thie paragraph 7, with interest thereon, ehall become additional indebtedneae of 3 My amounte disburaed b Lender Borrower secured by thie Mortgage. Unleea Borrower and L.ender agree to other terme of payment, auch amounta ehall be payable upon ~ notice from Lender to Borrower requeeting payment thereof, and ahall bear interest from the date of diabureement at the rate payable from i time to time on outatanding principal under the Note unleee payment of interest at euch rate would be rnntrary to applicable law, in which ~ g event euch amounta ehall bear intereet at the highest rate permiesible under applicable law. Nothing rnntained in thie paragraph 7, ehail require Lender to incur any expenae or take any action hereunder. ~ I ~ 3!.~~ 3U5 ~ 340 . ~ . ba