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HomeMy WebLinkAbout0683 Borrower and I.ender covenaM and agree aa follows: 1. Paymeat ot Priactpal snd Interes~ Borrower ahall promptly pay when due the principal of and intereat o~ the indebtedneae evidenced by the Note, prepayment and late charg~s as provided in the Note, and the prirtcipal of and intereat on any Future Advancee secured by this Mortgege. 2. I~nda forTezee and lnsurance. Subject to applicnble law or to a written waiver by I.ender, E3~rruwer ahall pay to Ixnder on the day monthly inatallmenta of pri~cipal and inlerest +ire payable under the Nute, until the Note ie paid in full, a aum Iherein "h~nda") equal W one iwelRh of the yearly taxes and ussesarnente which may attxin priority over Ihie Morigage. and ~und renta on the Piruperty, if any, plus on~ twelfth of yearly premium installmente [or hazard inaurance, plus onetwelRh ofyeady premium installmenta for mortguge inaurunce, if any, aU ae reasonably eetimated initially and from time to time by I,ender on the basie of aesesamenta und bilts nnd reasonable estimates thereof. The flinda shall be held in en inatitution the deposits or accounts of which are inaured or guaranteed by a Federal or 3tate agency (including I.ender if Lender is such an inatitution). lender ahall apply the Funda to pay said ta:ee, asseasmrnta, insurance premiums and ;round rents. Lende~ may not charge tor so holding and applying the ~nda, aaalyzing eaid account. or verifying and compiling eaid aeaeasments and bills, unleaR I.ender paye Borrower interest on the ~nda and epplicable law peemita I.ender to make such a charge. Borrower and Lender may agree in writing at the time ot eaecutiun of thio Mortgage that interest on the Funds shall be paid to Borrower, and unleas auch agrcement ia made or applicable law requires such interest to be paid, I.ender shall not be required to pay Borrower sny intereet or earnings on the ~nde. Lender shall give to Borrower. without charge, an annual accounting ot the Funds ahowing credits and debite to the Funde and the purpoae fo~.which each debit to the Flinda wae made. The Funda are pledged as additional aecurity for the eums eecured by thia 111ortgage. ~ lf the amount of the PLnda held by I.ender, together with the tuture monlhly inatallmente of Funda payable prior to the due datee of taxea, ' asaeeementa. inaurance premiuma and gcound renta, shall e:c~ed the amount required to pay eaid taxes, assesamenta, ineurance premiuma and ground reate a~ they fall due, auch eaccesa shall be, at Borrowei a option, either promptly repaid to Borrower or credited to Borrower on monthly installaeente of ~nde. I[ the amount of the Funde held by I.ender ahall not be aufficient to pay ta:ea, aesesaments, inaurance prewiume and ground renta ae they fall due, Borrower ahall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date aotice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in fuU of all aume secured by this Mortgage, Lender ehall promptly refund to Botrower any funds held by L,ender. If under paragreph IS hereof the Property is aold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or its acquisition by Lende~, any Flinda heid by Lender at the time of application as a credit ugainat the suma secured by thia Mortgage. 3. Application of Paymente. Unleas applicable law providea otherwise, all paymente received by L.ender under the Note and paragrapha 1 and 2 hereof shall be applied by I.ender firxt in payment of amounta payable to I~ender by Borrower under paragmph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advancea. 4. Charges; Liene. Bor[ower ahall pay all taxea, assesaments and other charges, fines and impositiona nttributable to the Property which may attain a priority over this Mort{;age, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment~ when due, directly to the payee thereof. Bormwer shaU promptly furnish to I.ender all notices of amounta due under thia paragraph, and in the event Botrower shall make payment directly, E;orrower shall promptly furnish to I.ender receipts evidencing auch paymenta. Borrower shalt promptly discharge any lien which hns priority over this MortQage; provided, that Borrower shall not berequired todischarge any such lien so long as Borrowershall agree in writinR to thepayment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propetty or any part thereof. 5. Hazard lnsurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured againat loss by fire. hazarde included within the tetm "e:tended oovetage," and euch other hazarda ae I.ender may require and in such amounts and for such perioda ae Lender may require; provided, that Lender ahall not require such rnverage amount e:ceeding the minimum, as may be required by state or federal regulationa governing activities of Lender, or thal amount of coverage required to pay the auma secured by this Mortgage, whichever ie the greater. I The insurance carrier providing the insurance shall be chagen by Borrower aubject to approval by I.ender, provided, that such appro~~ai shall not be unreasonably withheld. All premiuma on insurance poliries shall be paid in the manner providecl under par~raph 'L hereuf or, if i not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All inaurance policiea and rnnewala thereof ahall be in form acceptable to l.ender and ahall include a atandard mortgage clause in favor of 4 and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i i.ender all renewal noticea and all receipta of paid premiuma. In the event of losa, Borrvwer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of losa if not made pmmptly by Borrower. ~ Unleae Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property damaged, provided such reatoration or repair is economically feaeible and the eecurity of this Mortgage ie not thereby impaired. If such ~ restoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the sums eecured by this Mortgage, with the excesa, if any, paid to Borrower. If the Property is abandoned by Boaower, 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 of'fers to settle a claim for x inaurance benefita, L.ender ie suthorized to collect and apply the insurance proceeds at Lendei e option either to r~atoration or repair of the ~ Property or the sums eecured by this Mortgage. ~ Unleas I.ender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or postpone the due date of the monthly inetatlments referred to in paragrapha 1 and 2 hereof or change the amount of such inataliments. If under paragraph 18 ~ hereof the Property ie acquired by I.ender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof re8ulting from damage to Property prior to the sale or aoquisition ahall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to auch e~ale or aoquisition. ~ 6. Preaervation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrower shail keep ~ the Propetty in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisiona of any lease if thie Mortqage ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatinqor governing the condominium or planned ~ unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documeqts. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and ~ aRreementa of such rider shall be incorporated into and shall amend and supplement the covenants and agreementa of thia Mortgnge as if the rider were a part hereof. 7. Protection of I.ender's Security. If Borrower faile to perform the oovenante and agreementa oontained in thie Mortgage, or if ariy ection or proceeding ie commenced which materially affecte Lendei e intereet in the Property, induding, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangementa or pmceedinge involving a bankrupt or decedent, then Lender at Lender'e option,upon = notice to Borrower may make auch appearances, diaburae auch sums and talce euch action se is neceaeary to pmtect Lender's intereat, including, but not limited to, diaburaement of reasoneble attorney'e fe~ and entry upon the Propeity to make npaire. If I.ender required ~ mortgage ineurance ae a condition of making the loan secured by this Mortgage, Borrower ehall pay the premiume required to maintain ~ ~ such ineurance in effect until euch time ae the requirement for euch insurance terminatea in accordance vrith Boaower'e and Lende~e ' ~ written agreement or applicable Law. Borrower ahall pay the amount of alI mortgage insurance premiuma in the manner provided under t; ~ paragraph 2 hereof. ~ My amounte diabursed by Lender persuant to thie paragraph 7, with intereet thereon, ahall become additional indebtedneae of ~ ~ Borrower eecured by thia Mortgage. Unleas Borrower and Lender agree to other terms of payment, such amounta shall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ehall bear interest from the date of disbureement at the rate payeble firom time to time on outetanding principal under the Note unleas payment of interest at such rate would be oontrary to applicable law, in which ~ event euch amounte ehall bear intereet at the highest rate permisaible under applicable law. Nothing oontained in thie paragraph 7, ahall req~ire Lender to incur any eapense or take any action hereunder. ~ ~ r, Q - " ` `r `~V ~ _ ~ Jz ~ ? ~3