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HomeMy WebLinkAbout0700 Borrower and L.ender covenant and agree as followa: 1. Psyment oi Principal and Interest. Borrower ehell prompdy pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late chargee ae pcovided in the Note, and the principal of and interest on any Fl~ture Advancee secured by this Mortgage. 2. ~nds forTauee aad Ineurance. Subject W appiicable law or to a writte~ wniver by I.ende~, l3orrower ahall pay to I.ender on the day monlhiy installments of principal and i~temet are payable under ~he Note, until the Note ie paid in full, a aum (herein "Ftinde") equal to one twelfth of the yearly taxee and asaeaement$ which may attain priority over this Mortga~e, and Kround rents on the Pruperty, if any, plue ono- twelfth of yearly prnmium installme~ts fo~ huzard ineurance, plua onetwelRh ofyearly premium inatallments for mortgage inaurance, if any, all es rnesonably eatimated initiaUy and from time to tirr~e by I.ender on the baeis of assessments and bills and reasonable estimatea thereof. The I~ds shall be held in an institution the deposits or accounta of which an ineured or guaranteed by a Federal or State agency (including I.ender i[ l.ender ia auch an inatitution). Lender ehall apply the Fu~de to pey said taaes, aeeeasmente, ineurance premiuma and ground rents. [.ender may not charge for so holding and applying the Ftinde, analyzing aaid account, or verifying and compiling said assesamente and bille, unleas [.ender pays Bor~ower intereet on the Funda and applicable law permits I.ender to make such e charge. F3orrower and l.ender m~yr agree in writing at the time of e:ecution of this Mortgage that interest on the ~nde shall be paid Lo Borrower. and unleas such agreemeat is made or applicable law requires auch interest to be paid, I.ender ahaq not be required to pay Borrower any intereet or eaminga on the ~tnde. Lender ahall give to Bormwet, without charge, an annual accounting of the Funde ehowing credits and debita to the ~nds and the purpoee for which each debit to the Flinda waa made.'I1~e Funde are pledged as additional aecurity for the aums necured by thia Mortgage. If the amount of the ~nde held by Lender, together with the future monthly inatallmenta of Fa de payabie prior to the due datea o[taxea, aeseeaments. insurance premiums and gmund renta, ehall eacazed the amount required to pay eaid ea, asaeaementa, inaurance premiume and ground rente as they fall due, auch e:cess ahall be, at Borrower a option, either pmmptly repaid ,Borrower or credited to Borrower on monthly inatallmenta of F~nde. If the amount of the Funda held by I.ender shall not be sufficient to pay taxee, assesamenta, insurance premiume and ground renta as they fall due, Borrower ahall pay to Lender any amount nei.~essary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all auma secured by thie Mortgage, Lender shall promptly refund to Borrower any funde held by I.ender. If under paragraph 18 hereof the Property is aold or the Property is otherwiae acquired by L.ender. Lender ahall apply, no later than immediately prior to the eale of the Property or its acquieition by I.ender, any ~nde held by Lender at the time of application as a credit againat the eums secured by thia Mortgage. 3. Appllcatioa of Paymente. Unlesa applicable law provides otherwiee, all payments received by I.ender under the Note and peragrapha i and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender 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 Future Advancea 4. Chargee; Liene. Borrower ahall pay all taxes, aasesamente and other charges, fines and impositions 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 such manner, by Borrower malcing payment, when due, directly to the payee thereof. I3orrower ehall promptly furnish to Ixnder all notices of amounts due under thia paragraph, and in the event E3orrower ahall make payment directly, Borr+ower ahall promptly fumish to Lender receipta evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge any such lien so long as Borrower ahali agree in writing to the payment of the obligation eecured by ' such lien in a manner acoeptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such tien in, legal proc~eedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall Iceep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage; ' and aach other hazards as Lender may require and in such amounta and for such periods as Lender may require; pmvided, that Lender shall not require such coverage amount exceeding the minimum, as may be reyuired by state or tederal regulationa governing activities of Lender, or that amount of coverage required to pay the aums secured by this Mortgage, whichever ia the greater. Thz insurance carrier providing the insurance shall be chosen by Borrower subject to appro~ al by Ixnder; provided, that such approvai shall not be unreasonably withheld. All premiums on insurance policiea shall be paid in the manner pmvided under paragraph 'L hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof shall be in form acceptable to Lender and ahall include a atandard mortgage clause in [avor of and in form acceptable to I.ender. Lender shall have the right to hoid the policies and renewals thereof, and Borrower ahall promptly fumiah to i.ender all renewal noticea and all receipts of paid premiuma. In the event of loss, Born~wer shall give~prompt notice to the insurance carrier ; and Lender. Lender may make proof of loss if not made prompdy by Borrower. € Unleas Lender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property damaged, provided avch restoration or repair ia economically feaeible and the security of this Mortgage is not thereby impaired_ [f such ~ reatoration or rnpair ia not economically feasible or if the eecurity of thie Mortgage would be impaired, the insurance proceeda shall be applied ~ to the euma secured by thie Mortgage, with the eacess, if any, paid to Borrower. If the Property is abandoned by Borrowet, or if Borrower faita to , reapond to Lender within 30 days from the date notice ia mailed by Lender to I3orrower that the insurance carrier offers to eettle a claim for ! inaurance benefita, Lender is authorized to collect and apply the insurance proc~eeds at Lender's option either to reatoration or repair of the ti Property or the suma secured by thie Mortgage. ~ Unleea L.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 inetallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inafallments. If under paragraph 18 ~ hereof the Property ia acquired by Lender, all right. ritle and interest of Borrower in and to any insurance poliriea and in and W the proceeds ~ thereof resulting from damage to Property prior to the sale or acquisition ahall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to.auch sale or aoquisition. ' 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and ehall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condomininm ur a planned unit development, ~ Borrower shall perform all of Borrower a obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or pianned unit development, and conatituent documenta. If a a condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgege, the oovenante and agreementa of auch rider shal) be incorporated intn and shall amend and supplement the covenants and agreemente of this Mortgageas if the ~ rider were a part hereof. 2~ ~ 7. ProteMion of Lender's Security. If Borrower faile to perform the oovenante and agreementa contained in this Mortgage, or if any ~ action or proceeding is rnmmenced which materially affecte Lendei a intereat in the Property, including, but not limited to, eminent domain, ineolvency, oode enforoement. or arrangemeate or proceedinga involving a baniQUpt or deoedent, then Lender at Lender e option,upon notice to Borrower may make auch appearances, dieburae euch aums and take such action as ie neceesary to protect Lender's intereat, ~ including, but not limited to, dieburaement of reaeonabie attomey'e teee and entry upon the Property to make repairs. If Lender required mortgage inaurance as a condition of making the loan secured by thia Mortgage, Borrower ehall pay the premiume required to maintain ;s euch inaurance in effect until such time as the reqairement for ench inaurance terminatee in accordance with Borrower's and Lender'e written agreement or applicable Law. Borrower ehell pay the amount of all mortgage ineurance premiume in the manner provided undrr I paragraph 2 hereof. ~ My amounta diabureed by I.ender pereuant to this paragraph 7, with interest thereon, ahall become additional indebtedneae of - Borrower eecured by this Mortgage. Unleae Borrower and Lender agree to other terme of payment, auch amounte ehall be payabie upon " notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diebureement at the rate paysble from ~ ~ time to time on outatanding principal under the Note unleee payment of intereet at auch rate would be contrary to applicable law,•in which 3 ~ event euch amounta ehall bear intereet at the highest rate permiaeible under applicable lew. Nothing contained in thie paragraph 7, ahell require Lender to incur any expenee or take any action hereunder. ~ ~ ° ` ~U ~ 3~.:. ~5 r.,;~ 6g9 ~ ~ ~