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HomeMy WebLinkAbout0922 ~3orrower and l.ender covenant and agree as [ollowe: 1. Payment of Principal and lnterest. Borrower ehall prompily pay when due the pri~cipal of and intereat on the indebtedness evidenced by the Note, prepaymenl and late charges as provided in the Note, and the principal of and interest on any Ruture Advances secured by Ihis Mortgage. 2. Fltnde for T~ucee and [naurance. Subject to applicable law or b a writte~ waiver by I.e~der, f;orrowerahall pay to l.enderon theday monthly inatallmente of principal and intereat are payable under the Note, until the Note ia paid in futl, a aum (herein "Funds") equal to ano- tweltth of the yearly taxea and asaeasmenta which may attain priority ove~ this Mortgage, and gruund rente oo the Pmperty, if any, plusone- twelfth of yearly premium installments for hazard inaurance, p1uB onetwelfth of yearly premium installments for mortgage insurance, if any. all as reaeonably eatimated initially and from time to time by l.ender on the bnaia of aeseesmenta and bille and reasonable estimatea the~eof. The Fltnds ahall be held in an institution the deposita or accounte of which are insured or guaranteed by e Federal or State agency (including [.enda if I.ender ia such an inatitution). L.ender shall apply the ~nda to pay said taxes, aesesamenfa, inaurance premiums and ground rente. I.ender may not charge for eo holding and applying the ~Lnde, analyzing eaid account, or verifying and compiling said esseaaments and bills, u~leea I.ender psys Borrower intereat on the Funde and applicable law permits i.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of e:ecution of this Mortgage that iniereat on the ~Lnde ehaU be paid to Borrower. and unlese euch agreement ie made or applicable law requiree auch interest to be paid, l.ender ehsil not be required to pay Borrower any intereat or earnings on the Fluids. Lender ehall give to Borrower, without charge, an annual accounting of the Funda ehowing credite and debita to the Funda and the purpoae for which each debit to the F~nda was made. The Funda are pledged as additional aecurity for the aume aecured by this Mortgage. If the amount of the fl~nde held by Lender, together with the future monthly installmenta of Funda payable prior to the due dates of taxes, aseesaments, inaurance premiums and ground renta. shall exc~ed the amount required to pay said ta:es, essesements, inaurance premiums and ground rente as they fall due, auch e:ceas ahall be, at Borrower's option, either prompdy repaid to Borrower nr ccedited to Borrower on monthly inatapmenta of fi~nde. If the amount of the Funda held by Lender ehall not be aufficient to pay taxee, asaeeamente. insurance premiuma and ground rents as they fall due, Borrower ahall pay to Lender any amount neceaeary to make up the deficiency within 30deye from the date notice ia mailed by l.ender to Borrower requeating payment ihereof. Upon payment in full of all auma eecured by this Mortgt~e, [.ender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is othenvise acquired by I.ender,~L.ender shall apply, no later than immediately prior to the eale of the Property or ita acquisition by Gender, any Ftitnda held by Lender at the time of application as a credit againat the aums secured by thie Mortgage. 3. Application of Paymenta. LJnleas applicable law provides otherwise, all paymenta received by Lender .ander the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firAt 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 interest and principal on any Future Advancea. 4. Charges; Liene. Borrower shall pay all taxea, assessmenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, 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. Borrowerahall promptly furniah to Lender all notices of amounts due unc~er this paragraph, and in the event Borrower shall make payment direMly, Borrower shall promptly furniah to [.ender receipts evidencing such payments. Borrower shall prompdy discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any auch lien so long as f3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good fAith contest such lien by, ordefend en(orcement olsuch lien in, legal proceedings which operate to prevent t~e enforcement of the lien or forCeiture ot the Propert~ or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ineured againat loas by firn, hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in euch amodnte and forsuch periods as Lender may requiee; provided, that Lender ahall not require such ooverage amount exceeding the minimum, as may be requiredby atate or federal regulations governing activitiea of Lender, or that amount of rnverage required to pay the suma secured by this Mortgage, whichever is the greater. The inaurance carrier providing the inaurance shall be chosen by Borrower subject to approval by I.ender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if i not paid in auch manner, b~ I3orrower making payment, when due, directly ta the insurance cprrier. ; All inaurance policiea and rnnewala thereof ahall be in form acceptable to Lender and ahall include a standard mortgage clause in favorof and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furniah to i.ender all renewal noticea and ail receipta of paid premiuma. In the event of losa, Borrower ahall give prompt notice to the inaurance carrier and Lender_ I.ender may make proof of losa if not made pmmptiy by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property 3 damaged, provided auch restoration or repair is economically [eaeible and the aecurity ot this Mortgage ia not thereby impaired. If auch e t restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceede ahall be applied ~ to the suma eecured by this Mortgage, with the eaceae, if any, paid to Borrower. If the Property is abandoned by Borrov?-er,or if Borrower faila to r reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefita, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the auma eecured by this Mortgage. ~ Unless Lender and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not eatend or poatpone the due ~ date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of auch inatallmenta. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and internst of Born?wer in and to any insurance policiea and in and to the proceeda ~ thereof reaulting from damage to Property prior to the sale or acquiaition ahail pass to Lender to the eatent of the euma eecured by this ; ~ Mortgage immediately prior to such eale or aoquiaition. 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ahall keep ~ lhe Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ehall comply with the ' provisiona of any leaae if this Mortgage ia on a leasehold. If this Mortqage ie on a unit in a rnndominium or a planned unit development, ~ Bortower ahall perform all of Borrower a obligations under the declaration or covenanta creatingor governing the oondominium or planned y unit development, the by-lawa and regulatione of the condominium or planned unit development, and constituent dceuments. If a rnndominium or planned unit development rider is eaecuted by Borrower and recorded together with thie Mortgage, the oovenants and ugreements of such rider shaU be incorporated into and shall amend and supplement the covenants and agreementsof this Mortgage as itthe rider were a part hereof. ~ Protection of Lender'e 3ecurity. If Borrower fails to perform the oovenante and agreements contained in thia Mortgage, or if any = action or proceeding ie commenced which materially affecta Lendei s interest in the Property, including, but not limited to, eminent domain, ,s insolvency. oode enforoement, or arrangemente or procxedinge invoiving a banlm~pt or deoedent, then Lender at Lendei e option.upon notice to Borrower may make auch appearances, disburse such aums and take euch action as is neceseary to protect Lender's interest, including, but not limited to, diebureement of reaeonable attorney e feea and entry upon the Property to make repaire. If Lender required I mortgage inaurance as a rnndition of making the loan secured by thie Mortgage, Borrower ehall pay the premiuma reqnired to meintain 4 euch ineurence in effect nntil euch time as the requirement for auch ineurance terminates in accordance with Borrower's and Lender's ; written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided unda s paragraph 2 hereof. y s My amounta diebursed by Lender perauant to thie paragraph 7, with intereet thereon, ehall bec,rome additional indebtednese of ? - Borrower secured by thie Mortgage. Unleea Borrower and I.endet agree to other terme of payment, auch amounta ehall be payable upon notice from [,ender to Borrower requeating payment thereof, and ehaU bear intereet from the date of diebureement at the rate payable from ~ ~ time to time on outetanding principal under the Note unleae payment of intereat at auch rate would be oontrary to applicable law, in which ~ ~ event each amounte ehail bear intereHt at the higheat rate permisaible under applicable law. Nothing contained in thie paragraph 7, ehall ` ~ require Lender to incur any expenee or take any action hereunder. ~ ? ~ ; ~ 3 ~ ~ ti ,-'~,'~.~~.3V5 , ~ ~21 . . ~ ~ ~ ~