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HomeMy WebLinkAbout0927 Borrower and l.ender covenant and agree ae followe: 1: Payment of Princlpal and i~terest. Borrower ehall promptly pay when due the principal o[ end intereet on the indebtednesa evidenced by the Note, prepayment snd late chargee ae provided in the Note, and the principal of and inte~eat on any FLture Advances secured by this Mortgage. 2. I~tnda for Taxos and Insurance. Subject to applicsble !aw or to s written waiver by Lender, E3orrower shall pay to Ixnder on the dey monthly inetallments of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "~nda") equal to one twelfth of the yeurly taxes and aase8amente which mxy attaiu priority over this Mortgage, and ground rents on the Property, if any, plua one twelRh of yearly premium inatallmenta !or hazard insurance, plus onPtwelRh of yearly pcemium inetallments for mortgage insurance, if eny, all as reasonebly eatimated initially and from time to time by l.ender on the basis of seaesements and billa and reaaonable eetimates thereof. The ~Lnds shaU be held in an inatitution the depoeits or aa~ountn of which are insured or guaranteed by e Federal or State agency (including Leode~ if [.ender is such an inetitution). I.ender shall apply the Funde to pay said ta:es, assesamenta. inaurance premiums and ground rents. Lender may not charge for eo holding and applying the Funda, analyzing said account, or verifying and rnmpiling said esaeesments and billa, unleae I.ender pays Borrower intereet on the Funda and applicable law permita Lender to make euch a charge. Borrower and Lender may agree in writing at the time of execution of thie Mortgage that intereat on the Funda ehall be paid to Borrower, and unleae auch agreement ie made or applicable law requiree such intereat to be paid, I.ender shall ~ot be required to pay Borrower any intereat or earnings on the FLnde. Lender ehall give to Borrower, without charge. an annual accounting of the Funda ahowing credite and debite to the Funda and the purpose [or which each debit to the Ftinds was made. The Funda are pledged as additional security for the sume eecured by thia Mortgege. If the amount of the ~nde held by Lender, together with the future monthly inatallments of Funde payable prior to the due datee of taxee, aeaeasmente, inaurance premiums and ground rents, shall excred the amount required to pay eaid taxea, asseasmenta, inaurance premiums and ground rente ae they fall due, such eaceea ahall be, at Borrower'e option, either prompdy repaid to Borrower or credited to Borrower on monthly inetallments of fi~nda. If the amount of the Funds held by Lender ahall not be sufficient to pay taxee, aeseaements, insurance premiums and ground rente ae they fall due. Borrower shall pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payment in full of all aums eecured by this Mortgage. Lender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property is aold or the Property is otherwiee acquired by I.ender, l.ender shall apply, no later than immediately prior to the eale of the Property or its acquieition by Lender, any ~nda hPld by I.ender at the time of application as a credit againat the aums secured by thie Mortgage. " 3. Application ot Peymenta. Unleas applicable law provides otherwise, all paymenta received by L.ender under the Nete and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounta payable to Lender by Borrower 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. Chargea; Liens. Borrowershall pAy all taxes, assesaments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, i[uny, in the mttnner provided under parugraph 2 hereof or. if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all notices of umounta due under this paragraph, and in the event fiorrower shall make payment directly, Borrower shall promptly fumish to I,ender receipts evidencing such payments. Borrower shall promptly discharge uny lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so lonq as Eiorrower shall agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend Fnforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeitum of the i'roperty or any part thereof. 5. Hazard Ineurance. Borrower shall keep the impro~•ements now existing or hereafter erected on the Property inaured againat lose by fire, hazarde included within the term "extended coverage," and xuch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that I.ender shall not requim such coverage amount exceeding the minimum, as may be required by state or federal regulalions governing activities of Lender, or that pmount of coverage required to pay the sums secured by this Mortgage, whichever is the grnater. The insurance carrier providing the insurance shall be chcuen by [3orrower subject to approval by I.ender; provided, that such approval shall not be unreasonably withheld. All pmmiums on insurance policies shaU be paid in the manner pmvided under paragraph 2 hereof or, if not paid in such manner, by Borrower making p~yment, vvhen due, directly to the insurance carrier. ~ All inaurance policies and renewals thereof ahall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furniah to ixnder sil~renewal notices and all receipta of paid premiurea. In the event of loss, Borruwer ahall give prompt notice to the inaurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ' Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property $ damaged, provided auch restoration or repair is economically feasibte and the security of this Mortgage is not thereby impaired. If such restoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeda shaU be applied : to the auma secured by this Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if E3orrower faila to reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the ineurance carrier offera to aetde a claim fur inaurance benefits, Lender ie authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums aecured by this Mortgage. ~ Unless I.ender and Borrower otherwise agree in writing, any such application o[proceeds to principal shall not extend or poatpone Lhedue ~ date of the monthly instalimenta referred to in paragraphs 1 and 2 hereof or change the amount of such installmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, al1 right, title and interest of Borrower in and to any inaurance policies and in and to the p~oceede R thereof resulting from damage to Property prior to the sale or acquiaition ehall pass to Lender to the eatent of the aums secured by this ~ Mortgage immediately prior to auch sale or acquiaition. } 6. Preeervation and Maintenance of Property; Leaeeholds; Condominume; Planned Unit Developments. Borrower ahall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisions of any lesee if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documenta. If a ; - condominium or planned unit development rider ia executed by Iiorrower and recorded together with thia Mortgage, the oovenants and ~ agreements of auch rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the ~ rider were a part hereof. 3 Protection of Lender's 3ecurity. If Borrower faile to perform the oovenante and agreemente oontained in this Mortgage, or if any action or proceeding ia commenced which materially affecte Lender e interest in the Property, including, but not limited to, eminent domain, insolvency. oode enforoement, or arrangemente or proceedinge involving a bankrupt or decedent, then I.ender at Lender'e option,upon notice b Borrower may make euch appearancee, disburae euch eums and take euch action ae ie neceaeary to protect Lender'e intereat, including, but not limited to, diebursement of reseonable attomey'e fees and entry upon the Property to make repaira. If Lender required mortgege insurance as a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiuane required to maintain ~ euch ineurence in effcct until euch time ae the requ'uement for euch ineurance terminates in accordance with Borrower'e and Lendei'e written egreement or applicabte Law. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paragraph 2 hereof. ; ;j My amounte diebureed by Lender persuant to thie paragraph 7, with intereat thereon, ehall become additional indebtedneae of " Borrower eecured by thia Mortqage. Unleas Borrower and Lender agree to other terme of payment, euch amounte ehall be payable upon . notice from Lender to Borrower requeating payment thereof, and shall bear intereet from the date of dieburaement at the rate payable from time to time on outetanding principal under the Note unleee payment of intereat at such rate would be wntrary to applicable law, in which ~ event euch amounta ahall bear intereet at the highest rate pernusaible under applicable law. Nothing rnntained in thie paragraph 7, ehall ~ require Lender to incur any expenee or take any action hereunder. ~ ~ ~ [ ~}C' kK ~v V 'r.A ~ ~ t72~ t>; _