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HomeMy WebLinkAbout0935 Bormwer and l.ender covenant aod aQree aa follow•s: 1. Paymeat of Principal and Intereet. Borrower ehaU promptly pay when due the principal of and inte~eat on the indebtedneae evidenced by the Note, prepayment and lale chargee as provided in the Note, and the principal of and intereet on any Future Advance8 aecured by this Mortgage. 2. F1nds tor Tasee and Ineurance. Subject to applicabie law or to a written waiver by I.ender, l3orrower shall p~y to Lender on the day monthly inetallmenta of principal and intereat are payable under the Note, until the Note ia paid in full, u aum (herein "Funde") equal to one twelfth of the yearly taxea and assee~amenta which may nttain priurity over this Mortgage. and ground rents un the I'roperty, if siny, plua une twelfth of yearly premium instaUmenta for hazard ineurance, plua onetwelfth of yearly premium i~stalimenta for murtgage inxurance, i[any, a:! as rcaeonably estimated initially and from time to time by I.ender on the ba8is ot asaeasmenta and bills and reusonable eatimates thereof. The Ftinda ahall be held in an inetitution the deposita or accounte of which are ineured or guaranteed by a Federal or State agency (including I.ender if l.ender ia euch an institution). Lender ahall apply the Funda to pay said taxea, asaess+mente, inaurance premiuma and ground rente. [.ender may not charge for eo holding and applying the ~tnda, analyzing said account, or verifying and rnmpiling said seaeesmenta and billa, unleae Lender pays Borrower intereat on the ~nda and applicable law permita Lender to make auch a charge. Borrower and [.ender may agree in writing at the time of ezecution of thia Mortgage that intereat on thr fi~nda ehall be paid to Borrower, and unless each agreement ia made or applicable law requirea auch intereet to be paid, Lender ehall not be required to aay Borrower any interest or earnings on the ~nds. Lender ahall give to Borrower, without cherge, an annual accounting of the Funds showing credita and debit8 to the Funda and the purpoee for which each debit to the ~nda wae made. The Funds are pledged as additional eecurity fo~ the euma eecured by this Mortgage. If the amount of the ~nda held by l.ender, together with the future monthly inetallmenta of Funda payable prior to the due datea oitaxee, aseeasmenta, insurance premiums and gtound rente, ehall exered the amount required to pay aaid ta:ea, asaeeamenta, inaurance premiume and g?~ound rente as they fall due, auch e:cess shall be, at Borrower'a option, either prompdy repaid to Borrower or credited to Borrower on monthly inatallmenta oi ~nda. If the amount of the Funde held by Lender shall not be aufficient to pay taxee, aseesamente, insurance premiums and ground rente as they fall due, Borrower ehall pay to Lender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon paymeat in full of all sums aecured by thia Mortgage, Lender ahall promptly refund to Borrower any funde held by l.ender. lf under paragraph 18 hereof the Property is aold or the Properi~ ie otherwise acquired by l.ender, Lender ahap apply, no later than immediately prior to the eale of the Property or its aoquieition by Lender, any Funda held by I.ender et the time of application as a credit againat the suma secured by thia Mortgage. 3. Application ot Payments. Unless applicable law providea otherwise, all payments received by I.ender under the Note and paragraphe 1 and 2 hereof shali be applied by L.ender firat in payment of amounts payable to I.ender 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. Charges: Liene. Borrower ahnll pay all ta:es, assessments and other charges, fines and impositions attributable to the Property which ma~• attain a priority over thia Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereotor, if not paid in auch manner, bv Borrower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnish to l.ender all notices of amounts due under thie paragraph, and in the event Borrower shall make payment directly, E3orrower ahall prumptly furniah to Lender reoeipts evidencing such paymente. Borrower ahall promptly dischnrge any lien which has priority over this Mortgage; provided, that E3orrower shall not be required to discharge any such lien so long as Iiorrower shall agree in v? riting to the payment of the obiigation secured by such lien in a manner acceptable to Lender, or shall in good taith contest such lien by, ordefend enfomement of such lien in, leKal proceirdings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvementa now eaiating or hereafter erected on the Property inaured againat losa by fire, hazarde included within the term "eYtended coverage: ' and auch other hazards ae Lender may requirn and in such amounts and for such periods as Lender may require; provided, that Lender ahall not require auch eoverage amount exceeding the minimum, as may be required by atate or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the suma secured by thia Mortgage, whichever ia the greater. . The inaurance carrier providing the insurance shall be chosen by Bonower subject W approval by l.ender, provided, that such approeal shall not be unreasonably withheld. All premiums on insurance policies shal! be paid in the manner providecf under paragraph 2 hereuf or, if j not paid in such manner, by fiorrower making payment, when due, directly to the inaurance carrier. j All inaurance policies and renewals thereof ahall be in form acceptablc o Lender and ehall include a standard mortgage ctauae in favor of and in form acceptable to Lender. L,ender ahall have the right to hold the policies and renewala thereof, and E3orrower shall promptly fumiah to i.ender al: renewal notices and all receipta of paid premiuma. ln the event of loss, Borruwer al~all give prompt notice to the insurance carrier and Lenc~er. I.ender may make proof of loas if not made prompdy by Borrower. ; Unleas Lender and Borrower otherwise agree in writing, inaurance proceeds ahall be applied to reatoration or repair of the Property i damaged, provided auch reatoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired. If auch ~ reetoration or repair is not economically feaeible or if the security of this Mortgage would be impaired, the ineurance procreda shall be applied ~ tn the sums secured by thia Mortgage, with the e:ceas, if any, paid to Borrovver. If the Property is abandoned by Borrower, or if E3orrower fails to ~ respond to Lender within 30 daya irom the date notice ia mailed by Lender to Borrower that the ineurance ~arrier offers to settle a claim for ineurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lender's option either to restoration or repair of the k Property or the suma sec~red by thie Mortgage. ~ LJniess Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due ~ date of the monthly inatallmenta rnferred to in paragraphe 1 and 2 hereof or change the amount of auch installmente. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeda thereof reaulting from damage to Property prior to the sale or aoqu~aition ehall paea to Lender to the extent of the aums secured by this ~ Mortgage immediately prior to such sale or aoquiaitiun. ~ 6. Preeervatioa and Maintenance otProperty; Leaseholda; Condominume; Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall 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 ia on a unit in a oondominium or a planned unit development, ~ Fiorrower ahall perform all of Borrower e obligations under the declaration or covenanta creatingor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or planne~ unit development, and conatituent documente. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Modgage, the oovenants and ~ agreementa of auch rider shall be incorporated into and aha11 amend and supplement the covenants and agreementa of this Morigage as if the ~ rider were a part hereof. ~ 7. Protection of Lender's 3ecurity. If Borrower faile to perform the oovenante and agreemente oontained in thie Mortgage, or if any r action or proceeding is commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, ineolvency. oode enforcement, or arrangementa or proceedings involving a banicrupt or decedent, then Lender at Lender'e option,upon ~ notice to Borrower may make auch appearancee, diaburse euch eums and take such action as ie neceaeary to pmt.ect Lender's interest, ~ including, but not limited to, diebureement of reasonable attorney's feee and entry upon the Property to malce repaire. If Lender required ; mortgage inewance ee a oondition of making the loan eecured by thia Mortgage, Borrower ahall pay the premiums required to maintain - such ineurance in effect until auch time ae the requirement tor such ineurance terminates in aecordance with Borrowei e and Lender's ~ ~vritten agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner provided under ~ paregraph 2 hereof. ~ My emounte diebureed by Lender pereuant to thie paragraph 7, with interest thereon, ahall beoome additional indebtedneae of Borrower secured by thia Mortgage. Unleee Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon notice from Lender to Borrower requeating payment thereof, and ahall bear interest from the date of disbureement at the rate payable from time to time on outetanding principal under the Note unlese payment of intereat at such rate would be contrery to applicable law, in which ~ event euch amounte ehall bear intereat at the higheat rate permiaeible under applicable law. Nothing contained in thie paragtaph 7, ahall require Lender to incur any expenee or take any action hemunder. ~ ~ ~ ~ S~~' ~Vt,S c ~34 « ~