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HomeMy WebLinkAbout0940 Borrower and Lender rnvenant and agree ns follows: ~ 1. Payment ot Principa? and Intereet. 8orrower ahall promptly pay when due the p~ncipal o[ and intereat on the indebtednese evidenced by lhe Note, prepayment and late cha~ges ae Qrovided in the Note, and the pTincipal of and iniereat on any ~ture Advancee secured by thiu Mortgage. 2. i~tnda iorTa=ee and Inaurunce. Subject to applicable law or to a written waiver by l.ender, Borruwer ahall pay to I.enderon the day monthly inatallmenta oi principal and inte~est are payable under the Note, until the Note ie paid in full, a aum (herein "~nde") equal to one twelRh of the yearly tax~ and aaseeaments which may uttuin priority over thia ModgaRe, and ground renta on the Prc~perty, if any, plue one twelfth of yearly premium installmenta for hazard inaurance, plus onetwelfth ofyearly premium inatallments for mortgnge insurance, if any, ~ al! aa reasonably eatimated initially and irom time to time by l.ende~ on the basis otasaesamente and biUa a~d reusonable estimatea thereof. The FLnds shall be haid in an inslitution the deQosits or accounts of which are inaured or guaranteed by a Federal or State agency (including I.endet if Lender ia euch an inetitution). Lender ehall apply the Funde W pay said taxes, assesementa, insurance premiums and ground reats. l.ender may not charge for so holding end applying the ~nde, analyzing said account, or verifying and compiling eaid neeeesments and biils, unlees Lender paya Borrower intereet on the Funde and applicable law permita Lender to make euch a charge. Borrower and Lender may agree in writing at the time of e:ecution of thia Mortgage that interest on the ~?nds ahall be paid to Borrower, and unless such agreement ie made or applicable Iaw rcquires euch intereat to be paid, Lender ahall not be required to pey Borrower any intereat or earninge on 1he Funds. Lender ahall give to Borrower, without charge, an annual accounting of the Funda showing credita and debits to the Funds and the purpc~se for which each debit W the I`unda was made.'11~e Runda are p{edged as additional aecurity for the aume secured by this Mortgage. If the amount of the ~nda held by Lender, together with the futurn monthly inetallmenta otFunda payable prior to the due datee of t~ea, asaessmente, inaurance premiuma and Rronnd rnnts, ahall e:ned the amount required to pay said taxea, aseeeamente, insurance premiums and ground rente as they fall due, such e:cess shal) be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly inetallmenta of F~unda. It the amount of the Funds held by Lender ahall not be aufficient to pay ta:ee, aseesamente, insurance premiums and ground renta ae they fall due, Borrower ahall pay to Lender any amount neceeeary to make up the defiriency within 30 daye firom the date notice ia mailed by Lender to Bocrower requeating payment thereof. Upon payment in full of all aums eecured by thia Mortgage. Lender ahall proroptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property is aold or the Property is otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior to the eale of the Property or ita acquisition by Lender, any Ftinda held by Lender at the time of application ae a credit against the auma eecured by thia Mortgage. ' 3. Applieation of Payments. Unleae applicable law providea otherwiee, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Gender by Borrower under paragraph 2 hereof, then to inte~est payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower shull pay all taxes, assesements and other chargea, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold puymenta or ground rents, if any, in the manne~ provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall prompUy furnish to Lender xll noticea of amounts due under this paragraph, and in the event Bocrower sha{I make paymenl directly, Borrower sha11 promptly furnish to I.ender receipta evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Aorrower ahall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shal! in qood faith conteat such lien by, urdefend enforcement of auch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitum of the Property or any part thereof. _ 5. Hazard Ineurance. Borrower ahall keep the improvements now exiating or hereafter erected on the Property inaured againet loea by fire, hazarda included within the term "extended coverage," and auch other hazards as Lender may require and in such amounta and for euch periods as Lender may require; gnovided, that Lender shall not require sach coverage amount exceeding ihe minimum, as may be required by state or federal regulatione governing activitiea of Lender. or that amount of coverage required to pay the suma secured by this Mortgage, whichever is the greater. ~ The insurance carrier providing the inaurance shall be chosen by 8orrower subject W approval by l.ender, provided, that such approval ! shall not be unreasonably withheld_ All pmmiums on insurance policies shxll be paid'sn the manner pm~ ided under paragraph 2 hereof or, if i not paid in such manner, by E3orrower makinq payment, when due, directly to the insurance carrier_ j All inaurance policiea and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clause in favor of j and in form acceptable to Lender. l.ender sha11 have the right to hold the policiea and renewals thereof, and Borrower ahali promptly furnish to ~ i.ender all renewal notices and all receipts of paid pmmiuma. In the event of loss, Borrower shall give prompt notice to the inaurance carrier nnd Ixnder. Lender may make proof of lorss if not made promptly by Borrower_ ~ Unleas I.ender and Bonower otherwise agree in writing, insurance proceeds shaU be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or rnpair is economically feasible and the eecnrity of this Mortgage ia not thereby impaired. If such E reatoration or repair is not economically feseible or if the eecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied ~ to the aums aecured by thie Mortgage, with the exceas, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to I.ender within 30 days from the date notice ys maited by Gender to Borrower tfiat the insurance carrier offera to settle a claim for ~ ineurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option eiRher to reatoration or repair of the ~ Property or the suma eecured by thie Mortgage. Unless Lendet and Borrower otherwise agree in writing, any such application of proceeda to principal ahall not extend or postpone the due ~ date of the monthly installmenta referred to in paragrapha l and 2 hereof or change tfie amount of auch inatalimenta. If under paragraph 18 ~ hereof the Property ia soquired by Lender, all right, tilie and interest of Borrower in and to any ineurance policies and in and to the proceecis thereof reaulting from damage to Property prior to the sale or ecquisition ahall pase to I.ender to the extent of the auma eecured by thie ~ Mortgage immediately prior to such sale or acquieition. ~ 6. Preeervation and Maintenance of Property; Leaseholds; Condominums; Pianned Unit Devefopmente. Borrower ahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisiona of any tease if this Mortgage is on a leasehoid. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor goveming the rnndominium or planned ~ unit development, the by-lawa and regulatione of the condominium or planned unit development, and rnnstituent documenta. It a ~ condominium or planned unit development rider ie executed by Borrower and recorded together with this Mortgage, the oovenants and agreementa of such rider sha{i be incorporated into and shal) amend and supplement the covenants and agrerments of thia Mortgage as if the ~ rider were a part hereof. ~ 7_ Protection ot i.ender's 3ecutity. If Borrower faila to perform the oovenante and agreementa oontained in this Mortgage, or if any ~ action or proceeding is rnmmenced which meterially affecte I.ender e interest in the Property, including, but not limited to, eminent domaia, ineolvenry, oode enforcement, or arrangementa or proceedinge involving a bankrupt or deoedent, ihen Lender at I.ender's option,upon notice to Borrower may make auch appearancee, dieburee auch aume and take auch action ae ie necessary to grotect Lendei s intez~t, incIuding, but not limited to, diebursement of reasonable attorney'e feee and entry upon the Property to make repairs. If Lender required mortgage inaurance as a condition of making the loan sec~red by thia Mortgage, Borrower ehall pay the pTeaniume required to maintain auch ineurance in effect until ench time as the requirement for such inawance terminates in aernrdance with Borrower'e and Lendel's written agreement or applicable Lew. Borrower ehall pay the amount of all mortgage inearance premiums in the mannet provided under peragraph 2 hereof. ' ~ My amounta disbureed by Lender perauanl to thie paragraph 7, with intemet thereon, ehall become additional indebtedneas of - Borrower aecnred by thie Mortgage. Unlese Borrower and Lender agree to other terms of payment, euch amounts ehall be payable upon notice from Lender to Borrower requeetiog payment thereof, and shall bear interest from the dste of diebureement at the rate payable tmm ` time to time on outstanding principal under the Note unleae payment of intereet at euch rate would be oontrary to applicable law, in which event such smounta ehall bear intereat at the highest rate permieaibie nnder applicable law. Nothing contained in thia paragraph 7, shall ~ require Ixnder to incnr any expenee or take any action hereunder. ~ ~ _ g~'~r 3U5 ~ v~V Y i