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HomeMy WebLinkAbout0958 Borrower and [.ender covenant and agree ae follows: 1. Payment ot Pri~cipal a~d Intereat. Borrower ahall prompUy pay when due the principal of and interest on the indebtednese evide~ced by Ihe Note, prepayment and late charges as provided in the Note, and the principal of and interest un any Future Advancea secured by this Mortgage. 2. Fltnde for Ta:ee and Ineura~ce. Subject to npplicable law or to a written waiver by l.ender, I3orruwer ahall puy to l.ender an the day monthly inetallments o[ principal and interest are payable unde~ the Note, until the Note ia paid in [ull, u sum (herein "F unda") eyual to one twelflh of the yearly taxea and assessmenta which may attain priority over this Mortg~ge, and ground rents ~n the E'ruperty, if ar.y, plue o~e twelRh of yearly pmmium inatallments for hazurd inaurxnce, plus onrtwrlRh of yearly premium insti~llments for mortg~ge inaurance, if any, all aa reaeonably eatimated initially and from time to time by I.ender on the basis of assex~menta and billa and reusunuble c~xtimatea thereof. The Pltnde ehall be held in an in8titntion the depoeita or accounte of which are ineured or guaranteed by a Federal or State agency (including I.ender if I.e~der ie auch an inetitution). Lender ahall apply the Funda to pay eaid taxee, aseeasmente, insurance premiuma and ground rente. I.ender may not charge tor so holding and applying the Funda, analyzing said account, or veritying and compiling eaid ~ assessments and bille, unleea I.ender paya Borrower inteteat on the ~nds and epplicable law permite t.ender to make such a charge. Borrower and l.ender may agree in writing at the tiiae of execution of thia Mortgage that interest on the ~nda ehall be paid to Borrower, and unleea such agreement is made or applicable law requires such interest to be paid, I.ender ehall not be required to pay Borrower any interest or earnings on the fi~nde. Lender ahaU give to Borrower, without charge, an annual accounting of the Funds showing credita and debita to the Funde and the purpoae for which each debit to the Funda wae made. The Funds are pledged as additional aecurity tor the suras aecured by thie Murtgage. ' If the amount of the FLnde held by Lender, together with the future monthly inatallments of Funds payable prior to the due datee of ta~cea, aseeasmenta, inaurance premiuma and ground rente, ehall excaed the amuunt required to pay eaid ta:ee, asaeaements, ineurance premiuma and ground rente as they fall due, auch excesei ahall be, at Borrower a option, either prompdy repaid to Borrower or credited to ~iorrower on monthly inetallmenta of ~ndB. If the amount of the Funda held by Lender shall not be aufficient to pay taxes, assessmenfs, inaurance premiums and gr~ound renta aa they [all due, Borrower ehall pay to I.ender any amount necessary 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 al1 suma eecured by this Mortgage, I.ender ehall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwiae acquired by Lender, Lender ehall apply, no later than immediately prior to the eale of the Property or ite aoquiaition by l.ender, any ~nds held by Lender at the time of application as a credit againat the sums secured by thie Mortgage. 3. Applieation ot Paymente. Unieae applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender fimt in payment of amounta payable to Lender by Borrovrer 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 Advances. ~l. Charges; Liena. Borrower ahall pay all taxes, ussea4ments and other charges, fine9 and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph'l hereof or, if not paid in such manner, by Borrower making payment, when due, directlp to the payee thereof. Bormwershall promptly furnish to I.ender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directiy, Aorrowet shall promptly furniah to [.ender receipta evidencing auch payments. Borrower ahali promptly discharge any lien which has pnority o~•er this Mortgage; provided, that , E3orrower ahall not be required to discharge any such lien so (ong as Borrower shall agree in writing to the payment of the obliQation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceeclings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof. 5. Hazard Insuraace. Bosrower shall keep the improvements now existing or hereafter erected on the Property inaured against lose by fire, hazards included within the term "extended coverage," and auch other hazarda as Lender may require and in such amounts and for such periods aa Lender msy require; provided, that Lender ahall not require auch coverage amount exceeding the minimum, as may be required by state or federal rngulationa goveming activities of L,ender, or that amount of coverage tequired to pay the sume secured by this Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Iiorrower aubjecl to appro~•al by I.endPr, provided, that such appro~~al shaU not be unreaeonably withheM. All premiums on insurance policies shall be paid in the manner pmvideel under par~graph `l hereof ur, if not paid in such mannet, by Bonower making payment, when due, directly to the insurance carrier. ~ All inaurance policies and renewals thereof ehall be in form acceptable to Lender and ahaA indude a standard mortgage clause in favor of f and in form aoceptable to Lender. I.ender ehall have the right to hold the policies end renewals thereof, and Borrower ahall promptiy furnish to ~ i,ender all tenewal notices and all receipte of paid premiuma. In the event of loss, Borrower shall give pmmpt notice to the inaurance carrier E and Lender. Lender may make proof of loss if not made promptly by Boaower. ; Unteae I.ender and Borrower otherwise agree in writing, insurance proceeda shall be applied to restc~ration or rnpair of the Property E y • ~ damaged, provided auch restoration or repair ia economically [eseible and d?e aecurity of this Mortgage is not thereb ~m ~red. If auch f restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeds shall be applied ~ to the auros secured by this Mortgege, with the excess, if any, paid to Borrower. lf the Property is abandoned by Borrower, or if Borrower faila to ' reepond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the insurence carrier offers to aettle a claim for ' insnrance bene5ts, L,ender ie suthorized to collect and apply the insurance proceeda at Lender's option either to reatoration or repair of the i Property or the suma secured by this Mortgage. ~ Unleas L.ender and Borrower otherwise agtee in writing, any such application of proceeda to principal ahall not extend or poatpone the due date of the monthly inetalimenta referred to in paragraphe I and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof reaulting ~om damage to Property prior to the sale or soquiaition ahall pass b Lender to the extent of the aums secured by thie £ Mortgage immediately prior to such eale or soquisition. ~ 6. Preservation and blaintenanceof Property; Leaseholde;Condominuma; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration uf the Prope;ty and ahall comply with the F proviaiona of any lease if thie Mortgage ie on a leasehold. If thia Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower ehall perform all of Borrower a obligations under the declaration or covenanis creatingor governing the condominium or planned unit development, the by-lawa and regulationa of the condominium or planned unit development, and constituent documente. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the covenante and agreements of auch rider shaU be incorporated into and shall amend and supplement the covenants snd agreements of thia Mortga~e as if the ~ rider were a part hereof. ~ x 7. Protectlon of Leoder's 3etvrity. If Borrower faila to perform the oovenante and ~agreemente rnntained in thie Mort~age, or if any 3 action or proceeding is commenoed which materially affecte L.ender'a intereat in the Property, including, bat not limited to, eminent domain, ineolvency, oode enforoement, or arrangemente or proceedings involving a bankrupt or deoedent, then Lender at Lender'a option,upon notice to Borrower may make euch appeerancee, diaburee such sume and tal~e auch action ae ie neceeeary to protect Lender's intereet, including, but not limited to, diebureement of reaeonable attorney 8 fees and entry upon the Property to make repaire. If Lender required mortgage inewance ae a rnndition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiume required to maintain euch ineurance in effect until such time as t6e requirement tor euch ineurance terminatea in accordance with Borrower'e and Lendei e written egreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 heteof. My amounte diebureed by Lender pereuant to this paragraph 7, with interest thereon, ahall become additional indebtedneae of Borrower aecured by thie Mortgage. Unleas Borrower and L.ender agree to other terma of payment, such amounta ehall be payable upon notice from Lender to Borrower requeeting payment thereof, and ahall bear intereet from the date of diabureement at the rate payable from time to time on outstanding principal under the Note unleas payment of intereet at auch rate would be contrary to applicable law, in which ' event such amounta shail bear intereat at the higheat rate permiaeible under applicable law. Nothing rnntained in this paragraph 7, ahall ~ require I.ender to incur any expense or take any action hereunder. ! M ~ ~ 3, ~05 957 - 3 ~ ~ j - " r.`_:. - a, f . _ . . ~ . . ~ .e.. . . . . .