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HomeMy WebLinkAbout0967 Borrowe~ and [.e~der covenant and agree as foUowa: 1. Payme~t ot Principal and Interest. E3orrower shnll promptly pay when due the principul o! and interest on the indebtednena evidenced by the Notc, prepayment and late charges ae ptuvided in the Note, and the principal of and intereat on any ~ture Advnncea secured by this Mortgage_ 2. Fltnde [or Tauee and lneurance. Subject to applicable law or to a written waiver by I.ende~, Borwwe~ xhull pay to l.ender on the day monthly inatallments of principal and intereat are payable unde~ the Nute, untii the Note ia paid in full, a aum (herein "h und~ equal to one twelfth of the yearly taxea and assensmenta which may attain priority over this Mortgage, and ground rents on the Prc,perty, if any, plua one~ twelQh of yearly premium installmenta foc hazard insurance, plus onetwelfth ofyea~ly premium inatallments for mortgage insura~ce, if any, all ae reanonably eatimated initially and from time to time by t.ender on the basin oi aeseasmenta and billa and rensonnble estimatea thereot '11~e ~nds shall be held in an inatitution the depoaits or accounte ot which are inaured or guaranteed by a Federal or State agency (including l.ender if Lender ie such an institution). Lender shall apply the Funds to pay said taxes, seaesamente, ineurance premiums a~d ground rents. Lender may not charge for eo holding and applying the ~?nda, analyzing said account, or verifying and compiling said assesemente and billa, unleas [.ender paye E3orrower intereat on the Ftinda and applicable 1ew permite I.ender to make auch a charge. E3orrower and I.ender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the Funda shall be paid to Borrower, and unleas auch agreement is madp or np~li~wblw law requirea such intereet to be gaid, Lcnder shali not be required to pay Borrower any intereat or earnings on the Ftinde. L.ender shall give to Borrower, without charge, an annual accounting of the Funde ahowing credits and debits to the Funds and the purpoee for which each debit to the Funda was made. The Funds are pledged as additional aecurity [or the sums aecured by this Mortgage. If the amount of the bLnda held by I.ender, together with the future monthly inatallmenta of Funde payable prior tu the due dates of taxes, aeseeaments, inaurance premiuma and ground renta. shall exc~ed the amount required to pay said ta:ea, asaeaementa, inaurance premiums and ground rents as they faU due, auch excess ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installmente of ~?nds. If the amount of the Funda held by Lender ehall not be aufficient to pay taxea, assessmente, inaurance premiums and ground rente ae they fall due. Borrower ahall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by [.ender to Borrower tequeating payment thereof. Upon payment in full of all euma eecured by this Mortgage, Lender shall promptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Yroperty is eold or the Property is otherwiee acquired by I.ender, I.ender shall apply, no later than immediately prior to the 8ale of the Property or its acquieition by Lender, any Funda held by Lender at the time of application as a credit against the sums aecured by this Mortgage. 3. Application of Paymenta. Unless applicable law providea otherwise. all paymenta received by I.ender under the Note and paragraphe 1 and 2 hereof ahall be appiied by Lender fimt in payment of amounta payable to Lender by ~3orrower under paragraph 2 hereof, then to interest 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 shall pay aU taxea, asaeasments and other i:harges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymen~s or ground rents, if any, in the manner provided under paragrpph 2 hereotor, if not paid in such manner, by Borrower making payment, when dae, dit~ctiy to the payee thereof. Borrower shall promptly furnish to l.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Bormwer shall not be required to dischatge any such lien so iong as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enfomement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Insurance. Borrower ahall keep the improvements now existing or hereafter erected on the Property insured againat loss by fire, hazards included within the term "e:tended coverage," and euch other hazards as Lender may requirn and in such amounts and for such periode as Lender may require; provided, that I.ender ahall not reqnim such coverage amount exceeding the minimum, as may be required by state or federal regulations goveming activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject tn approval by I.ender, pmvided, that such appro~•al shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner providecl under paragraph'L hereof or, if not paid in such manner, 6y Borrov~er making payment, when due, directly to the insurance carrier. All inaurance policiea and renewala thereof ahall be in form acceptable to Lender and ahall include a atandard mortgage clauae in favor of and in form acceptable to Lender. l,ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal noticea and all receipts of paid premiums. In the event of loss, Borrower ahali give prompt notice to the insurance carrier ' and L,ender. Lender may make proof of loss if not made promptly by Borrower. i Unless Lender and Borrower otherwise agree in writing, inaurance procecda ahall be applied to reatoration or repair of the Property ; damaged, provided auch restoration or repair is economically feasible and the aecurity of this Mortgage is not thereby impaired. If such f restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired. the inaurance proceeda shall be applied i to the~suma secured by thie Mortgage, with the excese, if any. paid to Borrower. If the Property is abandoaed by Borrower, or if Borrower faila to reapond to Lender within 30 daye from the date notice is mailed by L.ender to Borrower that the insurance carrier oPfers to eettle a claim for ` inaurance benefita, Lender is authorized to collect and apply the insurance proceeda at Lender's option either to restoration or rnpair of the E Property or the sume secured by this Mortgage. ~ Unless Lender and Borrower otherwiee agree in writing, any such application of prooeede to principal ahall not extend or postpone the due date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmenta. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda ~ thereof resulting from damage to Property prior to the sale or acquisition ehall paas to Lender to Lhe extent of the autns secured by this ~ Mortgage immediately prior to auch sale or acquiaition. ; 6_ Preeervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developments. Bonower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaiona of any lease if this Mortgage is on a leasehold. If this Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower ahall perform sll of Borrowet e obligations under the declaration or covenants creatingor governing the rnndominium or planned ~ unit development, the by-lawa and regulationa of the condominium or plenned unit develapment, and conatituent dceuments. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with ihia Mortgage, the oovenanta and ~ agreementa of such ride* shall be inco rporated into and shall amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Gender's $ecurity. If Borrower faiia to perform the oovenante and agreemente contained in thie Mortgage, or if aay action or proceeding is commenced which materially affecte [.ender a intereet in the Property. including, but not limited to, eminent domain, ineolvency, oode enforcement~ or arrangemente or proceedinge involving a bankrnpt or decedent, then Lender at Lender'e option,upon notice to Boreower may make such appearancea, dieburee euch aume and take auch action ae is neceseary to protect Lender's interee~ ~ inclnding, but not limited to, diebursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required s mortgage insurance ae a rnndition of making the loan eecured by this Mortgage, Borrower ehall pay the premiums required to maintain ; ench inenrance in effect until auch time as the requirement for such ineurance terminatee in accordance with Borrower e and Lender'e ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. ~ My amounta diebursed by Lender pereuant to thia paragraph 7, with intereat thereon, ahall beoome additional indebtednese of Borrower eecured by thie Mortgage. Unleas Borrower and Lender agree to other terme of payment, auch amounte ehall be payable upon ' notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of diabureement at the rate payable from ~ time to time on outetanding principa) under the Note unleea payment of intereet at auch rate would be oontrary to applicable law, in which ~ event auch amonnte ehall bear intereat at the higheat rate permiaeible under a licable law. Nothin contained in this pp g paragraph 7, ehall require L.ender to incur any expenae or take any action hereunder. ~ ~ ; (1 ~ f ~ 90rr ~U~ ~Ai.c ~UU ~ - t ~ ~