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HomeMy WebLinkAbout0511 Borrower and Lender covenant and agree aa followe: 1. Psyment oi Priacipal a~d Interes~ Borrower ahall promptly pay when due the principal of and intereet on the indebtedneaa evidenced by the Note. prepayment at~d late charges as pmvided in the Note. and the principal of and inter~t on any I~ture Advances secured by this Mortgage. 2, fiu~da tor Taseo ard Insurance. Subject to applicable law or to a writte~ waiver by Lender, Borrower al?all pay to I.ender on the day monthly it~atallmenta of principal and interent are payable under the Note, until the Note ia paid in futl. a sum (hereirt "F'unde") equal to one twelfth of the yearly taxes and aeaesementa which may attain priority over this Mortgage. and ground renta on the Property, if any, plue one twelfth of yearly premium inatallments for hazard insurance, plue ono-twelft}i ofyearly premium inatallmenta for mortgage inaurance, if any, aU as reasonably eatimated initielly and trom time to time by Lender on the basis of asaesements and billa and reasonable estimatea thereof. 'l~a PLnds shall be hdd in aa inetitution the depoeits or aocounts of which are inaured or guaranteed by a Federal or State agency (iacluding Lender ii Lender ia such aa institution). Le~der ehall apply the Funda to pay aaid tazea, aseeasments, inanranoe premiums and gmund nnts. Lendu may not charge for ao holding and applying'the P~nds, analyzing eaid account, or verifying and compiling said aeeessmenta snd bilts, unlees Lender pays Borrower intereat on the Ftinda and applicable law permite Lender to make such a charge. Borrowes and Lender may agcee ia writing at the time of esecution of this Mortgage that interent on the F~nda shall be paid to Borrower, and unlese ' each agrcement is made or applicable law requires euch interest to be paid, Lender ehall not be required to pay Borrower any interest or earnings on the ~ads. Lender shall give to Borrower. without charge. an annual accounting of the Funds ehowing credits and debits to the ~nds and We purpose for which each debit to the P~nda wae made.'R~e Ftinda are pledged as additional security for the auma secured by this Mortgage. If the amount of the ~nda held by I.ender. tagether with the future monthly inatallmenfs of Funds payable prior to the due datee of taxes, • aesesaments, insurance preminms and ground rents, ehall e:cwed the amount required to payr esid ta:ea, aseeasments, inaurance premiuwa and ground nnts as lhey fall due, such ezcess ahall be. at Borrower'a option, either promptly repaid to Borrower or credited to Borrower on monthly installmeats of F1u?ds. It the amount of the P~nds heW by Lender ahall not be auf~cient to pay t~ea, aseeasmenta, inaurance premiume and ground rents as they fall due. Borrower ehall pay to Lender any amount neceasary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrowe~r requeating payment thereof. Upon payment in full of all aume securPd by thie Mortgage, Lender ahall prompdy refund to Borrower any funda held by L.ender. If uader paragraph 18 hereof the Property is aold or the Propedy is otherwiae acquired by Lender, Lender shall apply. no later than immediately prior to the eak of the Proper~y or ita aoquisition by I.eader, any I~nde held by Lender at the time of application ae a credit againat the suma secund by this Mortgage. 3. Application of Peymente. Unleas applicable law pmvidee otherwise, all payments received by Lender under the Note and paragraphs i and 2 hereof shall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interPSt payable on the Note. then to the principal of the Note, and then to interest and principal on any Ftit~ Advanaea. 4. Chargee; I.iens. Borrower shall pay ~11 ta:es, assesaments and other chargea, finea and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee theteof. Borrower shall prompUy fumish to I.ender aU noticea of amount8 due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly fumiah b Lender receipts evidencing such payments. Borrower ahall promptiy discharge any lien which has priority over this Mortgage; provided. that Borrower ahall not be required to diacharge any auch lien so long as Borrower shall agree in writing to the payment of the obligation secured by auch lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Propetty or any part thereof. 5. Hazard Insurance. Borrower ahall kcep the improvementa now e:iating or hereafter erected on the Property insured againat loss by fire, hazards included within the term "eutended ooverage." and auch other hazards se Lender may require and in auch amounta and for such periods as Lender may require; pmvided, that Lender ahap not require such ooverage amount exceeding the minimum, as may be rey~,ired by atate or federal regulations goveroing activitiea of Lender, or that amount of rnverage required to pay the aums secured by this Mortgage. whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Barrower aubject to approval by Lender, provided, that such approval ahall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if rtot paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inenrance policies and renewala thereof shall be in form acceptable to Lender and ahall include a standard mortgage clauae in favor of and in form acceptable to Lender. Lender ahall have the right to hold the policies and renewals thereof, and Borrower ahall prom ptly furnish to i.ender all renewal notices and all receipte of paid premiums_ In the event of losa, Borrower ahall give prompt notice to the insurance carrier and Lender. Lender may make praof of losa if not made promptly by Borrower. Unlese Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to reatoration or repair of the Property ' damaged, provided such reatoration or repair ia economically feaeible and the security of this Mortgage is not thereby impaired. If such ~ ; reatoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds ahaU be agglied ~ to the auma eecured by this Mortgage, with the eaceea, if any, paid to Borrower. If the Pcoperty is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier offere to aettle a claim for ~ insarance benefite. Lender is authorized to rnllect and epply the inaurance proceeds at Lender s option either to restoration or repair of the Property or the sume aecured by thie Mortgage. ~ Unlees Lender and Borrower otherwiee agree in vvriting, any such application of proceeds to principal shall not extend or poatpone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inetallmente. If under paragraph 18 ~ hereof the Property ia aoquired by Lender. all right, title and interest of Borrower in apd to any inaurance policiea and in and to the proceeds ( thereof reaulting from damege to Property prior to the sale or acquisition shall paes to Lender to the e:tent of the sums aec~red by this ~ Mortgage immediately prior to auch sale or aoquisition. ( 6. Preservation and Maintenance of Property; Leaseholds; Condominume; Planned Uait Developmente. Borrower Bhall keep F the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahail comply with the ~ proviaiona of any lease if this Mortgage ia on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower ehall perform all of Borrower e obligations under the declaration or rnvenanis creatingor goveming the condominium or planned ~ unit development, the by-lawe and regulationa of the oondominium or planned unit development, and constituent dceumenta. If a condominium or planned unit development rider ie e:ecuted by Borrower and recorded together with thie Mortgage, the aovenante and ` agreements of auch rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. i 7. Protection of Lender's 9eeurity. If Borrower faile to perform the aovenants and agreementa oontained in thia Mortgage, or if eny action or proc~ding is commenoed which materially affects Lender a intereet in !he PropertY. including, but not limited to, eminent domain. insolvency~ oode ~forcement, ot arrangemente or pmoeedinga involving a banlcrupt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may ma~e anch appearances, diaburee snch anms snd take auch action ae ie neo~eary to proted I,ender's intereet, ~ inclnding, bnt not limited to, disbnreemeat of reasonable attorney e fces and entry upon the Property to make repairs_ If I.enda required i mortgage insurance as a oondition of ineldng the loan eecured by thia Mortgage, Borrower shall pay the premiums required to maintain such insnrance in effect nntil euch time as the requirement for snch insurance terminates in accordance with Borrowez e and Lender'e written a~cemeat or applicabk Law. Bormwer shall pay the amount of all mortgage insurance premiume in the manner provided under paragraph 2 hereof. - Any amounte diebureed by Leader persuant to thia paragraph 7, with intereet thereon, ehall beoome additional indebtedneas of Borrower eecured bq thia Mortgage. Unleae Borrower and Lender agree to other terms of payment, euch amounte ahali be payable upon ~ notice from Leader to Borrower requeating payment thereof, and shall bear intereet from the date of dieburee~nent at the rate payable from ¢ time to time on outetanding principal under the Note nnless payment of interest at such rate would be oontrary to appiicable law, in which event such amounte abali bear intereet at the highest rate permiesible under appGcable law. Nothing coatained in this paragraph 7, ehall ~ require Lender to incur any expenee or ta1~e any ection hereunder. ~ f _ ~ ~ ~ . ~ o,R~ 306 ~r,ct 5~.~. ~ - z _p_ _