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HomeMy WebLinkAbout0662 Bormwer and I.ender covenant and agree as folbwa: 1. Paymeat of Principal ~nd Interes~ Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenoed by the Note. prepayanent and late charges ae provided in the Nots, and the principal of and intereeton any ~ture Advancee eecured by this Mortgage. 2. I~tnde tor T~ea at~d Ineurance. Subject to applicable law or to a written waiver by Lendes, Borrower ehall pay to I.ender on the day monthly inetallments of principal and intereat are payable uadu 1he Note, unW the Note ie paid in full, a sum (herein "~nde") equal to on~ tweltth of the yearly tases and ase~emeota which may attain priority over thie Mortgage, and ground renta on the Property. if any, plua one twelfth of yearly pnmium inaLallmente for hazard inaursnce. plua onetwelfth ofyearly premium installments for mortgage inaurance, if any. sll as reasonably eetimated initially and from time to time by Lender on the baaia of aseeasmenta and bills and reaaonable estimates thereof. The Fl?nds shall be held in an institution the depoeits or aooounte of which are insured or guaranteed by a Federal or State agency (including Lender if Lend~r is such an inatitution). Lend~ shall apply the ~?nds to pay said ta:ee. aaseasmenta, inaurance premiuma a~d ground nnts. Lender may not charge for so holdi~?g and applying the Fl~nda, analyzing said account, or verifying and compiling eaid seeeesinents and bills. unlees Lender pays Borrower intereet on the FLnda and applicable law permits Lende~ to make auch a charae. Borrower and I.ender may egree in writing at the time of ezecation of this Mortgage that iaterest on the ~Lnds shall be paid to Borrower, and untees euch agreement is made or applicable law requiree euch interest b be paid, Lender ahall not be required to pay Borrower any intereat or e:rnings on tne I'~ads. Lender shall give to Borrower. ~vithout charge, an annual aooounting of the Flinds ahowing credite and debits to the Funds and the purpose for which each debit to the ~Lnds waa made. The Funda are pledged as additional eec~uity for the eume eecured by thia Aiortgage. ~ If We aawunt of the I~nds held by Lender, together with the fuhue monthly inatallments of Funda payable prior to the due dates of ta:es. asseeawents, insurance premiums and gmund rrnta, shall pa[azed the amount required to pay said ta:ee, aaeesuunente, ineurence premiuma and ground renta as they fall due. such e~ccess shall be, at Borrowei a option. either pmmptly repaid to Borrower or credited to Borrower on monthly inataUmente of FLnds. If the amoant of the P~nde held by I.ender ahall not be aufficient to pay t~ea, asseasmenta, insurance premiums and ground rents as they faU due, Borrower ahall pay to Lender any amount necessRry to make up the deficiency within 30 days from the date aotice is mailed by I,ender to Borrower requeating payment thereof. Upoa payment in fnll of all euma eecured by this Mortgage, I.ender ehall prompdy refund to Borrower any funda held by Lender. Uunder paragraph 18 hereof the Property ia sold or the Property ie otherwiae acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or ite aoquiaition by I.ender, any Ftinds held by L.ender at the time of app6cation as a credit againat the sums eecured by thie Mortgage. 3. Applicatioa of Paymente. Unlese applicable law providee otherwise, all p~knents received by Lender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender fust in payment of amoun4 payable to Lender by Borrower under paragraph 2 hereof, then to intereet payable on the Note. thea to the ptincipal of the Note, and thea to i~t~t~,and principal on any Future Advancea. 4. Chargea; Liene. Borrower ahall pay all taxes, aeaesaments and other charges, finel ~ndimpositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold p~ymeqte or ground rents, if any, in tlre mannpr provided under paragraph 2 hereof or, it not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrower shaA promptly furniah to Lender all noticea of amounts due uader this paragraph, and in the event Borrower ahall make payment directly, Borrower shall promptly furnish to Lender rcceipts evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that , f3orrower ahall not be required to diacharge any auch lien so long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acoeptable Lo I.ender, or shall 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 Property or any part thereof. . 5. Hazard Inaurance. Borrower ahall keep the improvementa now e:iating or hereafter erected on the Property inaured againat losa by fire. haiarde included within the term "Pactended coverage," and auch other hazerds as Lender may require and in such amounts and for auch periods aa Lender may require; pmvided. that Lender ahall not require euch ooverage amount exceeding the minimum, as may be required by atate or federal regulations goveraing activitiea of Lender. or that amount of rnverage required to pay the sums aecured by this Mortgage, - whichever is the greater. The insurance carrier providing the inaurance shall be chosen by Borrower subject to appmval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if . not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewala thereof ahall be in form acceptable to Lenderand shall include a standard mortgage clauae in favor of and in form aooeptable to Lender. Lender shall have the right to hold the policies and renewale thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all receipta of paid premiums. In the event of lo~s, Boriuwer ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made pmmpdy by Borrower. ~ Unleas Lendet and Borrower otherwise agree in writing, insurance preceeda shall be applied to restoration or repair of the Property damaged, provided auch reatoration or repair is economically feasible and the eecurity of thie Mortgage is not thereby impaired. If such reatoration or repair is not eoonomically feasible or if the aecurity of thie Mortgage would be impaued. the insurance proceeds shall be applied to the eame secured by thie Mortgage. with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within 30 days from the date no~ce is mailed by Lender to Borrower that the inaurance carrier offers to setde a claim for E inautance benefita, Lender is anthotized to collect and apply the ineurence proceeds at Lender a option either to reatoration or repair of the ; Property or the sums secured by thia Mortgege. ~ ! Unlese Lender and Borrower otherwiee agree in writin , an auch a lication of roc~eede to nnci 8 y pp p p~ pal shall not extend or postpone the due € date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amoant of auch inetallmente. If under paragraph 18 ; hereof the Property ia acquired by Lender, all right. tide and interest of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof reaulting from damage to Property prior to the eale or acquisition shall paea to Lender to the e:tent of the eama eecured by this Murtgage immediately prior to anch eale or aoquiaition i 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmente. Borrower ahall keep ; the Property in good repair and ahall not commit waste or permjt impairment or deterioration of the Property and ehall rnmply with the ` provisiona of any leaee if this Mortgage ia on a leaeehold. If thia Mortgage ie on a unit in a oondominium or a planned unit development, i Fiorrower ehall perform all of Bormwer's obligationa unde~r the declaration or rnvenanta creatingor governing the oondominiiun or planned `s unit development, the by-lawa and regulationa of the condominium or planned unit development, and rnnatituent documents. If a condominium or planned nnit development rider is e:ecated by $orrower and recorded together with thia Mortgage. the oovenant8 and - ` agreementa of auch rider ahall be incorporated into and ahall amend and aupplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. ~ 7. Protection of Lender'~ Secnrity. If Borrower fails to perfotm the oovenente and agreements oontained in this Mortgege, or if any action or procceding is oommenced which materially a~'ecte I.endefs interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proceedinga involving a banlmipt or deoedent, then Lender at Lender's option,upon notice to Barmwer mey malice such appearanas, diaburse such enma and take anch action as is neoessary to pmtect I.ender's intereat, inclnding, but not limited to, disbureement of reasonable attoraey's feea end entry upon the Propedy to make repairs. If I.ender required mortgage insurance as a oondition of malring the loan eecured by this Mortgage, Botrower ahall pay the preminms required to maintein euch insurance in effect until Buch time ae the requirement for such insurance terminates in accordanoe with Borrower's and Lender's written agreement or applicable I.aw. Boreawer shall pay the amount of all mortgage inaurance premiuma in !he manner provided under paragraph 2 hereof. Any amonnta diebureed by Lender persuant to this paragraph 7, with interest thereon, ehall become additional indebtedneea of Borrower eecured by this Mortgage. Unlese Borrower and I.ender agree to other terme of payment, auch amounts shall be payable upon notice fiom I.ender to Borrower requesting payment thereof, and ehall bear interest from the date of diabureement at the rate payable from time to time on outetanding principal under the Note unleae payment of interest at such rate would be contrary to applicable law, in which : event such amounte eha11 bear intereat at the highest rate permiesible under applicable law. Nothing contained in this paragraph ahall ; require I.ender to incur any e:penae or take any action hereunder. t t r . . ~3~6 561, ~ a fi eu a- r;. . . _ . - ' _ ' ' _ ~