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HomeMy WebLinkAbout0401 Borrower and Lender covenant a~d a~ree as followa: 1. Psyment of Priacipal aad Iatere~~ Borrower shall promptly pey when due tha principwl of and interest on the indebted~eas evidenoed by the Note, prepayment and late chae ges a~ provided in tha Note, and the principal of and intereat on any P1~ture Advances eecucod , by thir Mortgage. 2. Ptitads [or Taxes atid lneuret~oe. 3ubject to applicable law or to a written waiver by l.ender, Borrower shall pay to i.ender on the day monthly inatallmenta of principal and interest are payable under the NoLe. u~W tha Note ia paid in full. a aum (herein "~Lada") equal to one~ , twelfth of the yea~ly taxes aad asscasmenta which may attain priority over thia Mortgege, and ground rente on the Property. if any, plua one- twelfth of yearly premium installments for hazar~ inaurence, plua onetwelRh of yearly premium inatallments for mortgage ineurance, if any, all ae reaeonably estimeted initially and from time to time by I.ender on the baeea of asseesmenta and bills and reasonable eetimatee thereof. • Tlre I~?nds shall be held in aa institution the deposits or aaoouats of which an insured or guaranteed by a Federal or State agency • (including Lender if Lenda ie auch an institution~ Lender shaU apply the Ftinds to pay eaid tasea, asaesamenta. insuranoe premiums and ground renta. Lender m~y not charge for io holdiag and applying the ~nde. analyzing said aocount, or verifying and eompiling said assesameata end bills. unless Lender pays Borrower interest on the P1u?de and applicable law permits Lender ta make euch a charge. Borrower apd Lender ma1? a8ree in writing at the time of e:ecution of fhis Mortgage that interest on the Fuads shall be paid to Bormwer. and unlesa euch agreement is made or applicable law requires such interest to be paid. Lender ahall not be required to pay Bormwer any interest or earnings on the ~nds. Lend~ shall Bive to Borrower, w+ithout charge. an annual acoounting of the Funda ehowing credita and debits to the , Funds and the purpoee for which ~ch debit to the FLt?ds waa made. The Funds are pledged ae additional eecurity for the eume eecured by thie Mortgage. If the amount of the Funds held t~y l.en3er. together with the future monthly inatallments of Funds payable prior to the due dates of ta~cee, aeseasments~ ineuranae prrmiums and ground rents. ahall e~azed the amount required to pe~y said taxea. aaeeaementa, ineuraace premiuma and grouad nnts aa Wey fall due. auch ~oess ahall be. at Borrower'e optioa, either pmmpdy repaid to Borrower or credited to 8orroweron monthly installmenta of F1~nds. It the amount of the Funds held by Lender ehaU not be sufficient to pay ta~cea, aeseeamente. ineuranoe premiums and ground renta as they fall due. Borrower ehall pay to Lender any amount aecessary to make up the deficiency within 30 daye [r~m the date notioe is mailed by I.end~ to Borrower requesting payment thezeof. Upon payment in full otall sums secured by this Mortgage. I.ender ahall promptiy refiind to Borrower any funds held by I.ender. If under paragraph 18 henwf the Property is eold or the Property ie otherwiee acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Propedy or ita aoquisition by LendeT, any ~nda held by [.ender at the time of application aB a credit againat the suma secured by this Mortgage. 3. Application of Payments. Unlese applicable law providea otherwise, all payments received by I.ender under the Note snd paragraphs 1 and 2 hereof ehall be epplied by Lender firat ip payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to interee~t payable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advaacea. 4. Chargea; I.iens. Borrower ahall p~y all taxea, asseasmenta and other charges, fines end impositions attributable fo 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 auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrowerahall prompdy fumiah to Lender all noticea of amonnts due under thia paragraph. and in the event Borrower shaU make payment directly, Borrower ahall pmmptly furnish to Ixnder receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien ao long as Borrower shall agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to Lender. or ahall in good faith eontest such lien by, or defend enforcement of auch lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insuraace. Borrower ahaU teep the improvementa now exiating or hereafter erected on the Property inaured againat loss by fire, hazards included within the term "~tended coverage." and euch olher hazarda aa Lender may require and in auch amounts and for such periode as Lender may reqaire; pmvided. that Lender shall not require euch ooverage amount e:ceeding the minimum, as may be required by ? state or federal regulationa goveming activities of Lender, or that amount of coverage required to pay the eums secnred by this Mortgage, whichever ia the greater. The insurance carrier providing the inaurance ahall be chosen by Borrower aubject to appmval by L.ender, provided, that such approval shall not be unrea~onably withheld. Ali premiuma on insurance policies shall be paid in the manner provided~ under paragraph Z hereof or, if not paid in auch manner, by Borrower making payment. when due, direMly to the insurance carrier_ All inaurance policies and renewala th~eof ahall be in form acceptable to Lender and ahall inclade a standard mortgage dauae in favor of and in form aoceptable to Lender. Lender shall hsve the right to hold the policiee and renewala thereof. and Borrower ehall promptly furnish to i.ender all renewal notioee and all receipte of paid premiume. In the event of loes, Borrower ahaU give prompt notice to the insurance carrier . and Lender. Lender may make proof of loas if not made promptly by Borrower. ! Unlees Lender and Borrower otherwiee agree in writing, insurance p:noeede ehall be applied to restoration or repair of the Property ! damaged. provided auch reatoration or repair ia economically teasible and the security of thia Mortgage ie not thereby impaired. If such reatoratioa or repair is not economically feasible or if the eecurity of thie Mortgage would be impaired, the inaurance proceeda shall be applied ~ to the aums eeciued by this Mortgage. wifh the eaccess, if any, paid to Borrowe~r. If the Property ie abandoned by Borrower. or if Borrower fails to ~ respond to I.ender within 30 days from the date notice ie mailed by Lender to Borrower that the inaurance carrier of~'ers to aetde a claim for ' ineurance benefita, Lend~ ie authorized to collect and apply the ineurance proceeda at Lender a option either to restoration or rnpair of the ~ Property or the sums eecnred by thia Mortgage. Unlees Lender and Borrower otherwiae agree in writing, any such application of procceda to principal shall not e~ctend or poatpone the due date of the monthly inetallments referred to in paragraphs 1 and 2 hereof or change the amount of auch installmenfe. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, title aad interest of Borrower in and to any iasurance policies and in and to the pmceeda thereof resulting irom damege to Propaty prior to t6e eale or acqnieition shall pase to Lender to the extent of the auma secured by thia Mortgage immediatdy prior to snc6 eale or soquisition. ~ ; 6. Preservadon and Maintenance of Property; Leaeeholds; Condominums; Planned Unit Developmente. Borrower ahall keep ; the Property in Bood rePair eu?d ahall not oommit waste or permit impairment or deterioration of the Property and ahaA oomply with the provisions of any leaee if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, Borrower ehall perform all of Borrawer's obligations under the declaration or covenants creatingor governing the condominium or planned 's unit development, the by-lawe and regulationa of the condominium or planned unit development. and oonstituent documente. If a ~ condominium or planned unit development rider ia e:ecuted by Borrower and recorded together with thia Mortgege, the oovenants and E agreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the } ~ rider were a part hereof. ; 7. Protection of Lender'~ Securihi. If Borrowa faile to perfarm the a~veaanta aad agreeffients oontained in this Mortgage, or if any ~ ~ action or pro~xeding is commenoed which materiallY affecta I.ender's interest in the Property. including. but not limited to, eaiinez~t domain, € ~ insoivency. oode enforcement, ~ atran8emente or proceedin8s involving a banlangt or deoedent, then Lender at Lender's option,npon ; notice to Borrower may make euch appearanas, diaburse such aums aad teke anch action as is necessary to proted I,ender'e intaest~ ' ~ incloding, but not limited to, disbnreement of reaeonable attorney'e fcee and entry npon the Property to make repairs. If Lender required " mortgage insurance as a condition of mating We loan secnred by this Mortgage, Borrower ahall pay the premiama reqnired to mainlain such insaranoe in e~Pfect nntil snch time as the tequirement for sach insursnce tezminates in aornrdance with Borrowcr's and I.ende~s w written a~eement or applicable Law. Borrower ehall pay the amount of all mortgege insurance preminms in the manner provided under ~ paragraph 2 hereof. My amounts disbureed by I.ender persuant to this para8raph 7, with intereat thereon, ahall beoome additional indebtednees of ~ Borro~ver secured by this Mortgage. Unlws Bosrower and Lender agree to other terma of payment, euch amounte ehall be payable npon i notice from Lendet to Borrower requeating payment thereof, and ahell bear interest from the date of diebureemeat at the rate payable from ~ ~ time to time on outstanding principal under the Note nnlesa gayment of intereat at auch rate would be oontrary to applicable law, in which ~ event such amonnts shall bear intereat at the highest rate permiaeible under applicable law. Nothing rnntained in this paragraph 7, eha11 ~ ~ require Lender to incur any expenee or take any action hereunder. ~ ~ ~ s~oK~C~7 oa~~ 4~ ~ 1 ; ~ . ^f . = ~ 'T`: . 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