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HomeMy WebLinkAbout0588 Borrower and Lender covenant a~d a~ree ae folbws: . 1. Pwymant of Priacipel aad Intece~~ Borrower ahall pmmptly pay whea due the principal of and interest on the indebtedneas evideAOed by the Note, prepayment and late charQes aa pmvided in the Note. and the principal of and interest on any PLture Advancee secured by ehis Mort~a~e. Z. FLnds for Teuce~ and Insuranoe. Subject to applicable law or b s written waiver by I.ender, Borrower shall payr to l.ender on the day monthly inatallments of principal and intereat are payable und~ the Note, unW the Note is paid in full. a aum (herein "~nde") equal to oae- twelRh of the year~y taxes and asseeements which may attain priority over this Mortga~e. and ground rents on the Propedy. if any. pius ono- tweltth of yearly premium installments for hazsrd insurance, plua onetwelRh of yearly premium inatallmente for mortgage insurance. if any. all as reasonably ~timated initial~y and from time to time by I.ender on the besis of asaeeaments and billa and reasonable estimales thereof. The fi~nds shall be held in an in~titution We deposib or accounts of which are insured or guaranteed by s Federal or 3tate agency (including Lender if Lender is such an institution). Lender ahall apply the Funds b pay said t~ee. aesessments. inawrance premiums ar?d ' ground rents. Lender m~y? not charge for ao holding and applyinQ the fi~nds, analyzing said acco~nt, or verifying and compiling eaid ~ essessmente and biUs. unless Lender paye Borrower interest on the Fhada and applicable law peraaita Lender to make euch a charge. Borrower , end Lender may agree in writing at the tune of execution of thia Mortgage that interest on the ~nds shaU be paid to Borrower. and unleea t such a~reement is made or appUcable law requirea such interest to be paid, Lender shall not be required to pay Borrower any interest or ~ earnings oa the ~nde. Lender shall give to Borroaer, without charge; an annual aooounting of the F~nds ahowing credib and debits to the Ptinds aad the purpose for which each debit to the Flinds was made. Tfie Funds are pledged ea additional security for the eums seeured by thia i Morigage. ~ If the amount of the P1~nda held by Lender. together with the future aronthly instaUmenta of I~nda payable prior to the due dat~ of taxea. ; assessmenta. inauranoe pr~iums and gro~nd renb. ahall esazed the amount required to pay said ta:ea. asseasments. inauranoe premiums ~ and ground rents as they fall due. such exoesa shall be. at Borrower's option. either pmmpdy repaid to Borrower or credited to Borrower on ~ monthly inatallmenLs ot FLnds. U the amonnt of the Funda held by Lender shall not be sutficient to pay ta~ces. aasessmenta. ineurance ~ preraioms and ground reats as Wey faU due, Boreowes ehall pay to Lender any amount neceesary to mal~e up the deficiency withia 30 days t from the date notioe is mailed by L.ender to Borrower requeating payment thereof. ' Upon payment in fiill of aU sums secured by this Mortgage, I.ender ahall prompt~y refund to Borrower any funda held by Lender. If under F paragraph 18 hereof the Property ie aold or the Property is otherwise acquired by Lender, Lender ehall apply. no later than immediately prior ~ to the sale of the Propedy or ite soquiaition by Lender. any Ftinde held by Lender at the time of appUcation as a credit againat the sums eec~ued ; by thia Morfgage. 3. Application of Payments. Unlesa applicahle law providee otherwise, aU paymente received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounte payable b Lender by Borrower 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 Advancea. 4. Charges; Liens. Borrower ahall pay all taxea. aaseeamente and other charges. finee and impoaitions attributable to the Property which may attain a priority over thie Mortgage, and leasehold payments or ground rents, if any. in the manner pmvided under paragraph 2 hereof or, if not paid in auch manner. by Bonower making payment, when due, directly to the payee thereof. Borrower ahall promptly furnish to Lender ; all noticee of amounts due under this paragraph, and in the event Borrower shall malce payment directly, Borrower ahall prompUy furnish to ~ I.ender receipta evidencing such paymente. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that . { Borrower ahall not be required to diacharge any snch lien so long as Borrower shaU agree in writing to the payment of the obligation aecured by ~ such lien in a manner acceptable to Gender, or shall in good faith contest such lien by. ordefend enforoement of such lien in, legal proc~.~iinga ~ which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ; 5. Hazar~d Inauranoe. Borrower shall keep the improvements now e:iating or hereafter e~rected on the Property insured againat losa by ~ fire. 6azards included withia t6e teim "e:tended coverege," and auch other hazards ae Lender may require and in such amounte and for auch periods as I.ender may require: pmvided, that Lender ehall not require euch aoverage amount ezceeding the minimum, as may be required by ~ atate or federal regulatioas goveming activitiea of Lender, or that amount of rnverage required to pay the aums eecared by thia Mortgage, ~ whichever is the greater. • ' The ineurance carrier providing the inaurance ahall be chosen by Borrower subject to approval by Lender; provided, that such approval shall not be unreaeonably withheld. All premiums on inaurance policiea shall be paid in the manner provided under paragraph 2 hereof or, if ~ not paid in auch manner, by Borrower making payment, when due, directiy to the insurance carrier. All inaurance policiea and renewala thereof shall be in fotm accFptable to Lender and shall include a standard mortgage clauae in favor of . and in form acceptable to Lender. Lender shall have the right to hold the policiee and renewale thereof, and Borrower shall promptly furnish to i,ender all reuewal notices and all reoeipte of paid premiume. In the event of loas, Bormwer shall give prnmpt notice to the inaurance carrier ; and Lender. Lender may make proof of lose if not made promptly by Borrower. ~ Unleaa I.ender and Borrower otherwise agn~e in writing, inaurence pmoeeda ahell be applied to restoration or repair of the Property j dameged, provided such restoration or repair is economically feasible end the aecurity of this Mortgage is not thereby impaired. If such 3 reetoration ar repair is not economicslly feasible or if the security of thie Mortgage would be impaired the insurance proceede ahall be applied ~ to the suma secnred by this Mortgage. with the euceee. if any. paid to Borrower. If the Properly ie abandoned by Borrower, or if Borrower faila to ~ reepond to Lender wiWin 30 daye from the date notice is mailed by Lender to Borrower that the ineurance carrier o$ere to eeWe a claim for ~ inaurance benefite, Lender ie authorized to coUect and apply the inanrance proceede at I.ender e option either to restoration or repair of the Property or the enme eecured by this Mortgege. Unleas L.ender and Borrower otherwise agree in writine, anY auch application of prooeede to principal shall not ~tend or postpone the due date m'the monthly installmenta referred to in paregrapha 1 and 2 hereof or change the amount of auch inetailmenta. If under paragreph 18 hereof the Property is aoqaired by Lender. all right. tide and interest of Borrower in and to any inenrance policiee and in and to the proceeda thenof reanlting frwn damage to Property prior to the sale or aoquiaition shall psas to Lender to the eztent of the auma secured by thia Mort~•age immediately prior to anch sale or aoqaisition. 6. Preaervation and Maintenance of Property; LesaehoWs; Condominums; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and shall not commit waete or permit impairment or deterioration of the Property and ahall oomply with the _ provisiona of any leaae if thie Mortgage is on a leseehold. If thie Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower'a obligationa under the declaration or covenante creatingor governiag the condominium or planned unit development, the by-lawa and regulatione of the oondominium or planned unit development. and oonstituent documents. If a ~ condominium or planned unit development rider is e~cecuted by Borrower and recorded together with this Mortgage, the oovenants and ~ agreementa of such rider ehall be incorporated into and ahall amend and aupplement the oovenants and agreementa of this Mortgage as if the rider were a part hereof. ~ 7. Protection ot Lender'~ Securit~. If Barroaer fails to perform Lhe ooveaants and agreementa contained in this Mortgage. or if any action or pmceeding is commenced which materiallY affects I.ende~'s intereet in the Property. including, but not limited to. eminent domain. I~, insolvency, oode enforcement~ or arrangements or pmceedings involving a bankrnpt or deoedeat, then I.endet at I.ender's option,npon notice to Borrower may make snch appearanoes. disMuse euch aums end take snch actioa ae is necessary to proted I.ender'~ intue~~ $ including, but not limited to, disbntsement of reasonable attorney's feea and entry upon the Property to mal~e npai:s. If Leader reqaired _ ~ mortgage insarance as e oondition of ineldng the loan secured by this Mortgage, Borrow~ ahall pay the pc~emiums reqnired to maintain anch insnrance in e~ect until such time as tbe requirement for such inanrance terminates in aooordance with Bormwer's and Leadds > ~ writtea agreement or applicabk Laa. Borrower ehall pay the amount of all mortgage inaurance premiums ia the manner provided under ' ~ paragraph 2 ha~eof. Any amounts disbursed by Lender pereuant to this paregreph with interest thereon, ahaU beoome additional indebtedness of 3 ~ Borrower ~red by thia Mortgage. Unlesa Borrower and Lender agree to other terms of payment, auch amonnts shell be payable npon notice from I.ender b Borrower requesting payment thereof, and shall bear intereat from the date of disbursement at the rate payable from ~ time b time on ontetanding principal under the Note unless payment of interest at auch rate would be contrary to appficable law, in which ~ event such amounis shall bear inLerest at the higheat rate permiesible under applicable law. Nothing oontained in this paragraph 7, shall _ req~ire Lender to incur any ~pense or take any action herenndar. URs~~~ ~ 600K JU~ PAGE 588 . ~ ~ _ ~ , ~ _ _ _ ~ _