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HomeMy WebLinkAbout0608 Bor~ower and I.ender coveaant a~d agree aa followa: 1. Payment ot Prlacipal sad Ini~eres~ Borrower ahall pmmptly pay when due the principal of and intereat on the indebtednees evidenced by the Note, prepayment and late charges aa pmvided in the Note. and the principal of and intereet on any Fliture Advences secured by thu Mortga~e. 2. I~Lnd~ for Tazes aad Ineurance. Subject b applicable law or to a written waiver by I.ender, Borrowe~ ahall pxy to I.ender on the day monthly inatallments of principal and interest are payable under the Note, unW the Note is paid irt full, a aum (herein "Funda") equal to one tweltth of the yearly taues and assesaments which may attain priority over thia Mortgage, and ground rents on the Property. if any. plus one twelRh of yearly premium installmec?ta for hazard insurance. plua onetwelRh of yearly premium inataUments for mortgage insurance, if any. ; all as reasonably eetimated initially and from time to time by I.ender on the besis of assessments and biUa and reasonable estimntes thereoL The FLnd~ ahall be held in an institution the depoeits or aocounta of which ere iasured or guaranteed by a Federal or State a~ency t (including Lender if Lender ia such an inatitution). I.ender ahall epply the ~nda to pay said ta~ces, aeseaaments, inaurance premiums and f grou~d rents. Lender mayr not charge for so holding and applying the Ftinda, analyzing said account, or verifying and compiling eaid F assesaments and bills, unless Lender pays Botrower intereet on the Ftinds and applicable law pera?ite Lender to make such a charge. Borrower : and Lender may agree in writine at the Gme of ezecution of this Mortgage that intetaet on the ~nds ehall be paid to Borrower, and unleas i euch agreement is made or applicable law requires such intereat to be paid, [.ender shall not be required to pay Borrower eny intereat or easaings on the ~nde. Lender ahall give to Borrower, without charge, an annual accounting of the ~nde ehowing credifa and debits to the F~nda and the purpose for which each debit to the P~nds wea made. The Funde are pledged as additional security for the sume eecured by this ~ Mortgage. If the amount of the FLnde held by Lender, together with the tuture monthly installmenta of Funda payable prior to the due dates of tazes. aesesaments~ ineutanoe premiums and gmund rente, shall e.~cc~ed the amount required to pay said taxee, seseasmente, insurance preaaiums ~ and groand renta as they fall due. euch e~ccees shall be. at Borrower s option, either promptly repeid to Borrower or credited to Bor~rower on F monihly instaUmenb of P1~nda. If the amount of the Funde held by Lender shall not be euffcient to pay ta~ces, aeseeamenle, inaurance ' premiums and ground renta aa they fall due, Borrower shall pay to Lender any amount necessary to ma1~e up the deficieacy within 30 days from the date notice ia mailed by I.ender to Borrower tequesting payment thereoL Upon payment in fuU of all sume eecured by thia Mortgage, L,ender shall prompdy refund to Borrower any funda held by Lender. lf under paragraph 18 hereof We Property ia eold or the Properly ie oihe~wiee acquired by Lender, Lender shap apply, no later than immediately prior to the eale of the Property or ite aoquieitioa by I.ender. any I~Lnda held by I.ender at the time of application as a crPdit against the sums eecured by this Mortgage. 3. Appltcatioa of Paymeats. Unlesa applicable law providea otherwise, all paymenta received by Lender under the Note and ~ paragraphe 1 and 2 henwf ahall be applied by Lender firet in payment of amounta payable to Lender by Borrower under paragraph 2 hereof. ~ then b intereet payable on the Nott, then to the principal of the Note, and then to intereat and principal on any Future Advancea + 4. Charges; Liene. Borrower ahall p~y all taxes, sesessmenta and other chargea, finea and impositions 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 thereof. Borrower shall promptly furniah to I.ender all noticea of amounts due under this paragraph, and in the event Borrower shall make payment direcdy, Borrower shall pmmptly furniah to [.end~ reoeipta evidencing auch payments. Borrower ehall promptly dischtuqe any lien which has priority over this Mortgag~ pmvided, that Borrower shall not be required to diacharge any auch lien so long as Bocrower shall agree in writing to the payment of the obiigation secured by such lien in a manner acceptabie to Lender, or shall in good faith rnntest auch lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thercof. 5. Hazard Insurance. Borrower shall keep the improvements now ezisting or hereafter erected on the Property inaured against lose by fire, hazarde included withii? the term "~tended coverage," and such other hazarde ae Lender may require and in such amounta and for auch periods as I.eader may require; provided, that Lender ahaU not require such ooverage amount e:ceeding the minimum, as may be required by atate or federal regnlatione governing activities of Lender, or that amount of coverage required to pay the aums aecured by thia Mortgage, whichever ia the greater. The ineurance carrier providing the insurance shall be chosen by Borrower subject to approval by [.ender, provided, that such approval shall not be unreseonably withheld. All premiums on insurance policies shall be paid in the mannet provided under paragraph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and renewals thereof ahall be in form aoceptable to Lender and shall include a atandard mortgage clauee in favor of ` and in form acceptable to I.ender. Lender ahall have the right to hold the policies and renewala thereof. and Borrower shall promptly furnish to ~ i i,ender all renewal noticea and all receipte of paid premiuma. In the event of loes, Borrower ehaU give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loes if not made promptly by Borrower. E Unleea Lender and Borrower otherwiee agree in writing. insurance proceede shall be applied to reaEoration or repair of the Property s damaged. provided snch restoration or repair is economically feasible and the eecurity of this Mortgage ia not thereby impaired. If such ~ reatoration or repair ie not eoonomically feasible or if the security of thie Mortgage would be impaired. the ineurance proceeds shall be applied ~ to the aume eecuied by this Mortgage, with the e~ccess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ! respond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier ogers to setUe a claim for ~ inaurance benefits. Lender ia authorized to collect and apply the ineurance proceede at Lende~e option either to reetoration or repair of the ~ Property or the suma sec~ued by thia Mortgage. ~ Unlees Lender and Borrower otherwise agree in writing, any auch application of pioceeda to principal ehall not eactend or postpone the due date of the monthly installmente referred to in paragraphs 1 and 2 hereof or change the amount of ench inatallmenta. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceeda thereof reeulting trom dama8e to Property prior to the eale or soquieition shall pass to Lender to !he e:tent of the aume secured by thie Mortgage immediately prior to such eale or aoquieition. 6. PreBerration and Maintenance of Property; I.eaaeholds; Condominuma; Planned Unit Developments. Borrower shall keep the property in good repair and ehall not commit waste or permit impairment or deterioration ot the Property and shaU oomply with the ~ groviaione of any lease if thie Mortgage ie on a leaeehold. If this Mortgage ia on a unit in a aondominium or a planned unit development, Borrower shall perform all of Borrower'e obligatione under the declaration or rnvenante creatingor governing the condominium or planned ~ unit developmen~ the by-lawe and regulationa of the condominium or planned unit development. and constituent documenta. If a ~ condomininm or planned unit development rider ia eaecuted by Bonower and recorded together with thia Mortgage, the oovenants and agreemente of such rider ahall be incorporated into and ehall amend and aupplement the covenanta and agreements of thia Mortgage as if the ~ rider were a part hereof. ' ~ 7. Protection of Lender's Security If Bormwer faila to perform the aovenante and agreements oontained in thia Mortgage, or if any ` action or proceeding is commenced which materially affects I.ender's iatereat in the Property, includu?g, but not fiauted to, eminent domain, ~ insolvency. oode enforcement, or arrangements or pra~edinga involving e bankrupt ar deoedent, then Lender et L,enda's option.upon ~ ~ notice to Borrower may make snch appearanas. disbnrse such sums and take wch action as is naxseary to protect I.ender'~ inttnst, . including, but not limited to, diabureement of reasonable attorney's fees and entry npon the Property to make repaite. If Lender req~ired : mortgage insnrance as a condition of making the loan eecured by thie Mortgage, Borrower shall pay the pe~iuma reqnired to maintain ~ wch insnrance in effect nntil auch time as the requirement for euch ins~rance terminatee in aocordaaex with Borrower's and Lendds ~ written agreemeat or applicabk I.aw. Borrower shnll pay the amount of all mortgage ineurance preminms in the manner provided under ~ Pa*aBraPh 2 hereof. My amouate diabnrsed by Lender persuant to thia paragraph 7. with interest thereon. shall become additional indebtednees of ~ ~ Borrower secured by thia Mortgage. Unlese Borrower and I.ender agree to other terme of payment, auch amounta shall be payable upon ~ notice from Lend~ to Borrower requesting payment thereof, and shaU bear interest from the dste of diebursement at the rate payable from ~ time to time on outatanding principal under the Note uniess payment of interest at euch rate would be contrary to applicable law, in which ~ event euch amounte shall bear intereat at the highest rate permiaeible under applicable law. Nothing contained in this paragraph shall ; ~ require Lender to incur any e:penee or talce any action hereander. t S ~ ~ ~ s°a~K ~07 ~acE 608 - ' ~ ~ ~ ~ . ~ _ . _ _ -