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HomeMy WebLinkAbout0020 Borrower and l.ender covenant and agree ae [ollows: ~ l. Peyment of Ptincipal a~d Intereat. Borrower ahall promptly pay when due the principal o[ and intereet on the indebtedneea evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal of and intereat on any Fl~ture Advancee eecured by ihia Mortgage. 2. bLnde Cor Taxee and Ineurance. Subject W appiicable law or to a written waiver by l.ender, I3o~werahall pay to I.enderon the day monthly inatallmenta of principal and intereet are payable under ihe Note, until the Note ia paid in full, a aum (herein "l~'unde") equal to one twelfth of theyearly taxes and asseasments which may attxin priority over this Mortgage, and ground rents on the Pmperty, if any, plua one twelfth of yearly pmmium installmenta !or hazard inaurance, plus onetwelfth ofyearly premium inatallmente for mortgage inaurance, if any, all as reasonably estimatcd initially and from time to time by l.ender on the basia of assesamenta and biUa and re~sonable estimates thereof. The FLnds ehall be held in an institufaion the depoeits or eccounte of which are insured or guaranteed by a Federal or State agency (including Lender if I.ender is euch an institution). l.ender ehall apply the Funds to pay said taxea, asseasmente, ineurance premiuma and ground rente. I.ender may no! charge for eo holding and applying the ~Lnde; analyzing said account, or verifying and compiling said aeaesements and bills, unlesa i.ender paya Borrower intereat on the Funde and applicable law permita i.ender to make euch a charge. Borrower and [.ender may agree in writing at the time of e:ecution of thia Mortgage that intereat on the Ftinda ahall be paid to Borrower, and unleae auch ugreement ia made or applicable law requirea such intereet to be paid, Lender ehall not be required to pay Eiorrower any intereat or earninga on the F~nde. Lender shail give to Borrower, without charge, an annual accounting of the Funde ahowing credits and debits to the Funde and the purpose for which each debit to the Funds was made. The Funde are pledged as additional aecurity for the auma secured by thie Mortgage. , If the amount of the F1nde held by l.ender, together with the future monthly installmente of Funds payable prior to the due datea of taxea, aeaeasmenta, inaurance premiuma and ground renis, ahall e:cred the amount required to pay said taxes, asseasmenta, inaurance premiuma and ground rents as they fall due, such exceas ahal) be, at Borrower a option, either pmrppdy repaid to Borrower or credited to Borrower on monthly installments of ~nda. If the amount of the Funda held by L.ender ahall not be aufficient to pay taxea, assesaments, inaurance prnmiums and ground rents as they fall due, E3orrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to Borrower requeating payment thereof. Upon payment in fiill of all euma secund by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ia sold or the Property ic+ otherwise acquired by I.ender, Lender shaU apply, no later than immediately prior to the aale of the P~operty or ite acquisition by Lender, any F~nds held by I;ender at the time of application as a credit against the aums secured by this Mortgage. 3. Application of Paymente. Unlesa applicable law provides otherwise, all paymenfs received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender first in payment of amounts payable to Lendcr by Borruwer under paragraph 2 hereof, then to inteteat payable on the Note. then to the principal of the Note, and then to intecest and principal on any Future Advances. 4. Charges; Liena. Borrower shall pay all taxes, t~asessments and other charges, fines ~nd 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. Borrowershall prumptly furnish to [.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing auch pa~ments. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligatio~secured by such lien in a manner acceptable to Lendgr, 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 forfeitur+e of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now exiating or hereafter erected on the Properly insured against loss by fire, hazarda included within the term "extended coverage," and auch other hazards ae I.ender may require and in such amounts and forsuch periods as L.ender may require; provided, that Lender shall not require such ooverage anount exceeding the minimum, as may be requireci by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater_ The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner pmvided uoder paragraph 'L hereof or, if not paid in such manner, by ~3orrower making payment, when due, directly to the insurance carrier. j All inaurance policiea and renewals thereof shall be in fotm acceptable to Lender and shall include a standard mortgage clause in favor of { and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewals thereof, and Borrower sha11 promptly furnish to ~ i.ender all renewa) notices and all receipts of paid premiums. In the event of loss, Fiorrower shall give prompt notice to the insurance camer ~ and Lendet. Lender may make proof of loas if not made promptly by Borrower_ , Unlesa I~nder and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided such restoration or repair ie economicallv feasible and the security of thie Mortgage is not thereby impaired. If such ' restoration or repair is not economically feasible or if the security of this Mortqage would be impaired, the insurance proceeds shall be applied ` to the auma eecured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faiis to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier offera to settle a claim for ~ insurance benefits, Lender is authorized to collect and apply the inaurance proceeds at Lender's option either to restoration or repair of the ; Property or the aums aecured by this Mortgage. ~ Unlesa Lender and Borrower othetwise agree in writing, any such application of proceeds to principal ahall not extend or poatpone the due ~ date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of such installments. If under paragraph 18 i hereof the Property ia acquired by Lender, a11 right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof rPaulting from damage to Property priar to the.sale or acquisition ahall pasa to Lender to the eatent of the sums secured by this ~ Martgage immediately prior to such sale or acquisition. ~ 6. PreBervation and Maintenance of Property; Leaseholde; Condorainume; Planned Unit Developmente. Borrowershallkeep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa ot the condominium or planned unit development, and conatituent documents. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the aovenants and ~ agreements of such rider shaU be incorporated into and ahall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. f 7. Protection of Lender'e 3ecurity. If Borrower fails to perform the wvenante and agreements oontained in thie Morigage, or if any ~ action or proceeding ie commenced which materially affecte Lender e intereat in the Property, including, but not limited to, eminent domain, _ ineolvency, oode enforcement, or anangemente or proceedinga involving a bankrnpt or decedent, then Lender at Lender'e option.upon ~ notice to Borrower may make euch appearancee, dieburee auch aume and take euch action as ie neceeeary to protect Lender's intereat. ~ including, but not limited to, diebureetbent of reasonable attorqey's feee and entry upon the Property to make repaire. If Lend~ required = mortgage inaurance ae a condition of making the loan aecured by thie Mortgage, Borrower shall pay the premiums required ta maintain euch ineurance in effect until auch time as the requirement for auch inaurance terminatee in accordance with Bonower e and Lender e written agreement or applicable Law_ Borrower ehall pay the amount of all mortgage inaurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender pereuant to this paragraph 7, with intereet thereon, ahall become additional indebtedneee of E3orrower eecured by thie Mortgage. Untesa Borrower and Lender agree to other terme of payment, auch amounte shall be payable upon ' notice from Lender to Borrower requeeting payment theteof, and ehal) bear intereat from the date of diabursement at the rate payable from time to time on outstanding principal under the Note unlees payment of interest at such rate would be contrary to appliceble law, in which ~ event such amounte ahall bear interest at the higheat rate permiasible under applicable law. Nothing contained in thie paragTaph 7, ehall ~ require I,ender to incur any e:penee or take any action hereunder. ~ J i+ . ^ ~ 1f ~f J~4. ~ ~~V i ~ ~p"v . , _ , - ~