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HomeMy WebLinkAbout0061 E3orrower and Lender covenant end agree as follows: 1. Payment ot Pripclpal and Inte~eet. Borrower ahali prompdy pay when due the principal o[ and interest o~ the indebtedneee evidenced by the Note, prepnyment and late chargee aa provided in the Note, and the principal of and inte~eet on any ~Lture Advances eecured by thia Mortgage. 2. F~nds for Tues and Insurance. Subject to applicable law or to a written waiver by I.ender, E3orrower shull puy to [.ender un Ihe day monthly i~stallmente of principal and intereet are payable under the Note, unti! the Note ie paid in full, u sum (herein "Funde") equal to one twelft}~ of the yearly teuces and sesesamenta which may attain priority over thia Mortgage, and ground renta on the Properiy, if any, plua one twelfth of yearly premium installmenta for hazard insurance, plua onetwelfth otyearly premium inatxllmenta [or mortg~ge insurance, if any, aU as reseonably eatimated initially and from time to time by I.ende~ on the basis of aeseasmenta and billa and reasonuble eatimates thereof. The I~Lnda shall be held in an inatitution the depoeits or accounta of which are inaured or guaranteed by a Federal or 3tate age~cy (including I.ender if I.ender ie euch an inatitution). [.ender ahall apply the Fu~da to pay eaid ta:es, assesamente, i~eurance premiuma and Eiround rente. Le~der may not charge for eo holding and applying the ~nde, snalyzing said account, or verifying and compiling said aaseeemente and bille. unlese Ixnder paya Borrower intereat on the Funda and applicable law permits I.ender to make auch a charge. E3orrower and i.ender may agree in writing at the time of execution of thie Mortgege that intereet on the ~nda ahall be paid to Borrower, and unleae such agreement ie made or applicable law requirea such intereet to be paid, Lender ehall not be required to pay Bo:rower any interest or earninge on the Plinde. I.ender shall give to Borrower. without charge, a~ annual accounting of the Funda ahowing credite and debite to the Funde and the purpose for which each debit to the F~nde was made. The Funda are pledged ae additional eecurity for the auma eecured by thie Mortgage. If the amount of the I~`unda held by I.ender. together with the future monthly inataUments of Funde payable prior to the due datea of ta~ces, aeaeeamenfs, inaurance premiums and ground renta, ahall exczed the amount required to pay esid taxea, asseasments. insurance premiuma and ground rents aa they fall due, such excesa shall be. et Borrovirer e option, either pmmpdy repaid to Borrower or credited to Borrower on monthly installments of F~nde. If the amount of the Funde held by Lender ahall not be sufficient to pay taxea, assessmente, inaurance premiums and ground rents as they fall due, Borrower shaU pay to Lender any amount necessary to make up the de6ciency wilhin 30 days from the date notice ia mailed by Lender to Borrower requesting payment thereoL Upon payment in full of atl auma secured by this Mortgege, I.ender ahall prompdy refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is eold or the Property is otherwiae acquired by L.ender, Lender ahall apply, no later than ifnmediately prior to the eale of the Property or ite aoquisition by Lender, any Fands held by Lender at the time of application as a credit againat the aums secured by thie Mortgage. 3. Application of Paymente. Unleas applicable law providea otherwise, ali payments received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firat in payment of amounts psyable to Lender by Borrower under paragraph Z hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargea; Liena. Borrower shall pay all taxes, assessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rnnts, if any, iri the manner provided under paragraph `L hereof or, if not paid in such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event f3orrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing auch paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that E3orrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a mannet acceptable W Lender, or shall in good faith contest such 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 thereof. 5. Hazard Ineurance. Borrower shall keep the improvements nov? exieting or hernatter erected on the Pmperty insured against tosa by fire, hazarda included within the teran "e:tended coverage," and auch other hazatds as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such rnvetage amount exceeding the minimum, as may be required by state or federal regulationa goveming adivities of Lender, or that amaunt of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. The inaurance carrier providing the insurance shall be chosen by Borrower subject to approval by I.ender, pmvided, that such approval shall not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under paraRraph 2 hereof or, if not paid in such manner, 6y Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a atandard mortgage clause in fuvor of ~ and in form acceptable to Lender. I.ender ahali have the right to hold the policies and rnnewala thereof, and Borrower ahaU promptly furnish to I i.ender all renewal notices and all receipta of paid premiume. In the event of loss, Borrower shall give prompt notice to the inaumnce carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeda shall be applied to rnstoration or repair of the Property ~ damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such ~ ; reatoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the insurance proceeda shall be applied ~ to the suma secured by this Mortgage, with the excesa, if any, paid to Borrower. If the Propertv is abandoned by Borrower, or if Borrower faila to reapond b Lender within 30 daye ftom the date notice ia mailed by I.ender to Borrower that the insurance carrier offers to aetde a claim for ~ insurance benefite, Lender ia authorized to collect and apply the insurance proceeda at Lender's option either to reetoration or repair of the r Property or the sums secured by this Mortgage. t Unless Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal shall not extend or poatpone the due ~ date of the monthly installmenta referred to in paragraphs I and 2 hereof or change the amount of such inetallmenta_ If under paragraph 18 hereof the Property ia acquired by Lender, ali tight, tide and intereat of Borrower in and to any insurance policies and in and to the proceeda ~ thereof reaulting 5rom damage to Property prior to the sale or aoquisition shall pasa to Lender to the extent of the aums aecured by this ~ Mortgage immediately prior to auch sale or aoquiaition. ~ 6. Preaervatioa and Maintenance of Property; Leaseholde; Condominuma; Planned Unit Developmenta. Borrowershalt keep k the Property in good tepair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provisions of any lease if this Mortgage ia on a leasehold. If this Mortgage is on a nnit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower a obligationa under the declaration or covenants creatingor governing the condominium or planned ; unit development, the by-lawa and requlationa of the condominium or pl~nned unit development, and constituent documents. If a x condominium or planned unit development rider ia executed by Borrower ~nd recoided together with this Mortgage, the oovenante and ~ agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider wern a part hereof. ~ Protection oi I.ender's 3ecurity. If Borrower fails to perform the aovenante and agreemente contained in thia Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender'e interest in the Property, including, but not Umited to, eminent domain, ineolvency, oode enforcement, or arrangemente or proc~edinge involving a banbvpt or deoedent, then Lender at Lender'e option,upon notice to Borrower mey make such appearancee, dieburee auch sume and take euch action as ie neceaeary to protect Lender'e interest, - including, but not limited to, disb~uaement of reasonable attomey's fcee and entry upon the Property to make repaire. If Lend~ reqnired i mortgage ineurance aB e condition of making the loan eecured by thia Mortgage, Borrower shall pay the premiume reqnired to maintain auch ineurance in effect until euch kime as the requirement for euch insurance tereninatee in accordance with Boaower's and Lendei'e ` writien agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiuma in the manner provided under ` paragraph 2 hereof. ' My amounte diabureed by Lender pereuant to thie paragraph 7, with intereat thereon, ahall become additional indebtednese of _ - Borrower eecured by thia Mortgage. Unlese Borrower and Lender agree to other terme of payment, euch amounte shall be payable upon ;t notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of diabursement at the rate payable from ~ time to time on outatanding principal under the Note unleee paymeat of intereet at auch rate would be contrary to applicable law, in which ~ event such amounta ehall bear intereet at the higheet rate permiseible undei applicable law. Nothing rnntained in this paragraph 7, ehall require Lender to incur any expenee or take any action hereunder. ~ ~ : ` ~~~r 3U8 ~6i : ~ ~ . . _ xY_ : _