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HomeMy WebLinkAbout0185 BoROwer aod l.ender covenant and agree as followe: 1. Payment ot Prlncipal and Intereet. Borrower ahaU promptly pay when due the principal of and intereat on the indebtedneas evidenced by the Note, prepayment and late charges as provided in 1he Note, and the principal of and intereat on any Flrture Advances secured by this Mortgage. 2. ~tnde forTazes and Inaurance. Subject to applicable law or to a written waiver by l.ender, Borrowerahall pay to l.ende~on theday monthly instaliments of prin~~pal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fuada") equal to one twelfth of the yearly taxes and asaeasmente which may attain priority ove~ this Murtgage, and ground rente on the Property, if any, plua one . twelRh of yearly premium inetaUmenta for hazard insurance, plue onetwelRh ofyearly premium installments for mortgageinaurance, if any, aU ae reasonably eatimated initially and from time to time by I.ender on the baeis of asaesame~ts a~d bille and masonable eatimatea thereof. The Fl~nds ahall be held in an inalitution the deposita or accounts of which are ineured or guaranteed by a Federal or State agency (including I.ender if L.ender ia such an inatitution). I.ender ahall apply the ~nda to pay eaid taxes, aeaesamente, ineurance premiuma and ground rents. L.ender may not charge for eo holding and applying the ~nda, analyzing said account, or verifying and compiling said aeeeasments and billa, unleae Lender paya Borrower intereat on the Funde and applicable law permite Lender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that intereet on the Ftinds ahall be paid to Borrower, and unleas such agreement ie made or applicable law requires auch intereet to be paid. Lender ahall not be required to pay Borrower any intereat or earnings on the Fl~nda. I.ender ehall give to Borrower. ~erithout charge. an annual aecounting of the Funde ehowing credita and debita to the Funde and the purpoae for which each debit to the ~nda was made. The Funds are pledged se additional eecurity for the aume eecured by this Mortgage. If the amount of the ~nde held by Lender, together with the future monthly inatallmenta of Funda payable prior to the due datea of taxeH, aas~aments. inaurance premiume and ge~ound rnnte, ahall e:c~ed the amount required to pay eaid taxen, asaesamenta, ineuranee premiume and ground renLe as they fall due. auch e:ceae ahail be. et Borrower s option, either pmmpdy repaid to Borrower or ci~edited to Borrower on monthly installments of F1nda. If the amount of the Funda held by Lender shall not be aufficient to pay ta:ee, seaessmente. inaurance pnemiume and ground rente as they fall due. Borrower ahall pay to I.ender any amount neceseary to make up the deficiency within 30 days fmm the date notice ia mailed by Lender to Borrower requ~ting payment thereof. Upon payment in full of all aums eecured by thie Mortgage, Lender ahall promptly refund to Borrower any funds held by I.ender. If unde~ paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, Lender ahaU apply, no later than immediately prior to the eale of the Property or ite arquiaition by Lender, any F~nde held by I.ender at the time of application ae a credit againat the aums secured by thie Mortgage. 3. Application of Paymente. Unleea applicable law provides otherveiae. all paymenta received by L,ender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firat in payment of amounta payable to Iender by Borrower under paragraph 2 hereof, the~ to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower ahall pay ali taxea. asaessmente and other charges, finea and impositiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground ren ta, 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 furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligation secured by such lien in a manner acceptable to I.endec, 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 forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvementa now eaisting or hereafter erected on the Property insured againat loss by fire, hazarde induded within the term "extended coverage," and auch other hazards as Lender may require and in auch amounta and for auch periods as I.ender may require; provided, that Lender ahall not require such wverage amount ezceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender. or that amount of rnverage required to pay the suma secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen hy E3orrower subject to appmval by Lender; provided, that such approval ahall not be unreasonably withheld. All ptemiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dirnMly to the insurance carrier_ All insurance policiea and renewala thereof ahall be in form acceptable to Lender and shall include a standard mortgage clauae in favor of and in form aoceptable to Lender. Lendershall have the right to hold the policies and renewala thereof, and Borrower shall promptly furnish to ixnder all renewal notices and all receipta of paid prnmiuma. In the event of loss, Borrower shall give prompt notice to the insurance carrier and L.ender. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agtee in writing, inaurance proceeds shall be applied-to restoration or repair of the Property damaged, provided auch re~toration or repair is economically [easible and the eecurity of this Mortgage is not thereby impaired_ If snch restoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the ineurance proceeda ahall be applied to the auma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property ia abandoned by Boaower, or if Borrower faila to reapond to L.ender within 30 daye from the date notice is mailed by Lender to Borrower that the ineurance carrier of~ers to settle a claim for ineurance benefite, Lender is suthorized to collect and apply the inaurance proceeda at Lender'a option either to reatoration or repair of the ~ Property or the euma secured by this Mortgage. ; Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not extend or poatpone the due ~ date of the monthly inatallmenta teferred to in paragrapha 1 and 2 heteof or change the amount of such inatalimenta_ If under paragraph 18 j hereof the Property ia acquired by Lender, all right, tiUe and interest of Borrowet in and to any inaurance policies and in and to the proceeds ; thereof resulting firom damage to Property prior to the sale or aoquisition shall paes to Lender to the extenf of the auma eecured by this ~ Mo:tgage immediately prior to such eale or aoquiaition. ~ 6. Preeervation and Maintenance of Property; Lesee6olde; Condominuma; Planned Unit Developmente. Borrower ahall keep ~ the Propetty in good repair and ahal! not rnmmit waste or permit impairment or deterioration of the Property and ahall rnmply with the i provieione of any lease if thie Mortgage ia on a leasehold_ If thia Mortgage ie on a unit in a oondominium or a planned unit development, s Borrower shall perform all of Borrower e obligationa under the declaration or covenants creatingor governing the condominium or plttnned g unit development, the by-laws and regulationa of the condominium or planned unit development, and conetituent documenta. If a ~ condominium or planned unit development ridet ia executed by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of such rider ahall be incorporated into and ahall amend and supplement the rnvenants and agreementa of this Mortgage as if the rider were a part hereof. t ~ 7. Protection of Lender's Security. If Borrower faila to perform the aovenante and agreementa oontained in thie Mortgage, or if any action or proceeding ie rnmmenced which materially affecte Lender'e intereat in the Property, including, but not limited to, emineat domain, ; insolvency, aode enforcement, or anangemente or prooeedinge involving a banlcrupt or deoedent, then I,ender at Leader's option,upon notice to Borrower mey malce euch appearances, dieburee such aums and te1~e euch action se ie neceesary to protect I,ender'e intereet, including, but not limited to, diabureement of reaeonable attomey'e fcee and entry upon the Property to make repaire. If Lender required mortgage inaurance as a condition of inelring the loan aecared by thie Mortgege, Borrower ehall pay the premiume required to maintain euch insnrance in effect until auch time aa the requiremant for auch ineurance tem~inatee in aooordance with Borrower's and Lende~a written agreement or epplicable Law. Borrower ehali pny the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereof. ' My amounte diebureed by I.ender perauant to thia paragraph 7, with intereet thereon, ahall become additional indebtedneee of Borrower eecured by thie Mortgage. Unleae Boaower and Lender agree to other terma of payment, auch amounta ehall be peyable upon s notice from Lender to Borrawer requeating paymentthereof, and shall bear interest from the date of diebureement at the rate payable from ~ time to time on outatanding principal under the Note unlees payment of intereet at auch rate would be oontrary to applicable law. in which } event auch amounte aha11 bear interest at the higheat rate permiesible under applicable law. Nothing contained in thia paragraph ehall ~ requ'ue Lender to incur any expenee or take any action hereunder. i ~ ! - e~~P~ JV~7 ~V~ ` s ~ . ~ - - F~e v ~ - - _ _