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HomeMy WebLinkAbout0399 liorrower and l.ender covenant and u~rree as followa: 1. Payment ot Principal and lnterret. l3orrowe~ ahnll promptly pay when due the principul of und interret un the indebtecine~x evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal of and intereat on a~y Future Advnncea secured by this Mortgage. 2.1~1tnde tor Tsxee and Ineurence. Subjecl to npplicuble It~w or to a writlen w uiver by l.ender, f~rrower bhnll puy tu Ixnder un the duy monthly inatallmenta of pri~cipal and intereat are puyable under the Note, until the Note ia paid in tull, n sum (hrrein "F unde") equnl to on~ tweifth of the yearly taxea und asseasments which may uttain priority over thie Mortgage, and ground renls on the !'rupeirty, if any, plua on~ twelRh of yeurly premium installmenta fo~ hnzi~rd insurance, plus onetwelfth ofyearly premium inatallmenta [or mortgiige inKUrance, if any, ull ns reaso~ably estimated initially and from time to tirr~e by Ixnde~ on the basia of assesxments nnd bills nnd reusonuble c~timat~~x thereof. The Funds ahall be held in a~ inetitution the depoeits or accounts of which are inaured or ~cuaranteed by a Federal or State agency ~(including l..ender if l.ender ia auch an inatitution). l.ender ahall apply the Funds to pay said taxee, aasesamenta, insurance prnmiums and ground rente. I.ender may not charge for so holding and applying the H~nds, analyzing said account, or verifying and cumpiling said aseesaments nnd bills, unlesa Lender paye Borrower intereat on the Funda und applicable law permit8l.ender to make such a churge. Borruwer and I.ender may agree in writing at the time of execution of this Mortgage that inte~eat on the Funds shaU be paid to Borrc?wer, and unleas such agreement ie made or applicable law requires such internst to be paid, l.ender ahell not be required to pay f3orrower any intereat or earninga on the Funde. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credits and debita to the Funds and the purpoae for which each debit to the Funda was made. The Funds are pledged as additional security forlheaums aecured by this Mortgage. If the amount of the ~nde held by l.ender, together wilh ihe future monthly inatallmenta of Funds payuble prior to the duedatea uf taxes, aseeasmente, insu~ance premiuma and ground rnnts, shall excred the amount required to pay said taxes, assesamenta, insurance premiuma and ground mnte as they fall due, auch excesa ahall be, at F3o~TOwer's option, either promptly repaid to Borrower or credited to I3orrower on monthly inetallments of Funds. If the amount of the Funda held by l.ender ahall not be~ufficient to pay taxea, asseasments, inaurance prnmiuma and ground renta ae they fall due, Borrower ahall pay to l.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by [.ender b Borrower requcwtinq payment thereof. Upon payment in fuU of all aums eecured by thia Mortgage, Lender ahall promptly refund to Borrower any tunds held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, I.ender ahall apply, no later than immediately prior to the sale of the P~operty or ita acquieition by I.ender, any ~nda held by I.ender at the time of application as a credit againat the sums secured by this Mortgage. 3. Applieation of Peymente. Unleas applicable law provides otherwiae, all puyments received by l.ender under the Note and paragraphe 1 and 2 heoeof shall be applied by l.ender firxt in payment of amounts payable to Lender by E3orrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intecest and principal on any Future Advancea. 4. Charges; Liena. Borrower shall pay all taxes, asseasments and othercharges, fines and impositions attributable to the f'ropert3 which may attain a priority over this Mortgage, and leasehold payments or ground rentrz, if any, in the manner pmvided under paragraph'L hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borruwershall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly Curnish to I.ender receipts evidencinq such payments. E3ormwer shal) promptly discharge any lien which has priority uver this Mortgnge; provided, that Borrower shall not be requireel to discharge any such lien so long as Iiorruwer shaU agree in writing to the payment of theobliKation secured by such lien in a manner acceptable to ixnder, or shall in good faith contest such lien by, ordefend enforcement of such lirn in, ic~al proceedinKs which operate to prevent the enfomement ot the lien or forteiture of the Property or any part thereoC. 5. Hazard Ineurance. Borrower shall keep the improvementa now existing or hereafter erected on the E'roperty insared against loss by fire, hazarda included within the term "extended rnverage; ' and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that I.ender shall not require such rnverage amount exceeding the minimum, as may be required by stnte or federal regulations governing activities of I.ender, or that amount of coverage required to pay the aums secured by this MortKage, whichever is the grnater. The insurance carrier providing the insurance shall be chosen by Burruwer subject to approval by l,ender, pn~vided, that such appro~•al shall not be unreasonably withheid. All premiums on insurancr p~dicies shaU.be paid in lhe manner pmvide~l under paraKraph 'L hereuf or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All inaurance policies and mnewais thereof ahall be in (orm acceptable to I.ender and shall include a standard mortgageclause in Favor of and in form accepfsble to I.ender. l.ender shall have the right to hold the policies and renewals thereof, and Borrower shall prom ptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borruwer shall give prompt notice tu the insurance carrier ~ and L.ender. Lender may make proof of loss if not made promptly by Borrower. Unleas Lender and Borrower otherwise agree in writing, inaurance proceeda ahall be applied to ~estoration or repair ot the Property j damaged, provided euch reatoration or repair is economically feasible and the security of this Mort~age is not thereby impaired. If such j restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied j to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Aorrower, or if E3orrower faila to reapond to Lender within 30 days fmm the date notice is mailed by I.ender to Borrower that the insurance carrier otYers to settte a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at I.ender a option either to restoration or repair of the 1 Pmperty or the suma secured by thia Mortgaqe. ~ Unleae Lender and Borrower otherwise aRree in writing, any auch application of proceeds to principal ahall not extend or poatpone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such inatatlments. If under paragraph 18 F hereof the Property is acquired by Lender, all right, title and intereat of Borrower in and to any inaurance policies and in and to the proceeds ~ thereof rneulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the extent of the aums secured by this ~ Murtgage immediately prior to auch sale or acquiaition. 6. Preeervation and Maintenance of Property; Leaseholds; Condominume; Planned Unit Developmenta. Borrower ahail keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ pmvieiona of any lease if thie Mortqage is on a leasehold. If this Mortgage ia on a unit in a rnndominium or a planned unit development, ? Borrower ahall perform all of E3orrower's obligatione under the declaration or covenants creatingor governing the conduminium or planned ~ unit development, the by-laws and regalations of the condominium or planned unit development, and constituent documenta_ If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with thia Mortgage, the covenanta and aRreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection of Lender'B 3ecurity. If Borrower fails to petform the oovenants and agreemente rnntained in this Mortgage, or if any ~ action or proceeding ie commenced which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, ' ineolvency, c~ode enforcement, or anangemente or proceedinga involving a bankrupt or decedent, then Lender at Lendei e option,upon ~ notice to Borrower may make euch appearancee, dieburee euch aume and take such action as is nec.essary to protect Lendei a intereat, including, but not limited to, diabureement of resaonable attorney'e feee and entry upon the Property to make repaire. If Lender required mortgage insurance as a condition of making the loan eecured by thie Mortgage, Borrower ehall pay the premiume required to maintain euch ineurance in effect until euch time ae the requirement for euch ineurance terminatee in accordance with Borrower e and Lender e ~ written agreement or applicable Law. Borrower ehall pay the amount of all mortgage ineurance premiums in the manner provided under ~ paragraph 2 hereof. ; Any amounte diebureed by Lender persuant to thie paragraph 7, with intereat thereon, ahall become additional indebtedneae of Borrower eecured by thie Mortgage_ Unleea Horrower and [.ender agree to other terme of payment, euch amounte ehall be puyable upon ~ notice from Lender to Borrovver requesting payment thereof, and shall bear intereat from the date of disburaement at the rate payable from ~ time to time on outatanding principal under the Note unleas payment of intereet at euch rate would be contrary to applicable law, in which ~ event such amounte ehal) bear intereat at the higheat rate permiseible under applicable law. Nothing contained in thie paragraph 7, ehall require [,ender to incur any expense or take any action hereunder. ~ , ~ ` ' r- ~09 . - 399 ~ . ~ - ~ ~ , ~ _ - - - . , ~ -