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HomeMy WebLinkAbout0204 Borrower and Lender covenanl and agree as follows: 1. Psymeat o[ Prlacipal and Interes~ Borrawer ahell prompdy pay when due the principal of artd intcrest on the indebtednesa evidenoed by the Note. pnpayment and late chesges aa provided in the Note. and the principal of and interest o~ any ~ture Advances secured by this Mortgage. 2. P1ta4ie for Taxea and l~euraace. Subject to applicable law or to a writte~ waiver by I.ender. Bor~ower shall pay to I.ender on the day monthly inatullmenta of principal and intereet are payable under the Note. until the Note ia paid in full. a sum lherein "Fu~ds") equal to one- twelRh of the yearly taxes and esseasments which may attain priority over this Mo?tgage. and ground reate on the Property. if any. plus one- twelRh of yearly premium installmenta for hazard ir?aurance, plus onetwelfth of yearly preraium installme~ta for mortgage inaurance. if any. all as reasonably eatimated initially and from time to time by I.ender or? the basia of aesessmenta and billa and reasonable eetimatce thereof. t The rlinds ahall be held in an inatitution the depoaib or aoeounta of which are ineured or guaranteed by a Federal or Stete agency ,(includi~g Lender if I.ender ia such an inatitution). Lender ahall apply the ~nds to pay said taxea. assessmenta. insurance premiuma a~d ; ground rents. Lender may not charge for so holding and applying the FLads. analyzing said ecoount, or verifying and compiling said assesementa and bills, unleae Lender pays Borrowet interest on the F1nds and applicable law peanita Lender to make euch a charge. Borrower end Lender may agree in writing at the time of e:ecation of thia Moetgage that interest on the ~nde ehall be paid to Bor~ower, and unlese such agreement is made or applicable law requirea such interesL to be paid. Lender shall not be required to pay Borrower any inLereat or • earnings on the fltnds. Lendez ehall give to Botrower. withoat charge. an annual acoounting of the ~nde ehowiag ctedita and debite to the Funds and the purpoee for which each debit to the ~nda wae made. The ~nds are pledged as additional eecurity for the eume eecured by this Mortgage. If the amount of the ~nds held by I.ender, together with the future monthly inetallmenta of Funda peyable prior to the due datea of tazes. aeseeementa. inaurance premiuma and ground rente, ehall e:oted the amount required to pay said ta:es, asaessmente, insurance premiuma and ground renta ea they fall due. auch e:ceea ahall be. at Borrower e option. either promptly repaid to Borrower or credited to Borrower on moathly inetallmente of Fl~nds. If the amount of the ~nds held by Lender shall not be eufficieat to pay taxea, aseeeamente, insurance premiume and ground rente as they fall due. Borrower ehall pay b Lender any emount neceaeary to make up the deficiency within 30 daye from the date notice ie mailed by Lender to Botrower requesting payment thereof. Upon paymeat in full of all auma eecured by thia Mortgage, Leader ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the eale of the Property or it+ aoquiaition by Lender, any Flinds held by Lender at the time of application ae a credit againat the sums eecured by thia Mortgage. 3. Appiieatioa of Payments. Unleee applicable law provide8 otherwiee, all paymenta received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Leader firet in payment of amounts payabie to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, snd then to interest and principal on any Future Advanoea. 4. Chargea; Liena. Borrower ahall pay ail taxea, assesamenta and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold paymenta or ground rente, if any, in the manner provided under paragraph 2 hereof or, if not paid in auch manner. by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender all noticea of amounta due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah to Lender receipta evidencing such paymente. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien ao long as Borrower ahall agree in writing to the payment of tt~e obligation secured by such lien in a manner acceptable to L.ender, or ahall in good faith contest auch liea 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 thereot. ~ 5. Hazard Insurance. Borrower shall keep the impmvementa now exiating or hereafter erected on the Property insured against losa by fire, hazarda included within the term "eztended eoverage." and xuch other hazarde ae I.ender may require and in such amounta and forauch periods as Lende~ may require; provided. that I.ender shall not require auch coverage amount exceeding the minimum, as may be required by state or federal regulatione governing activities of Lendet, or that amount of cover~ge required to pay the eums secured by thia Mortgage, whichever ie the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Ixnder; provided, that such approval shall not be unreasonably withheld. All premiums on inaurunce policies shall be paid in the manner providec3 under paragruph 2 hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier_ All insurance policies and renewals thereof ahall be in form accepta~le to Lender and ahall indude a standard mortgage clause in favor of and in form acceptable to Lender. L.ender shall have the right to hold the policies and renewala thereof, and Borrower ahall prom ptly furnish to i.ender all renewai notices and all receipts of paid premiums. In the event of loss, Borrow er shall give prompt notice to the insurance carrier and Lender. Lender may make proof of losa if not made promptly by Borrower. F Unleea Lender and Borrower otherwiae agree in writing, inaurance prooeeds shall be applied to restoration or repait of the Property ` damaged, provided such reatoraiion or repaiu is economicaUy feaaible and the eecurity of this Mortgage ia not thereby impaired. If such ~ F reatoration or sepair is not economically feasible or if the security of thie Mortgage would be impaired, the inaurance proceeds shaU be applied j w the snma eecured by thia Mortgage, with the e~ccees, if any, paid to Borrower. If the Property is abandoned by Borrower. or if Borrower fails to P respond to Lender within 30 days from the date aotice ia mailed by I.ender to Borrower that the inaurance carrier offera to settle a claim for ; insurance benefits, Lender is authorized to collect and apply the inaurance proceeda at Lender'e option either to reatoration or repair of the g Property'or the suma eecured hy thie Mortgage. € Unleae Lender and Borrower otherwiee agree in writing, any auch application of proceeda to principal ahall not e~ctend or poatpone the due ~ date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. If under paragraph 18 ~ hereof the Property ia aoquired by Lender, all right. tide and interest of Borrower in and to any inaurance polir"ses and in and to the proceede ~ thereof reanlting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the extent of the suma eecured by thie , ~ Mortgage immediately prior to such sale or acquisition. . ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Pianned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisiona of any lease if thie Mortgage is on a leaeehold. If thie Mortgage ia on a unit in a oondominium or a planned unit development, ~ Borrower ehall perform all of Borrower'e obligationa under the declaration or covenanta creatingor governing the rnndomini~un or planned ; unit development, the by-Iaws and regnlations of the condominium or planned unit development. and constituent documenta. If a ~ condominium or planned unit development rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ agreementa of such rider ahail be incorporated into and ahall amend and suppiement the covenants and agreements of this Mortgage ae if the r rider were a part hereof. 7. Protection ot I.ender's Security. If Borrower fails to perform the oovenants and agreemente contained in thie Mortgage. or if any action or pmceeding is commenced which materially affecte I.ender's intereet in the Prop~ty. including, but not limited to, eminent domain, ~ insolvency, aode enfon~ement, or arrangements or pmoeedings involving a bankrnpt or deoedent, then Lender at Lendet's option,upon ; ~ notice to Borrower may make such appearaaces. disburee auch aume and take sucb action as is neceasary to protect I.ender's intereet, 5 inclading, but not limited to, diebursement of reaeonable attoraey's fees and entry upon the Property to make repaire. If Lender reqnired ~ mortgage inenrance as e condition of making the loan eecured by thie Mortgege, Borrower ehall pay the premiums required to maintain = each inearanoe in effect until auch time aa the requinment for euch inburance terminates in aceordance with Borrower'e•and Lender's } writtea egreement or applicabk Lew. Barrowet shaU pay the amount of all mortgage ineurance premiums in the menner provided undez ~ paragreph 2 hereof. . Any amounte disbureed by Lender pereuant to thie paragreph with intereet thereon, shall become additionel indebtednees of ; Bormwer secnred by this Mortgage_ Unleea BorrQwer and Lender agree to other tcrma ot paymeat, such amounts ehall be payabte upon ; notice from Lenda to Borrower requeeting payment thereof, and ehall bear intereat from the date of disbureement at the rate payable fi^om ~ time to time on ontatanding principal unda the Note unleee payment of interest at anch rate would be aontrary to applicable Iaa, in which ~ event auch amounte ahaU bear interest at the highest rate permiaeible under applicable law. Nothing contained in thia paragraph 7, ehall ~ eeyuire I.ender to incur any e:penee or take any action hereunder. ~ ~ ~ ~ • ' ` ~ Lv~~ ~i~ +".~v• ~O~ . ~ z ::t