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HomeMy WebLinkAbout0513 E3orrower and l.ender covenant and agree ae followa: 1. Paymeat of Principal and Intereet. Borrower ahall promptly pay when due the principal oi and interest on the indebtedneas evidenced by the Note, prepayment and late chargea ea provided in the Note, and the principal of and interest on any Future Advancea secured by this Moryjage. 2. Runds for Tezee and Ineurance. Subject to applicable law or to a written waive~ by I.ender, Borrower ahall pay to I.ender on the day monthly inatalleienla of principal and intereat are payable under the Note, until the Note ia paid in full, a eum (hemin "I~tinda") equal to one twelfth of the yea~ly taxes and asseasmenta which may attain priority over this Mortgage, and ground rnnta on Ihe Piropeirty, if any, plua one twelfth of yearly pcemium installmente for hazard inaurance, plua onetwelfth ofyearly premium inetallmenta for mortgage inaura~ce, if any, all as reaeonably eatimated initially and from time to time by I.ender on the basis of asaeasments and bille and reasonable estimatee thereof. The Flinda shall be held in an inatitution the depoaits ot~ accounte of whfch are insured or Ecuaranteed by a Federal or State agency (including l.ender if l.ender ia auch an inetitution). Lender shall apply the Funds to pay eaid ta:ea, aesesamenta, inaurance premiuma and ground rente. L.ender may no4 charge for so holding and applying the ~Lnda, analyzing said account, or verifying and compiling said aeaeasments and billa, unleea Lender paya Borrower intereet on the ~nda and applicable law permite Lender to make auch a charge. Borrower and Lender may agree in writing et the tune of execution of thie Mortgage that interest on the Funda ahall be paid to Borrower, and unlese euch agreement ia made or applicable law requiree auch intereat to be paid, Lender ehall not be required to pay Borrower any intereat or earninga on the F~nds. Lender ehall give to Borrower, without charge, an annual accounting of the Funde ahowing credits and debita to the Funda and the purpoae for which each debit to the F~?nds wae made.'I9~e Fnnda are pledged as additional security for the sume secured by this Mortgage. Itthe amount of the ~Lnde held by I.ender, together with the future monthly installments of Funda payable prior to the due datea of taxea, seeesamenta, inaurance prnmiuma and ground renta, shall exc~ed the amount required to pay eaid taxea, aseeesments, inaurance premiuma and ground renta ae they fall due. auch e:ceae shall be, at Borrower'e option, either promptly repaid to Borrower or credited to_Borrower on monthly installmenss of Fande. If the amount of the Funda held by Lender shall not be aufficient to pay tazea, aseeesmente, inswance premiume and ground rents ea they fall due. Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the dete notice ie mailed by Lender to Borrower requeeting payment thereof. Upon payment in full of all aums aecured by this Mortgage, Lender shall promptly refund to Borrower any funds held by [.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, L.ender ahaU apply, no later than immediately prior to the eale of the Property or its acquiaition by Lender, any Funds held by Lender at the time of appticution as a credit against the auma secured by thie Mortgage. 3. Applieation of Paymeate. Unleas applicable Iaw provides otherwise, all paymentto received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereot, then to intereat payable on the Note, then to the prinripal of the Note, and then to interest and princ~pal on any Future Advances. 4. Charges; Liena. Borrower shall pay all taxes, as.4essments and other charges, fines and impositions attributable to the Property which may attain a priority over thia Mortgage, and leasehold payments or ground rents, if any, in the manncr provided under paraqraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. I3orrower shall promptly furniah to I.ender all notices of amounta due under this paragraph, and in the event Borrower ahall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing auch paymenta. Borrower shall promptly diacharge any lien which has priority over this MortgaRe; pmvided, that Borrower shall not be required to discharge any such lien so long as E3orrower shall agree in writing to the payment of the obligation secured by such lien in a mann~ acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement ofsuch 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 improvements now existing or hereafter erected on the Property insured against loss by fire, hazarda included within the term "extended rnverage," and xuch other hazarda ae I.ender may require and in such amounts and for such periods as Lender may require; provided, that L.ender ahall not require such coverage amount exceeding the minimu~n, as may be required by state or federal regulationa governing activities of Lender, or that amount of rnverage required to pay the sums secured by this Mortgage, whichever ie ihe greater. The insurance carrier providing the inaurance shall be chosen by l3orrower subject to approval by l.ender, provided, that such approval shall not be unressonably withheld. All premiums on insurance poiicies shall be paid in the manner provided under paraQraph `l hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policiea and renewale thereof ahall be in form acceptable to I.ender 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 ahall promptly furniah to i.ender ali renewal noticee and al} receipta of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insurance carrier ; and Lender. Lender may make proof of loas if not made promptly by Borrower. Unlese Lender and Borrower otherwiae agree in writing, insurance proceeds ahall be applied to restoration or repair of the Property ~ damaged, provided such reetoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If auch ~ reetoration or repair is not economically feasibte or if the security of this Mortgage would be impaired, the ineurance proceeda shall be applied to the auma secured by this Mortgage, with the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to ~ respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier offera to aettle a claim for € inaurance benefite, Lender is authorized to collect and apply the inaurance proceeds at Lendei e option either to restoration or repair of the ~ Property or the auma eec~red by this Mortgage. ~ Unlese Lender and Borrower otherwise agree in writing, any auch application of proceeda to principal ehall not extend or postpone the due ~ date of the monthly installmenta referred to in paragrapha 1 and 2 hereof or change the amount of such inetallments. If under paragraph 18 ~ hereof the Property ia acquired by L,ender, all right, title and intereat of Borrower in and to any insnrance policies and in and to the prceeeds chereof reaulting from damage to Property prior f.o the sale or acquisition ahall pass to Lender to the extent of the auma secured by this Mortgage immediately prior b euch sele or aoquisition. f 6. Preservation and Maiatenance of Property; Leaeeholds; Condominuma; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the ~ provieiona of any leaae if this Mortgage is on a leasehold. If this Mortgage is on a unit in a oondominium or a planned unit development, ~ Borrower ahall perform all of Borrower:a obligations under the declaration or covenants creatingor goveming the condominium or planned unit development, the by-lawe and regulationa of the condominium or planned unit development. and conatituent documents. If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the aovenants and agreementa of such rider shall be incorporated into and shall amend and supplement thecovenanta and agree:nents of this Mortgage as if the ~ rider were a part hereof. ~ 7. Protection ot I.ender'e Security. If Borrower faile to perform the oovenanfa and agreementa contained in thie Mortgage, or if any action or proceeding is commenoed which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, " inaolvency, oode enforcement, or arrangementa or prooeedinga involving a bankrupt or decedent, then Lender at Lender'e option,upon notice to Borrower may make auch appearancee, diabaree auch auma and take euch action ae ie neceaeary to protect Lender's intereet, =~7 including, but not limited to, diebureement of reaeonable attomey'e feee and entry upon the Property b make repaire. If Lender required - mortgage ineurance as a condition of making the loan secured by thia Mortgage, Borrower ehall pay the premiume required to maintain _ such inaurance in effect nntil ench time ae the requirement for auch inaurance terminatee in accordance with Borrower'e and Lender's = written agreement or applicabie Law. Borrower shall pay the amount of all morigage ineurance premiume in the manner provided under . 1 paragraph 2 hereof. ' ' ~ My amounte diaburaed by I.ender perauant to thie paragraph 7~ with intereet thereon, ehall become additional indebtedneas of ~ = Borrower eecured by thie Mortgage. Unlese Borrower and Lender agree to other terma of payment, euch amounta ehall be payable upon notice from I.ender to Rorrower requeating payment thereof, and ehall bear interest from the datc of diebureement at the rate payable from - time to time on outstanding principal under the Note unleae payment of intereat at euch rate would be wntrary to applicable law, in which event such amounte shall bear intereat at the higheat rate permiseible under applicable law. Nothing contained in thie paragraph 7, ahall ~ requ'ue L~mder to incur any expense or take any action hereunder. ~ r~ ~10 ~~a~: 5i3 ~ ~ . . ~