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HomeMy WebLinkAbout0828 Bonrower and Lender covena~t and agree as follows: 1. Payment of Principal and Intereet. Borrower ahall promptly pay when due the principal of and intereat on the indebtedneas evidenced by the Note, prepayment and late chargee ae pro~~ded in the Note, and the principal of and intereet on any F'uture Advancee aecured by thie Mortgage. 2. Ftiutda tor Taxes end lneurance. Subject to applicable law or to a writlrn waiver by I.ender, E3orrower shall pay to l.ender on the day monthly inatallmenta of principal and interest are payable under the Note, until the Note ia paid i~ full, sum (herein "Funda") equal to on~ twelfth of the yearly taxes and aaaessmenta which may ettain priority over this Mortgage, and ~und renta o~ the E'mperty, if any, plua one twelRh of yearly premium inetallmenta for hazard inaurance, plus onetwelRh ofyearly premium inetallmenta for mortgage ineurance, if any, all se reasonably estimated initially and from time to time by l.ender on the baeis of assessmenta and bills and masonable estimAtea thereof. Tfie Fl~nda ehall be held in an institution the deposite or accounte of which are ineured or guaranteed by a Federal or State agency (including l.ender if Lendei ia such an inetitution). Lender ahall apply the Funda to pay eaid taxee, asaeasmente, insurance premi~ma and- ~round rente. Ixnder mey not charge for eo holding and applying the ~nda, analyzing said account, or verifying and compil~ng said asaeasmenta and bille, unleas Lender pays Borrower interest on the Funds and applicable law permits Lender to make euch a charge. Borrower and I.ender may agree in writing at the time of execution af thia Mortgage that intereet on the Funde ehall be paid to Borrower, and unleas euch agreement ie made or applicable law requires auch interest to be paid, Lender ahall not be required to pay Bonower any interest or earninga on the Fl~nds. I.ender ehall give to Borrower, withoul charge, an annual acoounting olthe F~nde ahowing credita and debits to the Funds and the purpoee for which each debit to the Ftinda was made. The Funda are pledged as additional eecurity for the sume aecured 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 tanea, aesesamenta, inaiuance prnmiuma and ground rents, ahall excred the amount required to pay said taxea, asseasmente, inaurance premiums and ground rents as they fall due, euch exceas ahall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmenta of ~nda. If the amount of the Funds heid by I.ender ahall not be eufficient to pay taxes, assesamenta, inaurance premiume and ground rents as they tatl due, Borrower ahall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by l.ender Lo E~rrower requesting payment thereof. Upon payinent in full of all eums eecured by thia Mortgage, Lender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ie aold or the Property is otherwiee acquired by Lender, Lender ahall apply, no later than immediately prior to the eale of the Ptoperty or its acquiaition by [.ender, any Funda held by Lender at the time of application as a credit against the sums aecured by thie Mortgage. 3. Application of Paymente. Unlesa applicable law providea otherwise, all paymenta received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firet in payment of amounta payable to I.ender by Borrower under paragraph 2 6ereof, then to intereet payable on the Note, then to the principal of the Note, nnd then to interest and principal on any Future Advances_ 4. Charges; Liena. Botrowerahall pay all taxea, asseasments and othercharges, fines and impositions attributable to the Property which ma~ attain a priority over this Mortgage, and leasehold payments or ground rnnts, if any, in the manner provided under paragraph 2 hereoCor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to l.ender all notices of amounts due under thia paragraph, and in the event Eiorrower shall make payment directly, Borrower shall promptly fumish w Lender n~oeipts evidencing such paymenta. E3orrower shall promptly discharge any lien which has priority over this Mortgage: provided, that f3orrower ahall not be required to discharge any such lien so long as E3orrower ahall agree in writing to the payment of the obligation aecured by sdch lien in a manner aeoeptable to I.ender, or shall in good faith context auch lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiturn ot the Properiy or any part lhereof. 5. Hazard Ineuraace. Borrower ahall keep the improvementa now existing or hereafter erected on the Property insured against luss by fire. hazarda included within the term "eYtended coverage," and such other hazarda as I.ender may require and in such amounta and [or such periods as Lender may require; provided, that I.ender shall not require such ooverage amount exceeding the minimum, as may be required by state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay the suma secured by this Mortgage, whichever ia the greater. The ineurance carrier providing the insurance ahall be chosen by Borrower subject to approval by Ixnder, pmvideci, that such approval shall not be unrnasonably withheld. All premiums on insurance policies shall be paid in the manner pruvided under p~raKraph 2 hermf or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier_ All inaurance policiea and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in fa~ or of and in form acceptable to Lender. L.ender ahall have the right to hold t}ie policies and renewala thereof, and Borrower shall promptly turnish to i.ender all renewal noticea and all receipte of paid premiums. In the event of losa, Borruwer shall give prompt notice to the inaurance carr':er and Lender_ Lender may make proof of loss if not made promptly by Borrower. ; Unlees I.endet snd Borrower otherwiae agree in writing, inaurance ptoceeds shall be applied to reatoration or repair of the Property ~ damaged, provided auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impa:rrd. If auch i restoration or repair is not economically feasible or if the security of thia Mortgage would be impaired. the inaurance procee~a shall be applied ~ to the sumB aecured by this Mortgage, with the e:cese, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to reapond to Lender within 30 daya from the date notice ia mailed by I.ender to Borrower that the insurance carrier oPfers to settle a claim for ~ inaurance benefits, Lender ia authorized to collect and apply the insurance pra~eeda at Lender's option either to reatoration or repair of the ! Property or the suma eecured by this Mortgage. : ~ Unlesa Lender and Borrower otherwiae agree in writing, any such application of proceeda to princ~pal shall 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 installmenta. If under paragraph 18 ~ hereof the Property is acquired by Lender, all right, titte and interest of Borrower in and to any inaurance policiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition ahall pasa to Lender to the extent of the a~ma secured by this ~ Mortgage immedi8tely prior to auch eale or aoquiaition. S 6. Preaervation and Maintenance of Property; Leaseholda; Condominume; Planned Unit Developments. Borrovrer ahall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioratian of the Property and afiall rnmply with the ~ proviaions of any lease if this Mortgage is on a leasehold. [f this Mortgage ie on a unit in a oondominium or a planned unit development, ~ Eiorrower ahell perform all of E3orrower's obligationa under the declaration or rnvenants creatingor governing the rnndominium or planned ~ unit development, the by-laws and regulationa of the condominium or plenned unit development, and rnnetituent documenta_ If a ~ condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and # agreements of such rider ahall be incorporated into and ahall amend and eupplement the covenanta and agreementa of thia Mortgage as if the ~ rider were a part hereof. ~ ~ 7. Protectioa of Lender'e Securlty. If Borrower fails to perform the aovenants and agreemente rnntained in this Mortgage, or if eny a action or proceeding ia commenced which materially af[ecta I.ender a interest in the Property, including, but not limited to, eminent domain, ineolvency, oode enforoement, or arrangements or proceedinga invulving a bankrupt or deoedent, then Lender at Lender'e option,vpon = notice to Borrower may make auch appearances, disburee euch eums and take euch action es iB neceeeary to protect I,ender's intereat, c inclnding, bnt not limited to, diabureement of reasonable attorney'e fee8 and enhy upon the Property to make repaire. If Lend~ required ~ mortgage ineurance aa a condition of making the loan secured by thie Mortgage, Borrower ehall pay the premiums required to maintain ~ euch ineurance in ef'fect until such time ae the requirement for auch insurance terminates in aocordance with Borrower i and Lendefe 4 written agreement or epplicable Law. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. My amounte diabureed by Lender pereuant to thie paragraph 7, wilh intereet thereon, ahall become additional indebtedneae oi Borrower eecured by thia Mortgage. Unleas Borrower and Lender agree to other terh~a of payment, euch amounfe ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and shall bear inLereat from the date of diabursement at the rate payable from x time Lo time on outstanding principal under the Note unleas payment of intereat at such rate would be contrary to applicable law, in which ~ event snch amounta ahall bear intereat at the highest rate permiasible under applicable law. Nothing contained in thie paragraph 7, ahall ~ require Lender to incur any expense or take any action hereunder. ~ ~ ~ r' "~,310 ~ ~ ~ ~ ~ 828 ~ ~ ~ ~ ~