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HomeMy WebLinkAbout0995 Borrower and I.ender covenant and agree ae follows: 1. Payment of Principal a~d I~tereet. Borrower ahall promptly pay when due the principal of and intereet on the indebtednesa evidenced by the Note, prepayment and late chargee as provided in the Note, and the principal of and intereat on any Future Advencee secured by this Mortgage. 2. F~tnde for Tases and Insurance. Subject to applicable law or b a written waiver by l.ender, BoROwer ahall pxy to Ixnder on the ~ay monthly installmenta of principal and intereat are payable under the Note, until the Note is paid in full, a aum (herein "~nde") equa! W one twelfth of the yearly taxes and easeaementa which may attain priority over thie Mortgage, and ground rents on the Property, if any, plua one~ twelRh of yearly premium inatallmente for hazard inaurance, plua onetwelflh of yearly premium installments for mortgage ineurance, if any, ali as rnaeonsbly eatimated initially and from tima to time by l.ender on the basis of asaesamenta and billa and reaeonable eatimatea thereof. The Fl~nds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including I.ender if I.ender is auch an institution). Lender shall apply the ~~da to pay said ta:ea, asseasmenta, inaurance premiums and ground rents. Lender mayr not charge for so holding and applying the Funds, analyzing said account, or veri[ying and compiling said aeseeamenfa and bills. unlees Lender pays Borrower intereet on the Funds and applicable law permits I.ender to make euch a charge. Borrower and Lender may agree in writing at the time of execution of thie Mortgage that intereat on the Runda shall be paid to Borrower, and unlesa such agreement is made or applicable law requiree auch intereat tu be Raid, l.ender ahall not be required to pay Borrower any intereat or earnings on the FLnds. Lender ahall give to Borrower. without charge, an an~ual accounting of the Funda ahowing credits and debits to the Funde and the purpoee for which each debit to the ~nda was made_ The Funda are pledged ae additional eecurity for the eume eecured by thie Mortgage. If the amow~t of the Fl~nde held by Lender, together with the future monthly installments of Funds payable prior to the due datea of taxee, aseeaemente, inaurance premiuma and gmund mnts. ahall excaed the amount required to~y said taxes. aeeeasments, insurance premiuma and ground rente as they fall due. such esceee ehall be, at Borrower'e option, either promptly repaid to Eiorrower or credited to Borrower on monthly installmente of ~nde. If the amount ot the Funde held by Lender ahall not be snfficient to pay ta:es, aesesamenta, insurance premiume and ground renLs aa they fall due, Borrower shall pay to I.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requestir.g payment thereof. Upon payment in full of all suma eecured by this Mortgage, l.endec aha11 promptly refund to Borrower any funda held by I.ender. lf under paragraph 18 hereof the Property ia eold or the Property is otherwise acquired by Lender, Lender ahall apply, no Iater than immediately prior to the eale of the Property or ite acquisition by Lender, any ~nda held by Lender at the time of application as a rredit againat the suma secured by this Mortgage. 3. Application ot Payments. Unieas applicable law providea otherwiee, all paymenta rec~ei~ed by Lender under the Note and pacagrapha 1 and 2 hereof ahall be applied by I.ender firxt in payment of amounts payabie to [.ender by Borrower under paragraph 2 hereof, then 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; Liene. Borrower shall pay all taxes, assessmenta and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground renta, if any, in the manner provided under paragraph'l hereof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower sht~ll promptly furnish to Ixnder all noticea of amounta due under this paragraph, and in the event Borrower shall make payment directly,l3orrower shall promptly turnish to Lender receipts evidencing auch payments. Borrower shall promptly dischnrge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todiacharge any such lien so long as Borrowershall agree in writing to the paymento[theobligation secured by such lien in a manner acceptable to Lender, or ahall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent ihe enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Ineurance. Borrower shall keep the improvements now existing or hereafter erected on the Property inaured aqainst losa by fi re, hazards included within the term "eztended coverage; ' and auch other hazarda ae Lender may require and in such amounts and for such periods as I.ender may requ'ue; provided, that Lender ahal! not require such ooverage amount exceeding the minimum, as may be required by state or federal regulationa governing activitiea of Lender, or that amount of coverage required to pay the aums secured by this 111ortgage, vrhichever ie the greater. The insurance carrier providing the inaurance shall be chosen by ~3orrower subject to approval by l.ender, pro~ ided, that such approval shal! not be unreasonably withheld. All premiums on insurance policies shull be paid in the manner provided under parati?raph `l herenf or; if n~t paid in such manner, by Borrower making payment, when due, directly to the insurance c~+rrier. All insurance policiee and renewals thereof ahall be in form acceptabie to I.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower shall promptly fumish to i.ender all renewal notices and all receipta of paid premiume. In the event of losa, Borrnwer shall qive prompt notice to the insurance carrier ! and Lender. Lender may make proof of loas if not made promptly by Borrower. ~ Unlesa Lender and Borrower otherwise agree in writing, inaurance proceeds shall be applied to reatoration or repair of the Property ~ damaged, provided auch reatoration or repair ia economically fessible and the aerurity of this Mortgage ia not thereby impaired. If such reatoration or repair ie not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied i to the aume secured by thie Mortgage, with the ezceae, if any, paid to Borrower. If the Property is abandoned by Borrower, ar if Borrower faila to ~ reapond to Lender within 30 daya from the date notice ia mailed by Lender to Borrower that the inaurance carrier oPfere to settle a claim for ~ inaurance benefits, L.ender is authorized to rnllect and apply the inaurance proceeda at Lender a option either to restoration or repair of the Property or the suma eecured by thie Mortgage. ~ Unlesa Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal shall not extend or postpone the due ~ date of the monthly inatallmente referred to in paragrapha 1 and 2 hereof or change the amount of such installmente. tf under paragraph 18 ~ hereof the Property ie aoquired by Lender, all right, tide and interest of Borrower in and to any inaurance policies and in and to the proceeda thereof resulting from damage to Property prior to the sale or acquisition shall pass to I.ender to the extent of the aums aecured by this Mortqage immediately prior to such eale or acquieition. ~ 6. Preservation and Maintenance of Property; I.easeholde; Condominvma; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the provisione of any leaee if this Mortgage is on a leasehold. If ihis Mortgage ia on a unit in a oondominium or a planned unit development, Borrower shall perform all of Borrowei e obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-lawe and regulatione of the rnndominium or planned unit development, and constituent documents. If a ~ condominium or planned unii development rider is executed by Borrower and recorded together with thia Mortgage, the oovenants and agreements of such rider ahall be incorporated into and ahall amend and supplement the covenants and agreements of thia Mortgage ae if the ~ rider were a part hereof. 'f 7. Protection of Lender's Security. If Borrower faile to perform the oovenante and agreements oontained in this Mortgage, or if any - action or proceediag is commenced which materially affects Lender'e intereet in the Property, including, but not limited to, eminent domain, Nt ineulvency, aode enforcement, or arrangements or proceedings involving a bankr~pt or deoedent, then Lender at Lendei a option,npon notice to Barrower may make auch appearanoes, disburse such aume and take euch action as is neoesaary to prot~ect Leader's interest, ~ ~ inclnding, but not limited to, diebureement of reasonable attorney's fces and entry upon the Property to make repaire. If Lender required ~ mortgage insurance aa a condition of making the loan eecured by thie Mortgage, Borrowe: ehall pay the premiuma reqaired to maintain ~"t euch insnrance in effert until euch time ae the requirement for auch insurance terminatee in accordance with Borrower'e and Lender'e written agreement or applicable I.aw. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner provided under PsraSraPh 2 hereof. My amounte diabureed by Lender pereuant to thie paragraph 7, with interest thereon, ahap become additional indebtednese of _ ~ Borrower secured by thia Mortgage. Unlesa Bonower and Lender agree to other terms of payment, auch amounte ehall be payable upon ~ notice from I.ender to Borrower cequesting payment thereof, and ehall bear interest from the date of diabureement at the rate payable from time to time on outatanding principal under the Note unleea payment of interest at auch rate wouid be contrary to applicable law, in which ~ event euch emounte aha11 bear interest at the higheet rate permiseible under applicable law. Nothing rnntained in thie paragraph 7, ehall ~ require Lender to incur any e:penae or take any action hereunder. ~ ~ . ~ 3U~r 310 "ai,; ~ _ ` } 995 ~ ~ ~