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HomeMy WebLinkAbout0447 Borrower and Lender cove~ant and agree as follows: 1. Peyaaent o[ Principa! aad Interes~ Borrower ehall promptly pay when due the principal of and interest on the indebtedness evidenCed by the Note, prepeyme~t and late charges as provided in the Note, snd the principal of and intereat on any I~ture Advancea secured by thia Mortgege. 2. ~nde for Ta:es snd Iaeurt~nee. Subject to applicable law or to a written waiver by I.ender, Aorrower shall pay to l.ende~ on tAe day monthly it?ataUmeate of princi~al nnd intereat are payable under lhe Note, unW ihe Note ia paid in full, a eum (herein "Fu~d~") equal to one~ twelEth of the yearly taxes and asaeasments which may attain priority over this Mortgage. and ground renta o~ the Property, if any, plua one twelfth of yesrly prrmium installmenta for hazard insurance, plus onetwelRh ofyear~jr premium inats?llmente for mortgage insurance, if any, all as rnaeonably estimated initially and itom time to time by L.ender on the basie of aseesaments and billx and masonabte eatimatee thereof. ~ The Flinda shall be held in an inetitution the deposits or acoountu of which are inaured or guaranteed by a Federal or State agency (including Lender if I.ender is euch an institution). L,ender shall apply the Funda to pay said tanee, aasessments, inaurance premiuma and ground nnta. Lender may not charge for so holding and applying the F~nds, analyzing aaid account, or veriEying and compiling xaid asseesmet~ta and biUs, unleas Le~der peys Sorrower interest on the Funds and eppUcable law permite Lender b make auch a charge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that intereat on the F~?nda shall be paid to Borrower, and unleas such agreement is made or epplicable law requires auch intereat to be paid, Lender shall not be required to pay Borrower any intereat or earninga on the Ftinds. Lender shaU give to Borrower, without charge, an annual aooounting of the E unds ehowing credits and debita to the Fuads and the purpose for which each debit to the 1~~?nde wae made. The ~nde are pledged ae additional security for the aume eecured by this Mortgage. • If the amount of the Flinda held by Lender, together with the [uture monthly inatallmenta of Funds payable prior to the due datea of ta~cea, eseeeaments, insurance premiume and ground rents, ahall exc~ed the amount required to pay said ta:ea. asseeamenta, inaurance premiume and ground rents as they [all due, auch excess ahall be, at Borrower a option. either promptly repaid to Borrower or credited to Borrower on monthly instellments of F~nde. If the amount of the fl~nda held by Lender ehall not be eufficient to pay t~ea, asaeeemente, inaurance premiume and ground rents ae they fall due. Borrower ahall pay to Lettder any amount neceeaery to make up the deficiency within 30daye from the date notice is mailed by Gender to Borrower requ~ting payment thereoL Upon payment in full of all sums eerured by this Mortgage, I.ender shall prompdy refuna fo ~orrower any funds held by Lender. If under paragraph 18 hereof the Property ie eold or the Property is otherwise acquired by Lender, I.rnuae ei~all apply, no later than immediately prior to the aale of the Property or its aoquisition by l.ender, any ~nda held by Lender at the time of application as a credit againat the euma secured by this Mortgage. 3. Application of Payments. Unleas applicable law providee otherwise. all paymente received by Lender under the Note and paragraphs i and 2 hereof shall be applied by Lender firet in payment of amounte payable to Lender by Bor~ower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereat and principal on any Futu~e Advances. 4. Charges; Liene. Borrower ahall pay all taues, aeseasments and other charges, fines and impositions attributable to the Property which may attain a priority over this Morlgage, and leasehold paymenta or ground rente, if any, in the manner provided under paragraph 2 hereotor, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thermi Borrower shall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipta evidencing such paymente. Borrower shall prumptly discharge any lien which hax priority over this Mortgage; provided, that Borrower ahall not be required to discharge any snch lien so long as Eio- rower ahall agree in wridng to the payment of theobligation aecured by such lien in a rnanner acceptable to Lender, or ahall in good faith contest such lien by, ordefend enforcement otsuch lien in, leqal proceedings which operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Hazard Inaurance. Borrower ehall keep the improvemenfe now eziating or hereafter erected on the Property ina~ued againat losa by fim, hazarda included within the term "extended coverage," and $uch other hasarde as Lender may requice and in sueh amounts and for such periods aa I.ender may require; provided, that Lender ahall not require auch ooverage amount exceeding the minimum, as may be required by state or [ederal regulationa governing adivities of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance ahall be chosen by Borro~ver subject to approval by l.ender; pn~vided, that such approval shall not be unreasonably withheid. All premiuma on insuranrn policies shall be paid in the manner provided under paraKraph 'L hereof or, if not paid in such manner, by Bonower making payment, when due, directly to the insurance carrier_ All inaurance policiea and renewals thereof ahall be in form acceptable to Lender and shaU include a standard mortgage clause in favor of and in form acceptable to Lender. Lender ehall have the right to hold the policies and renewala thereof, and Borruwer shall promptly furniah to i.ender all renewal notioes and all receipta of paid prnmiuma. In the event of loss, Borrower ahali give pmmpt notice to the insurance carrier ' and Lender. Gender may make proof of losa if not made prompdy by Borrower. ' ~ Unleaa Lender and Borrower otherwiee agree in writing, inaurance proceeda shatl be applied to reatoration or repa"u of the Property I damaged, pmvided auch restoration or repair ie economically feasible and the aecurity of this Mortgage ia not thereby impaired_ It suc6 f restoration os repair ie not economically feasible or if the necurity of this Mortgage would be impaired the ineurance proceeds shall be appGed to the aume secured by thia Mortgage, with the excese, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to reepond to Lender within 30 daya irom the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to setde a claim for ~ inaurance benefite. Lender ie suthorized to collect and apply the inaurance proceeda at [.ender a option either to restoration or repair of the ~ Property or the euma eecared by thia Mortgage. ' Unlees Lender and Borrower otherwiae agree in writing, any such application of praceeda to prinripal ahall not extend or poatpone the due ¢ date of the monthly :r.~~llmente referred to in paragrapha 1 and 2 hereof or change the amount of anch installmenta. If under paragraph 18 ~ hereof the Property ia aaquired by Lender. all right, title and intereat of Borrower in and to any inaurence policiea and in and w the proceeda ~ thereof teaulting from damage to Property prior to the sale or aoquieition ahall pass to Lender to the eztent of the sums secured by thia i Mortgage immediately yrior to auch sale or acquieition. _ 3 6. Preservation and blaintenance of Property; I.eaeeholde; Condominums; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and shall not commit weste or permit im{iaairment or deterioration of the Property and shall oomply with the ; provisiona of any lease if thie Mortgage ie on a leaeehold. If thie Mortgage ia on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligationa under the declaration or covenanta creatingor governing the condominium or planned ~ unit develo men the b•lawa and ~ p t, y regalaliona of !he condominium or planned unit development, and constituent documenta. If a ~ condominium ot planned unit development rider is execnted by Borrower and recorded together with thie Mortgage, the oovenante and agreementa bf auch rider shall be incorporated into and aha11 amend and au~plement the covenanta and agreementa of thia Mortgage as if the rider were a part hereof ~ 3 7. Protection of Lender'~ Security. If Borrower faila to perform the aovenanta and agreecnente contained in t6is Mortgage, or if any ~ action or proc~eeding is commenced which materiaqy effects Lender's interest in the Property, including, but not limited to, eminent ~main, ~ ineolvency. oode enforcement, or arrangemmts or prooeedings involving a bankrupt or decedent, then I.ender at I.ender's option,npon notice to Borrower may make such appearances, disbu~se auch sume and take such action as is aeoessary to protect I,ender's interest, ' includfng, bnt not limited to, diebursement of reasonable attorney's fees and entry upon the Property b make repait~. If Lender reqaired ~ mortgage insurance as a rnndition of making the loan sxured by thia Mortgage, Barrower shall pey the praninms reqaired to maintain wch insnrance in effect until such time as the requirement for such insurance terminates in aocordance with Borrower's and Lendde written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by L.ender perauant to thia paragraph 7, with intereet thereon, ehall beoome additional indeM~edneas of Borrower serured by thia Mortgage. Unleae Bonower and Lender agree to other terma of payment, auch amounts shaq be payable upon ~ notice from Lender to Borrower requeeting payment thereof~ and ehall bear intereaL from the date of disbursement at the rate payable from g time to time on outatanding principal under the Note unleas payment of interest at such rate would be oontrary to applicable law. in which ~ event euch amounts ehall bear intereet ai the highest rate permiseible under applicable law. Nothing contained in this peragraph 7. shall ~ require Lender to incur any e~epenee or take any action hereunder. ~ s ~ ~ . ~ =~`.311 446 :