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HomeMy WebLinkAbout0856 . r Borrower and Lender covenant and agn~e ae folluws: ~ 1. Payment ot Pirlncipal and Interert. Rorrower ahall promptly pay when due the principal of aod intereat on the indebtedneea evidenced by tha Note, prepayment and late chargee ae ptovided in the Note, and the principal of and intere8t on any Ftiture Advancea eecund by thin Mortgage. 2. Etinds for Tazee nnd Ineurance. 5ubject to applicabie law or to a written waiver by l.ender, Kom,wer ehull pay to I.ender on the day monthly inatallmente olprincipal and interest are payable under the hote, until the Note ia pnid in full; n aum (he~ein "Funcls") equsl to one twelfth of the yearly taxee and uaseaementx which mxy attain priurity over thie Alortgnge, nnd ~und renta un the Pruperty, if any, plus one- twelfth of yearly premium installmenta for hazard inaurance, plua onelwelfih ofyearly premium installments for mortgnge insurance, if any, ail ae reaeonably eetimateci initiaUy and firom time to time by l.ender on the basis of ne~sesamenta und billa und rensonable estimates thereof. The FLnds shel) be held in an inatitution the deposite or accounts of which are ineured or guaranteed by a Federal or State agency (including I.ender if Lender ia euch an inetitution). I.e~der ahal! apply the Funds to pay snid ta:ea, aaaesamente, inaurance pmmiuma and ground rents. I.ender may not charge [or eo holding and appl~ing the Funds, analyung said account, or verifying and compiling said asseasments and h~~!a, u~lese Lender paya Borrowe~ intereet on the Funde and applicable law permite I.ender to make such a charge. Borrower and I.ender may agree in writing at the time of execution o( this Mortgage that intereat un the ~nde ahall be paid to Borrower, and unleas such agreement ia made or applicable Iqw requiree euch intereat to be paid, l.ender ahall not be required to pay Borrower any intemst or earningson the F`unds. Lender shall give to Born,wer, without charge, an annual accounting of the Funda showing credite and debite to the Funde and the purpoee [or which each debit to the Funda wae made. The Funda are pledged as additionul »ecurity for the eums e~ecured by thie Mortgage. If the amount of the ~Lnda held by I.ender, together with the future munthly inxtallments cf Funda payable prior to ihe due dates of taaea, aeseasmenta, ineurance prnmiuma and ground rentt+, ehaU exceed the amount required to pay said taxes, sesesamenta, ineurance premiuma and ground rente ae they faU due, auch excess ahall be, at Borr~wer's option, either promptly repaid to Borrower or credited to Eiorrower on monthly inatallments of Ftinds. If the amount of the Funds held by I.ender shall not be su~cient to pay ta:ea, asaessments, insurance premiiune and ground rente as they fall due, Borrower ehall pay to l,ender any amount necessary to make up the deficiency within 30 daye from the date notice ia mailed by t.ender to E3orrower requeating payment thereof. Upon payment in full of all euma eecured by this MortKage, I.ender ahal) promptly mfund to F~~rrower any funda held by l.ender_ If under paragraph 18 hereof the Property ie sold or the I'roperty ie ~therwise acquirec! by Lender, l,ender sh:?II :~pply, no laler than immediately prior to the sale of the Property or ite acquiaition by I.ender, any F und» held by l,ender at the time of appiica?ion as a credit aKainst the ~ums xecured by thie Morlgage. ' 3. Applieation ot Paymente. Unleas applicable Iaw providea othervrise, all paymentu received by Lender under the Note and paragrapha 1 and 2 hereof ehall be applied by l.ender firat in p:~yment of amounts payeble tn I.ender by F3orruv?er under paragraph 'L hereof, then to interest payable on the Note, then to the principal o[ the Note, and then tn inlerest ~nd principal on any Future Advances. 4. Charges; Liena. Borrower ahall pay all taxes, assessmenta nnd othrr ciiarKea, fines:~ml impoeitions .~ttributahle tu the Property K•hich may attain a priority over this Mortgage, and leasehold payments nr ground rrnts, if nnp, in the manner provided under paraKruph 2 hereuCor, if not paid in such manner, by Borrower making payment, when due, direclly to the pa_r•ee thereof. Rormw•er shall promptly furnish to l.ender aU noticea of amounta due under thia paragreph, and in the event Rorrower shall make pat ment dircrll~ , Rorn~wer shall prumptly fumish tu l.ender receipts evidencing euch payments. Borruwer shall promptiy discharge any lien whirh h:~~ priority ovt~r this Mon~age; pro~~idcd, thpt F3orrower shall not be required todischarge any such lien so iong as Korrvwerahall ugree in writinK to the payment of the ubliKation secured by such lien in a manner acceptable to Ixnder, or shall in guod faith rnntest such lieo hy, ordefend en(orremi•nt of,uch lien in, I~~al. prex•ecKiintis which operate to prevent the enforcement of the lien or forfeiture of the Property or any part therr~d. 5. Hazard Ineurance. Borrowe* shall keep the improvements now exinting or hereafter erected on the f'roprrty innurcd nKainst luss by fire, hazarda included within the term "extended coverage," and such other hazards s~e l.ender may require .+nd in ~uch amuunt~~ :~nd for such periods ae [,ender may require; provided, that [~ender ahall not require such coverage amount exceeding the minimum, as may t?e reyuired by ~tate or federal regulations governing adi~~ties of Lender, or that amount of coveraqe rc~uired to pay the aumx securc~i by this MortKuge, whichever ia the greater. - The insurance carrier providinQ the insurance shall be chosen by liorruwer subject to app: ov:~i by Iwrnder. pruti id~~c1, that such xppruval ehall not be unrnasonably withheld. All premiums on insurance p~~licies shaU be paid in thr manner pru.~id~d und~•r pcir:+~;ruph h~•r~Y~f+~r, if not paid in such manner, by Borrower making p:~}~ment, when due, directly tu the insurance carrier. All inaurance policies and renewala thereof ahal) he in form acceptable to l.ender and shall inrlude a sta~~iard mort~taRe clauzse in favor oi I~ and in form acceptable to [.ender. I.ender ahaU have the right to hold the poi~eiea and renewala thereof, and Iinrru..•er shall prom ptly furnish t~~ ~ ?.ender all renewal noticea and aU receipte of paid premiuma. In the event of losa, Borruwer ahall give prompt n~,tice Gi the insurance carrier ' and Lender. LendeT may make ptoof of loas if nat made prompdy by E3orrower. Unleas Lender and Borrower otherwiee agree in writing, inaurance proceeds ahall be applied to reetoration or repair of the Property ~ damaged, provided such reatoration or repair is economically feaeible and the security ot this Mortgage is not thereby impaired. If such ' reetoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the inaurance procreda shall be applied ~ to the suma eecured by thie Mortgage, with the excese, if any, paid to Borrower. If the Property is abandoned by $orrower, or if Borrower fails to ~ respond to Lender within 30 daya ftom the date notice ia mailed by l.ender to Bormwer that the inaurance carrier oFfers to settle a claim for ~ inaurance benefita, Lender in authorized to collect and apply the insurance proceede at Lendei s option either to reAtoration or repair of the ~ Property or the eums secured by thie Mortgage_ . Unleae i.ender and Borrower otherwise agree in writing, any euch application of proceede to principal shall not exten~ or postpone the due date of the monthly inatallmente referred to in paragraphe 1 and 2 hereof or change the amount of euch installmente. If under paragraph 18 hereof the Prnperty ie aaquired by I.ender, all right, tide and interest of Borrower in and to any inaurance policies and in and to the proct.~eda thereof resulting from damage to Property prior to the eale or acquiaition shall paea to Lender to the extent of the auma secured by this ~ Mortgage immediately prior to auch sale or acquieition. ~ ~ 6. Preaervetion and Maintenance of Property; Leaseholde; Condominume; Plunned Unit Developmenta. f3orrower ahall keep the Property in qood repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisione of any lease if this Mortgage ia on a leasehold. if thie Mortgaqe ia on a unit in a eandominium or a planned unit development, tionower shaU perform all of I3orrower'e obligations under the declaration or covenan4+ creatinKor governing the condominium or planned unit developmer.t, the by-laws and regulatione of the conduminium or planned unit development, and conatituent documents. If a ~ cor.dominium or planned unil drvelopment rider is e:eruted by Borrower and recorded together with thia Mortgage, the wvenania and ~ agreement~s of such rider shall i?e incor{wrated into t~nd shall amend and supplement the covenants and agreementa of this MorLKage as if the rider were a part hereof. ~ 7. Protection of Lender'~ Secarity. If Borrower faile to perform the oovenante and agreementa contained in this Mortgage, or if any ~ aciion or proceeding ia rnmmenced which tnaterially affecte Lender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency, oode enforcement, or arrangemente or proceedinge involving a banlwpt or deoedent, then Lender at Lender's option,upon ~ notice to Borrower may make auch appearances, disburse auch sums and talce auch ection ae is neceseary to protect Lender's interest, ~ including, bnt not limited to, disburoement of reasonable attorney's fees and entry upon the Property to malce repairs. If Lender required ~ mortgage insurance as a condition of malting the lot?n eecured by thia Mortgage, Fiorrower ahall pay the premiums required to maintain ~ such insnrance in eftect until euch time as the requirement for auch insurance terminatee in accordance with Borruwer'e and Lender s } ~ written aqrcement ot applicable l.aw. Borrower shall pey the amount of all mortgaqe inaurance premiums in the manner provided under ~ ~ paregraph 2 hereof. - ~ My emounte diebureed by [.ender pereuant tn thia paragraph 7, with intereet therer~n, ehall become edditional indebtedness of ~ Borrower secured by thie Mortgege. Unleae Borrower and I.ender agree to other terms ot payment, auch amounts ehall be payable upon ~ notice from I.ender to Borrower requeeting payment therenf, and ehall bear intereet fmm the date of diebureement at the rate payabfe from ~ time to time on outetanding principal under the Note unleise payment of intereat at such rate would be contrary to applicable law, in which - event euch amounte ahall bear intereat at the highest rate permiseible under applicable law. Nothing' contained in thie paragraph 7, ehall ~ require Lender to incnr any expenee~ or take any action hereunder. ~ : a C+kr ?'A(,f V V~ ~ ' . . .