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HomeMy WebLinkAbout0872 Borrower end Lender covenant and agree as follows: 1. Payment of Prtncipal and Iaterest. Borrower shall promptly pay when due the prinripal of and intereat on the indebtedneas evidenced by the Note, prepayment nnd late charges as provided in the Note, and the principal of and interest on any Future Advancee secured by thia Mortgage. 2. Ptitnda for Taxes end Insurence. Subjec! to applicable law or to a written waiver by Lende~,l3orrowe~ ehall pay to [.ender on the day monthly inatallments of principal and interest are peyable under the Note, until the Note ia paid in full, a sum (herein "F`unds") equal to one twelfth of the yearly texes and aeec~ssments which may attain priority over this Mortgege. ana ground rente on the Psoperty. if any, plus one- twelRh of yearly premium inatallmente [or hezard ineurance, plue onetwelRh of yearly premium installme~ts for mortgage inaurance, if any. all as reasonebly eetirnated initially and firom time to time by l.ender on the basis of aeseaementa and billa and reasonabie eatimates thereoL The ~nds shall be held in an inatitutioa the deposits or accounfa of which sre insured or guaranteed by a Federal or State agency (inclnding I.ender if Leader is such an inatitution). L.ender ehall apply the FLnda to pay eaid ta:es, assessmente, inaurance premiuma and ground rents. Lender may not charge for so holding and applying the Fl?nds, analyzing said account, or verifying and compiling said asseasmenta snd bills, unlese Lender pays Borrower interest on the ~nda and applicable law permits I.ender to make euch a charge. Borrower and Lender mey agree in wriling et the time of execution of this Mortgage that interest on the Ftinde ahall be paid to Borrower, and unleea such agrcement is made or applicable law requiras such interest to be psid, I.ender ehall not be required to pay Bor~ower any intereat or earnings on the fi~nds. t.ender ehall give to Borrower, without charge, an annual accounting of the ~nds ahowing credita and debits to the Funds aad the purpoee for which each debit to the Ftinds waa made. The Funds are pledged as additional eecurity for the sume eecured by this Mortgnge. If the amount of the FLnda held by Lender, together with the future monthly installmente of Funda payable prior to the due datea of texes, aseeesments. ineurance premiuma and ground renta, ehall exored the amount required to pay eaid ta:ea, aeseeaments; inaurance premiuma and ground rents aa they fall due, such exceae ehall be, at Bortower B option, either pmmptly repaid to Borrower or credited to Borrower on monthly installmenta of PLnde. If the amount of the Funda held by Lender shall not be aufficient to pay taues. asaeasments, inaurance. premiums and ground nnta as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days fiom the date notice ie maited by Lender to Borrower requeating payment thereof. Upon payment in full of all aums eecured by thia Mortgnge, Lender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lendei. Lender shall apply, no later than immediately prior to the sale of the Property or ite aoquiaition by Lender. any ~nde held by Lender at the time of application ea a credit againat the aums secured by thia Mortgage. 3. Application of Payments. Unleas applicable lew provides othetwiee, all paymente received by Lender under the Note and paragraphe 1 and 2 hereof ahall be applied by Lender firat in payment of amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat peyable on the Note. then to the prinripal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liene. Borrower ahaU pay all taxea, assesements and other charges, fines and impoaitions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rente, if any, in the manner provided under paragraph 2 heteof or, if not paid in auch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower ahall prompdy furniah to I.ender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directly, Borrower shall promptly fumish to I,ender receipta evidencing such paymenta. Borrower ahall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahaU not be required to discharge any such lien ao long as Borrower ahall agtee in wriling to the payment of the obligation secured by such lien in a manner aceeptable to Lender, or ahall in good faith conteat such lien by, or defend enforcement of such lien in, legal proceedinga which operate to prevent the enforcement of the lien or forfeiture of the Properiy or any part thereof. 5. Hazard Ineurance. Borrower ahall keep the improvementa now exiating or hereafter erected on the Ptoperty ineured againat loss by firn, hazarda included within the term "e:tended coverage," and auch other hazards as Lender may require and in such amounts and for such periode as L.ender may require; provided, that Lender ahall not require auch rnverage amount ezceeding the minimum, as may be required by atate or federal regulations governing activities of Lender, or that amount of coverage required to pay the auma secured by this Mortgage, whichever ie the greeter. The insurance carrier providing the insurance shall be chosen by Borrower aubjeM to approval by I.ender; provided, that auch approval ' shail not be unreasonably withheld. All prnmiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by E3onower making payment, when due, directly to the insurance carrier. ~ All insurance policiea and rnnewals thereof shall be in form acceptable to Lender and ahail include a etandard mortgage clause in favor of ; and in form aoceptable to Lender. Lender ahall have the right to hold the policiea and renewals thereof, and Borrower ahall promptly furnish to i i.ender all renewal noticee and all receipts of paid premiuma. In the event of loes, Borruwer shall give ptompt notice to the insurance catrier and I.ender. Lender may make proof of loea if not made promptly by Borrower. ~ Unlesa Lender and Borrower otherwise agree in writing, insurance proceeda shall be applied to reatoration or rnpair of the Property E damaged, provided auch reatoration or repair ie economically feasible and the eecurity of thie Mortgage ie not thereby impaired: If such ~ reatoration or repait is not eoonomically feasible or if the security of thie Mortgeige would be impaired, the ineurance proceeda ahall be applied f to the aume eecared by thia Mortgage, with the e:cesa, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower faila to respond to Lender within 30 daye from the date notice is mailed by Lender to Borrower that the inaurance carrier of~ers to aettle a claim for ~ ineurance benefita. Lender is authorized to collect and apply the insurence proceeda at Lender'e option either to restoration or repair of the ~ Propertyr or the eume secured by thia Mortgage. ~ Unlese Lender and Borrower otherwiee agrPe in writing. any such application of proceeds to principal shall not e:tend or postpone the dae ~ date of the monthly installmenta referred to in paragrapha 1 and 2 hei+eof or change the amount of auch inatalimente. If under paragraph 18 ~ hrrnof the Property ia aoquired by Lender, all right, title and intereat of Borrower in and to any insurance policies and in and to the proceede thereof resulting from damage to Ptoperty prior to the sale or aoquisition ehall pase to Lender to the eatent of the st~ma secured by this ~ Mortgage immediately prior to euch sale or aoquisition. ~ 6. Preservation and Maintenance of Property; Leseeholde; Condominume; Plenned Unit Developmente. Borrower ahall keep the Proper4y in good repair and ehall not oommit waste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaions of any leaee if thie Mortgege is on a leasehold. If thie Mortgage ie on a unit in a oondominium or a plenned unit development, ~ Borrower shall perform all of Borrower'a obligationa under the declaration or covenante creatingor goveming the rnndamini~un or planned ~ unit development, the bylaws and regulatione of the condominium or planned unit development, and conetiiuent documente. If a ~ condominium or pianned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of euch rider shall be incorporated into and shall amend and supplement the covenanta and agreemente of thia Mortgageae if the ~ rider were a part hereof . 7. Protection o! Lender's Secnri If Borrower faila to :s ty. pertoran the oovenanta and agreements coatained in this Mortgage. ar if any ~ action or proceeding ie commenced which materially effects Lende~s interest in the Property, including, bnt not limited to, eminent domain. ineolvency. oode enforcement, or arrangements or proc.eedings involving a banknipt or deoedent, then Lender at Lender's option,upon notice to Borrower may make such appearanoee, diabnrse snch aums and take such aMion as is neoesaary to protect Leader's intaes~ including, but not limited to, diabureement of reasoneble attorney's fees and entry upon the Property to make repairs. If Leada reqnired ~ mortgage insurance as a condition ot making the loan aecured by thie Mortgage, Borrower ahall pay the premiums reqnired to maintain ~ euch insurance in effect until euch time as the requirement for such ineucance terminates in accordance with Borenwer's and Lendds ~ written agreement or appficable I.ew. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner provided nnder ~ paragreph 2 hereoL ~ ~ ; My amounts disbursed by Lender persuant to thie paragraph 7, with intereat thereon, ehall become additional indebtednesa of ~ Borrower secured by thia Mortgage. Unleas Borrower and Lender agree to other terme of payment, such amounte shaA be payable upon - ~ notice from Lender to Borrower requeeting payment thereof, and ahall bear intereat from the date of diabursement at the rate payable from ~ time to time on outatanding principal under the Note unless payment of inlerest at such rate would be oontrary to applicable law, in which event auch amounts ehall beer interest et the higheet rate permisaible under applicable law. Nothing contained in thia paragraph 7, shaU ~ requin Lender to incur any expenae or take any action hereunder. ~ ~ ~ - Rf,f:r . o.r. i ~ " ~ ~ k `311 R~~ ~