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HomeMy WebLinkAbout2600 Borrower and Lender covenant and ag~ee as follows: 1. Paymeat of Principal and lnterea~ i3orrower ahall promptly pay when due the principel of and intereet on the i~debtedness evidenced by the Note. prepayment and late charges as provided in the Note, ac?d the principai of and intereet on any Ftiture Advancee eecured by chie Mortgage. 2 Plurds for Tazea and Insuranoe. Subject to applicable law or to a written waiver by I.e~der, Borrower ahall pay to Lende~ on the day monthly installments of principal and intereat are payable under the Note, until the Note ie paid in futl, a eum (herein "Funde") equal to one twelRh of lhe yeady ta:e8 and asaesementa which may attain priority over thie Mortgage, and ground renta on the Property, if any. plue one~ twelRh of ycarly premium iostallments for hazard inaurance, plua one-twelRh ofyearly premium inatallments for mortgage i~aurance, if any, all aa reaso~ably eatimated i~itialiy and trom time to time by l.ender on the basia of asseasmente and billa and reasonable estimatee thereof. T'he P1i~da shall be held in an institution the deposits or aceounts of which are inaured or guarantzed by a Federa! or State agency (including Lender i[ I.ender is auch an inatitution). Lender shall apply the ~lends to pay said tases, asaeaements, inaurance p~emiuma and ground rents. I.ender may not charge for so holding and applying the ~nda, analyzing said account, or verifying and compiling said aaseasmenta and bilis, unleas Lender pays Borrower intereat on the Ftiu?ds and eppliceble law permite L.ender to make such a charge. Borrower and l.ender may agree in writing at the timc of execution of thie Mortgage that intereat on the ~nda ehaU be paid to Borrower, and unleas auch egreement ia made or epplicable law requirea such interest to be paid. I.ender shall not be required to pay Bormwer any intereat or earnings on the Flu?ds. Lender ahall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debits to the Funds and the purpose for which each debit to the Ftinda was made. The Funda are pledged as additional eecurity for the auma eecured by this Mortgage. If t}?e amow?t of the ~nda held by L.ender. together with the future monthly instalimenta of Funda payable prior to the due datea of taxea, " aeaeesmenta, inaurance premiums and ground rents. ahall exe2ed the amount required to pay eaid la:ea. aeaesamente. insurance premiums and ge~ound renta ea they fali due, auch exceae ahall be, at Borrower s option, either pmmpdy repaid t~ Borrower or rredited to Borrower on monthly installmenta of I~nds. If the amount of the Funda held by I.ender ehall not be eufficient to pay taxea, assesamenta, insurance premiums and ground rents as they [all due. Borrower ahall pay to Lender any amount neceaeary to make up the deficiency wilhin 30 daya from the date notice is mailed by Lendet to Borrower requesting payment thereof. Upon payanent in full of all sume secured by this Mortgage, Lender ahall protnpdy refund to Borrower any funds held by Lender. If under paragrnph 18 hereof the Property ie aold or the Property is otherwiee acquiredby•L• ender, I~nder ahall apply, no later than immediately prior to the eale of the Property or ite aoqnieition by Lender, any ~1nds held by I,~nder atlhe time of application as a credit againet the sums secured by this Mortgage. ' , ~ 3. Applieatioa of Payments. Unless applicable law providea otherwiee. all paymente received by I.ender under the Note and paragraphe 1 and 2 hereof ehall be applied by Lender first in payment of amounts payable to Lender by Borrower 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 Future Advancea. 4_ Charges; Liens. Borrower ahall pay all taxes, assessmenta and other chargea, fines and impositions attributabie to the Property which may attain a priority over this Mortgage, and leasehold paymenta or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof E3orrower shall promptly furnish to I.ender ail noticea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furniah tu I.ender receipts evidencing such paymenta. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long ae Borrower ahall agree in writing to the payment of the obligation 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 proceeciings which ope~rate to prevenl the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hezard Iasuraace. Borrower ahall keep the improvements nov? e:isting or hereafter erected on the Property ineured againat loas by fire, hazarda included within the term "e:tended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require auch coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of rnverage required to pay the suma secured by this Mortgage, whichever ia the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by i.ender, provided, that such approval shall not be unreaeonably withheld. All premimns on inaurance policies shaU be paid in the manner pmvided underparagraph 2 hereof or, if ~ not paid in auch manner, by Borrower making payment, when due, directly to the insurance carrier. ~ All inaurance policies and renewals thereof shall be in form acceptable to L.ender and ahall include a standard mortgage clauae in favor of ~ and in form acoeptable to Lender. L.enderahall have the right to hold the policiea and renewals thereof, and Borrower ehall promptly furnish to ; i.ender all renewal notices and all reveipte of paid pmmiume. In the event of losa, Borrower ahall give prompt notice to the insarance carrier i and Lender. Lender may make proof of loss if not made promptly by Borrower. ! Unlese Lender and Borrower otherwiee agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~ dam ed, vided such restoration or air ia economicall Eeasible and the eecurit of this Mo a e ie not thereb ~m red. If such as ~r r y ~s g y' ~i ! reatoration or repair is not economically feaeible or if the eecurity of this Mortgage would be impaired, the inaurance proceeds ahall be applied ~ to the euma sec~red by this Mortgage, with the e:ceas, if any, paid to Borrower. If the Property ie abandoned by Borrower, or if Rorrower faila to reapond to Lender within 3U daye from the date notice ia mailed by Lender to Borrower that the inaurance carrier offers to eettle a claim for t inaurance benefita. Lender ie anthorized to collect and apply the insurance proceeds at Lender s option either to reatoration or repair of the € Property or the sume secnred by thie Mortgage. Unleae Lender and Borrower otherwiee agree in writing, any such application of pioi.~eeda to principal ahall not extend or poatpone the due date of the monthly inatallmenta referred to in paragrapha 1 and 2 hereof or change the amount of such installments. tf under paragraph 18 henwf the Property is aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeda ~ thereof reeulting from damage to Property prior to the sale or acquisition shall pass to L.ender to the extent of the eums secured by this ~ Mortgage immediately prior to euch sale or soquisition. ~ 6. Preservation and Maintenance of Property; Leaseholde; Condominume; Planned Unit Developmente. Borrowershall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the ~ provisiona of any lease if thiR Mortgage ia on a leaeehold. If this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower ahall perform all of Eiorrower'e obligatione under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-lawe and cegulations of the condominium or planned unit development, and conetituent documenta. If a ~ condominium or planned unit development rider ie eaecuted by Borrower and recorded together with this Mortgage, the oovenants and ~ agreements of auch rider ahaU be incorporated into and ahall amend and supplement the covenants and agreementa of thia Mortgage as if the ~ ' rider were a part hereof.- . ; Protection o! I.ender's Security. If Bosrower faile to perform the oovenante and agreemente oontained in this Mortgage, or if aay ~ action or proceeding ia rnmmenoed which materially aftecte Lender'e intereet in the Property, including. but not limited to, eminent domein, ~ ineolvency, oode ~forcement, or arrangemeats or proccedings involving a bankrupt or deoedent, then Lender at Lender'e option,upon . ~ notice to Borrower may make auch appearanoes, dieburee euch snms and ta1~e euch action sa is neeessary to protect Lender's interest, ~ including. but not limited to, diebursement of reasonable attorney'a fees and entry upon the Property to make repaire. If I.end~ required z mortgage iaeurance as a condi~on of making the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain ~ such inanrance in effect until euch time as the requirement for auch ineurance terminatea in accordance with Borrower's and T.ender e ~ writLen agreement or appGcable Law. Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided under ~ paregreph 2 hereof. : Any amounts diabursed by Lendrr persuant to thie paragraph 7, with interest thereon, ahall become additional indebtednese of ~ Borrower eecured by thia Mortgage. Unleas Borrower and Lender agree to other terma of payment, euch emounts ehall be payeble upon notice from L.ender to Borrower reqaesting payment thereof, and ahall bear intereet from the date of diebursement at the rate payable ftom ~ time to time on outstanding principal under the Note unleae payment of intereet at euch rate would be oontrary to applicable law, in which ~ event such amounts shall bear intereat at the highest rate permiasible under applicable law. Nothing rnntained in thiB paragreph T, ehall require Lender to incur any expenee or take any action hereunder. ~ 3~?vr 31~ : : 2598 ~ ~ 7 ~ ~ ~