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HomeMy WebLinkAbout2912 Bormwer and I.ender covenant and agree as follows: 1. PaymeAt of Principal and Interest. Borrower ahall prr,mpqy pay when due the principal oi and intereat on the indebtedneas evidenced by the Note, prepayment and late chargee se pro~lded in the Note. and the principal ot and inter~at on any Ftiture Advancee aecured by thia Morfgege. ~ 2. I~nds for Tues and Insurance. Subject to npplicable law or to a written waiver by l.ender, E3orrower ehal l pay to l.endec on the day ~ monthly inetallmenta of priacipal and interest are pnyable under the Note, until the Note ia paid in full, a sum (herein "Funds") equal to o~e ~ twelfth of the yearly taxes and seaesamente which may attain priority over Ihis Mortgage, and ground rente on the Property, if any, plua one~ twelRh of yearly premium installments for hazard inaurance, plue one~twelRh of yearly premium inatallmenta for mortgage i~aurance, if any, all es reaeonably eatimated initially and trom time to time by I.ender o~ the basis of aeaesame~ts and billa and rnasonable eatimates thereof. The P4nds shaU be held in an inetitutio~ the depoaits or accounta of which are ineured or guaranteed by a Federal or State agency ` (including I,ender i! Lender is auch an institution). Lender ehall apply the Funde to pay said taxee, asseasmenta, inaurance premiums and ; ground rents. I.ender may not charge for eo holding and applying the Ftinde, analyzing said account, or verifying and compiling said aesesemente and bills. unleas Lender paya Borrowerinterest on the ~nds and epplicable law permite I.ender to make euch a charge. Borrower and I.ender may agree in writing at the time of execution of thia Mortgage that interest on the F~nde ahall be paid to Borrower. and unlesa anch agreement ia made or applicable !aw requiree auch intereat to be paid, I.ender shall not be required to pay Borrower any intereat or earninga on the I~Lnds. Lender ehaU give to Borrower, without charge. an a~nual acrnunting of the ~nde ahowing credita and debita to the Fands and the purpose for which each debit to the F`unda was made. The Funde are pledged as additional aecurity for the aums eecured by thie ` Mortgage. If the amount of the Fl~nda held by Lender, together with the future monthly inetallmenta of Funds payabte prior to the due datea of tauea, aeaeaemente. inaurance premiume and ground rente, ahall ezc+zed the amount required to pay eaid ta:es, aeaesamenta, inaurance premiums and ground rente as they fall due, such exceas aha11 be. at Borrower's option, either prompdy repaid to Borrower or credited to Borrower on monthly inetallments of Fl~nda. If the amount of the Funda held by Lender ahall not be aufficient to pay taxea, aseeeamenta. ineurance premiume and ground rents ae they fall due. Borrower ahall pay to Lender any amount neceseary to mal~e up the deficiency within 30 days from the date notice ie mailed by Lendrr to Borrower requesting payment thereof. Upon payment in fuU of all auma secnred by thia Mortgage, Lender ahall prompdy refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Ptoperty is aold or the Property ie otherwise acquired by [.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ite aoquieition by Lender, any ~nda held by Lender at the time of application as a credit againat the suma secured by thie Mortgage. • 3. Application of Payments. Unlesa applicable law provides otherwise, all paymenta~received by Lender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender fimt in payment of amounts payable to I.ender by Borrower under pa~aqraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Fnture Advances_ 9_ C6arges; Liene. Borrower ehall pay all taxea, assessments and other rharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold paymenla 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 ahall promptly furnish to I,ender - ali noticea of amounts due under this paragraph, and in the event Borrower ahall make payment direcdy, Borrower ahall promptly furnish to ~ Lender receipts evidencing auch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that f3orrower ahall not be required to discharge any auch lien so long as Borrowerahalt agree in writing to the payment of the obligation secured by such lien in a manner acceptable to L.ender, or shall in good faith conteat such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrower shall keep the improvementa now exieting or hereafter erected on the Property inaured aqainst lose by fire, hazarda included within the term "e=tended coverage," and euch other hazards as Lender may require and in such amounta and for such periods se Lender may require; provided, that Lender ahali not requite auch ooverage amount exceeding the minimum, as may berequired by state or federal regulations governing activitiea of Lender, or that amount of coverage required to pay 4he sums aecured by this Mortgage, whichever is the greater. The insurance carrier providing the ineurance shall be chosen by Borrower subject to approval by I,ender, provided, that such approval shall not be unreasonably withheld. All prnmiuma on inaurance policies shall be paid in the manner provided under paragraph 2 hereof or, if ~ not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ' All inaurance policies and renewala thereof ahall be in form acceptable to Lender and eha11 include a atandard mortgage clause in favor of ~ and in form acceptable to Lender. L.ender shall have the tight to hold the policiea and renewals thereof, and Borrower shall promptly furnish to i.ender aIl renewal notices and ali receipts of paid prem'iuma. In the event of loss, Borrvwer shall give prompt notice to the inaurance carrier ; and Lender. Lender may make proof of lass if not made promptly by Borrower. ~ Unless Lender and Borrower otherwise agree in writing, inaurance proceeds ahall be applied to restoration or repair of the Property ~ dameged, provided auch reetoration or repair is economically feasible and the eecurity of this Mortgage is not thereby impaired. If such , reatoration or repair ie not economically feasible or if the security of this Mortgage would be impa'ued, the inaurance proceeda ahall be applied 4 to the s~uns eecured by this Mortgage, with the e:cxss, if eny, paid to BorroweT. If the Property ie abandoned by Borrower, or if Borrower fails to respond to L.ender within 30 daya from the date notice is mailed by I.ender to Borrower that the insurance carrier ofters to setde a claim for ` ineurance benefits, L.ender ie authorized to collect and apply the insurance proceeda at Lendei s option either to restoration or rnpair of the ~ Property or the suma eecured by thie Mortgage. ~ Unlese Lender and Borrower otherwiae agrPe in writing, any auch application of proc~eeds to principal ahaU not extend or poatpone the due ~ date of the monthly inetallmente referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 ~ hereof the Property ie acquired by Lender, all right, tille and interest of Borrower in and to any inaurance policiea and in and to the proceeds ~ thereof re8ulting from damage to Property prior to the eale or acquieition ehall pase to Lender to the extent of the euma secured by this ~ Mortgage immediately prior to auch eale or acquisition. x 6. Preeervafion and Maintenance of Property; Leaeeholde; Condominums; Planned Unit Developmente. Borrower shall keep ~ the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall rnmply with the y provisione of any lease if thie Mortgage ie on a leaBehold. If thie Mortgage is on a unit in a condominium or a planned unit development, ~ F3orrower shall perform all of Borrower's obligationa under the declaration or rnvenanta creatingoT governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit development, and conatituent documenta. If a condominium or pianned unit development rider ie executed by Borrower and recorded together with thie Mortgage, the oovenanta and ~ agreements of such rider ahall be incorporated into and shall amend and aupplement the covenants and agreements of thia Mortgage as if the - rider were a part hereof. s Protection oi I.ender's $ecurity. If Borrower faile to perform the oovenants and agreements contained in thie Mortgage, or if any ~ action or proceeding ia commenoed which materially affecte Lender s interest in the Property, including, but not limited to, eminent domein, ~ ineolvency, oode enforcement, or arrangemente or pra~edings involving a banlwpt or decedent, then Lender at I.ender's option,upon ~ notice to Borrower may make such appearances, dieburee such eams and take such action ea is neceesary to protect I,ender's intereet, ? inclading, but not limited to, diebureement of reaeonable attorney's fcee and entry upon the Property to make repairs. If Lender required ~ mortgage insurance ae a condition of making the loan aecured by this Mortgege, Borrower ehall pay the premiums reqaired to maintain , ~ auch ineurance in effect until auch time as the requirement tor euch ineurance terminatea in accordance with Bonower'e and Lender'e E writLei? agreement or applicable Law. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under ; paragraph 2 hereof. ~ ~ My amounte dieburaed by Lender perauant to thie paragraph with intereet thereon, ehaU beoome additional indebtedneas of { ' E3orrower eecured by thie Mortgage. Unleae Bonower and I.ender agree to other terma of payment, euch amounte ehall be payable upon ' notice from Lender to Borrower requeating payment thereof, and ahall bear intemet from the date of diebursement at the rate payable from ~ time to time on outetanding principal under the Note unleae payment of interest at auch rate would be oontrary to applicable law~ in which ' y event such amounta shall bear intereet at the higheat rate permiaeible under epplicable law. Nothing contained in this paragraph 7, ahall ~ require Lender to incur any expense or take any action hereunder. ~ ~ I ; _ ~ 311 a~ . ~ ~:z~~o