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HomeMy WebLinkAbout0232 Bomower and l.ender covenant and agree as [ollowa: 1. Payment of Priacipal apd Intere~t. Borrower shall promptly pay when due lhe principal o[ and intereat on the indebtedness evideaced by !he Note. prepayment and late chargee as provided in the Note, and the principal of and intereet on any Fl~ture Advances secured by thia Mortgage. 2. PLnde [or Ta=ee and Inaursnce. Subject to applicable law or to a written waiver by I.ender, f3orrower ahali pay to lxnder on the day monthly inatallmenta of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "H~nds") equal to one twelRh of the yearly taxea and neaesamenta which may attain priority over this Mortgage, and ground rente on the Property, if any, plus one- twelfth of yearly premium installmertte for hazard inaura~ce, plus onetwelRh of yearly premium inatallmente for mortgage inaurance, if any, ~ all as reasonably eatimated initisUy and from time to time by I.ender on the beaie of assessmenta and billa and ~easonable estimatea thereof. The ~l?nds shall be held in an inatitution the depoeits or aocouate of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is auch an institution). Lender ahall apply the Funda to pay said taxea, essessmente, inaurance prnmiume and ground nnta. Lender may not charge for eo holding and applying the ~nda, analyzing said account, or veritying and compiling said ase~ameate and bills, unlese I.ender pays Borrowet interrat on the fi~nda and appliceble law permite I.ender to make auch a charge. Borrower and Lender may egree in writing at the time of e:ecution of this Moetgage thet interest on the F~nda ahall be paid to Borrower. and unleea euch agrcement is made or applicable laa requires euch interest to be paid, Lend~ ehall not be required to pay Borrower any interest or earninga on the ~nds. Lender ehall give to Borrower, without charge, an annual acoounting of the ~nds ehowing credita and debita to the ~nda and the purpoee for which each debit to the ~nde was made.'l~e Funds are pledged as additional eecurity for the aume eecured by thie Mortgage. If the amount of the FLnde held by Lender, together with the future monthly inetallmente of Funds payable prior to the due datea of taxes, asee8amenta, ineurance premiume and ground rents, ahall excz~.d the amount required to pay eaid taxee, essesamente, insurance premiuma and ground rents as they fall due, euch e:ceas ahall be. af Borrower'e option, either prompUy repaid to Borrower or credited to Borrower on monthly inetallmenta of ~nde. If the amount of the Funda held by Lender shal! not be eufficient to pay ta~ces, asaesamente, ineurance premiums and ground rente as they fall due, Borrower ahall pay to I.ender any amount neceseary to make up the deficiency within 30 days from the date notice ia mailed by I.ender to Borrower requesting paymen[ thereof. Upon payment in ful! of all aume eecured by thie Mortgagie. Lender ehall rmmptly refund to Borrower any fnnds held by Ixnder. If under paragraph 18 hereof the Property is aold or the Property ie otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the sale of the Property or its aoquisition by Lender. any F~nde held by Lender at the time of application as a credit against the auma »ecured by this Mortgage. 3. Application of Paymenta Unleas applicable law providee otherwiee, all paymente received by Lender ~nder the Note and paregraphe 1 and 2 hereof ahall be applied by Lender firat in payment ot amounta payable to Lender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intereat and principa! on any Future Advancea. ~ 4. Charges; Liena. $orrower ahall pay all taxea, assessments and other charges, fines and impoaitions uttributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof o~, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. [3orrower ahall promptly furnieh to Lender all notices of amounta due under thia paragraph, and in the event E3orrower shall make payment directly, E3orrower shall promptly furnish to Lender receipts evidencing surh payments. i3orrower ahall promptly dischf?rge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as Rorrower shali agree in writing to the payment of the obligation aecured by such lien in a manner acceptable to I.ender, or shall in good faith contest auch lien by, or defend enforcement of such lien in, legal proceedings vrhich operate to prevent the enforcement of the lien or forfeiturn of the Property or any part thereof. 5. Haaard Insurance. BoTrower ahall keep the improvementa now existing or herea[ter erected on the Property inaured against loss by fire. hazards included within the term "e:tended coverage," and such other hazards as L.ender may require and in such amounts and for auch periods as Lender may require; provided, that Lender ahali not require auch coverage amount exceeding the minimum, as may be required by state or federal regulations goveming activities of I.ender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower s~bject to approval by I.ender, pmvided, that such appmval shall not be unreusonably withheld. AU premiums on insurance policies shall be paid in the manner pru~•idrd under paragrnph '2 hereof or, if nut paid in such manner, by Borrower making payment, when due, directly to lhe insurance carrier. All insurance policies and renewals thereof sha1) be in form acceptabie to Lender and ahall include a standard mortgage clause in favor of and in form acceptable to L.ender: I.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnieh to i.ender ali renewal noticea and all receipta of paid pmmiuma. In the event of losa, Bomuwer shall give prompt notice to the inaurance carrier ~ and Lender. I.ender may make proof of losa if not made promptty by Borrower. ~ Unlesa I.ender and Borrower otherwise agree in wtiting, insurance proceeda ahall be applied to restoration or repair of the Property ` damaged, pmvided auch reatoration or repair is economically [easible and the security of this Mortgage is not thereby impaired. If such ~ reetoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the inaurance prceeeda shall be applied ~ to the sums secured by this Mortgage, with the excess, if any, paid to Borrower_ If the Property is abandoned by Borrower, or if Borrower fails to C respond to Lender within 30 daya from the date notice ie mailed by Lender to Borrower that the insnrance carrier offera to eettle a claim for ~ insurance benefita, I.ender is authorized to collect and apply the inaurance proceeda at Lender a option either to reatoration or repair of the ~ Property or the auma eecured by this Mortgage. Unleae Lender and Borrower otherwiae agree in writing, any auch application of proceeds to principal shall not e:tend or postpone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 heteof or change the amount of such installmenta. If under paragraph 18 hereof the Property ie aoquired by Lender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acquiaition ahall pass to Lender to the e:tent of the suma secured by this Mortgage immediately prior to such sale or soquieition. 6. Preaervation and Maintenance of Property; Leaseholda; Condominums; Planned Uait Developments. Borrower shall keep the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any leaae if this Mortqage ia on a leasehold. if this Mortgage ia on a nnit in a condominium or a planned unit development, Borrower ahall perform all of Borrower'a obligations under the declaration or covenants creatingot governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conetituent documents. If a rnndominivm or planned unit development rider ia executed by Borrower and recorded together with thie Mortgage, the oovenante end agreements of such rider shall be incorporated into and shall amend and aupplement the covenants and agreements of this Mortgage as if ihe rider were a part hereof. 7. Protection of I.ender'e Security. If Borrower faile to perform the oovenante and agree~nente contained in this Mortgage. or if any ~ action or prooeeding ie commenced which materially aNecte I.ender e intereat in the Property, including, but not limited to, eminent domain, ; insolveney, oode enforcement, or arrangements or proceedinge involving s bankrupt or decedent, then Lender at I.ender's option,upon ~ notice to Borrower may make auch appearancee, diaburee euch e~uns and take auch action as ie neoeesary to protec! Lender's interest, including, but not limited to, disbureement of reasonable attorney`a feee and entry upon the Property to make repaire. If I.ender required ~ mortgage insurance ae a condition of making the loan eecured by this Mortgage, Borrower ahall pay the premiuma required to maintain ~ auch ineurance in effect until euch time as the requirement for euch ineurance tetminatea in accordance with Borrower's and Gender's ~ written agreement or applicable Law. Borrower ahall pay the amount of all mortgage ineurance premiume in the manner provided under paregraph 2 hereof. ~ My amounte diabureed by Lender persuant to this paragraph 7, with intereet thereon, shall become additional indebtedneee of ~ Borrower eecured by this Mortgage. Unlese Bonower and Lender agree to other terme of payment, euch amounte ehall be payable upon w notice from Lender to Borrower requeeting payment thereof, and ehall bear interest from the date of disbursement at the rate payable from ~ time to time on outetanding prinripal under the Note anleea payment of intereet at auch rate would be oontrary to applicable law, in which event such amounte ehat) bear interest at the higheat rate permiseible under applicable law. Nothing contained in this paragraph 7, ehail require Lender to incur any expenee or take any action hereunder. $ ~ ~ ~_~,312:~~.~ 232 ~ ~