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HomeMy WebLinkAbout1402 Borrower and Lender covenant end agree as follows: ' 1. Payment of Priacipal snd Interest. Borrower ahatl promptly pay when due the principal of and intereet on the indebtednesa evidenoed by the Note, prepayment and late cherges as pmvided in the Note. and the principal of aad intereat on any I~ture Advances secure~l by this Mortgege. 2. Eltnds for Tauee and [asurance. Subject fo epplicable law or to a written waiver by l.ender, Borrower ahall pay to I.ende~ on the day monthly inataltments of principal and intereat are payable under the Note, until the Note ia paid in full, a aum (herein "F unda") equal lo one twelfth of the yearly tazes and aaeeeamet?ta which may attain priority over this Martgage, eind ground renta on the Property, if any, plua one twelRh of yeut~jr premium installmenta for hazard inaurance, plua onetwelRh of yearly premium inetallments !or mortga~e inaurance, if any, aU aa reasonably eetimated initially and itom time to time by I.ender on the baBie ot aasessmenta and billa and reasonnble eatimatea thereof. The fi~nds shall be held in aa institution the deposits or acoounts of which are inaured or guaranteed by a Federal or State agency (including l.ender if L.ender is auch an inatitution). I.e~der ehall apply the Funda b pay said taxea, aseesaments, ineurance pmmiuma and gmund rents. I.ender may not charge for so hotding and applying the ~nda, analyzing said account, or verifying and compiling said asseasmenta and bills, unlees I.ender pays Borrower intereet on the ~nde and applicable law permits Lender to make euch a charge. Borrower a~d Lender may agree in writiAg at the time of execution of thie Mortgage that intereat on the Funds shaQ be paid to Borrower, and unleas euch agreewent is made or applicable law requiree euch intereet to be paid, Lender ehall not be required to pay Borrower any intereat or earninge on the ~nds. I.ender shall give to Borrower, without charge, an anrtual acoounting of the Funda ahowing credita and debita to the Funds and the purpose for which each debit to the ~nde was made. The Funds ar~e pledgcd as additional security for the suma eecured by thie Mortgage. If the amount of the ~nda held by Lender. together with the future monthly inetallments of Funds payable prior to the due datea of ta:es. asaeasments, ineurance premiums and ground renta, ehall exc~ed the amount required to pay esid taxes, aseeaements, inaurance premiuma and ground rents ae they fall due, auch e:cess ehaU be, at Botrowei s option, either promptly repaid to Borrower or crsdited to Borrower on monthly inatallmenta of F~nda. If the amount of the Funda held by I.ender ahall not be sufficient to pay taxee, assesements, ineurance pnmiume and ground rents se they fall due, Borrower shall pay to Lender any amount neceseary to make ue t'Ti~'de~Eiency within 30 daye from the date notice ie mailed by Lender to Borrower requeating payment thereof. w::~ . Upon payment in fuU of all eume secured by this Mortgage. Lender ahall promptly refund to Borrower any tu~da }~1d by l.ender. If under paragraph 18 hereof the Property is eold or the Property is otherwiee acquired by l.ender, Lender ahall apply, no Ia~er than immediately prior to the sale of the Property or its acquisition by Leoder, any ~nde held by l.ender at 1he time of application as a credit against the suma secured by this Mortgage. 3. Application of Payments. Unlesa applicable law providea otherwise, all paymenta received by Lender under the Note and pamgraphe 1 and 2 hereof ehall be applied by Lender firet in payment of amounts payable to l.ender by Borrower under paragraph 2 hereof, then to inter~t gayable on the Note. then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Charges; Liens. Borrowerahall pay all taxes, aesessments and other charges, fines and impositions attributable lo the E'roperty which may attain a priority over thia Mortgage. and leasehold payments or ground renta. if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directiy to lhe payee thereof Borrower shall promptly furnish to Lender all noticea of amounts due under this paragraph, and in the event Borrower ahall make payment directly, Borrower ahall promptly furnish to Lender receipta evidencing such paymenta. Borrower ahali promptly discharge any lien which has priority over this Mortqage; provided, that Borrower shall not be required to diacharge any such lien so long as I3orrower ahall agree in writing to the payment of the obligation secured by such lien in a manner aceeptable to I.ender, or shall in good taith conteat such lien by, ordefend enforcement of such lien in, leg~l proceedings which operate to prnvent the enforcement of the lien or forfeiture oi the Property or any part thereof. 5_ Hasard Inaurance. Borrower ehall keep the improvements now eaisting or hereafter erected on tbe Property insured against losa by fire, hazarda induded within the tetm "e~ctended rnverage," and such other hazards as Lender may requirn and in such amounts and for such perioda ae Lender may require; pmvided, that Lender ahallnot require auch ooverage amuunt e:ceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount ot coverage required fo pay the sume secured by this Mortgaqe, whichever ia the greater. . The inaurance carrier providing the insurance shall be chosen by Borrower subject to appro~ al by I.ender, provided, that such approval sha11 not be unreasonably withheld. A1) premiums on insurance policies shall be paid in the manner pruvided under par?Rraph `l hereof or, iC not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. ' All insurance policie8 and renewals thereof ahall be in form acceptable to Lender and shall include a atandard mortgage clauae in favor of i and in form acceptable to Lender. Lender shall have the right to hold the policiea and renewala thereof, and Borruwer shall promptly furniah tn ~ iender all renewal notices and all receipts of paid premiums. In the even! of loss, Bornnwer shall give prompt notice to the insumnce carrier ~ and Lender_ I.ender may make proof of lose if not made promptly by Borrower_ ~ Unleae Lender and Borrower otherwise agree in writing, ineurance proceeds ehall be applied to restoration ot repair of the Property ~ damaged, provided such reetoration or repair is economically ieasible and the security of this Mortgage ie not ther~eby impaired. If auch ~ restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired the inaurance proc~eeds ahall be applied ~ to the sums eecured by thia Mortgage, with the exceas, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower taila to i reapond !o Lender within 30 days trom the date notice ia mailed by [.ender to Borrower that the inaurance carrier of[ers to setde a claim for ! ineurance benefita, L.ender is suthorized to collect and apply the inaurance prooeeda at Lender's option either to reatoration or repair of the ~ Pmperty or the suma eecured by thie bfortgage. Uniess Lender and Borrower otherwise agree in writing, any auch application of pioceeda to principal ahall not extend or poetpone the due date of the monthly inatallments referred to in paragrapha 1 and 2 hereof or change the amount of such inatallmente. If under paragraph 18 hereof the Property ie aoquired by I.ender, all right, tide and intereat of Borrower in and to any inaurance policiea and in and to the proceeds thereof resulting from damage to Property prior to the sale or aoquiaition ahall paes to Lender to the eatent of the sutne aecured by this Mortgage immediately prior to auch eale or acquiaition. 6. Preservstion and Maintenance of Property; Leaeeholds; Condominume; Planned Unit Developmente. Borrower shall keep the Property in good repair and shal) not commit waste or permit impairment or deterioration of the Property and shall rnmply with Lhe ~ pmviaione of any lease if thie Mortgage ia on a leasehold: If this Mortgage ia on a unit in a condominium or s planned unit development, ~ Borrower ahall perform all of Borrower e obligations under the declaration or covenanta creatingor goveming the condominium or planned ~ unit development, the by-lawa and regulations of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider ia eaecuted by Borrower and recorded together with thia Mortgage, the oovenants and ~ agreements of such rider shall be incorporated into and shal) amend and aupplement thecovenanis and agreementa of this Nortgage as if the rider were a part hereof. ~ 7. Protection o! Lender's Security. If Borrower faila to perform the oovenante and agreementrr cont,ained in thie Mortgage, or if any action or pmceeding ia commenced which materiaUy affecte Lender'e interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforoement, or arrangements or praceedinga involving a banlmipt or decedent, then Lender at Lender'e optioa,upon ~ notice to Borrower may make euch appearances, diebaree ench eums and ta1[e such action ae ie neceesary to peotect I.ender'e interest, ~ inclnding, but not limited to, diabursement of reasonable attorney's fees and entry upon the Property to make repeirs. If Lender reqaired 2 mortgage ineurance aa a condition of malcing the loan secnred by thie Mortgage, i3orrower ahall pay the premiuma reqaired to maintain ~ such insurance in effect until euch time aa the requirement for such inaurance terminates in accordance with Borrower's end I.ender'e ~ written agreement or applicable Lew. BorroweT ehall pay the amount of all mortgage insurance premiume in the manner provided undrr ~ paragrP~h 2 hereof_ ~ M~.?mounte diebureed by Lender persuant to thie paragraph 7, with inte~est thereon. ahall become additional indebtedneea of ~ Borrower secvred by thia Mortgage. Unleea Borrower and Lender agree to other terms of payment, euch emounts ehall be payable upon , notice from Lender to Borrower requeating payment thereof, and ahal) bear intereat from the date of disbursement at the rate payable from time to time on outetanding principal under the Note unleas payment of intereet at auch rate would be oontrary to applicable law, in which event auch amounte ehall bear interest at the higheet rate permiaeible under appGcable law. Nothing contained in thie paragraph 7, shall ~ require L.ender to incur any expense or take any action hereunder. ~ ~ ~ 312 P~~Fi400 ~ ~ . ~ - ~