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HomeMy WebLinkAbout2031 } Borrower and Lender covenent and a~rec aa follows: 1. Payment of Prictcipal e?nd Interest. Borrower shsll promptly pay when due the principal oi and intere8t on the indebtedneaa evidenced by the Note. pnpayanent aad late chsrgee as pmvided in the Note, and the principal of and interest on any Ftiture Advances eecured by this MortgaQe. 2. Fund~ for Teuee and [naurance. Subject W applicable luw or to a written waiver by l.ender, Borrower ehall pay to I.ender on the day monthly inataliments of principal and i~tereat are payable under the Note, until the Note is paid in full, a aum (herein "I~'unds") equal to one twelfih o[the yearly taxee and aseeasments which may attain priority over this Mottgage, and ground renta on lhe Property. if any, plua one twelRh of yearly premium installmenls far hazard ineurance, plua onetwelfth of yearly premium inatallmenta for mortgage ineura~ce, if any, t aU aa reasont?bly estimated initially and from time to time by I.ender on the baeis of asaessmenta and billa and reasonable eatimates thereof. The ~nda ehall be held in an inatitution the deposits or aooounts of which are insured or guarenteed by a Federel or State agency .(including Lender if l.ender ie such an institution). Lender shall apply the F~nds w pay said taxes, asseaaments, ineurance premiuma and ground nate. Lender may not ~:harge for eo holding and applying the Fti?nda. analyzing said account, or verifying and rnmpiling esid aasessaaents and bille, unleea I.ender pays Borrower intereat on the Funds and applicable lew permite Lender to make auch a charge. Borrower ara9 I.euder may agree in writing at the time of e:ecution of thie Mortgage that interest on the Funda ehaU be paid to Borrower. and unlesa such agreement is made or appUcable law requires such intereat to be paid, Lender ehall not be required to pay Borrower any intereat or earninge on the I~nds. I.ender ahall give to Borrower, without charge, an annual acoounting of the Funde ehowing credite and debite to the Funda and the purpoee for which each debit to the Funds was made.'l~e Funda are pledged as additional eecurity for the aume eecured by this Mortgage. If the amount of the I~nda held by Lender, togethet with the future monthly inatsllmenta of Fu~da payable prior to the due datee of taxes, aeeeeementa. ineurance premiuma and ground renta. ahall ezozed the amount required to pay 8aid ta:ea. asseaementa. insurance premiuma and ground rente as they faU due, such e:cese shall be, at Borrowei s option, either promptly repaid ta Borrower or credited to Borrower on moathly instaliments of P'unde. If the amount of the Funde held by Lender ahall not be aufficient to pay taxea, aseesamente, inaurance premiums and ground rente ae they fall due, Horrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 days from the date notice ie mailed by I.ender to 8orrower requesting payment thereof. ~ Upon payment in full of all aums secured by this Mortgage, Lender ehall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereoithe Property is eold or the Property is otherwise acquired by I.ender, I.ender ahall apply. no later than immediately prior to the eale of the Property or ita aoquiaition by Lender, any Funds held by Lender at the time of application as a credit against the auma secured by thia Mortgage. 3. Applieation of Paymente. Unleae epplicable law providee otherwiae. all payanents received by Lender under lhe Note and paragraphe 1 and 2 hereof shall be applied by Lender firat in payment of amounts payable to Lender by Borrowet under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancee. 9. Charges; Liena. Borrower sha11 pay all taxes, assessments and other charges, finea and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold paymenta 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, directly to the payee thereof. Borrowar ahall promptly furniah to Lender all noticea of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Borrower shall promptly furnish to I.ender receipta evidencing auch ptiyments. E;ormwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower ahall not be required to dischnrge any such lien so long as F3orrower shall agree in writing to lhe payment otthe obligution secared by such lien in a manner acceptable to Lender, or shaU in qood faith contest such lien by, ordefend enforcement ofsuch lien in, lega! proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Iae~urance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazarde included within the term "e:tended coverage, ' and auch other hazards aa Lender may require and in such amounts and for auch periode as Lender may require; provided, that Lender shall not require such ooverage amount exceeding the minimum, as may be reyuired by state or federal regnlationa governing aMivities of Lender, or that amount of coverage required to pay the auma secured by thia Mortgage, whichever is the greater. The inaurance carrier providinq the insurance shall be chosen by Rurrower subject to approval by l.ender; provided, that such approval ahall not be unreasonably withheld. Al) premiums on insurance policies shaU 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 insurance policiea and renewala thereof shall be in form acceptable to I.ender and shall include a atandard mortgage clause in favor of and in form accepteble to Lender. Lender ahall heve the right to hold the policies and renewals thereof, and Botrower ahail promptly furnish to ~ ixnder all renewal noticea and all receipta of paid premiums. In the event of loss, Borrower ahall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of 1Qss if not made promptly by Borrower_ j Unleas Lender and Borrower otherwise agree in writing, inanrance proceede shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ia not thereby impaired. If such restoration or repair is not economically feasible or if the aecurity of this Mortgage would be impaired, the insurance proceeds ahall be applied to the s~uns eecured by thia Mortgage, with the excesa, 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 ia maited by Lender to Borrower that the insurance carrier offers w settle a claim for ineurance benefite, Lender is authorized to collect and apply the inaurance proceeds at Lender s option either to restoration or rnpair of the Property or the sums eecared by this Mortgage. Unleea Lender and Borrower otherwiae agree in writing, any such application of proceeds to principal shall not extend or poaipone the due date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 henwf the Property ie aoquired by Lender, aU right, title and intereat of Borrower in and to any insurance policiea and in and to the proceeds thereof resulting from damage to Property prior to the eale or acquisition shall pass to I.ender to the eztent of the auma eecnred by this Mortgage immediately prior to such sale or aoq~iaition. 6. Preaervation end Maintenance of Property; Leaseholda; Condominums: Planned Unit Developmente. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and shall comply with the provieione of any leaee if thie Mortqage is on a leasehold_ If this Mortgage ia on a unit in a condominium or a planned unit development, Borrower ehall perform all of Borrower'a obligations under the declaration or covenanta creatingor governing the condominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and conatituent documents. If a condominium or plauned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenants and aAreementa of such rider shall be incorporated into and shal) amend and supplement thecovenanta and agreementa of this Mortgage as if the rider were a pari hereof. Protectiaa of Lender's 3ecurity. If Borrower fails to pezform the oovenante and agrcemente oontained in this Moitgage. or if any action or proceeding is oommenced which materially affecte Lender e interest in the Property, including, but not timited to, eminent domain. ~ insolvency, oode enforcement, or arrangemeate or proccedinga involving a bankrupt or deoedent, then I.ender at Lender's option,upon , ~ notioe to Bor~+ower may ma1~e euch appearances. dieburee auch eume and take ench action es is neoeeeary to protect Lendei s interest, ~ ~ including, but not limited to, diebursement of reasonable attorney's feee and entry upoa the Prope~rty to meke repaire. If Lend~ reqaired ~ mortgage inaurance as a rnndition of maiting the loan eecured by thie Mortgage, Borrower ehall pay the premiums required to maintain ~ Buch inaurance in effect until euch time ae the requirement for euch ineurance terminatea in accordance with Borrower e and Lendere written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgage inaurance premiuwe in the manner provided under ~ paragraph Z hereof. r ~ Any amounte diBbureed by Lender pereuant to this paragraph 7, with inte~eet thereon, ahall become edditional indebtedneas of Borrower eecured by thie Mortgage. Unleae Bonower and Lender egree to other terms of payment, auch amounLe ehall be payable upon ~ notice from Lender to Borrower requeating payment thereof, and ehall bear interest from the date of diabureement at the rate payable from time to time on outetanding principal under the Note unlesa payment of intereat at such rate would be oontrary to appiicable law, in which event euch amounta shall bear interest at the highest rate permieaible under applicable law. Nothing contained in thia paragraph 7, ahell requue Lender to incur any e:penee or take any aMion hereunder. , ~ ~ Br!iIR( ~~2 PacE~,l~ ~ . _ - - . : ~ .