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HomeMy WebLinkAbout27768orrower and I.ender covenant and agree a~ foilows: 1. Paymettt ot Principal and lttteres~ Borrower shall promptly pay whe~ due the pri~cipal ot and intereat on the indebtednees evideaced by the Note. prepayment and late charges as provided in the Note, and the principal otand intereat on any Ftiture Advancee eecured by thia Mortgage. 2. I~inds forTa:es and [aeurance. Subject to applicable law or to a written waiver by l.ender, t3orn-wer ahall pay to lxnde~ on theday ~nonthly inatallments otprincipal and interest are payable unde~ the Note, until the Note is paid in full, a sum (herein "Funds") equal to one twel[th of the yearly taaea and aasessments which may altain priority over this Mortgage, and ground ~ents on the Property, if any, plus one twelfth otyearly premium inatallmenta for hazard inaurance, plus onetwelfth otyearly pmmium installmeote for mortgs~ge insurance, itany, Ali as reaacnably eatimated initially and from time to tiR~e by Ixnder on the basis of assessments and bills And masonable eatimates thereo[. The ~nds ahall be held in en inalitution the deposite or accouots of which are insu~ed or gua~anteed by a Federal o~ State agency lincluding Lender if l.ender is auch an inetitution). Lender ehall apply the Funda to pay said taxea, asseaxmenta, inaurance premiums and ground renta. l.e~der may not charge for so holding and applying the Funda, analyzing said account, or verifying and compiling said asaesame~te and bille, unleas [.ender paya Borrower interest on the Funda and applicable law permits l.ender to make auch a charge. Borrower and I.ender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unleae such agreement is made or applicable law requirea such interest to be paid, [.eoder shal! not be required to pay Borrower any intereat or earnings on the ~Lnds. I.ender shall give to Borrower, without charge, an annual accounting of the Fuods showing credits and debite to the Funds and the purpose tor which each debit to the Funds was made_ The Funda arn pledged as ad~litional security for the suma secured by thie ltortgage. If the amount of the El~nda held by I.ender, together with the [uture monthly installments of Funds payable prior to the due datea of taxes. asaesamenta, insurance premiums and ground rents, Shail exc2ed the amount required to pay said taxes, assessments, insurance premiuma and gmund rents as they tall due, auch excesa shall be, at I3orrower'a option, either promptly repaid to Born-wer or credited to Borrower on monthly installmenta of FLnda. If the amount of the Funda held by l.ender shall not be auff cient to pay taxee, asseasmenta, insurance premiwns and ground rents se they fall due, Borrower shall pay to l.ender any amount necessary to make up the deficiency within 30 daye from the date notice is mailed by Lender to E3orrower rrqnesting payment thereof. Upon paymenl in full of all suma secured by this Mortgage, I.ender shall promptly refu~d to E3orrower any funds held by Lender. If under paragraph 18 hereof the Property is aold or the I'roperiy is otherwise acquired by I.ender, l.ender shall apply, no later than immediately prior to the sale uf the Property or ita acquisition by I.ender, any Funds held by I.ender at the time of application as a credit against the sums secured by thie Mortgage. 3. Application ot Paymente. Unless applicable law provides otherwiae, all payments received by I.ender under the Note and paragrapha 1 and 2 hereof ahaU be applied by I.ender fimt in payment of nmounta payable to I.ender by Eiorruwer under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to interest and principat on any Future Advances. 4. Chargea; Liena. E3orrower shall pay all taxes, assessmrnls and other charges, fincs and impositions attributable to the Property which ma~• attain a priority over this MortgaKe, and leasehold paymen45 ur gn,und rents, if any, in the manner provided under paragraph 2hereof or, ~f not paid in such manner, by Borrower makinK payment, when due, dimcth to the pa> ce thereoL Bc:rrower shall promptly furnish lo [.ender ail notices of amounts due under this paraRraph, and in the event IDorrower shali make payment directly. Bormwer shall promptly fumish to l.ender receipts evidencing such paymenLs.l3~,rrower shall promptly ditichargr any lien N•hich h.-s priority over this MortKage: provided, that Fi„rrower shall not be required to discharge an~• such li~•n su IonK i1ti I~OrTUWPf ti~1:iU aKree in wrilinK to the payment of theobliKation secured by such lien in a manner acceptable to l.ender, or shall in K~xxl faith ~•untrst such lien by, ur defend enfure~~ment ~~f ~urh lien in, legal procredings w~hich operate to prevent lhe enforcement o[ the lien or furfeiture uf the Pru~•rty ~~r any part then~~f. 5. Nazard Inaurance. Bormwer shaU keep the impn-vemenL+ now existinR or hereafter ereMed on the Property insured against loss by Fire, hazards included within the /erm "extended coveraKe." and such other hazards as Ixnder may require and in such amounts and for auch periods as l.ender may require: pruvided, that Ixnder shall not require that the amount uf such crrveraKe exceed that amount of coverage rryuired to pay the sums securrd by this MortQaKe. The insuranm carrier pro~•idinK the insuran~-e shall Fie• ch~~~rn hy Iturruwrr nubjtrt to apF-roval tn~ 1 a~nder, pru~ ided, that such approval shall not be unre.~mably withheld. All premiumc un insur:~n~•~~ {w~li~•i~w ~hall tm paid in thE~ mann~r pru~•id~~+l undi•r par:~Kraph 2 hereof or, if nnt paid in such manner, by Fiurrowcr makinK p:icmi•nt, w•h~•n due•. dirw•tly t~~ thc• in.uranet• carrier. All insurance policies and renewals thereof shall be in fi~rm acc-eptable to 1 Rnder and shal) include a standanl mortQage clause in favor of ~nd in form acceptable to I.ender. l.ender shall ha~~e thF right tu hold the pulicies and renev-als thereuf, and Borrower shall promplly furnish to i,ender all renewal notices and all receip~s of paid premiums. In thr e~ent of Ioss, Korn~wer ~hall Kive prompt notice to the insurance carrier and Lender. I.ender may make proof of loss if not m.ide pmmptl~ by I~~rruwer. Unless I.ender and E3orrower othervvise agree in writinK, insurance pnrcE~ds shall be appliecl to rcwtoration or repair of the Property damaged, provided such restoration or mpair is erunomically feas~ble and the ~rcurity uf this Mortgage ia not thereby impaired. IC such rrstnration or repair is not economically feacible or if the security of this MortKage would be irnpaired, the insurance proceeds shall be applied to the sumasecured by this Mortqage, with the escess, if any. paid to F3orrower. lf the I'roperty is abandoned by E3orrower, or if I3orrower fails b reipond to Lender within :~ days from the date notice is mailPd by I.ender to fiorruw~rr that the insurance camer offers to setUe a claim for insurance benefits. [.ender is authorized to cnllect and apph• the insuramr prex•eeds at I.ender's option either to restoration or repair of the Property or the sums secured by this MortK~+KP- Unleae l.ender and Rorrower otherwise agme in writinK, any such application of pmcreds to principal shall not extend or postpone thedue date of the monthly installments referrcKl to in par:~Kraphx 1 and'L here~~f or chs+nKe the amount of such installmenta. if under paragraph 18 hereof the Property is acquired by l.ender, all right, title and interest of Born~wer in and to any insurance policies and in and to the proceeds thereof resultinq from damage to Properly prior to the s:+le or acyuisilion shall pass tn I.ender to the extent of the sums secured by thia ~lurtgage immediately prior to such sale or acquisition. 6. Preeervetion and Maintenance of Property: l.easeholds; ('ondominums; l'lenned Unit Developmente. F3orrowerahall keep the Property in good repair and shall not cc~mmit waste or permit impairment or deterioration of the E'roperty and shall eomply wilh the pruvisiona of any lease if this Mortgage is on a leasehold_ If this MorlKaKe is un a unit in a condominium or a planned unit development, finrrower shaU perform all of Borrower's obliKations under lhe declaration ur co~•enants crt~atin~;or governinK thr condominium or planned unit development, the by-laws and reRulationa of the condc,minium or planned unit development, and constituent documents. If a cundominium or planned unit development rider is extruted by F3orrower a~nd recorded toKether with this Mortgage, the wvenante and .iKreements of such rider shall he incur~rraled into and shall amend and supplement theco~ enanls and aKreementsof this Mortgage as ifthe nder were a part hereof. 7. Pcotection of Lender'e Security. If ~3orrower faila to perform the covenants and ~agreemente contained in thie Mortgage, or if any action or proceeding ie commenced which materially affecte l.ender'e intereat in the Property, including, but not limiled to, eminent domain, ~neolvency, oode enforcement, or arrangements or proceedinqa involving a bankrupt or decedent, then Lender at Lender's option.upon notice to Borrower mey make euch appearancee, disburee such aume and take auch action aa is neceasary to protect Lender's interest, including, but not limited to, diebureement of reasonable attorney's feee and entry upon the Property to make repaire. If Lender required mortgage ineurance se a rnndition of making the loan aecured by thie Mortgage, E3orrower ahall pay the premiume required to maintain euch ineurance in effect until euch time as the requirement for auch ineurance tertninates in accordance with Borrower e and Lender-'s w•ritten agreement or applicable Law_ Borrower ehall pay the amount of alf mortgaRe inaurance premiuma in the manner provided under paragraph 2 hereof. Any amounte diebureed by Lender pereuant to thia par:~qraph 7, with intereat thereon, ehall become additional indebtedneee oi Rorrower secored by thia Mortgage_ Unlesa E3orrower and l.ender agree to other terme of payment, auch amounts shall be payable upon rr~tice from l.ender to Borrower requeeting payment thereof, and ahall bear interest from the date of diAbureement at the rate peyable from time to time on outetanding principal under the Note unleas payment of interest at such rate would be contrary to applicable law, in which event euch amounta ahall bear inlerest at the highest rate permiasible under applicable law. Nothing contained in thie paregraph 7~ ahall require I.ender to incur any expense or take_ any action hereunder. gn~K345 ~~Gt277.5 ~ , .~-~s,_~._ .__.~:~~.~