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HomeMy WebLinkAbout2897Borrowe~ and l.ender oovenant and a~e as foUows: 1. P~ymeat ot Peineipal end letere~~ Socrower shall pmmpUy pey when dua the principal ot and ioterest oe the indebtRd~ea~ widenced by the Note. pnpayment a~d late chargea as pmvided ~n the Note, and the principal o[and i~tere~t on any I~ture Advances secured by thu Mort~age. 2. FLnd~ for Tues u~d Insurance. Subjecl to applicable law ur to a written waiver by l.ende~, EioROwer ahall puy to l.ende~on theday monthly installme~ta of principal and interest are payable under the Note, until the Note is paid i~ full, a aum (herein "Funds") equal to ons twelEth of the yearly taxes and aaseaame~ts which may attain priority uver thie Mortgage, and ground rents on the Properly, if any, plw one~ tweltth of yearl~ premium installmente tor hazard inaurance, ptus onetwelfth ofyea~ly premium installments for morlgage insurance, if any. all aa reasonebiy eetimated initially and from time Lo tirne by l.ender on the basis of assesaments and bills and ~easonable ~timatea thereof. The I~l-nds ahall be held in an institution the depo~its or accounta ot which are insured or guaranteed by a Federal or State agency (inclnding [.ender if l.ender u such an inatitution). l.ender ahall appiy the Funds to pay said taxes, easeaementa, insurance premiiuns and ~round rents. l.ender may not cha~ge for eo holding and applyi~g the ~unde, analyzing said account, or verifying and compiling said aeaeasme~ts and biUs, nnleea Lender pays Borrower intereat on the Funda and applicable law peRnita I.ende~ to meke auch a charge. Bormwer and Lender mey agne in writing at the time of execution of thie Mortgage that intereat on the Funds shali be paid to Borrower, and unlaa ~~nch a~reement iu made or applicable law reqairea auch i~terest to be paid, L.ender ehap not be required to pay Borrower any interat or earnings on the P1~ndi. Lender shall give to Borrower, without charge, an ennuai accounting otthe Funda showing credita and debits to the Funds and the purpoee for which each debit to the F unda ~yae made. The Funda are pledged as additiona) eecurity fo~ the sums eecnred by thi~ Mortgage. Itthe amount of the fl~nda held by [.ender. togethe~ with the future monthly inetallments of Funda payable prior to the due dates oitaxe~. es~eesmente, insura~ce premiums and ground rents, ahall excred the amount required to pay said taxea, aseesaments, inaurance preuiium~ and grou~d r~nts as they fall due, such exceas ahall be, at E3o~rower'a option, either promptly repaid to Borrower or credited to Borrow~ on monthly instsllmenb of NLnds. If the amount of the Funde held by I.ender ahal! not be sufficient to pay taxea, aaeeasmenta, insurance peemiums artd ground nats ae they tall due. Borrower shall pay to I.ender any amount necesaary to make up the deficiency within 30 day~ from the date notice is mailed by Lendcr to Borrower reqursting payment thereof. Upon payment in tull of all sums secured by thie Mortgage, Lender shall promptly rnfund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property ia aold or the Property is otherwiae acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Pmperty or ita aoquiaition by Lender, any Runds held by I.ender at the time of application as a credit against the auma ~ecured by this Mortgage. 3. Appli~ation of Payments. Unleaa applicable law provides otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 henot shall be applied by Lender first in payment of amounts payable to l.ender by Borrower under pa~agraph 2 hereot. then to intereat payable on the Note. then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Chargea; Liene. Borrower ehall pay all taxes, assessments and other rharges, fines and impositions attributable to the Property which may attain a ptiority over this Mortgage, and leasehoid payments or Kmund rents, if any, in the manner provided under paragraph 2 hereofor, i[ not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL 13orrower shall promptly furniah to Lender all notices of amounts due under this paraRraph, nnd in the event Fiorrower shaU muke payment directly, Borrower shall promptly fumish to Lender receipts rvidencing such payments. Borrower shall promptly disch:-rge any lien which has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such lien so long as E3urrower shall aKree in writing to the payment of theobligation secured by auch lien in a manner acceptable to l.ender, or shall in good [aith context such lien by, or deCend enforcement ofsuch lien in, legal proccedinge which operale to prnvent the enforcement of lhe lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. I3orro~rer sha11 keep the improvements now existing or hereaftererected on the Property inaured againatlossby fire, hazards included within the term "extended coverage," and such other hazards as l.ender may require and in auch amounfs and for eueh periods as Lender may require; provided, that Lender shall not require that the amuunt of such coverage exceed that amount of coverage requind to pay the aums secured by this Mortgage. The insurance carrier providinK the insuranm shall be ch~uen by Korruw~er subject tc~ approval by l.ender, provided, lhat such appmva) shall not be unreasonably wilhheld. All premiums on insuranc-r pulici~w shall t-P paid in the mannet provided under paragraph 2 hereofor, if not paid in such manner, by E3~rrower making payment, wh~~n due, directly to thi• incurance carrier. All insurance policiea and mncwals thereolshall be in fortn acceptable to l.ender and shall include a standard mortgageclauee in [avoroi and in form acceptable W I.ender. Ixndershall have the righl to hold the p~~licics and renewals thereof, and Borrower ahall promptly furnish to i.ender all renewal noticea and al) receipta of paid premiums. In the event o[ loss, t3orn~wer shall give prompt notice to lhe ineurance carrier and Lender_ Lender may make prooi of loas if not made promptly by &-rrowcr. Unlese Lender and Borrower otherwise agree•in writing, insuranm prucee~ shall be applied to reatoration or repair of the Property damaged, provided such reatoration or repair is ecunomically feAsible and the~security of this Mortgage ia not thereby impaired. if such restoration or repair is not economically feasible or if thr security of this MortKaKe would be impaired, the insurance proceeda ahall be applied to the aums aecured by this Atortgage, with the excess, if any, paid to Korrower. l f the !'roperiy is abandoned by Borrower, or if Borrower fails fo reepond to [.ender within 30 daya from the date notice is mailed by I.ender to fiorrower that the insurance carrier offers to eettle a claim for insurance benefita. I.ender is authorized to collect and apply the insurance proceeds at l,ender s option either to reatoration or repair of the Property or the aums aecured by this 141orlgaQe. Unlese [.ender and Ebrrower otherwise :~gree in writinR, any such a pplication of pmccrds to principal ahall not extend or poatpone thedue date of the monthly inatallmen~a referred to in paraKraphs 1 and'l here~,f or change the amount of such installmenta. If under paragraph 18 here~of the Property is acquired by l.ender, all right, title and interest nf f~r~ower in and to any insurance policies and in and to the proceeds thereof resulting from damaqe to Property prior to the sale or acyuisition shal{ pass to l.ender to the extent of the suma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Meintenanceof Property; I.easeholdx: ('ondominums; Planned Unit Developments. F3orrowerahall keep the Property in good repair and shall not commit waste or permit imp:+irmenl or deterioration ot the Property and shall comply with the proviaione of any lease if this Mortgaqe is on a leasehnld. If th~s MortK:+ge is on a unit in a n-ndominium or a planned unil development. Borrower ehall perform all of Borrower's obligations under the declaration or covenants creatinKor governmg the condominium or planned unit develupment, the by-lawe and re~ulations of the conduminium or planned unit de~•elopment, and conatituent documente_ lf a rnndominium or planned unit development rider is executed by 13~rruwer and recorded t~Mher with lhis Mortgage, the aovenants and agreementr+o[such rider shall be incurporated intu :~nd shall amt~nd :~nJ supplement thernvenants and agreementsof this Mortgageaa i[the rider were a part hereof. 7_ Protection of Lender's Security. 1! Borrower taila to perform the covenante and agrermente contaitied in this Mortgage, or if any action or proceeding is commenced which materially affects Lender'e intereet in the Property, including, but not limited to, eminent domain, ituolvency, aode entorcement, or arrangemente or proceedinge involving a bankrupt or decedent, then Lender et Lender's option,apon notice to Borrower may make such appearances, dieburse auch aume and take auch action ae is neceasery to protect I.ender i intenst. including, but not l~mited to, diebureement of reasonable attorney's feee and entry npon the Property to make repairs. It Lender requirsd mortgage insurance as a rnndition of making the loan eecured by thie Mortgage, Horrower ehall pay the premiums required to maintain ~uch insurance in effect until such time se the requirement for euch ineurance terminatea in accordance with Borrower e and Lendd~ w+~itten agreement or applicable l.ew. Borrower shall pay the amount of all mort~;age ineurance premiums in the manner pmvided under peragraph 2 hereof. My emounts diebursed by Lender perauant to thia paragraph 7, with intereet thereon, ahall become additional indeMednep o! Borrower secured by this Mortgage. Unleas E3orrower and l.ender agree to other terme of payment, auch amounfs ~ha11 be payable npon notice from Lender b Borrower requeeting payment thereof, and ahall bear intereat from the datc of d'uburaement at the rate payable [rom time to time on outetanding principal under the Note unleas payment of intereet at such rate would be contrary to eppliceble law, in whieh event such emounte ahal) bear interest at the higheet rate permisaible under applicable law. Nothing contained in this peragraph 9, shd) require Lender to incur any expense or take any action hereunder. ~ ~ : .- ~ _ - . .~~~.~- ~:~ c.~ ~- ~.. . .. ~ go~~345 PACE2~9fi ~ ~~r~_~~ .~.__ . _ •