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HomeMy WebLinkAbout2981Borrower a~d Lender oovenant and a~ree u folbMra: i. Psyme~~ of Principal aed Intereat. Borwwer shall pmmpqy pay when due the principa) of and intere~t on the indebt~ednaa evide~ced by the Note. prepayinent and late cha~~e~ eu provided in the Note, and the principal otand intere~t on any Ftiture Adva~cee secured by thia Mortt~a~e. - 2. PLnd~ tor Taxe~ wad In~urance. Subject to applicable law or fo s written waiver by l,ender, Bonrower shall pay to l.ender on the day monthly i~stallmenta of principal and inte~eat an payable under the Note, until the Note is paid in [ull, a sum (henin "Funds") equal to one twelRh of the yearly taxes and assesamenb which may atinin priority over thia Mortgage, and gmu~d rents o~ the Property, if any. plus ont twelhh of yearly premium inatallmenta for hasard insurance, plus onetwelRh of yeaily premium insteUme~ts for mort;ege insura~ce, i[any. all as reaso~ably eatimated initiaUy and trom time to time by t.ende~ on the basis of assesamente and bills and reasonable cstimatea thereof. The PLnds shali be held in an institution the deposib or accounts ot which are insured or guaranteed by a Federal or State agency (including I.ender if Lender ia sach an uutitution). l.ender shall apply ths Funds to pay said ta:ea, aseeasme~ts, inaurance premiums and ground nnts. I.ender may rwt charge for ~o holdi~g and applying the FLt-ds, analyzing aaid accoun~ or verifying and compiling said aesessmenta and bills, unlese [.ender payn Borrower interest on the I~nda and applicable law permits Lender to make such a cha~ge. Bore~ower and Lender may agree in writiag at the time of execution of thia Mortgage that interest on the ~nds ahall be paid eo Borrower, and unlaas euch agreement is made or applicable lawr requires such intereat to be paid, Lender shall not be required to pay Borrower any intere~t or earnings on the FLnds. l.ender shall give to Borrower, without charge, an an~ual accounting of the Funda showi~g credita and debits to the Funda and the purpoae [or which each debit to the Ftinds was made. The Funda are pledged as additional security !or the sums secured by this Mortgage. I[ fhe amount of the Funds held by l.ender, together with the [uture monthly installments of Funds payable prior to the due dates of ta=ea. anaessmenta, ineurance premiuma and grouad rents, shall e:cxd the amount required w pay said taxes. aaseasmenta. inaurance premiuma and ground rente as they lall due, such excesa shall be, at Ho~rower s option, either pmmpdy npaid to Bormwer or credited to Borrower on monthly inetallments of ~Lnds. If the amount of the Funds held by Lender ehall not be sufficient to pay ta:ea, assessments, insurence premiuma and ground rents as they [all due, Bormwer ahall pay to Lender any amount neceasary to make up the deficiency within 30 daya from the date notice ia mailed by Lender to Borrowe~ requeating payment thereof. Upon payment in full of all sume secured by thia Mortgage, Lender shall promptly refund to Borrower any tunda held by Lender. If undet paragraph 18 hereof the Property ia sold or the Property ie otherwiee acquired by Lender, Gender ahall apply, no later than immediately prior to the sale of the Property or ite soquisition by Lender, any Funda held by I.ender at the time of epplication aa a credit against the suma aecured by this Mortgage. 3. Application ot Payments. Unless applicable law provides otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by L.ender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof. then to intereat psyable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanees_ 4. Chergea; Liena. Borrowershatl p~y all taxes, assessments and otherchargea, fines and impositions attributableta the Pmperty which may attaire a priority over this Mortgpge, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereof ot, if not peid in such manner, by Eiorrower making payment, when due, directly to lhe payee thereot Borrower shal! promptly furnish to Leoder all notices of amounts due under this parpgraph, and in the event Borrower shall make payment directly, Borrower shall prompUy furnish to l,ender receipts evidencing such payrnents. E3orrower shall promplly discharge any lien which has priority over thigMortgage; provided, that E3orrower shall not be required W discharge any such lien so long as Borrower shpll agree in writing to the payment of theobligation secured by such lien in a manner acceptable to Ixnder, or shal) in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Property or any part thereuf. ~ 5. Hazard Insurance. F3orro~ver shall keep the improvementa now exiating or hereafter erected un the Property insured againat loas by fire, hazards included within the term "extended coverage," and auch other hazards as l.ender may require and in auch amounta and for such periods as I.ender may require; provided, that Lender shall not require that the nmount of auch coverage exceed that amount ot rnverage requind to pay the sums secured by this Mortgage. The insurance carrier providing the insuranrn shall be chosen by 1~-rr~-wer subject to approval by I.ender; provided, that such approval shaU not be unreasonably withheld_ All premiums on insur~nce p~~lic•ies shall be paid in the manner provided under pnragraph `l hereolor, if not paid in such manner, by I3orrower making payment, when due, direcdy tc, the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable to l.ender and ahall include a standard mortgage clause in favor of and in form acceptable to I.ender. I.ender shall have the right to hold-the policies and renewals thereof, and E3orrowershall promptly [urniah to -.ender alf renewal notices and all receiptia of paid premiums. In the event of loss, Borruwer ahaU give prompt nutice to the insurance carrier and I.ender. Lender may make proof of loss if not made promptly by E3orrower. Unleas l.ender and E3orrower otherwise agree in writing, insu~ance proceeda shall be applied to reaturation or repair of the Property damaged, provided euch resu~ration or repair is ecunumically feasible and the aecurity of this Mortgage ia not thereby impaired_ 1[ auch reatoration or mpair is not econumically feasible or if the security of this Mortgage would be impaired, the insurance proceedsahall be applied to the aums aecured by this Mortgage, with the excess, if any, paid to Rorrower. I[the Property is abandoned by Borrower,ori[ E;orrower fails to reapond to Lender within :i(1 days from the date notice is mailyd by l.ender to-E3orruwer that the insurance carrier of~era.to settle a claim for ~naurance benefita. I.ender is authorized to collrct and apply the insurance proceeds at I.ender s option either to restoration or repair of the Property or the suma secured by this Mortgage. Unleae I.ender and Borrower otherwise agree in variting, any such applics+tion of proceeds to principal shall not e:tend or poatpone the due date of the monthly inatallments referred tu in paragraphs 1 and 2 hereof or change the amount of auch installments. If under paragraph 18 hereof the Property ia acquired by I,ender, all right, title pnd interest of Borrower in and to any ineurance policies and in and to the proceeda thereof reaulting from damage to Property prior to the xale or acqu~sition ahall pass to Lender to the extent of the auma secured by this ~lortgage immediately prior to such sale or acquiaition. 6. Preservation and Maintenance otProperty; [.easeholds; Condominume; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration ot the Property and ahall comply with the provisione of any lease if this Mortgage ie on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit~development, f~orrower ahall perform all of fiorrower's obligationa under the declaration or covenants creatingor govermng the rnndominium or planned unit development, the by-laws and regulations of lhe condominium or planned unit develupment, and constituent dceuments. 1[ a condominium or planned unit development rider ia executed by E3orrower and recorded together with thia Mortgage, the oovenanta and aKreements of such rider shall be incorporated into and shall amend and supplement the covenanta and agreements of this Mortgage as if the rider were a part hereof. 7. Protection ot I.ender's 3ecurity. If Borrower faila to perform the oovenante and agreements rnntained in this Mortgage, or if any aMion or proceeding is rnmmenced which materially uffecte l.ender's intereat in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at Lender i option,upon notice to Borrower mey make such appearances, disburse such sum~ and take snch action es is neoessary to protect Lender's inte:est, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repain. If Lender reqnired murtgage insurance ae a rnndition of making the loan secured by this Mortgage, Borrower shell pay the premiums required to maintain euch insurance in eftect until such time as the requirement for such ineurance terminates in accordance rvith Borrower's and Lendd~ written agreement or epplicable I.aw. Borrower shall pey the amount of all mortgage insurance premiums in the menntr provided under paragraph 2 hereof. Any amounts diebursed by Lender'persuant to this paragraph 7, with interest thereon, ahall become additional indebtednes~ of Borrower secured by thia Mortgage. Unlese Borrower and [.ender agree to other terms of payment, such amounts ahall be payable upoa notice from L.ender to Borrower requesting payment thereot, and shall bear interes: !rom lhe date of disbunement at the rate peyable [rom time to time on outstanding principal under the Note unleae payment oI interest at such rate would t~e rnntrary to applicable law, in which event such emounte shap bear interest at the highest rate permiasible under applicable law. Nothing rnntaiaed in thu paragraph 7, shall require I.ender to incur any expense or take eny action hereunder. E F~.^.~?.C•JZ~ P~~E~~4 _ v~~ - t :~-~~. ~;~, ., _ ' -,~- ~e'~?-~-„~~ ~.~ s ~'.»~ . _ .. .. A ~,~. ~