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HomeMy WebLinkAbout0123E3orrowe~ and i.ender covet-ar~t and a~ree eu folbwr 1. P~ymeat of Princip~l and latere~~ Borrower shall pwmptly pay when due the priariped of and interest on the indebtednear evidenad by the Not~e. prepeyment and late chugea aa pmvided in the Note, and the principal of and interest on any Fl~ture Advancea secured by this Mortgage. 2. P~nds ~or Taues wnd Insurance. Subject b applicable law or tn a writte~ waiver by Lender, Borrower shall pay to I.ender on the day monthly inetallmenta ot principal and interest are payable under the Note, until the Note ie paid in tull, a aum (he~ei~ "Funde") equal to onc twelfth otthe yearly taxes and assesamenta which may attaia priority over this Mortgage, and ground rents on the Property, if any, plus on~ twelfth of yearly premium installments for hazard ineurance, plua onetwelRh ofyearly premium installments [or mortgage inaurance, if any, all as reaeooably estimated initially and from time to time by I.ender on the basis of assesamenta and bilts and reasonable eatimutes thereof. The ~nds ahall be held in an inatitution the deposits or accounts of which are inaured or guaranteed by a Federal or State agency lincluding I.ender it Lender is such an institution). Lender shatl apply the Funds to pay eaid taxea, easesamenta, ineurance premiums and grou~d nnte. l.ender may not charge for so holding and applying lhe Funds, analyzing said accou~t, or veritying and compiling said aaeeaementa and bills, unless Lender paya Borrower intereat on the FLnds and applicable law permits Lender to make euch a charge. Borrower and Lender may agree in writing at the time of execution ot this Moctgage that intereat on the ~nda ahall be paid to Borrower, and unleae such agreement ia made or applicable law requiree auch interest to be peid, Lender shall not be required to pay Borrower any intereat or earnings on the E~unds. Lender shall give to Borrower, without charge, an annual accounting of the Funds ahowing credite and debita to the Funde and the purpoae for which each debit to the Funds wae made. The Funda are pledged aa additional security for the aume secured by this Mortgege. ~ If the amount of the F~nds held by Lender, together with the future monthly inatallmenta of Funds payable prior to the due dates of taxea, asae8amente, inaurance premiuma and g~ound renta, shail excred the amount nquired to pay said ta:ea, aasesaments, ineurance premiums and gmund renta aa they fall due, such exceas ehall be, at Borrower'a option, either promptly repeid to Borrower or credited eo Borrower on monthiy inalellments of Funds. I[ the amount of the Funds held by Lender ahall not be sufficient to pay taxes, asseasmenta, insurance premiuma and ground renta as they fall due, Borrower ahall pay to Gender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by [.eoder to E3orrower requeating payment lhereof. Upon payment in full of aU sums aecured by thia Mortgage, l.ender ahall promptly refund to Borrower any funds held by Lender. lf under paregraph 18 hereof the Property ia eold or the Property iti ~:therwiae acquired by [.ender, Lender ahall apply, no later than imrnediately prior to the aale of the Property or ita acquiaition by Lender, any Funds held by [.ender at the time of appiication as a credit againat the aums aecured by this Mortgage. 3. Applieation of Payments. Unleas applicable law providee otherwise, all paymenta received by Lender under the Note and paragraphs 1 and 2 henwt ehall be applied by Lender firat in payment of amounta payable to l.ender by Borrower under paragraph 2 hereot, then to intereat payable on the Note, then to the principal ot the Nute, and then to intereat and principal on any Future Advances. 4. Chargee; Liena. Rormwer shall pay all taxes, assessments and uther charges, fines and impoaitions attributable to the Property which ~nay attain a priority over this Mortgage, and ieasehold payments or Krr,und rents, if any, in the manner provided under paragraph'l hereof or, ~t not paid in such manner, by Borrower making payment, when due, d~rectly to the payee the*eot Borrowerahall promptly furnish to l.ender all notices of amounts due u~der this paragraph, and in the event Borrower shall makr payment directly, $urrowershnll promptly fumish to l,ender receipts evidencing such payments. I3orrower shall promptly discharge any lien which has priority o~~er thia Mortgage; pmvided, that Borrower shall not be reyuired to discharge any such lien so IonK as f~rrower shali ngree in writing to the payment of the obliKation secured bv such lien in a manner acceptable to Ixnder, or ahall in good faith contrst such lien by, ordefend enforremenl of such lien ir., legal pr~~ceedings which operate to prevent the enforcement o( lhe lien or forfeiture e~f the 1'rapert~ or any parl therrut , 5. Hazard Insurence. Korrow er xhall keep the improvementss now existing or hereafter erected on the Property ineured against loes by fire, hazards included within the term "extended coverage." and such other hazards as I.ender may require and in such ameunts and for auch periuds as l.ender map rEquire; provided, that lxnder shall not require that the amount of such coveraKe exceed that amount of co~etage required to pay lhe sumR secvred b~ this MortKaKe. The insurance carrier pro~~idinK ihe insurance ch.ill tx~ chusen by Fiorruwer sub~rct u~ approval by I.ender, providrd, that such appro~•al tihall not b4 unreas~~nably withheld. All premmrns un insur.~nce p~~lic•ie~ shall he paid in the mannrr providrd undr~ paraKraph'L hereofor, if nul paid in such ma~ner. by Eiurruwer mak~ng payment, when due, directlp to the in+ur:~nce carr~er. All insurance policies and renewals thereotshail be in form acceplable W l.ender and ahall include a standard mortgaqeclause in favorof and in form acceptable to Lender. l.ender shall have the riqht to hold the policies and renewals thereof, and Bnrrower shall promptly furnish to ~.ender all renewal notices and all receipts of paid premiums. In the event of loss, E~,rrower shall give prompt notice to the insurance carrier and I.ender. I.ender may make proof of loss if not made prumptly by E3urrower. Unless I.ender and F3orrower otherwise aKrre in writing, insurance proceeds shall be applied to resturation or repair of the Property damaged, provided such resG~ratiun ur repair is econumically feasible and the srcurity of this Mortgage is not thereby impaired. If such rratoration or repair is not economically feasible ur i(the security of this Mortgaqe would t-e impaired, theinsurance proceedsahall be applied to the aums aecured by this MurtKage, with the excrss, if any, paid to E3orrower.lf the f'roperty is abandoned by E3orrower, or if f~rrower faila to respond to [.ender within :i11 days lrom the d:~te noti~e is mailPd by I.ender to Borrower that the insurance carrier offers to settle a claim for ~neurance benefits, I.ender is auth~,nzed to collect and apply the insurance pmceeda at I.ender's option either to restoration ~~r repair of the f'roperty or the sums eecured by this MortKage. Unleas L,ender and Rorrower ptherwise aKree in writing, any auch application of proceeda to principal ahall not extend or poetpone the due date of the monthly installments referred k- :n paraKraphs 1 and 'l hereof or chan~e the amount of such inatallmenta. If under paragraph 18 hereof the Property ia acquired by I.ender, all right, tiNe and interest of E3~rrower in and to any insurance policiea and in and to the proceeda thereof resulting from damage to Proprrty prior to the xale or acqwsition shall pass to Lender to the ext~nt of the suma secured by thia Mortqage immediately prior to auch sale or acquisition. 6. Preeervation and Maintenance of Property; l.easeholda; Condominums; Planned Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or permit imppirment or deterioration of the Property and ahall comply with the proviaiona of any lease if this Mortgage is on a leasehold. If this MortRage is on a unit in a condominium or a planned unit development, Rorrower ahall perform all of ~rrower's obligations under the declaration or covenanta creatinKor governing the condominium or planned unit development, the bylaws and regulationa of the condominium or planned unit development, and constituent documente. [t a ~•ondominium or plann~l unit development rider ia executed by fiorrower and recorded together with this Mortgage, the rnvenante and aKreements of such rider shall be incorporated intu and shall amend and supplement the cuvenants and agreements of this MortKaRe as if the nder were a part hereof. 7. Pirotection ot Lender's 3ecurity. If Borrower faile to perform the rnvenante and agreementa conteined in this Mortgage, or if any action or proceeding is commenoed which materially affecte Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, aode entorcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei s option,upon notice to Borrower mey make such appearances, disburse auch sums and take such action as ie neceasary to protect Lendei ~ intere~t, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. tf Lender required mortgage insurance ae a condition of making the loan secured by thia Mortgage, Borrower ehall pay the premiums required to maintain euch insurance in etfeM until euch time es the requirement tor such insurance terminates in accordance with Borrower's and [.ender'~ written agreement or applicabte Law. Borrower ehall pay the amount oi all mortgage insurance premiuma in the manner provided under paragraph 2 hereof. Any emounta disbursed by Lender persuant to this paragraph 7, with interest thereon, ehall beeome additional indebtedneea of E3orrower secured by this Mortgage. Unless Borrower and Lender agree to othtr terms o! payment, such amounts ehall be payable upon notice from Iender to Borrower rcqueeting payment thereof, and shaU bear interest from the date of disbursement at the rate peyable from time to time on outatanding principa) under the Note unleea payment o( intereat at such rate would be contrery to applicable law, in which event such amounte shall bear interest at the highest rate permiasible under applicable law. Nothing rnntaincd in this paragraph ?, shall require Lender to incur any expenee or teke any action hereunder. BQO!( ;'K 349 PA~E ~~3 a - ~-. _ _ -;.~