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HomeMy WebLinkAbout0362Borrowe~ and Lender coveoant and a~ree ai follows: I. Paymenl of Priacipsl and Intereat. Borrowe~ ahall pmmptly pay whe~ due the principal of and intereat on the indebtedneas evidenced by the Note, prepayme~t and late chargea ae pmvided in ehe Note, ar-d the principal of and intereat on any Etiture Advancea secured by this Morigage. 2. I~tnde for Tases aad lnsurance. Subject to applicable law or to a written waiver by I.ender, Borrowe~ shall pay to I.ende~ o~ the day monthly inatalimenta of pri~cipal and intereat are payable under the Note, until the Note ia paid in full, a aum Ihereio "F unds") equal to one tweltih oithe yearly taxea and assesements which may attain priority over this Mo'tgage, a~d ground rents o~ the Properiy, if any, plus on~ twelfth uf yearly premium installments [or hasard inaurance, plua onetwelfth of yearly premium installmenta for mortgage inaurance, if any, all ae reaeonably eatimated initially and firom time to time by Lende~ on the baeis of assesaments and billa and reaso~able estimates thereot. ' The FLnda ahall be held in an institation the deposita or accounta of which are inaured or guaranteed by a Federal or State agency (including l.ender i[ l.ender ia auch an inetitution). I.ender ~hall apply the Funda to pay said taxes, aeaesamenta, inaurance premiums and ground rents. Lender may not charge for eo holdi~g and applying the Funda, a~alyzing said account, or verifying and compiling esid aeaessments and bills, u~leas [.ender pays Borrowe~ interest on the Funda and applicabie law permita Lende~ to make euch a charge. Borrower and l.ender may agree in writing at the time of e:ecutiort oi this Morigage that inleresi on ihe Funda ahall be paid b Borrower, and unleas such agreement ie made or applicable law requirea such inlereat to be paid, l.ender ahall not be required to pay E3orrower any intereet or earnings on the Funds_ Lender shaU give to Borrower, without charge, an annual accounting otthe Funda shuwing credita and debitu to the Funda and lhe purpose for which each debit to the Funds wae made. The Funds are pledged as additional aecurity fortheaums eecured by this Mortgage. lf the amuunt ot the F~nda held by l.ende~, together with the future monthly instaliments of Funda payable prior to the due datea of taues, aesesementa, inaurance premiums and ground renta, shali exc2ed the amount required to pay said texes, aseesamenta, inaurance premiume and ground renta as they tall due, such excesu ahall be, at Bo~tower s option, eilher promptly repaid to Borrower or credited to Borrower on monlhly inataUments of Funda. if the amount of the M unde held by I.ender ahall not be aufficient to pay taxea, aseeasmenta, insurance premiuma and ground rente as they fall due, Borrower ahall pay to l.ender any amount neceasary to make up the deficieocy within :i0 daye from the date notice ia mailed by Lender lo E3orrowcr requesting payment thereot. Upon payment in [ull af all aums aecured by this Mortgage. l.ender ahall promptly refund to E3orrower any funds held by Lender_ It under paragraph 18 hereof the Property is sold or the Przoperty is otherwiee acquired by Lender, I.ender ahall apply, no later than immediately prior W the eale o[ the Property or ita acquisition by Lender, any F unds held by I.ender at the time of application as a credit againet the aums xecured by thie Mortgage_ 3. Application o~ Payments. Unlesa applicable law provides otherwise, all payments received by I.ender under lhe Note and paragrapha 1 and 2 hereof ahall be applied by [.ender firat in payment ot amounta payable to l.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and lhen to interest and principal on any Future Advances. 4_ Chargee; Liene. Rorn-wer shal) pay aU taxes, assessmrnts and othercharges, finrs and im{wsitions altributable k- the Property which may attain a priority over this MortKaKe, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 'l hereoior, if not paid in such manner, by Borrovrer making payment, when due, direcUy tu the pnyee therroC Nurrowershall promptly furnish to I.ender all notices of amoun~~ due undrr this p.iraKraph, and in the eve~t E3orrower shall make payment d~recdy, Korn~wer shall prompQy fumish to Ixnder receipts e~•idencinK such paymenG4. liurruwer sh.ill prompdy discharKr any lien which has priurity over this NortKaKe; provided, that Borrower shall not bereyuired to discharge any such lirn so IonK as tiorrower shall a~ree in writinK~o thr payment uf theobliKation secured by such lien in :- manner acreptable to Ixnder, or sh:ill i~ KeNxf taith nrntest such Gen by, ordefend enfonrment o(such lien in, leKal proceedings which operate to prevent the enforcemrnt of the Gen ur [orfriture of the !'rupert~~ or any part thercr~f. 5. Hazerd Inaurancr. Korrower shall keep the improvements now exist~ng ot hereuftererected on thr Property insured pgainst losa by fire, hazardti included within the term "extended coveraKe," and such other hazards as Ixnder may reyuin• and in surh amounts and forauch periods as I.ender may reyuire; pruvided, that Ixndrr shall not requ~rr that the amount of s~~ch rvvers~e exrecd that amnunt of coverage requirecl to pay the sums +FCUrrd by this Mt~rtKaKe. ~ The insurancecamer pn~~•id~nK tht• insurance chall t-ei•hn.rn by Iturrow•~•rsubjecctucipprov:~l by Ixndrr, pru~•id~1, that such approval shall not be unrras~-nably withhNld. All prPm~ums on insuran.•e ~~1ii•ir~ shall t~r pa-d ~n thr mannrr pr~~v~d~~l under paraKraph'l herer~f or, if not paid in such manner, by Norrower mak~nK paymi~nt, w•hrn due, dinY•tly tu the in.urance c•arric•r. All insurance policies and renewals thereotshall be in form acceptable u- I.ender and shail include a standard mortgage clause in favor of and in [orm acceptxble to I.ender. I.ender shall have thP riKht to huld the p~dicies and rrnrwals therrof, and E~rrower shall promptly furnish to t.ender all renewt~l notices and all receipts of pa~d premiums. In the event of luss, liorn~wer ~hall Kive prompt notice k, the insurance carrier and I.ender_ I.ender may make pnKif of loss if not made promptly by 13orruwer. Unlexs I.ender and I3orrower otherwise agree in writinK, insurance praccrds shall be applied to restoration or repair of the Property damaged, providrd such reswratiun or repair is w-onumieally fexsible and the srcurity of thia Mortgage is not thereby impaimd_ If auch restoration or repair is not econumically fPasible or if the secunty uf this MortR.iKewould t-e impaired, theinsurance proceeds shall be applied to the sums aecured hy thia MortKaKe, with the excrss, if any, paid to F3orrower. If the F'roperty is abandoned by E3orrower,~!r i[ &~rrower faile to respund to [.ender within :i/l day~ from thr datr notice ~s mail~d by I.ender tu E3orrower that the insurance camer offern to settle a claim for inaurance benefiLs, I.ender is authunted to rnllect and apply the insurance proce~~ds at I.ender's oplion either to restoration or repair of the Properiy or the sums secured by this MortKaKe. Unlesa [.ender and Borruwer otherwisr agree in writing, any such application of proceeds to principal shall not extrnd or poatpone thedue date of the monthly installmentx referred t~~ in par:~Kraphs 1 and'l t~ere~-f or change the amount of such installmenta. If under paragraph IS hereof the Pmperty is acquired by I~ender, all riKht, title and i~terest c,f Burrower in and to any insurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acywsitiun shall pass lo [.ender to the extent of 1he aums secured by this Morigage immediately prior to such sale or acquisition. 6. Preeervationand~lsintenanceotProperty:l.eaeuholdx;('ondominums;PlannedUnitDevelopmenta.Borrowerahallkeep the Properiy in Koc~d mpair and shall not cummit waste or perm~t impairmrnt or deterioration of the Properly and ahall comply with the proeisione of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, Rorrower shall perform all of I~rruwer's nbligations under the declaration orcuvenants creatinKor governmg lhe condominium or planned unit development, the by-laws and re~culations of thP condominium or planned unit development, and ronatituent dceumente. If a condominium or planned unit development rider is executed by &~rn~wer .~nd recorded t~ether with this btortgage, the rnvenante and agreements nf such rider shall t-e incorpurated intu and vhall amend and supp!ement thr covenants and agreements of this MortqaKe as ifthe nder were a part hereof. 7_ Protection ot Lender'e 3ecurity. I[ Borrower faila to perform the oovenante and agrcementa contained in this Morigage, or if any action ar proceeding ie commenced which materially effecie Lender'e interest in the Property, including, but nul limited to, eminent domain, ineolvency, code en[orcement, or arrangements or proceedinga involving a bankrupt or decedent, then Lender et Lender s option.upon notice to Borrower may make euch appearances, diaburee auch eume and take such action as is neceasary to protect Lender's interest, including, but not limited to, disburaement of reasonable attomey's fees and entry upon the Property to make repain. If Lender required mortgage insurance as a condition of making the loan secured by thia Mortgage, Borrower ahall pay lhe premiums required to maintsin euch ineurance in effect until euch time as the requirement [or auch ineurance terminates in accordance with Borrower's and Lender s written agreement or applicable l.ew. Borrower ehall pay the amount of all mortgage inaurance premiume in the manner provided under paragraph 2 hereol. Any amounts diebureed by l.ender pereuant to this paragraph ?, with intereat lhereon, ehall become additional indebtedness of E3orrower secured by thie Mortgage. Unless Borrower and Lender agree to other terme of payment, euch amounts ehall be payable upon notice from Lender to E3orrower requesting payment thereof, and ehall bear interest from the date of disbun+ement at the rate payable from time to time on outetanding principal under the Note unless payment of intereet at euch rate would be contrary to applicable law, in which event euch amounte ehall bear interest at the highest rate pertniasible under applicable law. Nothing contained in thie paragraph 7, shali require l.ender W incur any eapense or take any eMion hereunder. '~'K~49 P~~E 3f ~ ~ F JJK ~ . ~ ' ~ . ~ . . ~ ~ -- - - - - ~ - _ ~~.: ~ _.