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HomeMy WebLinkAbout0366Borrowe~ ar~d Lender covenar-t and aQree a~ foUow~: l. Psyment of Principal and Intere~~ Bormwer shall prompUy pay whe~ due the prinripal of and intereat o~ the indebted~ees evidencx3 by the Note, prepayn~rnt and 18t~cha~~a~,w p~i,vid~rt iu tl~r Nuir, und tha p~incipal uiend intereaton any Future Advancee secured by this Mortgage. 2. F~nda for Ta:e~ and Insurance. Subjcct to applicable Iaw or to a written waiver by Lender. Bormwer ahall pay to I.ende~ on the day monthly inetallmente o[principat and inte~est are payable under the Note, until the Note is paid in [ull, a aum (herei~ "Etinds") equal to one- twelfth otthe yearly taxes and assessmenb which may attait- priority over thie Mortgage, a~d ground rents on the Property, if a~y, plus onc tweltih of yearly premium installmenta tor hasard insurance, plua o~etwelRh ofyearly premium installments for mort~age inaurance, i[any, all aa reaaonably eatimated initially and from time to time by l.ender on the basia of aeaeasme~ta and bills and reasonable estimatea thereof. The ~Lnds shall be held in an institution the depoeits or actounts of which are insured or gueranteed by a Fede~al or State agency (including l.ender it l.ender is such an institutio~l. Lender ahatl epply the Funde to pay said taxes, aseeaementa, inaurance premiums and ground reota. I.ender may not charge for w holding and applying the Funds, analyzing eaid account, or verifying and compiling said aseeeamenta and bilis, anleas l.ender peys Sorrower intereat on the ~nda and applicable law permits l.ender to make auch a charge. Borrower and I.ender may agree en writing at the tinne of execution of this Mortgage that interest on the Funda ehall be paid to Borrower, and unlesu euch agreement ia made or applicable law requires auch interest to be paid, Lender shall not be required to pay Borrower any interest or earninge on the F1nds. Lender shall give to Borrower, without chargc, an annual accouMing of the Funds showing credita and debits to the Funda and the purpose for which each debit to the Funda was made. Thr Funda are pledged as additional eecurity for the aume aecured by this Mortgage. If the amount o[the ~nds held by Lender, together with the futurc monthly installmente of Funds payablc prior to the due dates ottaxes, asseasmenta, inaurance premiums and ground renta, shall excaed the amount required to pay eaid ta:ea, aasesamenta, ineurance premiums and ground rents aa they fall due, auch excesa shall be, at Bo~TOwei s option, eithe~ pmmpQy repaid eo Borrower or credited to Borrower on monthly installments of Ftinde. I[ the amount of the Funde held by Lender ahall not be eufficient to pay taxea, assessmenta, inaurance premiums and ground renfs ae they fal) due, Bormwer ahall pay Lo Lende~ any amount necessary to make up the de6ciency withi~ 30 da~•s from the date notice ie mailed by I.ender to Borrower requeating payment thereof. Upon payment in full otalt auma secured by thia Mortgage, Lender shall promptly rofund to Borrower any funda held by Lender. lf under paragraph IS hereof the Property ie sold or the Property is otherwise acquired by Lender, Lender ahall apply, no later than immediately prior to the aale of the Property or its acquiaition by Lender, any Runds held by I.ender at the time of application as a credit againat the suma secured by thie Mortgage. 3. Application of Paymente. Unless applicable law providea otherwiae, all payments received by l.ender under the Note and paragrapha 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Le~der by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advancea. 4. Chargea; Liene. E;orrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this MortKage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, i! not paid in such manner, by E3orrower making payment, when due, directly to the payee thereoC Borrowershall promptly turnish to I.ender all notices of amounts due under this paragraph, and i~ the event Bormwer shall make payment direcUy. Borrower shall prompdy fumish to I.ender receipts evidencing such paymrntx. Rorrower shall promptly dischargr any lien which has priority over this MoriKage: provided, that Borrower shall not be reyuired to diccharge any such lien so lonK as F3orrower shall agree in writinQ to thr payment of thr obligation secured by such lien in a manner acceptable to I.ender, or shall in Kuud faith contc~st such lien by, ordefend enfurcementof such lien in, l~al procc~evlings which operate to prevent the enforcement uf the 6en ur iorfeiture of the 1'ropert~ or any part there~f. 5. Hazard Insurance. Burrower shall keep the impruvements now existinK or hereafter erected on the P~operty insured against losa by fire, hazards included within the term "extended coveraKe," and such other hazards as I.ender may require and in such amounts and forauch perials as l.ender may require; provided, that I.ender shall not reyuire that the amount o[ such coveraKe exceed that amount o(coverage required to pay the sums secured by this MortRage. The insurance carrier providinQ the insurance shall be chusen bv Rortower subjeM to approval by I.endrr, provided, that such approval shall not be unreasonably withheld. All premiums un insurani•e p~~licirs shall t-e paid in the manner pn,~~idrel under paraKr.iph 'l hereof or, if not paid in such tnanner, by liorruwer makinK payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable tu l.ender and shall include a standard mortgage clause in favor of and in for~n acceptable to l.ender_ t.ender shaU have the right to hold thr policies and renewals thereof, and Borrovrer shall promptly furnish to -.ender aU renewal notices and all receipts of paid premiums. In the event of loss, E3orruwer shall give pmmpt notice to lhe in4urance carrier and Lender. I.ender may make proot of loss if not made promptly by E3orrower. • Unless+ I.ender and E3orrower othenvise agree in writing, insurance proceeds ahaU be applied to reatoration or repair of the Property da~naged, pro~~ded auch resturation ur repair is ecunumically feasible and the srcurity of this Mortgage is not thereby impaired. [f such rrstoration or repair is not ecunomirally feasihle ~~r if the security of this Mortgage would beimpaired, the insurance proceedsshall beapplied to the sums secured by this hiortKage, with the excrss, if any, paid to &~rrower. lf the I'roperty is abandoned by I3orrower, or if tbrrower faila to re~pond to I.ender within :i0 dayg from the date notice is mailPd by I.ender to Borruwer that the insurance carrier oftera to settle a claim for insurance benefits, I.ender is authorized to collect and appl} the insurance proceeds at I.ender's option e~ther to restoration or repair of the Property or the sums eecured by this Mortgage. Unleas [.ender and F3orrower otherwise aRree in writing, any such application of proceeds to principal ahall not extend or poatpone thedue date of the monthly installments referred to in paraQraphs 1 and `2 hereof or change the amount of such inatallmenta. If under paragraph 18 hereof the Property is acquired b} i~ender, all right, title and intereat of Borrower in and to any insurance policies and in and t~ the proceeda thereof resulting from damage to F'roperty prior to the xale or acqwaition shall pass to Lender to the extent of the auma secured by this Mortqage immediately prior to auch sale or acquiailion. 6. Preservation and Meintenenceof Property: [.easeholde; Condominums; Planned Unit Developmente. E3orrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the PropertS and shall comply with the prov~sions of any iease if th~s MortKage ~s on a ieasrhold. if th~s Mortgage ~s on a un~t ~n a condominium or a planned unit development, F3orrower ahall perform all o[ Borrower's obligations under the declaration or covenants creat~nKor govern~ng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documenta. If a condominium or planned unit devel~~pment rider is executed by E3orrower and recorded together with thie Mortgage, the covenants and aKreemrnts of such rider shall be incorFwrated into and shall amend and supplement thernvenants and agreements of this Mort~ageas if the nder were a part hereof. 7. Protection of Lender's 3ecurity. If Borrower faila to per[orm the covenante and agreemente rnntained in thie Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make auch appearances, dieburse such sums end take euch action as ia neoessary to protect Lender i intereat. including, but not limited k,, diebursement of reasonable attorney's lees and entry upon the Property to make repai». If Lender required mortgage inaurance as a condition ot meking the loan secured by this Mortgage, Borrower ehall pay the premiums required to maintain euch ineurance in effect until euch time as the requirement [or such insurance terminates in accordance with Borrower'e end [.ender s written agreement or applicable Lew. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. Any amounte disbureed by I.ender persuant to this paragraph 7, with internst thereon, ehall become edditional indebtednees of E3orrower secured by thia Mortgage. Unlees Borrower and Lender agree to other terme of payment, such emounte shall be payable upon notice trom Lender to Borrower requesting payment thereof, and ahall bear intereat from the date of diebursement at lhe rate payable from time to time on outetanding principal under the Note unless payment of interest at auch rate would be rnntrary to applicable law, in which event such amounta ehall bear intereat at lhe highest rate permissible under applicable law. Nothing contained in this paragraph ~, shal) require L,ender to incur any e:penee or take any action hereunder. . ~ ~ ~ , . . ~ ~~~.~~ ..., ... _. ` `~ Bil7K J~9 PAGE J~~ _ _ ~~ _ ~_ ~ _ w~. ~.~