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HomeMy WebLinkAbout0374Borrower end I.e~der covenant end e~ree a~ follows: 1. Payment ot Principal wnd intere~t. Barrar~rer aha11 promptiy pay when due the prin~ipa{ uf and intereal an the indebtednees evidenced by the Note. prepayment and late charges as provided in the Note. and thej~rincipal of and intereat on any F~tun Adve~cea secured by this Mortgage. 2. F1u~de for Tezes and I~~urance. Subject to applicable law or to a written waiver by I.ender, Borrower ahall pay to I.enderoo the day monthly inelallmente of principal and intereat are payable under the Note, until the Note ia paid in tull, e eum (herein "6'unds") equal to one twelRh of the yearly taxes and asaesaments which may attain priority over this Morigage, and gmund renta on the Property, itany, plus on~ tweiRh of yeariy premium installments for hazard insurance, plua onetwelfth ofyearly prcmium inatallments [or mortgage inaurance, if any, all as reaeonably eatimated initially and from time to time by l.eode~ on the basis of asseasmeote and billa and reasonable eatimatea thereof. The Ftinda ahall be held in an institution the depoaits or accout-te of which are insu~ or guaranteed by a Federal or State ageacy (including Lender if I.ender is such an institution). Lender ehall apply the Funds to pay said taxes, asaesamenta, ineurance premiums and ground renls. Lender rnay not charge for so holding and applying the Funds, analyzing said account, o~ verifying and compiling said aseeeaments and billa, unleas Lender pays Borrower intereat on the Funds and applicable law permits Lender to make auch a charge. Borrower and Lender may agree in writing at the time of e:erution of this Mortgnge that intereat on the Funds ahall be paid to Borrower, and unleas euch agreement is made or applicable law requiMs euch interest to be paid, l.ender ahall not be required to pay Borrower any intereat or eaminge on the F~nds. l.ender shall give to Borrower, without charge, an annua! accounting of the Funds ahowing credits and debita to the Funda and the purpose [or which each debit to the Funde was made. The Funde are pledged as additional security [or theeumsaecured by thie Mortgage. If the amount of the Funda held by l.ender. together with the tuture monthly inetallmenta of Funda payable prior to theduedatea oftaxes; aseesaments, inau~ance premiume and ground rents, ahall eacred the amount required to pay eaid taxee, assesaments, ineurance prcmiume and gmund rents aa they fall due, such exceas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inatallmente of Flinde. If the amount of the Funds held by Lender ahall not be sutficient to pay taxes, assesamente, inaurance premiuma and ground renta ae they fall due, Borrower shall pay to [.ender any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by Lender to E3orrower requeating payment theteof. Upon payment in tull of ell auma secured by this Mortgage, Lender ahaU promptly refund to Borrower any funds held by l.ender. lf under paragraph 18 hereof the Property ia sold or the Properiy is otherwise acquired by t.ender, Lender ahall apply, no later than immediately prior to the sale of the Property or ita acquisition by Lender, any Funda held by Lender atthe time of application as a credit againat the aumasecured by thia Mortgage. 3. Application o[ Payments. Unless applicable law provides otherwise, all payments received by I,ender under the Note and paragrapha 1 and 2 hereof ehall be applied by Lender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal ot the Note, and then to interest and principal on any Future Advancea. 4. Chargee; Liena. Rorrower shall pay nil taxes, assessments and other charges, fines and im~wsitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereo[. E;orrower shall promptly furnish to [.ender all notices of amounts due under this paragraph, and in the event E3orrower shall make payment directly, Eiorrower shall promptly furnish to [.ender receipts evidencing such payments. Borrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligation secured by ~uch lien in a manner accepGible to t.ender, or shall in gcwd faith contc~st such lien by, ordefend enforcement of such lien in, legal proceedings which operate to pre~ent the enforcement of the lien or forfr~turP of the Propert~ or any part thereuf. 5. Hazard 1 nsurance. Korruwer shall keep the improvemenls now existinq or hereafter erected on the Property insured against loas by fire, hazards included within the term "extended coveraKe," and such other hazards as I.ender may require and in such amounts and for such periods as I.endrr ma~• reyuire; provided, that Ixndrr shall not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums sec~red by this MoriKaRe. The insurance carrirr provid~nQ the insurance shall he chusen by fi~-rrower sub~ect tn approva) M• I.endrr; pruvidecl, that such .~ppro~al shall not be unre.~sonabh w•ithhrld. All premiums un insuran~•e pdicir. sh.~ll Fx~ paid in the manner pmvidc~c! under paraKraph''l hereof ur, if not paid in such manner, bt• li~-rr~~wer mak~ng pa~mrnt, when due, dinY~tly to the ~ncurance carrier. Al) ihsurance policies and renewals thereof shall be in form acceptable to l.ender and shall include a standard mortgage clause in favorof and i~ form acceptable to I.ender. l.r~der shall have the right G~ hold the pulicies and rrnewals thrreof, and Borrower shall promptly furnish to ~.ender all renewal notices and all receipts of paid premiums. In theever~t of loss, Rorn~wer shail give prompt notice to theinsurance carrier and l.ender. [.ender may make pr«-f of loss if not made promptly by Fiorrov-er. L?nless I.e~der and Rorrower otherwise agree in writing, insurance proceeds shaU be applied to restoration or repair of the Property damaged, providtd such resG~ration or repair is ecunomically feasible and the security of thia Mortgage is not thereby impaired. If auch rrstoration or repair is not ecom~mically feasible nr if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage, with the ex~•ess, if any, paid to E3orrower. If the Property ia abandoned by E3orrower,or if &-rrower tails to reapond to I.ender within :311 days frum the date notice is mailyd by l.ender tu F3orrower that the insurance carrier offers to setde a claim for ~nsurance benefitr,, l,endPr is authorized to collect :~nd apply the insurance proceeds at I~ender's option either to restoration or repair of the Property or the aums aecured by this MortKage. Unless I.ender and E3orruv-er otherwisr aKree in wriling, any such applicalion ofproceeds toprincipal ahall notextend or poatponethedue date of the monthly installments referred u- in paraKraphs 1 and'L hereuf or change the amount of such installments. If under paragraph 1K hereof the Property is acquired by l.ender, all right, title and interest of F3urmwer in and to any insurance policies and in and to lhe proceeds thereof resulting from damage to E'roperty prior to the sale or acywsition shall pass to Lender to the eztent of the aums secured by this Nortgage immediately prior to such sale or acquiaition. 6. Preeervation and Maintenance otProperty; l.easeholds; C'ondominuma; Planned Unit Developmenta. Borrowe~shall keep the I'roperty in good repair and shall not commit waste or permit impairment or deterioration of the Property and ahall comply with the provisions uf any lease if thie At~:rtgage is on a leasehold. If lhis 1ltortgage is on a unit in a condominium or a planned unit development, fiorrower ahall perform all of liorrower's obliKatiuns under the declaratiun or covenants creatinKor govem~ng thecondominium or planned unit development, the by-law•s and regulations of the condominium or planned unit development, and conetituent documente. If a condominium or planned unit de~elopment rider is executed by E3orrower.and recorded together with this Mortgage, theoovenants and aRreemenLg of such rider shall be incorporated into and shall amend and supplement theco~•enants and agreements of this MortgaQeas if the rider were a part hereof. 7. Protection ot Lender's 3ecurity. It Borrower faila to perform the rnvenante and agreementa contained in this Mortgage, or if any action or proceeding ie commenced which meterially affecte Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, oode entorcement, or arrangemente or proceedings involving a bankrupt or deoedent, then I.ender at Lendei s option,npon notice to Borrower may make euch appearances, diaburoe such eums and take euch action as is necessary to protect Lender's intere~t. . including, but not limited tn, diebursement of reasonable attorney'r feee and entry upon the Property to make repairs. If Lender required mortgage ineurance ae e condition of making the loan secured by thie Mortgage. Borrower sha11 pay the premiume required to maintain - euch insurance in effect until euch time aa the requirement for such ineurance terminatte in accordance with Borrower's and Lender's written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereoL Any amounte diebureed by Lender persuant to this paragraph 7, with intereat thereon, ahal{ become additional indebtedness of F3orrower secured by this Mortgage. Unless Borrower and Lender agree to other terme of payment, such amounte shall be payable upon notice from Lender to Borrower requesting payment lhereof, and shall bear intereat irom the date of diebursement at the rate payable from time to time on outetanding principal under the Nole unlese payment of intereet at auch rate would be contrary to epplicable law, in which event auch amounte ehall bear intereat at the highest rate permissible under applicable law. Nothing contained in thie paragraph 7, shall require Lender to incur any e:pense or teke any ection hereunder. ~~~K 349 P~~rt 3`75 ~: ~ ~ ~ ~ +~ ~=-t -. :~ ~ ~:- ~~ x _~ :~ . -- ~ ~_ = _. .,_. :~ r~