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HomeMy WebLinkAbout04208orwwer and Leoder covenant and agree as folbvin: 1. Pa~nuent of Pirit~cipal a~d Interes~ Botrower ahall promptly pay whe~ due the pri~cipal of and intereat on the indebtednea~ evidenced by the Note. prepayment and late charges as pmvided i~ the Note. and the principal of and inte~est on any I~Ltun Advancea aecured by this Mortgwge. 2. Ftinds tor Tases and Insurance. Subject to app~icable law or to a written waiver by I.ender, Borrower shall pay to l.ender on the day monthly installmente of principsl and intereat are payable under the Note, until the Note is paid in full, e sum (herei~ "~nds") equsl to on~ twelRh of the yearly taxes and aseesemente which may attain priority over this Mortgage, and ground renta on the I'roperty, if any, plus one twelRh of yearly premium installmente tor hazard insuraoce, plus onetwelfih of yearly premium installmenta [or mortgage insurance, itany. all as reasonably eatimated initially and from time to tirue by l.ender on the basis of assessments and bilis and reasonable eatimates thereot ~n._ c~._~_ ~_n ~_ ~_.~ • • -'--- -- •~- ' ' -- - -. .. . caac a uasuo oaawa [.'~ 1ii::3 iia ~ii ii:au.::i:u:: :::i :i:;j:::a::$ ui sii;:;::::::is vi LiiiiCii oiiE liiu~ir~ Ui ~iiii[dtiKR1 ll~r tl C!'~ICtM~ U~ J~1llC 8~(CI1C~I 7including Lender it Lender ie auch an institutiun). Le~de~ ahall apply the Funds to pay said taxea, nseeaements, insurance premiwns and ground renta. Lender may not charge for so holding and applyiog the Runds, analyzing said account, or verifyi~g and rnmpiling said assessments and bills. unlese I.eader pays Borrowe~ intereat on the Flinda and applicable law permita l.ender to make auch a charge. Borrower and Lender may agree in writing at.the time of execution of thie Mortgage that intereat on the ~nds ahall be paid to Borrower, and unlas snch agrcement ia made or applicable law requiree such intereet to be paid, Lender shall not be required to pey Borrower any interest or earnings on the Fl-nds. [.e~der ahall give to Borrower, without charge, an annual accounting o[the Funds ahowing credits a~d debita to the Funds and the purpose for which each debit to the ~nda vyas made. The Funds are pledged as additional eecurity for the aums secured by thie Mortgage. If the amount of the fl~nda held by I~nder, together with the future monthly inatallments olFunds payable prior to the duedatea of ta~cea, asaessmente. ineurance premiums and ground renta, ahall excred the amount required to pay said taxea, aeseasmenta, insurance premiums and ground rente aa they fall due. auch exceas aha11 be, at Borrowei a option, either pmmptly repaid to Borrower or credited to Borrower on monthly inatallments of ~nde. If the amount of the Funds held by Lender ahall not be auffcient to pay tuxes, asseasmenta, inaurance premiuma and ground rents as they fall due, Borrower shaU pny b Ixnder any amount necessary to make up the deficiency within 30 days from the date notice ia mailed by t.ender to E3orrower requeating payment thereof. G`pon payment in full otall aums aecured by lhis Mor!gage, l.ender shall prompily refund to Borrower any funds held by Lender. If under pa~agraph 18 hereof the Property is sold or the Property is otherwise acquired by I.ender, I.ender shall apply, no later than immediately prior to the sale af the Properiy or its acquisition by I.ender, any Funds held by I.ender at the time otapplication as a credit againat the auma secured by this Mortgage. 3. Application ot Payments. Unless applicable law providea otherwiae, all payments received by l.ender under the Note and paragraphe 1 and 2 hereof shall be applied by Lender firxt in pnyment of amounts payable to Lender by Borrower under paragraph 2 hereo[, then to interest payable on the Note, then to the principal ot the Note, and then to interest and principai on any Future Advancea. 4. Charges; Liene. Borrower shail pay ail taxes, ~s.4essments and other.•harges, fines and impositions attributable to the Property which may uttain a priority over this Mortqage, and leasehold payments or gmund rents, if any, in the munner provided under paragraph 2 hereofor, it not paid in such manner, by E3~rrower making payment, when due, directly to the payee thereof. Borrower shall prumptly furnish to Lender all notices of amounts due under this paragraph, and in the event Rorrower shall make payment directly, Borro~.•er sh~il promptly fumish to [.ender receipts evidencing such payments. E3orrower shal) prompdy discharge any lien which h~~s priority o~•er this blortgage; provided, that Borrower ahall not be requi~ed to discharge any such lien so lon~ as Borrower sh:ill agree in veritinR to thc• pa~•ment of theobligation secured by such lien in a manner acceptable to [xnder, or shall in gcwcl faith context such lien by, or defend enforcement uf such lien in, legal preceedinge which operate to prevent the enforcement oC lhe lien ur forfeiture of the I'roperty or any part ttiereof. 5. Hazard Inaurance. Burrow+er shall keep the impruvements now existing or hereaRer erected on the Properiy insured againat losa by fire, hazards included within the term "extended covera~ce," and such c,ther hazards as I.ender may require and in such amounts and for auch periods as Lender may require; provided, that Ixnder shail not reyuire that the amount of such coverage exceed that amount of coverage required to pay the sums securecl by this MortKage. The insurance carrier providing the insurance shall he• ch~~.t•n b~• Hnrr~~wer suhject to appmval by I.ender; pmvided, that such approval ahall not be unrnasonably withheld. All premiums on insurance ~,licie. shaU he paid in the manner pru~•idid under paragraph 2 hereof or, if not paid in such manner, b~ Rorrower making payment. ~.hrn due, direY•th• to the insurance cartier_ All inaurance policies and mnewats thereof ~hall be in form accept:ible io l.ender and shall include a standard mortgageclause in favor of and in form acceptable to t.ender. l.enderahall have the right ta liold the policies and rerewals thereof, and Borrower ehall prompdy furniah to e.ender all renewal notices and all receipta ot paid premiums. In the eveut of loss, Rorruwer shall give prompt notice to the inaurance carrier and Lender. Lender may make prooi of loss if not made promptly b~ Ftorrower. .- Unleae Lender and ~F3orrower otherwise agree-in writinQ, insur~nce proc~ shall be applied to reatoration or repair of the Piroperty demeged, provided such restoration or repair is en,nomically felsible and the~security of this Nortgage ie not thernby impaired. If such restoration or repair is not economically feasible or if the security of this 61ort~:~Ke would be impaired, :he insurance proceeda shall be applied to the auma secured by this Mortqage, with the excexs, if any, p.~id to Rorrower. lithe F'roperty is abandoned by ~rrower, or if Borrower faile to reapond to Lender within :~0 days from the date notice is mailed by I.ender tu Fiorrower that the in~urance c~rrier offera to aettle a claim for inaurance benefits, I.ender is authorized to collect and ~pply the insurance prc~ceeds at Irnder's option either to restoration or repair of the Property or the suma secured by this MortgaRe. Uuleea Lender and Bonower otherwise agree in writinK, any such ~pplication of pmceeds to principal shall not extend or postpone thedue date of the monthly inatallments referred k, in paraKraphs I and'L herenf or chanKe the amount oisuch installmenta. If under paragraph 18 hereof the Property ia acquired by Lender, all riqht, title and intereat of Eiorrow•er in and to any insurance policies and in and to the proceede thereot resulting fmm damage to Property prior to the sale or acqwsition shall pass to t.ender to the extent o[ the suma secured by this Mortgage immediately prior to such sale or acquisition. 6. PreBervation and Maintenance of Property; l,easpholds; ('ondominume; I'lenned Unit Developmente. f3orrower ahall keep the Property in good rnpair and shall not cammit waste or pPrmit impairment or deterioration of the Property and ehall comply with the provisions of any lease if this Mortgaqe is on n leasehold_ If this ;11artKaKe is on n unit in a condominium or a planned unit development, E3orrower shall perform all of Borrower's ubligations under the declaration or covennntx creatinKor governmg the condominium or planned unit development, lhe by-laws and regulations of the condominium or planned unit development, and constituent dacumente. [f a rnndominium or planned unit de~~elopment rider is executed by &-rruwer and recorded t~rlher with this Mortgage, the o~venante and agreements of such rider shall be incorporated into and sh:~ll amend and ~upplemenl thecovenanls and agreementsotthis Mortgageas if the rider were a part hereof_ ~. Protection o[ Lender's Security. If Borrower faile to pe:form the covenante and agreemente conlained in thie Mortgage, or if any adion or proceeding is commenced which materially affects Lender'e intereat in the Property, including, but not limited to, eminent domain, inwlvency. oode enforcement, or arrangemente or proceedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearancee, diaburee euch aume and take euch action ae ie neceaeary to protect Lender i intere~t, including, but not l~mited to, disbureement of reaeonable attorney'e teea and entry upon the Property to ~rrake repairs. If Lender required mortgage insurance as a condition ot making the loan eecured by thie Mortgage, Borrower ehaU pay the premiums required to maintain ~uch insurence in effect until euch time ae the requirement tor such insurance terminaGea in accordance with Borrower's and Lendd~ writien agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner ptovided under paragraph 2 hereof. My amounts dieburaed by Lender pereuant to~ thia paragraph 7, with interest thereon, eha11 become additional indebtednes~ of Borrower secure+d by thie Mortgage. Unleae Borrower and Lender agree to other terma uf payment, such amounts ~hall be payable upon notice from Lender to Borrower requeating payment thered, and ahall bear intereet from the date of d'ubursement at the rete payable trom time to time on outetanding principal under the Note unlese payment ot intereet at auch rate would be oontrary to applicable law, in wbich event auch amouhta ehall bear intereet at the highest rate permiaeible under applicable Iaw. Nothing contained in this paragraph 7, sball require Lender to incur any expeneE or take any ection hereunder. 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