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HomeMy WebLinkAbout1155~3orrower end Lender cove~ant and agree a~ [ollows: 1. Payment o[ Principal aad [ntere~t. Borrower ehell prompdy pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charQe~ aa provided in the Note, and the principa! of and interest on any Future Advancea secured by this Mortgage. 2. FLnds for Tues and I~aurance. Subject to applicable law or to a written waiver by Lender, tiorrower shall pay to l.ender un the day monthly inatallments of principa! and interest are payable under the Note, until lhe Note is paid in fuU, a sum (herein "~nds") equal to onc twelRh of the yearly taxea and aseesamenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plw o~e tweltlh olyearly premium installme~ta fo~ hazard inaurance, plua onetwelRh ofyearly pcem~um instalimenta for mort~age inaurance, i[any, all as reasonably eatimated initiaily and from time to time by I.ender on the basis of asaesame~ts a~d biils and reasunable ea+timatea thereot. The bLnds shall be held in an institution the depoeita or accounta of which are insured or guaraoteed by a Federal or State agency (including I.ender it I.ender ia such an institution). I.ender ahall epply the Fu~ds to pay eaid taxes, assesamenta, insurance prsmiuma and ground rents. I.ender may not charge for w holding and applying the Fun~s, analyzing said account, o~ verifying and compiling said aseeeamenta and bills, unleae l.ender pays Bonower interest on the Funda and applicable law permits Lender to make such a charge_ Borrower and Lender may agree in writing at the time of e:ecution of this Mortgage that intereat on the Funds shall be paid to Borruwer, and unlesa auch agreement is made or applicable law requires auch intereat to be paid, Lender shal) not be required to pay Horrower any interest or earninge on the Funda. Lender ehall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debits to the Funde and the purpose for which each debit to the Funda was made. The F unda are pledged as additional eecurity for theaums aecured by this Mortgage. If the amount of the Funde held by Lender, together with /he future monthly installmente of Funds payable pnor b the due dates of taxes, aseeasmenfs, ineurance premiuma and gmund rcnb, shall exczed the amuunt required W pay said taxes, asseasmenta, ineurance premiums and ground rente aa they tall due, auch excesa ahall be, at Bo~TOwer s oplion, either prompdy repaid b Borrower or credited to Borrower on monthly inetallmente of ~nde. If the amount of the Funds held by l.ender ahall not be sufficient to pay taxee, aeseeamenta, insurance premiuma and ground renta as they fall due, Borrower ehall pay to I.ender eny amount necessary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requesting payment thereot. Upon payment in tull of all euma eecured by thie Mortgage, l.ender ahall promptly refund to Borrower any funds held by l.rnder. If under neragraoh 18 hereof the Property is eold or the Property is otherwiae acquired by I.ender, i.ender shall apply, no later lhan immediately prior • iu ii~e uxie of ii~¢ Proi,erty ar its acquiaition by Lender,~ny Funds held by I.ender at the time of application ae a credit againet thesums secured by thie Mortgage. 3. Applicetion ot Payments. Unless applicabie lew provides otherwise, all payments received by Lender under the Note and paragraphe 1 and 2 hereof shall be applied by Leader finst in payment of amounts payable W Lender by Borrower under paragraph 2 hereof, then to intereet payable on the Note, then to the principal of the Note, and then to intereat and principal on any Future Advances. 4. Chargee; Liens. E3orrower shall pay all tazes, assessments and other charges, finea and impusitions attributable to the Yroperty which may attain a priorit~• o~•er this MortQage, and leasehold payments or ground rents, if any, in the manner provided under paraqraph 2 hereofor. if not paid in such manner, by Borrow•er making payment, when due, directly to the payee therrof. Borrowershall promptly furnish to l.ender ~11 notices uf amount~s due under this paragraph, and in the rvent Iiorrower shall make payment direcUy. Rormwer shall promptly fumish tu I.ender receipts evidenring such paymrnts. F3urrower shcill pmmpUy dischTrgr any lien w•hich has prionty o~•er this Murtgage; provided, thal E;orrower shall not he rtv~uirrd tu discharge any such lien so long as f~irruveer shal) agree in writinK to the payment of the ubliKation secured by such lien in a manner accrptable to Ixnde~, or shall ~n gcn,d faith contrst surh lien by, ordefend enforcement of such lien in, leytal pr~~ceedings w•hich operate to prevent the enforcement of thr I~e~ or furCeiture of the !'roperty or any part thereuf. 5. Nazard 1 nsurance. Iiorr~~wer shall keep the impruvements nuw• existing or hereafter ere.Ked on the Property insured against loas by firP, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounts and for such periods as l.ender may reyuire; pruvided, that Ixnder shall not reyuire that the amount of such cuveraQe excred that amount of coveraqe required to pay the sums sec•ured by this MurtKaKe. - ~ e 7 a The insurance carrirr proc~dinK the insuranm shall F-e chusrn by liurtuwer sub~ect U~ appro~•al by I.ender, pn~~•ided, that such appru~•al shall not be unre:isunahly withheld. All premiums on insuran~•e p~dic~ra shall iie paid in the manner prna•idrd undrr par:~Kr.~ph '? hereof or, if not paid in such manner, by ti~,rrower mak~nK paymrnt, whrn due, dinY-th~ tu the ~nsurance carrier. All insurance policies and mnewals thereof shall be in fo~m acceptable to l.ender and shall include a standard murtgaRe clause in favor of and m form acceptable to l.ender. I.ender shall have the riKht tn hold the pulicies and renewals thereof, and Borrov-er shall premptly fumish to t.ender all renewal notices and all receiptic of paid premiums. In the rvent of loss, Borruwer shall give pmmpt notice w the insurance camer and Lender. l.ender may make proof of loss if not made promptly by Borrowrr. Unlesa [.ender and Borrower othervvir,e aFCree in writinK, insurance proceeds shall be applied to restoration or repair ot the Property damaged, pro~~ded such restvratiun ur repair i~ erunumically feasible and the srcurity of this Mortgage is not thereby impaired. If such rrstoration or repair is not economically feas~ble ur if the security of this MortgaKe would be i:npaired, theinaurance proceedsshall beappl:ed to the auma secured by this MortKaKe_ with the excrss, if .in_r•, paid to f3orrower. If the 1'roperty is abandoned by Borrower, or if Eiorrower faila to reapond to I.ender within :i(1 days frum thr date notice is mailyd by l.ender tu fiorruwer that the insurance carrier offers to settle a claim for insurance benefils, I.ender is authorized to collrct and apply the insurancP proceeds at Ixnder's option either to mstorat~on or repair of the Yroperty or the sums aecured by this tilortKage. ~ Unless Lrnder and t3orrower otherwisc• aKree in wnting, any such application of pmceeds to principal ahall not extend or poatpone thedue date o[ the monthly inatallments referrcd to in paraqraphs 1 and 2 iiereotor change the amount of auch inatallments. If under paragraph 18 hereof the Pmperty ia acquired by l.ender, all right, title and interest of Bormwer in and to any insurance policies and in and to the proceeds thereof reeulting from damaRe to i'roperty prior to the sale or acquisition shall pass to Lender to the extent of the aums secured by this 1lurtgage immediately prior to buch sale or acquisition. 6. Preaervation and Maintenance of Property: I.easeholds; Cundominums; Plenned Unit Developmente. Borrowerahall keep the Property in g~wd repair and shall not commit v-aste or permit impairment or deterioration of the Property and shall rnmply with the provisiona of any lease if this Alortgage is on a leasehold. If this lNortQage is on a unit in a condominium or a planned unit development, liorrower shall perform all of Rorrower's obligations under the declaratiun or covenants creatinKor qovem~ng lhecondominium or plannerl unit development, the by-laws and regulatiuns of the condominium or planned unit development, and constituent documente. I[ a c-ondominium or planned unit development rider is executed by Borrowrr and recorded together wilh thie Mortgage, the cuvenants and :~greements of such rider shall be incorporatrd inlo and shall amend and supplement thecovenants and agreements of this Mortgageasifthe nder veere a part hereof. 7. Protection ot Lender's Security. If Borrower faile to perform the covenante and agreements conta~ned in this Mortgage, or if any action or proceeding is commenced which materially affecte Lender's interest in the Property, ine{uding, but not limited to, eminent domain, ineolvency, oode enforcement, or anangementa or proceedinga involving a bankrupt or decedent, then Lender at Lendrr's option,npon notice to Borrower may make euch appearances, dieburee euch sums and take euch action as u necesaary to proteR Lender i interest, including, but not limited to, diabursement of reasonable attorney'e tees and entry upon the Property to ma1[e repairs. If Lenda reqt~ired mortgage inaurance ae a rnndition of making the loan aecured by thie Mortgage, Borrower ahall pay the premiums required W maintain euch inaurance in effect until such time as the requirement [or auch ineurance terminates in accordance with Borrowerb and Lendei • written agreement or epplicable L~w. Borrower eha1) pay the amount of all mortgage ineurance premiume in the manner provided under paragraph 2 hereof. Any amounte diebursed by Lender perouant to this paragraph 7, with intereat thereon, ehall become additional indebtedness of E3orrower secured by this Mortgage. Unleae Borrower and Lendrr agree to other terme of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, end ahall bear interest from the date of disbursement at the rate payabk trom time to time on outetanding principal under the Note unleee payment ot intereet at euch rate would be contrary to applicable law, in which event euch amounte ehall bear interest at the highest rate permiasible under applicable law. Nothing contained in thu peragraph T, ~hall require I.ender b incur any expense or take any action hereunder. B~f1K.34g p~~E1156 ~ = .. _ ..::.g~ ~, ... ~. .:. . ~m.'~.?--.<• `.:.5._'-..