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HomeMy WebLinkAbout0183Horrower and l.cnde~ covenant and aQree as [olbw~: 1. P~yment ot Ptinclpel ~nd Interest. Borrower ~hali pmmptly pey when due the pri~cipel of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advancea secu~ed by this Mortgage. 2. Fltnds !or Taxea and I~~urance. Subject to applicable law or to a written waiver by l.ende~, Borrower ahpll pay to I.ender o~ the day monthly installments of principal and intecest are payable u~der the Note, u~til the Note ia paid in full, e aum Iherein "Funds"- equal to one twelRh of the yearly taxea and aasesaments which may attain priority over thia Mortgage, and ground renta on the Property, if any, plua one- twelRh of yearly p~emium i~stallme~ts for hazard insurance, plus onetwelRh of yearly premium inatallments ior mortgaRe insurance, if any, aU ae reasonably eatimated initially and firom time w time by I.ender on lhe basia of assesameota a~d bills nnd reasunable estimates thereot. The ~nda shall be held in an institution the depoaita or accounts ot which are insured or guaraoteed by a Federal o~ State agency lincluding Lender if Lender ie such an institution). Lender shell apply the Funds to pay said taxes, aseeasments, inaurance premiuma an.i gruund rents. Lrnder may not charge [or so holding and applying the Funds, analyzing said account, or verifying and compiling said aeseasments and billa, unless l.ender pays Borrower intereat on the Funds and applicable law permies Lender to meke auch a charge. Borrower and Lender may agree in writing et the time of execution ot this Mortgage that interest on the ~nds shall be paid to Borrower, and u~leas auch agreement ia made or epplicable law requires such interest to be paid, l.ender shaU ~ot be required to pay Horrower any interest or earninga on the F1nds. Lender shall give to Borrower, without cherge, an annual accounting otthe Funds ahowing credita and debita to the Funda and the purpose for which each debit to the ~Lnda was made.'l7~e Funds are pledged as additional security tor the suma secured by this Mortgege. . If the amount ot the Ftinds held by Lender, together with the future monthly inetallments of Funda payable prio~ to the duedatee of ta:es, asaeasments, insurance premiuma and ground renta, ahall e:cxd the umount required to pay said taxes, asseasments, inaurance premiums end ground rnnts as they fall due. auch excess ahnll be. at BoeTOwer's option, either prompdy rtpaid to [3orrower ur credite3 tu Surruwerun monthly inatallmenta of Funds. I[ the amount of the Funds held by Lender ahall not be eu~cient to pay t:~xee, assesamente, inaurence premiwne and ground re~ts ae they fal) due, Borrower ahell pay to Lenaer any amount neceseary to make up the deficiency within 30 daya from the date notice ia mailed by Lender to Borrower requesting payment thereof. Upon payment in fuU of all sums eecured by this Mortgage, I.ender shall p~omptly retund to Borrov-er any funda held by Lender. If under paragraph 18 hereof the Property ia aold or the Property is o-herwiee acquired by l.ende~, l.ender ahall apply, no later than immediately prior to the sale of the Property or ite acquisition by l.ender, any Funda heid by Ixnder al the time of application as a credit againat the aums aecured by this Mortgage. 3. Applieation of Payments. Unlese applicable law provides otherwiee, all paymenta received by Lender un~er the Note and paragraphs I and 2 hereof ahall be applied by l.ender firat in payment of amounts payable to Lender by Borrower under paragraph 2 hereot, then to intereat payable on the Note, then to the principal ot the Note, and then to intereat and principal on any Future Advancea. 4. Chargee; Liene. Elorrower shali pay all taxes, assessments and other charges, fines and impositions attributable to the Piroperty which -nay attain a priority over this Mortgage, and leasehold ps~yments or Kround rents, if any, in the manner provided under paragraph 2 hereof or, if ~-u1 paid in such o~:-nner, by Burruwer maicing payment, when due, directiy to the payee thereot liormwer shaii promptly furnish to Lender all notices of amounts due under this paragraph, and in the event E3orruwer shall make payment directly, Borrower shall promptly furnish to I.ender receipts evidencing such paymrnts. f3orrower shall promptly dischargr any lien which has priority over this Mortg:~Ke; provided, that Borrower shall not be reyuired to discharKe any tiuch iien so lonK as f~rrov-er shall aqree in wrilinR to the payment of theobiig.~tion secured by such lien in a manner acceptat-le to Ixndrr, or shall in goud faith cuntrst such lien by, ordefend enforcement ofxuch lien in.legal proceedings which operate to prevent the enfurcement of thr lien or forfriture uf the Proprrty or any part thereuf. 5. Hazard Iosurance. Korrower shall keep the improvements now existing or hereafter erected on the Property insured aga~nat (oss by fire, hazards included within the term "extended coverage," and such other hazards as I.ender may require and in such amounts and [orauch periuds as I.ender ma~ reyuire: pruvided, that Ixnder shall not reyuire that the am~,unt of such coveraKe exceed that amount olcoverage required to pay the sums scrurcd by this Mort~age. 'I'he insurance carrier prnvidinK the insur:~nm sheiU br chosen by Rnrruwer subject to appmval by Ixnder, pru~•ide~f, that su.-h ~pproval shall not be unreasonabh withheld. All premiums on ~nsur.in~•e p~~licicw sh:~ll he p.i~d in the manner pn~vided under paraKraph `L hereuf or, if not paid in such manner, by &~rruvicer mak~nK pa~•ment, when dut•. direcU~• G~ th~• ~nsurance carrier. All insurance policies and renewals thereof shall be in form acceptable tn l,ender and shall include a standard mortgage clause in favor of and in torm acceptable to l,ender. l.ender shall have the riKht U~ hold the policies and renewals lhereof, and Borrower shall promptly furnish k- i.endPr all renewal notices and all receipts of paid premiums. ln the event of loss, E3orniwer shall give prompt notice to the insurance carrier and l.ender. I.ender may make proof of loss if not made promptly by E3orrower. l.'nlesa l.ender and fiorrower otherwise agree in writing, insurance proceeds shal) he applied to restoration or repair of the I'roperty damaged, provided such restnrat~nn or repair is ecnnumically ieasible and the srcurity of this Mortgage ia not thereby impaired. If such rrstoration or repair is not economically [easible nr if the security of this Mortgage would be impaired, the inaurance proceeda shall be applied to the sums secured by this MortKage, with the excess, if any, paid to E3orrower. If the Yropcrty is abandoned by Borrowe~, or if Eiorrower faila tu respond to I.ender within :i0 days frum the date notice ~s mailPd by I.ender to F3orrower that the insurance carrier ofters to settle a claim for insarance benefits, I.ender is authurized to collect ~nd apply the insurance pn-ceeds at I.ender's option either to restoration or repair of the i'roperty or the sums aecured by this MortKage. . Unless Lender and i3orruwer otherwise aRree in wnt~ng, any such application of proceeds to principal ahall not extend or postpone thedue date of the monthly inslallments referrrd to in paraKraphs I and `2 hereof or change the amount of auch installmente. If under paraqraph l8 hereof the Property is acquired by I.ender, all right, title and interest of Borrower in and to any insurance policiea and in and to the proceeda thereot resulting from damage to Property prior to the sale or acyu~sition shall pass to I.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or ncquisit~on_ 6_ Preeervation and Mainienence of Property; l.eaaehvida; Condominuma; Yianned Unit I)eveiopments. l3orrowerahall keep the Property in ge~1 repair and shall noi commit wa~.te or permit impairment or deterioration of the PropeRy and shall comply with the pro~•iaiona of any lease if this !11~~rtqage is on a leasehold. If this 11ortK:~ge is on a unit in a condominium or a planned unit development, Rorrower ahall perfprm all of F~rrower's ob{iKations under the declaration or covenants crratinKur governmg the condominium or planned un~t development, the bylavvs and reRulations of the condominium or planned unit development, and constituent documente. If a c~ndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider sh:~ll be inc~~rporated into and shall amend and sapplrment ihe covenants and agreements of this Mortgage as if lhe nder were a part hereof. 7. Protection ot Lender's 3ecurity. If Borrower faila ta perform the covenante and agreements rnntained in this Mortgage, or if any aMion or proceeding is commenced which materially aftects I.endei s intereat in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or errangementa or proceedings involving e bankrapt or decedent, then Lender at Lendei e option,upon notice to Borrower may make such appearances, dieburse such eums and take such aMion as ia necessary to proteet Lender'~ interat~ including, but not limited to, diebursement of reaeonuble attomey e fees and entry upon the Property to make repairs_ If Lender required mortgege ineurance as a condition of making the loan secured by this Mortgage, Borrower ahall pay the premiume required to maintain euch insurance in effect until euch time as lhe requirement for such insurance terminales in accordance with Borrower's and Le~der ~ written agreement or applicable [~w. Borrower ahall pay the amount of all mortgage ineurance premiums in the manner provided under paregraph 2 hereof. Any amounts disbureed by Lender pereuant to this paragraph 7, with interest thereon, ahall become additione! indebtednesa of E3orrower secured by thie Mortgage. Unless Borrower and Lender agree to other terme of payment, such amounts shall be payabfe upon notice from t.ender to Borrower requesting payment thereof, and ahall bear interest trom the date of disburoement at the rate payable from time to time on outetanding principal under the Note unlesa payment of interest et such rate would be rnntrary to applicable law, in which event such amounte ehall bear inttrest at the highest rate permieeible under appliceble law. Nothing contained in this parag~aph 7, shall require [.ender to incur any expensr or take any action hereunder. ~ - ~ ~ ~ ~ .. ~. ~ . .~~. .: B~OK350 FHGF 1~3