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HomeMy WebLinkAbout0464E~rrower and L,endet covenant and pgin+e a~ tollows: 1. Payment o! Principal and lntere~t. Borrowe~ shall promptly pay when due the principai of and intereat on the indebtedneas evidenced by the Note. prepayment and late chargee ae pmvidrd in the Note, and the principal of and i~tereat on any Future Advances eecured by this Mortgage. 2. FLnds for Taxes and Insurance. Subject to applicable law or to a written waiver by l.eode~, Borruwer ehall pay to l.ende~ un the day mo~thly inatallments o[ pri~cipal and intereat are payable under the Note, until the Note is paid in full, a aum (he~ein "Funds") equal ta one twelQh of the yearly taxea and assesementa which may attain priority over this Mortgege, and grou~d rents oo the Property, if a~y, plus ont twel(ih of yearly premium i~atallments for hazard inaurance, plua onetwelfth ofyea~ly premium installments for mortgage inau~ance, if any, all as craaonebly eetimated initially and [rom time to tiR~e by t.ender on the baeis of assesamenta and billa and reasonable estimatea thereof. The F~nda ahaU be held in an institution the deposits o~ accounts of which are inaured or guaranteed by a Rederal or State agency (i~cluding Lender i[ Le~der is auch an inatitution). Lender ehall apply the Funda to pay said taxes, esaeasmeots, inaurance premiums and ~ound renfa. I.ender may not charge for so holding and applying the F~nda, analyzing said account. or veri[ying and compiling said esaessmenta and biUe, unleas Lende~ pays Borrower ints~est on the Fuode and applicable law permita Lender to make euch a charge. Borrower and l.eader mey agree in writing at the time of execution of this Mortgage that intereet on the F unda ahal) be peid to Borrower, and unleas euch agreement is made or applicable law requires auch intereat to be paid, I.ender shall not be required to pay &-rrower any inlerest or earnings on the Funds. l.ender shall give to Borrower, without charge, an annual accounting of the Funda ahowing credita and debite to the Funda and the purpose for which each debit to the ~nda wae made. The Funde are pledged as additional security for the sume secured by this Mortgage. Itthe amount of the ~nda held by Lender, together with the [uture monthly instaUmenta of Funds payable prior to the duedates of ta:es, asseeements, inaurance premiume and ground renta, shall e:cred the amount required to pay eaid taxes, aseeasmenta, inaurance premiums and ground rente as they fell due, auch exceae ahaU be. at Bo~TOwer's option, either promptly repaid b Borrower or credited b Borrower on monlhly inatallmenta ot Funda. If the amount of the Funda held by Lender ahall not be autficient to pay taxes, asaeasmenta, inaurance premiuma and ground rents as they fall due, Borrower shall pay to Lender any amount neceaeary to make up the deficiency within 30 daya from the date notice is mailed by I.ender to Borrower requeating payment thereof. Upon payment in fuil of all aums secured by this Mortgage, I.ender ahall promptly refund to Borrower any funds held by l.ender_ If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by Lender, I.ender ahall apply, no later than immediately prior to the sale of the Property or its aoquiaition by I.ender, any Funds held by l.ender at lhe time of application as a credit againet the aums aecured by this Mortgage. 3. Application of Payments. Unlesa applicable Iaw providps otherwise, ai) payments received by Lender under the Note and paragrapha 1 and 2 hereof ahall be applied by Lender firnt in payment of amounts payabie to l.ender by Borrov-er under parngraph 2 hereof, then to interest payable on the Note, then to the principal of lhe Note, and then to interest and principal on any Future Advancea. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may atiain a priority over this Mortgage, and leaxehold payments orgruund rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by R~>rrower making payment. when due, directly to the payee thereot Korrowershall promptly fumish to I.ender nfl notices of amounts due under this pnragraph, and in the event E3orrower shall make payment directly. I3orn-wer shall promptly fumish to I.ender receipts evidencing such payment~c. F;orruwer shall promptly dischargr any lien which h.is priority ~~ver this Mortgage; provided, that E3orrower shall not he reyuired to discharge any such lien so long as liorrower shall agree in writing to the paymrnt of the obligation secured by such lien in a manner accep4iblr to I.ender, or shall in Kood faith cuntrst such iien by, ordefend enformment of such lien m, legal proceedings K~hich operate tu prevent the enfurcement of the lim ur furfeiturP of the Property or am part therrof. 5. Hazard Ineurance. Rorrowrer shall keep the improvements nuw existing or hereafter erected on the Property insured aqainat loss by fire, hazards included within the term "extended coveraKe," and such other hazards as l.ender may require and in such amounts and for such periuds as l.ender may rrquire; provided, that lxndrr shall not require that thr amount of such rnverage exceed that amount of coveraqe rryuired to pay the sums secnred by this MortQaQe. The insuranm carrirr pro~•~dinK the ~nsurane~ shall t~e chusrn ha Fi~~rruwer subject to :~pproval by I.ender; pn~vidcYl, th:l( SUC~1 approval sh~ll not be unreasunabh• withheld. All premiums ~~n insuran~•~~ ~~li~•~rs shall t~ paid in the m.~nnt~r pruride~l undrr pariKraph Y hereof or, if not paid in such manner, by fi~,rrou•er mak~nK p:~yment, w•h~•n due, dire~•th• t~~ the ~nsurance c~irrier. All insurance policies and renewals thereuf shall be in form acceptable u- l.ender and shall include a standanl mortgageclause in favorof and in form acceptable to l.ender. l.rnder shall have the riRht u~ h~~ld the W~hcies and renewals thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all receipts of paid premiums In the event of loss, tiorn~wer shall Qive prompt notice to the inaurance camer and Lender. I~ender may make proot of loss if not made promptl~ by t~rrower. llnless I.ender and F3orruwer othervvise aQree in writing, insuranm proceeds shall be applied to restoration or repair of the Property damaged, provided such restoratiun ur repair ~s cronumically [easible and the security of thia Mortqage is not thereby impaired. I! such rrstoration or repair is nnt economically feasible ur if the security of this Mort~aKe would be impaired, theinsurance proceeda shall be applied to the sums aecured by this hlnrtKaKe, with thr excrss, if any, paid to &-rrower. lf the Property is abandoned by E3orrower, or if tinrrower faila to respond to Lender within :i0 days f:um the date notice is mailPd by I.endrr G~ Borrower that the insurance camer ofiers to settle a claim for inaurance benefits, I,ender ~s authorized to collect and apply the insurance proceeda at I.ender's option either to reatoration or repair of the Yroperty or the suma secured by this MortKage. ~ lJnlese I.ender and E3orrower otherwise aKree in writinK, any such apptication uf proceeds to principal ahall not extend or postpone thedue date of the monthly installments referred to in paragraphs I and `l hereof or change the amount of auch installments. If under paragraph 18 hereof the Property is acquired by I.ender, all right, title and interest of Bormv-er in and to any insurance policies and in and to the proceeds thereof resulting fTOm damaqe t~- Property prior to the sale or acqu~sition shall pass to l.ender to the extent ot the suma secured by this Mortgaqe immediately prior to sach sale or acquiaition. 6. Preaervetion and MaintenanceotProperty; I.easeholda; Condominuma; Planned Unit Uevelopments. Borrower ahall keep the Property in good repair and shall not commit vvaste or permit impairment or deterioration of the I'roperty and shall comply with the pravisiong of any leuse if this Mortgage is on a leasehold. !f tnis 11urtKage ic on a unit in a condominium or a planned unit development, Korrower shall perform all of Borruwer's obligations under the declaratiun orcovenants creatinKorgovermng lhecondominium or planned unit development, the by-laws and reRulatiuns ot the condominium or planned unit development, and conatituent documenta. If a condominium or planned unit development rider is executed by Fiorrovrer and recorded together with this Mortgage, the oovenante and ,+Kreements of such rider shall t~ ~ncorpuratrd into and shall amend and supplement the covenants ~nd agreements otthis Mortgage as if lhe nder were a part hereof. 7. Protection of Lender'e 3ecurity. It Borrower faila to perform the rnvenante and agreements contained in this Mortgage, or if any action or proceeding is commenced which meterially affecte l.ender s interest in the Property, including, but not limited to, eminent domain. ineolvency. code enforcement, or azrangementa or proceedinga involving a banitrupt or decedent, then Lender at Lender'a option,upon notice to Borrower may make such eppearances, diaburse auch aums and tske such action ae is necessary to protect I.ender's interest, including, but not limited to, diabursement of reaaonable attorney'e (eee and entry upon the Property to make repairs. If Lender requited mortgage ineurance as a condition of making the loan eecured by this Mortgage, Borrower shall pay the premiume required to maintain euch ineurance in effect until euch time as the requirement for auch inaurance terminatee in accordance with Borrower's and L.ender s vvritten agreement or applicable Law. Borrower shall pay the amount of all mortgage ineurance premiume in the manner provided undrr paragraph 2 hereof. Any emounte diebureed by Lender perauant to this paragraph 7, with intereat thereon, ahall become additional indebtedneas of Borrower eecured by thie Mortgage_ Unlese Borrower and Lender agree to other terme of payment, such amounte shall be payable upon notice from Lender to Borrower requesting payment thereof, and ehall bear interest from the date of dieburaement at the rate payable trom time to time on outetanding principal under the Note unlesa payment of interest at auch rate would be contrary to applicable law, in which event such amounte ahxll bear interest at the highest rale permiesible under applicable law_ Nothing contained in this paragraph 7, ahall require I.ender to incur any expen~e or take eny action hereunder. annK3~ C~GE 4~4 , ~; - .~ ~ ~: . _ _ -- ~ - r _ _:~~