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HomeMy WebLinkAbout0977 8orrow~ a~d Lende~ oovenant and a~res u folb~rr. ~ ~ 1. Psyment of Principal and Iaten~t. Borrower ahaU pro~nptly pay when due the principal of aad intenae on the indebeedness - evidenced by the Note. prepaymeAt and late chuge~ as provided i~ the Note, and the principal of and interest or? any Future Advances secured by thia Mort~a~e. 2. FLads [or T~e~ ~nd In~urenoe. Subject b applicable law or to a written waiver by Le~der, Borrower shall pay to Lender o~ the de~y mo~thly u?atallments of principai and interest are payable under the Note, u~tii the Note is paid in full. a sum (herein "F'uads") equal to ono- . twelRh of the yearly taxea and aaeessments which may attain priority over thia Morigage, and ground rents on the Properly, if any, plw onc twelRh of yearly pre~nium installments for hazard insurance. plua onetwelRh of yearly premium inatallmenes fo~ mortgage i~surance. itany. all as reasonably estimated initially and trom time to time by Lender on the basis of aseeasments and billa and reaaonable eatimates thereoL The Fl?nds ahall be hefd in an institution the deposiis or accounte of which an insured or guaranteed by a~ederal or State agency ~(including Lender if Lender is such an institution). Lende~ ehall apply the Funds lo pay said taxea, asaesaments. insurance p~emiums end grdund rents. I.ender may not charge for w holding and applying the ~nds, analyzing said account, or verifying and compiling aaid assasments and bills. unless I~ender pays Bormwer intereet on the Ftinds and applicable law permita I.ender to meke euch a charge. Bor~ower and Lender may agree in wcitiag st the time of esecution of thia Morlgage that intereat on the fi~nda ahall be paid b Borrower, and unlew such agreement is made or appiicable law requires such intereat to be paid, Lender ahall not be required to pay Borrower any interest or earnings on the Funds. Lender shali give b Borrower, without charge, an annual aeoounting of the Funds ahowing credits and debita to the Fuada and the purpose for which ~ch debit b ihe fi~nda wae made.'IT~e Funds are pledged as additional security for the eume aecured by this Moregage. . - If the amount of the ~Lnda held by Lender, together with the future monthly inetaUments of Funds payable prior to the due datesof ta:es. asseasmenta, inaurance premiuma and gmund rents, shall excred the amount required to pay said taxes, aseeesments. inautance premiums and g~round sents as they lall due. such e:cess shall be, at Borrowei a option, either prompdy repaid W Borrower or credited to Borroweron monthly inetallments of flinds. If the amount of the Funds held by Lender ahatl not be sufficient to pay ta:es. aseessments, inaurance premiuma and ground rents as they fall due, Borrower shall pay to Gender any amount necessary to make up the deficiency within 30 daye firom tfie date notice is mailed by [.ender to Borrower requeating payment thereof. Upon payment in fuU of all sums aecured by this Mortgage, [.ender ahall pmmptly refund to Borrower any funda held by Lender. If under paragraph 18 hereof the Property ia sold or the Property is otherwise acquired by I.ender, Lender ahall apply, no lster thaa immediately pri~ io the eak of the Property or its acquiaition by Lender, any Funda held by l,ender at the time of application ss a c~redit againat the aume aecured by this Mortgage. 3. Applicatioa of Payments. Unless applicable law provides otherwiee, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to I.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note. then to the principai of the Note, and then to intereat and principal on any Future Advancee. 4. Chargee; Iaens. Borrower sfiall pay ali taeces, asaessments and other charges, fines and impoeitions attributable W the Property which may attain a priority oqer this Mortgage, and leasehold payments or grouod ren~4, if any, in the manner provided undrr paragrapfi 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shal) promptly furniah to Lender all notices of amounts due under this parag~raph, and in the event Borrower shall make payment directly. Borrower sha11 promptly furnish to Lender receipts evidencing such payme~ts. E;orrower shall promptly discharge any lien which fias priority overtfiis Mortgage; provided, that Borrower ahall not be required to discharge any such lien so long as t3orrower shall agree in writing to the payment o[the obligation secured by such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, leqal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Inaurance. Aorrow~er shall keep the improve~nents now existing or hereaRer erected on the Prope~ty inaured againstloeaby fire, hazards included within the tertn "extended coverage," and such other hazards as I.ender may raquire and in such amounts and forsuch periods aa Lender may require; provided, that Lende: shall not require that the amount of auch coverage exceed that amount of coverage required to pay the su~ns secured by this Mortgage_ The insurance carrier providing the insurance shall be chosen by Borrc~wer subject to approval by l.ender; provided, that such approval aha11 not be unrea§onably withheld. All premiums on insurance puiicies shall be paid in the manner pmvided under paraRraph 2 hereof or, if ~ not paid in such manner, by E3orrower making payment, when due, directly to the in~curance carrier. All insurance policies and renewais thereof shall be in forn? acceptable ta Lender and shall include a atandard mortgage clause in favorof and in form acceptable to l.ender. l.endershall have the right to hold the policies and renewals thereof, and Borrowershall promptly turnieh to - ~ i.ender all renewal notices and all receipta of paid premiums. In the everit of loss, E3orwwer ehall give prompt notice to lhe inaurance carrier j and Lender. Lender may make proof of loss i( not made promptly by Borrower_ Uniesa Lender and Borrower otherwise agree in writing, insurance proceeds ahall be applied to rQatoration or repair of the Property ~ damaged, provided snch restoration or repair is ecunvmically feasible and the seeurity of this Mortgage is not thereby impaired. If auch restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the auma secured by this Mortgage, with the excess, if any, paid to Borrower. If the rt'roperty ia abandoned by Borrower, o~ if Borrower fails to respond Lo Lender within 30 days from the date notice is mailed by l.ender Lo Borrower that the inaurance carrier of~ers to setdo a claim for ~ insurance benefita, I.ender is authorized to collect and apply tfie insurance proceeds at I.ender s option either to reatoration or repair of the Pmperty or the auma secured by this Mortgage. Unleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall notextend or postpone thedue date of the monthly inetallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallmenta. I[ under paragraph 18 hereof the Property is aequired by Lender, all right, title and interest of Sorrower in and to nny insu~ance policiea and in and W the proceeds thereof resulting from damage to Property prior to the sale or acqu~sition ahall pass to Lender to the e:4ent of the sums eecured by this Mortgage immediately prior to auch sale or aoquisition. 6. Preservation and Maintenance of Property: Leeseholds; Condominume; Planned Unit Developments. Borrowerahall keep the Property in good rnpair and shall not commit waste or permit impairment or deterioration of ihe Properiy and efiatl compiy with the provieiona ot any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a plenned unit development, F3orrower ehall perform all of Borrower's obligations under the declaration or covenanta creatingor governing the rnndominium or planned unit devetopment, the by-lawa and reguiations of the condomininm or planned unit development, and rnnatituent documente. I[ a ~ condominium or planned unit develupment rider ia executed by Borrower and recorded together with thia Mortgage, the oovenant8 and = agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreemente of thia Mortgageas if the ~ rider were a part hereof. 7. Protection of Lender'e Security. If Borrower [eila to perform the covenants and agreements contained in this Mortgege, m if any ~ action or proceeding is commenced which materially affecte Lender s intereat in the Property. including, but not limited to, eminent domain. ~ ~ insolvency, oode enforoement, or arrangements or proceedings involving a bankrupt or decedent~ then Lender at L.endei s option,npon ~ notice to Sorrower may malce snch appearances, dieburse auch sums and take auch action as is naxasary to protect I.ender i intaes~ including, but not limited to, diabunement of reaeonable atWrney's [eea and entry upon the Property to make npairs. If L~nbe: tequired ` ~ mortgage insurance as a condition of making the loan eecured by thie Mortgege, Borrower shall pay the premiums required to maintain ~ such insurance in effect until such time aa the requirement [or auch ireeurence terminates in accordance with Borrower's and Lendd~ ~ ~ written e,greement w applicable Law. Borrower shall pay the amount of ali mortgage insurance premiums in the manner provided under i paregraph 2 hereof. ` ~ My amounts diebareed by Lendet persuant to thia paragraph 7, with interest thereon, shall become additional indebtedness of ~ Borrov?er secured by this Mortgage. Unleae Borrower and l.ender agree W other terms of payment, such amounts shall be payable upon ~ ~ notice trom Lender to Borrower requeating payment lhereof, and shall bear interest from the date of dislwraement at th~ rete payable Ir~u ` time to time on outstanding principal under the Note unleee payment of interest at auch rate would be rnntrary to applicable law. ia which ~ event such amounta shall bear intereat at tbe higheat rate permissible under applicable la~v. Nothing rnntained in this paragraph 7. shaU ~ ` ta~uire Lender tfl incur any expense oT take any action hereunder. ~ f ; e~352 PA~E s~s . ~ ~ . ~ _ _