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HomeMy WebLinkAbout0523Borrower ar~d Lender rnvenant and a~ree aa [ollows: 1. Paymeat o[ Prlacipal wRd Intere~~ 6orrower shall pmmpdy pay when due the principal of and iotereat on the indebtednesa evidenced by the Note, prepeyment and late ehargee as provided in the Note. a~d the principal o[and interest on any ~titure Advances secured by thu Motf~ags. 2. Eltttds [or T~es and Iasurance. Subject b applicable law o~ to a written waiver by l.ender, Borrower ahall pay to I.ender on the day monthly installments of priacipal and i~tereat are payable und~ the Note, until the Note ia paid in [ull. a sum (herein "Funds") equal to ont twelRh otthe yearly taxes and asseasmenta which may attai~ priori4Y over this Mortgage, and ~ound renta on the Property, if any, plus ont twelfth of yearly premium installments for hazard inaurance, plua onetwelfth ofyea~ly premium installments for mo~age iosurance. if any, all aa reasonably eatimated initiaUy snd tmm time to ti~ue by l.ender on the basis of asaessme~ta a~d bitla and reaaonable estimates thereo[. The [~Lnds ahall be held in an inatitutioa the depoeits or accounta of which are inaured or guaranteed by a Federal or State ageocy (including Lender if l.ender is such aa institution). l.ender shall apply the Fti~da to pay eaid taxea, asseasments, inaurance premiums and ground nnts. l.e~der may not charge for ~o holding and applying the Funds, analyzing said accou~t, or verifying and compiling said aesessments and bills, unleea Le~der psye Borrower intereat on the Funda and applicable law permita Gender to make such e charge. E3orrower and Lender may agree in ~rriting at the time of execution ot tfiia Mortqage that inteoeat on the Funde ahall be paid to Borrower, and unleaa euch agreement ia made or applicabk law requires such intereat to be paid, I.ender shall not be required to pay BaTOwer any intereat or earnings on the P1~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debita to the Funds end the purpose [or which each debit to the Funda waa made. The Funda are pledged as additional security for the aums secured by thie Mortgage. ~ Iithe amount of the ~nds held by I.ender, together with the future monthly inetallmenta of Funda payable prior to the due datea of taxes. aseessmenta, ineurance premiums and ground rente, ehaA excred the amount required to pay said taxea, assessments, inaurance premiuma and ground nnts as they fall due. such excesa ahall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installmenb of fl~nds. If the amount o[ the ~nds held by I.ender ahall not be eutficient to pay taxea, aseesamenta, insurance premiuma and ground rents aa they fell due, Borrower shall pay to l.ender any emount necesearyr to make up the de6ciency within 30 days from the date notice ia mailed by I.ender to BoROwer requeating payment thereof. Upon payment in full of all suma secured by this Mortgage, I.ender ahall promptly rnfund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is soW or the Property is otherwise acqaired by Lender, l.ender ahall apply, no later than immediately prior to the sale of the Propedy or ita soquiaition by l.ende~, any Funda held by Lender at the time of application as a credit againat the auma secured by thia Mortgage. 3. Applieation at Paymet~ts. Unless applicable law provides otherwiee, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by Lender first in payment of amounta payable to Lender by Borrower under paragreph 2 hereof, then to interest payable on the Note, then to the principal ot the Ivote, and then to intereat and principal on any Future Advances. 4. Chargee; Liena. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and lensehold paymenL4 orgmund rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower makinq payment, when due, directly to the payee thereoi E3orrower shal) promptly fumish to Lender all notices of amounts due under thia parngraph, and in lhe event l3orrowe~ sh:dl make payment directly, Rorrower shall promptly furnish to I.ender receipta evidencing such payments. liormwer shall promptly dischnrge any lien which h:is priority o~•er lhis lNortKage; provided, that Borrower ahall not be required lodischarge any ~uch lien so long as tiorruwer shall a~tree in writinK tu the pavment of theobligation secured by such lien in a manner acceptable to I.ender, or shall in good faith iY~ntest such lien by, ordefend enfonrment of such lien in, leKal proceedings which operate to prevent the enforcement of the lien or for[eitum o! the Property, ur .~n~ part lhereof. 5. Hazard Ineurance. Borrower shall keep the improvements nuw existinK or hereafler erected on the Yroperty inaured againat lasa by fire, hazarda included within lhe term "extended coveraRe," and such other hazards as Ixnder may require and in such amounts and torauch periods as [.ender may requirn; provided, that Ixnder shall not reyuire tha~t the amount of such coveraKe exceed that amount of coverage required to pay the sums secured by this Mortg:~te_ The insurance carrier providinK the insurance shall t-c~ chusen by liorruw•cr subji~eK tu appro~•al hy I.c~nder; pn~~•ided, that ~uch :~ppro~•al shall not be unreasonably withheld. Al) premiums un insur.~n~•c p~~licie..haU tx• paid in th~ manncr pru~•~dt~l under par:~Kraph `l hermf or, if not paid in such manner, by Eiorrower makinK p:ipment, w•hen due, dinY•th• !n the in.urance~carrier. All insurance policies and renewals thereof shall be in form accept:~ble to I.ender:-nd shal) include a standa~d mortgageclause in favor of and in form acceptable to Lender. I.ender shall have the riRht to huld the pnlicies and renPwals thereof, and Borrower shaU prompdy furniah to i.ender all renewal notices and all rcreipts of paid premiums. In the event otluss, Rorn,wer shall gi~~e prompt notice to the insurance carrier and Lender. I.ender may make proof of loas if not made prompdy by Rorrow•er. Unleas l.ender and 13orrower otherwise agree in writing, insurance pmrri~ls sh~ll be applied to restoration or repair of the Property damaged, provided auch restoration or repair is economically feasible and the secunty of this Mortgage is not thereby impaired_ If such restoration or repair is not economically feusible or if the security of this Mortgage would be impaired, the insurance proceeda shall be applied to the eums aecured by this Mortgage, with the excr~s, if any, paid to liorrower_ If the E'roperty is abandoned by Borrov-er, or if fiorrower faila to respond to Lender within 30 daya from the date notice is mailPd by I.ender d- Eiorrower that the insurance carrier ot'fers to settle a claim for inaurance ben~ts, Lender is authorized to collect and apply the insurance pmceeds at I.ender's option either to restoration or repair of the Pmpetty or the sums secured by this MortRage. . Unleas Lender and Eiorrower otherwise agree in writinK, any such application of pmceeds tu principal ahall not extend or poatpone thedue date of the monthly inatallmente rnferred to in par:~KraQhs 1 and'l herec-f or change the amount of auch installmenta. If under paragraph 18 hereof the Property ia acquired by l.ender, all right, title and interest of E3orrower in and to any insurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acqwsition shall pass to [.ender to the extent of the sums secured by this Mortgage immediately prior to sach sale or acquiaition. 6. Preeervation and Maintenanceof Property: Leaseholds; (:ondominums; Planned Unit Developmenta. Borrowershall keep the Property in good repair and shal) not commit v~aste or permit impairmentor deterioration of the Property and ahall comply with lhe provis~ona of any lease if thia Mortgage is on a leasehold. If this MortQaKe is ~~n a unit in a rnndominium or a planned unit development, Rorrower ahall perform all of E3orrower's obligations under the derlaratiun or covenants creat~nKor govern~ng the condominium or planned unit development, the by-laws and regulationa of the condominium ur planned unil develupment, and conatituent documenta. I[ a condominium or planned unit develupment rider ia executed by &-rrower and recordcd together with thia Mortgage, the wvenante and aRreements otauch rider shall be incorporated int~- and sh:ill amend and supplement thecovenants and agreementsof this Mortgageas ifthe nder were a part hereo[. 7. Protection of I.ender's 3ecurity. If Borrower taile to perform the oovenante and agreemente rnntained in this Mortgage, or if any aMion or proceeding is commenoed which materially affecte I~endei e intereet in the Property, including, but not limited to, eminent domain, ineolvency. oode en[orcement, or arrangemente or proceedinge involving a benkrupt or decedent, then Lender at Lender's option.upon notice to Borrower may make such appearances, dieburee euch auma and teke auch action as is neceseary to protect Lenda's interest, including, but not limited to, diebureement of reseonable attomey'e fees and entry upon the Property to make repairs. It Lendrr required mortgage insurance as a condition of ineking the loan eesured by this Mortgage, Borrower ahall pay the premiums req4ired to meintain auch insurance in effect until svch time as the requirement tor auch insurance terminatee in accordance with Borrower's and Lendds written agreement or applicable Law. Borrower ahall pay the amount of all mortgage inaurance premiums in the manner pmvided under paragraph 2 hereoL , My amounte dieburoed by Lender perauant to this paragraph 7, with intereat thereon, ehall become additional indebtedneas of Borrower secured by this Mortgage. Unleas Borrower and Lender agree to other terme of payment, auch amounte shall be payable upon notice from [.ender to $orrower requesting payment thereof, and shali bear interest from the date of diabursement at the rate payable trom time to time on outstanding prinripal under the Note unlese payment of intereet at auch rate would be oontrery to applicable lew, in which event sueh amounte shall bear interest at the higheat rate perrnieaible under applicable law. Nothing contained in this peragraph 7, ahall require I.ender to, incur any eapense or take any ection hereunder. _ . ~ ~~~ 3~8 ~~~E 5z~ _ ., _~ _ _ .~v~ ~4~_. ~ __. _ s .~ ~ _~,.