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HomeMy WebLinkAbout1557Borrow~ and Lende~ oovenant and e~ree a~ folbvw: 1. PRyme4t ot Priacipal aad latese~~ Borrower ahall prompUy pay whe~ .due the principsl ot and interest on the indebeednew evidenoad by the Note. prepayme~t at~d late cher~e~ aa provided in the Nose. and the p~ncipal of and i~tereaton any Fulure Advances eecured by thu Mwrt~a~e. ~ 2. PLad~ for T~e~ aad lt~~urwaoe. Subject to applicebie law o~ eo a writteo waiver by I.ender, Borrowe~ ehall pay to [.ender on the day monthly it-stallme~es of principal and jnterest are peyable under the fVote, until the Note ia paid in [ull, a aum (herein •'Fu~ds") equal to one twelRh otthe yearly taxes and assessments which may attain priority over thie Mortgage, and ~uund renta o~ the Property, itany, plus ontr tweltth of yearly p~emium inatallmente for hazerd insurance, plus onelwelfth of yearly premium iostallments for motrtgage i~eurance, if any, all as reasonebly eatimated initially a~d from time to tinr,e by l.ende~ on the basie of asaeasments and billa and reasonable eatimatea thereof. The FLnde shall be held in an institution the deposits or accounts of which are insured or gua~anteed by a Fede~al or State agency (including Lender if Lender ia such an institution). Lender shall apply the Funda to pay eaid taxea, asaesaments, ineurance premiuma and ground renfs. t.~nder may not eharge tor so holding and applying the Funds, analyzing eaid accou~~ or verifying and rnmpiling said aaseasmenta and bills, unless Lender pays Borrower intereat on the Funda and applicable law permits l.ender to meke such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that inte~est on the Fu~da shall be paid to Borrower, and unless euch egreement ia made or appGcable lew requires auch interest to be paid, Lender shall not be requioed b pay Borrower any intereat or earnings on the I~nds. Lender shall give to Borrower, without charge, an annual accouoling of the Funda ahowing credite and debits to the Funds and the purpose for which each debit to the F~nds wae made. The Funda are pledged as additional eecurity for the sums secured by this Mortgage. If the amount of the ~nds held by l.ender. together with the future monthly installments of F unda payable prior to the duedates of taxes, aeaessmenfa, ineurance premiuma and ground renta, ahall ezcred the amount required to pay said taxea, asaeasmente, inaurance premiums and ground rents ge they fall due, auch excesa ahall be, at Bo~rower's option, either promptly repaid to &,rrower or credited to Bor~ower on monthly installments of ~nds. It the amount of the Funds held by l.ender ahall not be aufficient to pay taxes, asaessmenta, inaurance premiuma and ground renta aa they fall due, Borrower ahall pay to I.ender any amuunt necessary to make up the deficie~cy within 30 daya from the date notice is mailed by I.ender to E3orrower requeating payment thereof. Upon payment in full otall aume secured by this Mortgage, Lender ahall p~omplly refund to Borrower any funda held by l.ender. lf under paragraph 18 hereof the Property is aold or the Property ia otherwise acquired by l.ender. I.ender ahall apply, no later than immediately prior to the eale of the Property or ite acquieition by I.ender, any Funda held by I.ender at the time of application as a credit againat the aums aecured by this Mortgage. 3. Appljcetion ot Payments. Unleae applicable law providea otherwiae, all paymenta received by I.ender unde~ the Note and paragraphs 1 and 2 hereof ahall be applied by Leoder firnt in payment of amounts payable to t.ender by Borrower under paragraph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to interest and principai on eny Future Advancea. 4. Chargea; Liena. Bomower shall pny all taxes, assexsments nnd other charges, fines and impositions attributable to the Property which may attain a priority over this Mort~age, and leasehold payments or gmund renls, if pny, in the manner provided under paragraph 2 hereof or, if not paid in auch manner, by Eiorrower making payment, when due, directly to the pnyee therroC. 43ormwer shall promptly furnish to I.ender all notices of amounts due under this para~aph. :~nd in the evenl E3orrower shall m~ke payment directly, Burn~wer shall prompUy furniah to Ixnder receipts evidencing such payments. F3orrower shaU promptly disch~rgr any lien which has priority over this Murtgage; provided.lhat Borrower shall not be required to discharge any such lien so lung .~.v Ft~-rrower shaU agree in wrilinK u~ the paymentof theobligation secured by surh lien in a manner acceptable to t.ender, or shall in y;oal faith cuntPSt cuch lirn hy, or defend rnfunrment otsuch lien in, legal proceedings w•hich operate to prevent the enforcement o[ the lien or for(eiturF of lhe 1'ro~-erty or ~ny part there~,f. 5. Hazard Inaurance. .Borrower shnll keep the impm~~ements nuw existinQ or hereafter erected on the Property insured againet loes by fire, hazarda included within the term "extended coveraRe; ' and such other hazards as Ixnder may require and in such amounls and for euch periods as Lender may require; provided, that lxnder shall not reyuire that the amuunt of such coverage exceed that amount of coverage required to pay the sums secured by this MortgaKe. The insuranm carrier providing the in~uranm shaU tw chusrn by ft~~rruw~•r subjert tr~ .~ppruval by I xnder; pro~•ided, that such approval shall not be unre.~sonably withheld. All premium. un insur.inre ~~lici~~ rh:~ll Ix• paid in thc~ m:~nn~~r pn~~~idt~cl undrr paraKr~ph 2 hermf or, if nut paid in such manner, by fi~~rrower makinK pa~yment, w•hen due, dinY•th tu lhe in~urance carrier. . - AU insurance policies and mnewals thereotshall be in form acceptable u, l.rnder and shall includr a standard mortgage clause in favor of and in form acceptable lo [.ender. I.ender shall have the riKht to huld the pulicie~ and renewalx thereof, and t~rrower shall promptly furniah to i~ender all renewal notices and all receipts of paid premiums. (n the event of lu~, Kurry~wer ~hall Kive prumpt notice to the insurance cs~mer and [.ender. Lender may make proof of loss if not made prompUy by I3orrower. Unleas Lender and Borrower otherwise a~ee in v-ritinK, insurance procir~is sh:~ll be appiied to restoration or repair of the Property damaged, provided euch restoration or repair is econumically [easible and the security of thi8 Mortgage ia not thereby impaired_ lf auch reatoration or repair is not economically feasible ~r if the security of this l~lortgage would be impaired, the insurance proceeda ahall be applied to the sums aecured by this Mortgage, with the exmsx, if any, paid to Rorrower. lf the Yroperty ia abandoned by Eiorrower, or if E3orrower fails to respond to [.ender within 30 days from the date notice is mailed by I.ender u- &~rruwer that the inxurance carrier oftera tosettle a claim for insurance benefita, I.ender is authorized to rnllert and appl~ the insurancr proceeds at I.ender's option either to restoration or repair of the Property or the suma secured by this MortKaKe_ Unlean Lender and E3orrower otherwise aRree in writinK, any aurh application of pn,ceeds to prin~-ipal ahall not extend or postpone thedue date of the monthly inatallmenta referred to in paraK~aphs 1 and 'l hereof or change the amount of auch installmenta. If under paragraph 18 hereof the Property is acquired by l.ender, all right, title aqd interest of Etorrower in and to any insurance policies and in and to the proceeda thereof reaulting from damage to f'roperty prior to the xale c,r acyu~sition shall pass U~ I.ender to the extent of the sums secured by this ~lortgage immediately prior to such sale or acquisition. 6. Preaervation and Maintenanceof Property; I.easeholdR; ('ondominums; Planne~! Unit Devclopmenta. E3orrowerahal) keep the Property in good rnpair and Ahall not. commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaions of any lease if this MortgaRe is un a Icasehold. If this MortKaKe is un a unit in a rnndominium or a planned unit development, fie,rruwer ahall pertorm all of Borrower'a obligations under the declarati~~n or covenar~ts c•n•:~tinKor Koverning the condominium or planned unit development, the by-Iaws and regulations of the conduminium or planned unit development, and constituent dceumente. If a ~•ondominium or planned unit development rider is esecuted by Korrower and recorded toRether with thia Mortgage, the oovenante and .+Kreements of such rider shall be incurporated intu and shall amend and supplement thecovenants and agreementa of thia Mort~ageas ifthe ricier were a part hereof. 7. Protection of Lender's 3ecurity. If Borrower faile to pertorm the rnvenanta and agreemente mntained in this Mortgage, or if any action or proceeding is rnmmenced which meteriaUy affecte l.ender'a intereet in the Property, including, but not limited to, eminent domain. ineolvency, oode entorcement, or arrangements or proceedinge involving a bankrupt or decedent, then Lender at I.ender's option,upon notice to Borrower mey make euch appearances, diaburse euch aums and teke auch action as ie necessary to protect I.ender's interest, including, but not limited to, diebureement of reseonable aUorney'e feee and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition ot making the loan aecured by this ~lortgage, E3orroa/er ehall pay the premiums reqaired to maintain auch inaurance in effect until such time as the requirement !or auch ineurance terminatee in accordance with Borrower's and Lender'~ written agreement or applicable [.aw. Borrower ahall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. Any amounta disburoed by I.ender pereuant to thie paragraph ~, with intereat thereon, ahall become edditional indeMedness of E3orrower secured by thia Mortgage. Unlese Borrower and l.ender agree to other terma of payment, euch amounfe ahall be payable upon notice from [.ender to Borrower requeeting payment thereof, and ahall bear interest from the date ot diebursement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereet at such rate would be contrary to applicable law, in which event anch amounte ehall bear intereat gt the higheat rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender !o incur any expense or teke any action hereunder. ~~~K348 PAGE155`7 _, ~ _ ~ . ~`~~,~-,:~~- =:~~..~ r_ ~ . _ _. .~r .r~~!.~°_.