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HomeMy WebLinkAbout1657Borrower and Lender eovenaAt and a~ree u[olb~n: 1. Paymeat ot Pirincipal aad Iatere~~ Borrower shall promptly pay when due the principal ot s~d intereat on the indebtedneas evidenad by the Note, prepayment and late chu~e~ a~ provided in the Note, and the principal olaad intere~t on any Fl~ture Advances aecured by this Mortga~e. 2. Fltnds to~ T~e~ and Insuranoe. 3ubject to applicable ~aw or to a writte~ waiver by I.ender. Borrower ehall pay to Lender on the dey monthly inatallme~ta o! principal and interwt en payable undar the Note, until the Note is paid in tull. a sum (herein "I~nds'~ equal to ono- twelRh of the yearly taxes and a~sessmenta which may attain priority over this MortgaQe,'snd grou~d rents o~ the Property, i[any. plus ont twelfih of yearly premium installments fot hasanl insurance, plus onctwelRh of yearly premium installmenta for mort;age insurance, if eny, aU as reasonably eetimated initially and trom time to time by L.ender o~ the basia o( asseeaments and bills and reasonable eatimatea thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranLeed by a Federal or State agency lincluding Lenda if Lender ia such an inatitution). i~-der shall apply the Funds to pay said ta:ea, asseasments. inaurance premiums and ground rente. Lender may not charge for w holding and applying the PLnds, analyzing said account, or verifying a~d rnmpiling said aesesaments and bills. unless Lender pays Borrower intereet on the P1~nds and applicable law permits Lender to make such a charge. Bormwe~ and Lender may agrce in writing at the time of execution of this Mortgage that intenst on the Funds shall be paid to Borrower, and unless such agreement ie made or applicable law requires such intereat to be paid. Lender shall not be required to pay Borrower any interest or eamings on the ~Lnds. Lender shall give to Borrower, without charge, an a~nual accounting of the Funde ahowing credite and debits to the Funda and the purpose for which each debit to the Ftinds wae made. The Fu~da are pledged as additional security for the aume secured by thie Mortgage. If the amount of the F1nds hdd by Lender. together with the future monthly inetallmenta of I~nds payable prior to the due datea of taaes. asaessments, inawance premiums and ground nnts, shall exoaed the amount required W pay said ta:es. asee8aments, insurance premiums and ground renta ae they faU due. such exceaa shaU be. at Borrower s option, either promptly repaid to Bormwer or credited to Borrawer on monthly installmenta of Funds. If the amount of the Funds held by Lender ahall not be aufficient to pay taxes, aaeesemente, insurance premiiuas and ground rente ae they fall due. Borrower ehall pay to Lender any amount neceasery to make up the deSciency within 30 days from the date notice is mailed by Lender to Borrower requeating payment the~rewt. Upon payment in full of all anma secured by thia Mortgage. Lender shall promptly refund to Borrower any funds held by I.ender. If under paragraph 18 hereof the Property is sold or the Property ie otherwise acquired by I.ender. Lender ahall apply. no Iater than immediately prior to the eale of the Property or ita acquisition by Lender, nny Funda held by l.ender at the time of epplication aa a credit againet the aums aecured by thia Mortgage. 3_ Applieation of Payments. Unleas applicable law providea otherwise, all paymente received by I.ender under the Note and paragraphe 1 and 2 hereof ahal) be applied by Lender firat in payment of amounts payable to Lender 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 prinripal on any Future Advancea_ 4. Charges; Liena. Borrower ahall pay all taxes, assessments and other chargee, finea and impositions attributable to the Property which may attain a priority over this Morig~ge, and leasehold payments or ground renta, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall pwmptly furnish to l.ender all notices of amounts due unde~ this paragraph, and in the event E3orrower shall make payment directly, Eiorruwer shpll promptly fumiah to Ixnder receipts evidencing such payme~ts. E3orrower shall promptly dischargr any lien which has priority over this Morigage; pmvided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agreein writing to the paymen't of theobligation secured by such lien in a manner acceptable to l.ender, or shall in good faith contest such lien by, ar deTend enforcement of such lien in. leqal proceedings which operate to-prevent the en[orcement olthe lien or [orfeiture of the Property or any part thereof. 5. Hazard Inaurance. Borrow~er shall keep the improvements now existing or hereaftei erected on the Property insured againat loss by fire, hazards included within the term "extended coverage," and such other hazards as I.ender mav require and in such amounta and forauch periods as Lender may requirn; provided, that I.ender shall not requim that the amount ot auch coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providinK the insurance shall be chosen by Fiorn,wer subject tn approval by l.ender; pro~~ided, that such approval ehall not be unreasonably withheld. All premiums on insurance pulicirs shall be paid in the manne~ pn,vided under paragraph 'L hereof or, if not paid in such manner, by Borrower makinR payment, when due, directly t~, the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to I.ender and ahall include a standard morlgageclause in favorot and in form acceptable to I.ender: l.endershall have the right to hold the policiea and renewals thereof, and Borrower shail promptly turnish to ~.ender all renewal notices and all receipts of paid pmmiums. In the event of loss, Borruwer ahall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by E3orrower. Unless Lender and f3orrower otherwise agree in writing, insurance proceeds ahall be applied to reetoration or repair of the Property damaged, provided such restoration vr repair is econumically [easible and the aecurity of this Mortgage ia not thereby impaired. If auch restoration or repair is not economically leasible or if the security of this Mortgagewould beimpaired, theinsuranceproceedsshall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to E3orrower. Itthe Property is abandoned by Sorrower, or if Borrower faila to re~pond to Lender within :30 days from the date notice is mailed by I.ender to Borrower that the insurance carrier o~ers to settle a claim for inaurance benefits. I.ender is authorized to collect and apply the insurance proceeds at t~ender's option either to reatoration or repair of the Property or the aums eecured by this Mortgage. Unless Lender and E3orrower otherwise agree in writing, any such application of proceeds to principal ahall noi extend or postpone thedue date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of auch inataUments. If under paragraph 18 hereof the Property ia acquired by l.ender, al) right, title and interest ot Borrower in and to a~y inaurance policies and in and to the proceeda thereof resnlting from damege to Property prior to the sale or acqu~aition shall paas to Lender to the extent of the suma eecored by this Mortgage immediately prior to auch sale or acquisition_ 6. Preeervation and Meintenance of Property; Leaseholda; Condominume; Plenned Unit Developmente. Borrower ahall keep the Property in good rnpair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower ahall perform all of Iiorrower'a obligationa under the declaration orcovenants creatingor governing thecondominium or plenned unit development, the bylaws and regulations of the condominium or planned unit development, and rnnatituent documente. I[ a condominium or planned unit development rider ia executed by Borrower and rerorded together with this Moctgage, the oovenante and <igreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementa of this Mortgage as if the nder were a part hereof. ~ 7. Protection ot Lender'e 3ecurity. If Borrower faile to per[orm the aovenants and agreemente contained in this Mortgage, or if any action or proceeding is rnmmenoed which materially affecte Lender s interest in the Property, including, but not limited to, eminent domaia, ineolvenry, aode enforoanent, or arrangements or proccedings involving a bankrupt or deoed~t, then I.ender at I.endrr's option,npon notice to Borrower may make such appearanoes, dieburse euch sams and take such ection aa ia neoa~ary to protect Lender r iataes~ including, but not limited to, disbursement of reasonable attorney'e fees and entry upon the Property to make repain. If Lender ~equired mortgage ineurance as a condition of making the loan secured by thie Mortgage, Borrower shall pay the premiums reqnired to maintain Buch insurance in eftect until euch time as the requirement [or such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable I.aw. Borrower shall pay the amount of all mortgage ineurance premiuma in the manner provided under paragraph 2 hereof. ~ My amounte diebureed by Lendrr perauant to this paragraph ?, with interest thereon, ahall become additiona! indebtednes~ ot Borrower aecured by this Mortgage. Unlees Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, end ahal! bear interest from the date of d'ubursement at~the rate payable [rom time to time on outetanding ptincipal under the Note unlees payment of interest at such rate would be rnntrary W applicable iaw, in which event such amounta ehall bear interest at the higheat rate prrmissible under applicable 1aw. Nothing rnntained in this paragraph 7, shall require L.ender to in~ur any~ expense or take any action kereunder. 8~348 P~~E1656 ; . ~ ~ , ~. ~: ~~ :~ ~ __.~