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HomeMy WebLinkAbout2513Boirower end Lender coveaant and a~ree a~ folbwa: 1. Payment of Prlncipwl snd Intese~t. Bormwer shall promptly psy when due the principa) ot and intenat on the indebtcdnes~ evidenced by the Note. pnpayment and late chuga as peovided i~ the Note, and the principal o[and intercst on any Ftitun Advances secured by thie Mortgage. 2. Ftitnd~ for Taies wnd In~ur~nce. Subject fo applicable law or to a written waiver by I.ender. Borrower ahall pay to [.ender on the day monthly inatsllmenta ot principal a~d interest are payable under the Note, until the Note is paid in full, a sum (hereia '•Ftinds") equal to one twelfth of the y~rly taxea and assesamenfs which may attai~ priority ove~ lhis Mortgage, and ground rentu on the Property, itany, plus one- twelflh of yearly premium instaltments for hasard insu~ance, plus onelwelfth of yearly premium inataliments [or mortQage inaurence, if any. all as reasonably estimated initially and from time b time by l.ender on the basis of ass~sments and biUs and reasonable ealimates thereoL The ~nds shall be held in an institution the deposits or accounts of which are inaured or gua~antsed by a Federal o~ State age~cy (including Lender it I.ender is such an institution). Lender bhall apply the Funds to pay eaid tazes, assesaments, insurance premiume and ground nnts. Lender may not charge for so holding a~d applying the FLnds, analyziog said account, or verifying and compiling said aeseeamenta and bills, unless Lender pays Borrowe~ interest on ihe ~nds and applicable lew permits Lende~ to make auch a charge. Borrower and Lender may agree in writing at the time of execution of this Morlgage that interest on the I~nds ahall be paid to Borrower, and u~less vuch agreement is made or applicable Isw requi~es auch intereat to be paid, Lender shall not be required to pay Borrower any interest or earninga on the ~nds. Lender shall give to Borrower, without charge, an annual accounting of the Funda showing credits and debits to the Funda and the parpose for which each debit to the FLnda wae made. The Funda ace pledged as additiona) eecurity for the aums secured by this Mortgage. ~ Ilthe amount of the ~1nda held by Lender. together with the future monthly i~atallmenta otFunds payable prior to the due datea of taxes, aseeeamenta, insurance premiuma and ground renta, sha~l excxd the amount required to pay said taxes, asaeeamenta, ineurance premiuma and ground rente ae they fall due, euch exceas shall be, at Bormwer s option, either pmmpdy repaid to Borrower or credited to Borrower on monthly inalalimenta of Funde. If the amount of the Funds held by Lender ahall not be aufficient to pay taxes, assesamenta, insurance premiuma and ground renta aa they fall due, Borrower ehall pay to I.ender any amount neceaeary to meke up the deficiency within 30 days from the date notice ia mailed by Lender to Borrowe~ requeating payment thereof. Upon payment in [ull of all auma secured by thia Mortgage. Lender ahall promptly refund to Borrower any funda held by I.ender. If under paragraph 18 hereof the Property ia sold or the Properiy is otherwise acquired by I.ender, Lender ahall apply, no later than immediately prior to the eale of the Property or its acquiaition by Lender. any Funds held by I.ender at the time of application aa a credit againet the aume eecured by this Mortgage. 3. ~pplication of Payments. Unleas applicable law providea otherwise, all paymente received by Lender under the Note and paragrapha 1 and 2 hereof ahall be spplied by I.eader first in payment of amounta payable to Lender by Borrower under paragreph 2 hereof, then to intereat payable on the Note, then to the principal of the Note, and then to intrrest and principal on any Future Advances. 4. Chergea; Liena. Borrower shall pay all taxea, assessments and other chargea, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph Z hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL E3orrowershall promptly furniah to Lender all notices ot amounts due under this paragraph, and in the event Iiorrower shall make payment directly, Rorrower shall promptly turnish to I.ender receipts evidencing such payments. Borrower shal) promptly dischargr any lien which has priority over this Morlgage; provided, that Borrower shall not be required to d~scharge any such lien so long as E3orrower shall agrne in writing to the payment o[the obligation secured by such lien in a manner accept~~ble to [xnder, or shall in good [aith contest snch lien by, or defend enforcement of such lien in, legal prc-ceedings which operate to prevent the en[orcement ot the lien or forfeiture o[ the F'roperty or any part thereot. 5. Hazard Insurance. Borrower shal) keep the improvements now existing or hereafler erected on the Yroperty insured against losa by fire, hazards included within the term "extended coverage," and xuch other hazards as [.ender may require and in such amounts and forauch periods as Ixnder may reyuire; provided, that Ixnder shall not require that the amount of such coveraRe exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providinK the insurance shall t-e chosen by fi~~rrower subject to appro~ al by I.ender; provideci, that such approval shaD not be unreasonably withheld. All premiums on insurance policie~; shall be paid in the manner provided ~nder paraKraph 'l hereof or, if not paid in such manner, b~ Korrower making p~yment, when due, directly to the insurance carrier. All inaurance policiea and renewals thereof shall be in form acceptable to l.ender and ahall include a standard mortgage clause in favorof and in [orm acceptable to I.ender. l,endershall have the riqht to hold the policies and renewals thereof, and Ek-rrowershall promptly furniah to ~.ender all renewal notices and all receipts of paid premiums. !n the event of loss, I3orn-wer ahall give prompt notice to the inaurance carrier and Lender. Lender may make prnof of loss it not made promptly by Borrower. Unlesa Lender and Eiorrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair o[ the Property damaged, provided sufh restoration or r@pair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgaqe would be impaired, the insurance proceeda shall beapplied to the aums secured by this MortKage, with the excess, if any, paid to E3orrower. If the Property is abandoned by Borrower, or if Borrower faila to reapond to Lender within :l0 days from the date notice is mailed by I.ender tu Borrower that the insurance carrier ofCers to settle a claim for ~nsuranee benefita. I.ender is authorized to collect and apply the insurance proceeds at l,ender's option either to restoration or repair of the Property or the sums aecured by lhis Mortgage. •- lJnlese l,ender and E3orrower otherv-ise agree in writing, any sucl~ applicalion oFproceeds to principal ahall not extend oS poatpone thedue date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of auch inatallments. lf under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any inaurance policiea and in and to the procee~p thereof reaulting from damage to Property prior to the sale or acqu~aition shaU pass to Lender to the extent of the sums serured by thie Mortgage immediately prior to auch sale or acquisition. ~ 6. Preeervation and Maintenanceof Property: Leaseholda; Condominume; Planned Unit Developmente. BorrowershaU kcep the Property in good repair and shall not commit waste or permit impairment or'deterioration of the Property and ahall comply with the provisiona of any lease if this Morigage is on a leasehold. It this MortgaRe is on a unit in a condominium or a planned unit development, Rorrower ahal! perform all of Borrower'e obtigations under the declaration or covenants creatinRor governing the condeminium or planned unit development, the by-1$ws and regulations of the condominium or planned unit development, and rnnatituent documente. If a c-nndominium or planned unit development rider ia executed by Borrower and recorded together with thia MoKgage, the oovenante and :+Rreements of such rider ahal) be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageae ifthe rider were a part hereof. 7. Protection of Lender'e $ecurity. If Borrower teils to perform the covenants and agreemente contained in this Mortgage, or if any action or proceeding ia commenced which materially aftecte Lender'a interest in the Property, including, but not limited to, eminent domain, insolvency, oode en[oTCement, or arrangements or proceedinga involving a bankrupt or decedent, then L.ender at Lender's option,upon notice to Borrower may malce such appearances, disburse such aums and take such action as is neoasaYy to protect Lender'~ intere~t, inclnding, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to meke repain. If Lendez reqnired mortgage ineurance se a condition o[ making the loan secured by thie Mortgage, Borrower shall pay the premiums required to maintain euch ineurance in eftect unti) euch time as the requirement for euch inaurance terminetes in accordance with Borrower'e and I.endei s written agreement or applicable Lew. Borrower ahall pey the amount of all mortgege inaurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lendrr persuant to this paragraph 7, with interest thereon, shall become additional indeM,edne~s of Borrower aecured by this Mortgage_ Unlese Borrower end Lender agrce to other trrms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intereat from the date of disbursement'at the rate payeble from time to time on outetanding principal under the Note unless peyment of intereet at auch rate would be oontrary to applicable law, in which event such emounte' ehall bear interest at the higheat rate permissible under applicaWe law_ Nothins ~oatained in this paregraph 7, shall require Lender to incur any eapense or take any action heceunder. ` . -- ~ ~~~.'~. ,..__.~~~. _. a~~~K~48 e~~E251r~ _-._~ . . _ __. - - -•••. ~ ~~-