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HomeMy WebLinkAbout2521Borrower ~nd Lender covenant and aQree a~ follow~: 1. P~yme~t ot Principal ~nd Intere~~ Borwwer ahall promptly pay when due the principal of and intereat on the indebtednea. evidenced by the Note, prepayment and lete charges a~ provided in the Note. and the principal of and intereat on a~y Ftiture Advancea secured by this Mortgage. 2. E~nds for T~uces and Insurat~ce. Subject to applicable law or to a written waiver by Lende~, Borrower shall pay to l.ender on the day monthly installments of principel and interest are payable u~der the Note, until lhe Note is paid in full, a sum (he~ein "Flinds") equal to one- twelfth of the yearly taxes and easesamenta which may attain priority over this Mortgage. and ground ~ents on the Property, itany, plw one twelfth otyearly premium installments fo~ hazard inaurance, plua o~etwelRh of yea~ly premium installments for mortgage inaurance, itany. all as reaeonably estimated initially and from time to time by I.e~der on the baei8 of asseasmenta end bills and reaaonable eetimatea thereoL The l~~nda shaU be held in an institution the deposits or accounts ot which are ituured or g~~aranteed by a Federal o~ State agency (including I.ender ii I.ender is such an institution). Lender shall apply the Funds to pay said ta:es, aasesameats, inaurance premiums and ground nnts. Lende~ may not charge fot w holding and applying the Funds. analyzing said account, or veritying and compiling eaid aasesements and bills. unless Lender pays Borrower interest on the ~nds and applicable law permite Lender to make auch a charge. Borrower and Lender may ag~ee in writing at the time of execution of this Mortgage that i~terest on the ~nds shall be paid w Borrower, and u~less auch agreement ia made or applicable law requires such intereat to be paid. Lender shall not be required to pay Borrower any i~tscest or earninge on the ~nds. L.ender shall give to Borrower, without charge, an annual accounti~g of the Funds ahowing credite and debita to the Funds and the purpoae for which each debit to the Fu~da waa made.'I1~e Funda are pledged as additional security for the aums eccured by this Mortgage. If the amount of the F~nda held by Lender, together with the tuture monthly inetallmcnte of T~nda payable prio~ to the due datea o[taues. aeseeamente, insurance premiuma and ground renta, ahall e:cxd the amount required to pay said ta:es, aseeaementa, inaurance premiums and ground renta as they fall due, auch exceas shall be, at Borrower's option, either promptly repaid to Sorrower or credited to Borrower on monthly inetallme~ts of ~nds. If the amount of the Funds held by Lender shall not be su[ficient to pay taxes, sesessmente, inaurance premiuma and ground rents aa they fal! due, Borrower ahall pay to I.ender any amount neceaeary to make up the deficiency within 30 daye from the date notice is mailed by I.ender to Borrower requesting payment thereot. Upon payment in fuli of all aume eecu-ed by this Mortgage, L.ender ahall promptly refund to Borrower any tunda held by Lender. l[under paragraph 18 hereof the Property ia aold or the Property is otherwiee acquired by Lender, Lender ehall apply, no later than immediately prior to the sale of the Pruperty or its aoquisition by Lender, any Funde held by [.ender at the time of application as a credit againat the aume eecured by thia Mortgage. 3. Application of Paymenta. Unlesa applicable law provides otherwise, ali payments received by Lender under the Note and paragraphs 1 and 2 hereof ahall be applied by L,ender first in payment otamounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the NoLe, then to the principal of the Note, and then to interest and prinripal on any Future Advances. 4. Charges; Liena. Borrowershall pay all taxes, assessments and other rharqea, finea 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 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall prompdy furnish to Lender all notices of amounts due under this paragraph, and in the event Rorr~ver shall make payment directly, Bormwer shall promptly turnish to [.ender receipts evidencing sucli paymenls. Eiorrower shall promptly dischargr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as E~-rrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or furfeiture of the Prap~rty or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as I.ender may require; provided, that Ixnder shall not require that the amount of auch coverage exceed that amount of coverage required to pay the sums secured by this MortRaRe_ The insurance carrirr providing the insurance sh~ll be chose~ hy Itorrower subject to approval by Ixnder; pruvided, that such approval shall not be unreasonably withheld. All prrmiums on insurance p~~licirs shall be paid in lhe manner pn~vided under paraKraph'l hereof or, if not paid in such manner, by I3orrower makinq payment, when due, directly tu the insurance carrier. Ali insurance policies and renewals thereof shal) be in forq- acceptable to I.ender and shall include a atandard mortgageclause in favorof and in form acceptable to l.ender. I,ender shall have the right tu hold the policies and renewals thereof, and E3orrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borruwer ahaU give prompt notice to the insurance carrier and Ixnder. Lender may make proof of loss if not made promptly by E3orirower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to reatoration or repair of the Pruperty damaged, provided such restoration ur repair is econor:~ically feaaible and the security of this Mortgage is not thereby impaired_ If such restoration or rnpair ia not economically feasible or if the security of this Mortgage would be impaired, the inaurance proceeds shall be applied to the sums secured by this Mortgage, with the exces.s, if any, paid to Ei~rrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to l.ender within 30 days frum the date notice is mailed by I.ender U~ E3orruwer that the insurance carrier offers to settle a claim for insurance benefita. I.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums aecured by this Mortgage. L)nless [.ender and Borrower otherwise agree in writing, any such application of proceeds to principal ahall not e:tend or poatpone thedue date of the monthly inatallments referred to in paraRraphs ! and 2 hereof or change the amount of such installmenta. If under paragraph 18 hereof the Property ia acquired by I.ender, al) right, title and interest of Borrower in and to any insurance policies and in and to the proceeda thereof reaulting from damaqe to Property prior to the sale or acqu~sition shall pass to Lender to the extent of the aums secnred by thie Mortgage immediately prior to auch sale or acquisition. 6_ Preeervation and Maintenance of Property; I.eaeeholda; Condominume; Plannrd Unit Developmente. Borrowerahall keep the Property in good repair and shall not commit waste or pertnit impairment or deterioration of the Property and shall comply with the proviaiona of any lease i( this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned uni~` development, Borrower ahall perform all of E3orrower a obligationa under the declaration or covenante creatingor governing the conduminium or planned unit develupment, the by-lawa and regulations of the condominium or planned unit development, and conatituent docnmenfa. If a condominium or planned unit development rider is executed by E3orrower and recorded together with thia Mortgage, the oovenante and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection ot Lender's 3ec~rity. If Borrower faila to perform the oovenanta and egreements rnntained in this Mortgage, or if any action or proceeding ie commenced which meterially atfecte Lender's interest in the Property, including, but not limited to, eminent domain. insolvency, oode enforcement, or arrangements or proceedinga involving a bankrupt or dece~dent, then Lender et Lender's option,npon notice to Borrower may make such appearances, dieburse auch sums and take such action as is neceasary to protect Lender i intera~ including, but not limited to, disbureement o! reaeonable attomey'e fees and entry upon the Property to make repairs. I[ Lender requited mortgage inaurance as a rnndition of ineking the loan eecured by thie Mortgage, Borrower afiall pay the premiums required to maintain auch insurance in effect until such time as the requirement for such ineurance terminates in accordance with Borrower's and Lender's written agreement or applicable I$w. Borrower shall pay the amount of all mortgage ineurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to thia paragreph 7, with interest thereon, ehall beoome additiona) indebtedneas ot Borrower secured by this Mortgage. Unless Borrower and Lender agtee to other terms of payment, such amounte shall be payable upon notice from Lender to Borrower requesting payment thereot and ahall bear interest from the date of disbursement at the rate payable trom time to time on outstanding principal under the Note unlees payment o[ interest at such rate would be rnntrary to applicable Iaw, in which event such amounta shaU bear interest at the higheat rate permiaeible urider applicable law. Nothing cpntained in this paragreph ?, shali requi~e [.ender to incur any expense or take eny ection herrunder. Bn~K34$ P~~E2519 , ^ r ~ - ` _ ,~.., ~ . ~"si~czwM' ~.~:. "sr.C.~;~.:ar .....~~.__. ~ - _~~:~