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HomeMy WebLinkAbout2675Borrower end Lender covena~t and a~ree eu folbwr. 1. Payment ot Principal w~d Intere~~ Borrower shall pmmptly pay when due the principal of and intereat on the indebted~eas evidenced by the Note, prepayme~t and tate charges as provided in the Note. and the principal of and interest on eny Ftiture Advances eecured by this Mortgage. 2. F~tnd~ for Teuces and Insuranee. Subjec! to epplicable law or to a written waiver by I.ender, Borrowe~ ehall pay to l.ender oo the day monthly installmenta of principal artd inte~est are payable under the Note, until the Note is paid in full, a aum (herein "~nds") equal to ona twelRh of the yearly taxes and asseaementa which may attain priority over this Mortgage, and gmu~d rents on the Property, if any, plua one- twelfth of yeariy premium inatallments for hazard insurance, plua onelwelfth otyearly premium installments for mortgage insurance. if any. all as reasonably estimated inilially at-d from time to time by I.ender on the baeis of asseasmeota and bills and reaaonable eetimatea thereof. The ~nds shall be held in an institution the deposits or accounts o[ which are insured o~ guaranteed by a Federal or State agency (including Lender it I.ende~ ia such an institution). Lender ahall apply the Funds to pay said taxes, asseasme~ta, inaurance premiums and ground rents. Lender may r.ot charge for so holding and epplying the ~nda, analyzing eaid eccount, or verifying and compiling eaid asaeeaments and billa, unlesa I.ender pays Borrower intereat on the Funds and applicable law permite Lender to make euch a charge. Borrower and Lender may agree in writing at the time of execution ot thie Mortgage that interest on the Funda shall be paid to Borrower, and unleas such agreement is made or applicaEle law requires auch intereet to be paid, I.ender shall not be required to pay Borrowe~ any intereat or earnings on the FLnds. Lendes shaU give to Borrower, without charge, an annual accounting of the Funde ahowing credite a~d debita to the Funds and the purpose for which each debit to the Funde was made. The Funda are pledged as additional aecurity for the eums secured by thia Mortgege. If the amount of the ~nda held by Lender, together with the future monthly inetallments of Funda payable p~or to the due dates of taxes, assessments, insurance premiuma and ground rente, ehall exczed the amount required to pay eaid taxes, asaeasmenta, ineurance premiums and ground renta as they tall due, euch exceas ehall be, et Bo~rower'a option, eithe~ pmmptly repaid to Borrower or credited to Sorrower on monthly inslallments of Flrnde. If the amount oi the Funds held by Lender ehall not be aufficient to pay taxes, assesamenta, inaurance premiums and ground rents ae they fal) due, Borrower ahall pay to Lender any amoant neceaeary to make up the deficiency within 30 days from the date notice ia mailed by l.ender to Borrower requesti~g payment thereof. Upon payment in full of all aume secured by thia Mortgage, I.ender shaU promptly refund to Borrower any funda held by L.ender. If under paragraph 18 hereof the Property ie sold or the Properiy ia otherwiae acquired by Lender, l.ender ahall apply, no later than immediately prior to the eale of the Property or its acquiaition by l.ender, any Funda held by Lender at the time of application as a credit against the suma secured by this Mortgage. 3. Application of Payments. Unleas applicable law providea otherwiae, all paymenta received by Lender under the Note and paragraphs 1 and 2 hereof ehall be applied by I.ender firat in payment of amounts payable to Lender by Borrower under patagraph 2 heteot then to intereat payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advanoes. 4. Chargee; Liens. Borrower shall pay all taxes, assessments and otherrharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ~ound rnnts, 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 promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event B~rn-wer shall make payment directly, Bormwer shall promptly turniah to Ixnder receipts evidencing such payments. E3orruwer shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien so long as I3orrower shall agree in writing to the payment of theobliRation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Property or :iny part thereof. 5. Hazard Inaurance. Borruwjer shali keep the improvements nuw exiating or hereaker erected on the Property insured againat loes by fire, hazards included within the term "extended coa•erage," and such other hazards as t.ender may require and in such amounta and for auch periods as Lender may require; provided, that Ixnder shall not require that the amount of auch coverage exceed that amount of coverage required -o pay the sums secured by this :NortKaRe. The insurance carrier pr~~viding the insurance shall t-r chusen by Rnrrower subject to approval by l.ender, pmvided, lhat such approva) ahall not be unreasonably withheld. All premiums on insuran~r p~~licies shall be p:+id in the manner pmvidecl under paraQraph 2 hereof or, if not paid in such manner, by liorrower makinK payment, when due, direcUy to the insurance carrier. All inaurance policies and renewals thereof shall be in form acceptable tv l.ender and shall include a standard mortgage clauae in favor of and in form acceptable to Lender. l.endershall have the right tn hold the policies and rrnewala thereof, and Borrower shall promptly furniah to i.ender all renewal notices and all rereipts af paid premiums. In the eve~et of loss, Eiorn,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unleae Lender and E3orrower otherwise agree in writing, insurance proceeds shaU be applied to restoration or repair of the Property damaged, provided auch restoration or repaer is economically feasible and the srcurity of this Mortgage ia not thereby impaired. If auch reatoration or repair is not economically feasibie or if the security ot this Mortgage would be impaired, the insurance proceeda shall be epplied to the aume secured by this Mortqage, with theexcess, if any, paid to Borrower. If the Property ie abandoned by Borrower,or if I3orrower fails to reapond to L.ender within 3d days from the date notice is mailed by I.ender to E3orrower that the insurance carrier of~ers to settle a claim for insurance benefita, I.ender is authorized to coUect and apply the insurance pmceeds at I.ender a oplion either to reatoration or rnpair of the Property or the suma secured by this Mortgage. Unlesa [.ender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend or poatpone thedue date of the monthly inatallments referred to in paragraphs 1 and 'l t~ereof or change the amount otsuch inatallmenta. If under paragraph 18 hereof lhe Property ia acquired by l.ender, all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof reaulting from damage to Property prior to the sale or acqu~sition shall paxs to Lender to the extent ot the suma secnred by this Mortgage immediately prior to auch sale or acquisition. 6. Preeervation and MaintenanceotProperty; Leaseholde; Condominume; Planned Unit Developments. Borrower ahall keep the Property in good repair and ahall not commit waste or permit impairment or deterioration of the Property and ahall comply with the proviaione of any teaee if this Mortgage is on a leasehold. If this Morlgage is on a unit in a condominium or a planned unit development, Rorrower ahall perform aU of Borrower's obliqations under the declaration or covenanta creatinQor governing the condominium or planned unit deveiopment, the by-laws and regulalions of the condominium or planned unit development, and constituent documenta. If a condominium or planned unit development rider is executed by E3orrower and recorded together with this Mortgage, the oovenante and agreements of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage as i(the rider were a part hereof. 7. Protection of Lender's 3erurity. If Borrower faile to perform the oovenante and agreements rnntained in this Mortgege, or if any action or procceding is rnmmenced which materially affecte Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangementa or proceedings involving a bankrupt or decedent, then Lender at Lendrr i option,upon notice to Borrower may make such eppearances, diaburse auch euma and take such aMion as is neceasary to protect Lender's interest, including, but not limited to, disbursement of reaeonable attorney e fees and entry upon the Property to make npairs_ It Lender required mortgage insurance as a condition'of making the loan eecured by thie Mortgage, Borrower shall pay the premiums required b maintain such insurance in effect until such time as the requirement for euch ineurance terminates in aecordance with Borrowrr'e and I.ender'~ written agrcement or applicable Lew. Borrower shall pey the amount of ail mortgage inaurance premiums in the manner provided under paragraph 2 hereot. My amounts disbureed by Lender persuant to thie paragraph 7, with interest thereon, ehall become additional indebtedneas o! Borrower secnred by this Mortgage. Unless Borrower and [.ender agree to other terms of paymcnt, such amounts shel) be payable upon notice from Lender to Borrower requesting payment thereot, and shall bear interest from the date of disbursement at the rate payable irom time to time on outetanding principal under the Note unleea payment of interest at auch rate would be oontrary to applicable lew, in which event such amounts shell bear interest at the highest rate permissible under applicable law. Nothing rnntained in thia paragraph 7, shall require Lender to incur any e:pense or take any action henunder. • BnnK 348 P~GE ~~~3 i - - ~ . - . ~ ,~.,~ - _ ~ ~~~.:..,~ .., _.r.~ ._,_ _ . . ~, ,. ~'~.~