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HomeMy WebLinkAbout2897Eiorrowe~ ~nd Lender rnve~ant and a~ree a~ folbwr l. Pwyment of Principa) ond lntere~t. Borrower ehall pmmpqy pay when due the pri~cipsl of and interest on the indebtednee~ evidenced by the Note. pre{-ayment and latecharga aa provided in the Note. and the principal ota~d intrrest on a~y Future Adva~cessecured by thi~ Mort~a~e. 2. Ftind~ for Ta~ces and Insurance. Subject to applicable law or to a written waiver by l.ender, Borrower shall pay to I.ender un the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a aum (herein "Funds") equal to on~ tweltth of the yearly taxes and asseasmenta which may ettain priority over this Mortga~e, aod ground rents on the Property, i[any, plus ont twelfth otyearly premium installments for hazard ir-surance, plusonetwelfth ofyea~ly premium instellmenta to~ mortgageinau~ance, ifeny, all as ceasonebly eatimated initially and trom time to tirne by I.ender on the baeis of asaeasmente and billa and reaso~able eatimatrs the~eot. 9?~e Ftinds shall be held in an inatitution the deposita o~ accounta of which are i~sured or guaranteed by a Federal or State agency (incl~di~g L.ender it t.ender is such an in~titution). I.ender ~hall apply the Funde to pay said taxes, asaesements, insu~ance premiums and ground rents. Lender may not charge tor w holding end applying the F'unda, analyzing said account, or veritying and compiling said essessmente and biUe, unless Lender pays Borrowe~ intereat on the Fu~ds and applicable law permits Lender to make euch a charge. Borrower and l.ender may agree io writing st the time ote:ecution of this Mortgaqe that i~tereat on the F unds ahail be paid to Borrower, and unless auch agreeme~t ie made or applicable law requires auch interest to be paid, Lender shall not be required to pay Borrower any intereat or earninga on the Funds. Lender shall give to Borrower, without charge, an an~ual acoounting of the Funda showing credite and debits to the Funda and the purpose fo~ which each debit b the Funds waa made. Tfie M unda are pledged aa additional security for the sums secured by this Mortgage. If the amount otthe F`unds held by Lender, together with the future monthly installmente of Funds payable prior to the duedatea of taxes, assesamenta, inaura~ce premiums and ground rents, ehaU e:c2ed the emount required to pay said taxes, assesamenta, i~aurance pnmiums and ground rente ae they fal! due, such excess ehall be, at Bo~TOwer's option, either prompUy repaid to l3orrowe~ or credited to Borrower on monlhly inetallmente of Funds. I[ the amount of the Funds held by Lender shall not be sufficient to pay taxea, asaesamenta, ineurance premiuma and ground rents as they fall due. Borrower ahall pay to [.ender any amount neceasary to make up the deficiency within 30 days from the date notice is mailed by I,ender to EioROwer requeating payment thereof. • Upon payment in tull of all sume secured by this Mortgage, I~ender shall promptly refund to E3orrower any funda held by l.ender. If under paragraph 18 hereof the Property is sold or the Property ia otherwine acquired by Lender, l.ender ahell apply, no later than immedialely prior to lhe sale ot the Properiy or ite acquisition by l.ender, any Funda held by t.ender at the timt of application as a credit againat the euma eecured by thia Mortgage. 3. Application ot Payments. Unleas applicable law provides otherwiae, all paymenta received by [,ender under the Note and paragraphs 1 and 2 hereof ahal) be applied by Leader firat in paymeot of amounta payable to Lender by Borrower under patagraph 2 hereof, then to interest payable on the Note, then lu the principal of the Note, and then lo interest and principal on any Future Advancea_ 4. Chargcs; Liene. E3orn-wer shall pay all taxea, assesaments and other charges, fines and impusitions attributable to the Property which ~nay attain a priority over this Mortgage, and leasehuld payments or ground rents, if any, in the manner p~ovided under paragraph 2 hereof or, if not paid in such manner, by I3ortower making payment, when due, directly to the payee thereof. i3orrower shall promptly furnieh to Lender ~II nuticea of amountx due under this paragraph, and in the event 13orn-wer shall make payment directly, liorrower shall promptly fumish to l.ender receipts evidrncing such payments. t3urrower shall promptly dischargr nny lien which has priority over this Mortgage; provided, that Borruwer ahall not be reyuired tu discharge any such lien so lung as f~rrower shall agree in writinK to the peyment of theobligation secured by such lien in a manner accepGible to I.rnder, or sh~ll in g~xd faith contest such lien by; or defend enfu~rnment of such lien in, legal praceeelings which operate u~ prevent thr enf~xcemrnt of the lien or forfPiture of thr Property or any part therc~-f. 5. Hazard Inaurance. Fiorn,wer shall keep the improvements now existing or hereaRer erected on the Property insured againat losa by fire, hazards included within the trrm "extended coverage," and such other hazards xs I.ender may require and in auch amounte nnd for euch pericxls ae I.ender may reyuire; providrd, that l.ender sh~ill not require that the amount of auch coverage exceed that amount of coverage rrquired to pay the xums s~•ured by this MortKaKe. The insurancr carrirr providinK the insurann• shall 1~e chus~~n by Korruwer subject lo approval by l.rndrr, pnwided, that such appruva) xh:-ll not be unrr:~winably withheld. All premiumti un ~nsuram•e p~dicirs shail I~e p:~id in the mannrr pnwidr~f undrr paragr:~ph 2 hrreof or, if not paid in such manner, by fiorrower mak~nK payment, when dur. dirrctl~~ to th~ in~urance carrier. All inaurance poliries and renewals thereof shall be in form acceptableui I.ender and shall include a standard mortqageclaueein favorof and in form accepWble to I,ender. l.ender shall have the riaht d~ huld the policies and renewals thereof, and B~rrower ahall promptly fumiah to ~.endrr all renewai notices and all receiptx of paid premiums_ In thr event of loss, Ei~~rruwer shall give prumpt nutice w the insurance carrier and I.ender. I.ender may make pr~d of loss if not made promptly by Borrower. Unlesa l.ender and liorrower otherwise agree in writinK, insurance proceeds ahall be applied to restoration or repair of the t'ruperty damaqed, provided auch reskiratiun or mpair ~s ecunumicaUy feasible and the arcurity of this Mortgaqe ia not thereby impaired. If auch reatoration or repair is not econnmically feasiblr or itthe security of this Mortgagewould be impaired, theinsuranceproceedashall beapplied w the sums secured by this :11orlKage, with the eacer:s, if any, paid to F3orrower. If the Property is abandoned by E3orrower, or if Eiorrower faila to reespond to I.ender within :i(- days (rom the date notice ia mailyd by I.ender to E3orrower that the inaurance carrier offers to settle a claim for inaurance benefitx. I~ender is authorizetl to collect and apply the insurance proceeds at l.ender'a option either to restoration or repaer of the !'roperty or the aums secured by lhis MortK:~ge. Unleae I.ender and F3orrower otherwise agree in writinR, any auch application of proceeda to principal ehall not extend or poetpone thedue date of the monthly installments referred to in paragraphs 1 and `2 t~ereof or change the amount o[auch inatallments. l( under paragraph 18 hereof the Property is acquired by I,ender, all right, title and interest of E3~rmwer in and to any insurance policiea and in and to the proceede thereof resulting frorp damage to Property prior to the sale ur acqwsition shall pasa to [.ender to the extent of the aums aecured by thia Mortgage immediately prior to euch sale or acquiaition. 6. Preeervetion end Maintenance otProperty; l.easeholde; Condominums; Planned Unit Developments. Borrowerehall keep the Property in good repair and ahall not commit waete or permit impairment or deterioration of the Property and ahell comply with the pruviaiona of any lease if thie Mortg:ige is on a Irasehold. If this MuRKage is on a unit in a condominium or a planned unit development, liorrower ahall perform a~l of E;orrower'a obligationa under the declaration or covenante cre:itinKor governmg thecondominium or planned unit develupment, the bylawa and regulations of the condominium or planned unit development, and rnnatituent documente. If a conduminium or planned unit devrl~,pment rider Ss exe~vted by &~rrower and recorded together with thia Mortgage, the oovenants and aKreementa- of xuch rider Ahall be incorporatrd intu and shall amend and supptement thecovenants and agreemente of this MortgpReas ifthe nder were a part hereof. , 7. Protection of Lender's 3ecurity. If Borrower taile to per[orm the covenants and agrcements rnntained in this Mortgage, or if any action or proceeding is commenced which materially aftects Lendei s interest in the Properiy, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedings involving e benkrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, diabune such sums and take such action as is neceasary to protect Lendtr'~ in~rat, including, but not limited to, diabursement of reasonable attomey's fees and entry upon the Property to malce repaire. tt Lender required mortgage inaurance ae a condition of making the loan secu~ed by thia Mortgage, Borrower ehall pay the premiums required to maintain euch insurance in etfect until such time as the requirement tor such ineurance terminates in accordance with Borrower's and [.ender s written agreement or applicable Law. Borrower shall pey the amount of all mortgage inaurance premiums in the manner provided under paraqraph 2 hereof. Any amounts disbureed by Lender pereuant to this paragraph 7, with intereat lhereon, shall be~.~ome additional indebtedness o[ Borrower secured by thie Mortgage. Unless Borrower and I.ender agree to other terms of payment, such amounts shell be {rayable upon notice trom l.ender to Borrower requeeting peyment thereot, and shaU bear interest trom the date of disbursement at the rate peyable trom time to time on outetanding principal under the Note unless peyment o[ interest at euch rate would be contrary to applicable lew~ in which event such amounte shall bear intereet at the highest rate permissible under applicable lew. Nothing cpntained in this paregraph 7, ~hall require I.ender to incur any expense or teke any eMion henunder. • ~~~x 348 PaGE2895 ~ . ~ ~ ~ ~ ~ ~ - _ ~ ~ S~ _ ...`~~"~"t S~= ~m.' ~t x_ ,. ».s'c v_ .s- ,. a. ... _ .- . . . ... 6_-,._ .