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HomeMy WebLinkAbout0988 ~ Bormwec ar~d Lender covenant and a~ree a~ folbwr. 1. Paymeat ot Priacipal aad Intere~~ Bor~ower ~hall promptly pay when due the principal of and intenat on the indebtednaa evide~ced by ths Nots. prepsyane~t and late char~e~ aa provided in the Note. and the principal of and i~terest on u~y I~ture Advancea secuoed by thi~ Mortgage. 2 I~lutds for Taxea snd Ia~uranee. Subject to applicable law or to a written waiver by Lender. Borrower ahell pay to Lender on the day ~nonthly installments of principal snd interest sre payabk under the Note, until the Note u paid in tull, a aum (hereia "F~nds") equal to on~ ~ ~ twelfth of the yearly taxes and asseeamente which may attain p~ority over this Mortgege, and ground re~ts on the Property, if any, plw on~ ~ twelRh of yearly premium installments tor hazard inaurana, ploa o~etweltih of yearly premium inataUments [o~ mortgage inaurance, if any. ~ all as reasonably estimated ini/ielly and from time to time by l.ender on the basia of assessme~ta and bills and reasonable eetimetea thereo! The FLnds shall be heW in an institution the deposita or accounts of which are insured or guaranteed by a Federal or State agency ~ (including Lender i! Lender ie ench an it~etitution). Lender shall apply the Fu~da to pey said taxes, assessments, inaurance premiuma and ground nnte. Lender may not charge fot ao holding and applying the ~nds. analyzing aaid account, or verifying and rnmpiling said aseeesments and bills, unleas Lender payn Borrower iaterest on the Funde and applicable law permits Lender to make such a charge. Borrower and Lender may agree ia wrriting at Lhe time o! execution of this Moetgage that interest on the Flmda ahall be paid to Borrower. and unlesa such agreement is made or applicable law requires such intenst to be paid, Lender ahall not be required to pay Borrower any intere~t or earnings on the ~nds. Lender shall give to Borrower, without charge, an a~nual accounting of the Funda showing credits and debits to the Funds and the purpoee foe which each debit to the ilinds was made. The Funds are pledged as additional security for the eums aecured by thi~ Mortgage. If the amount of the F~nds held by Lender, together with the future monthly inatallmcnts of Fu~da payable prior to the due datee of tases. asseeamenta, ineurance premiuma and ground rents. aha11 exc2ed the amount required to pay said taxes, asaeasments, insurance premiums and ground renta as they fall due, such exceas ahall be, at Borrower s option, either pmmptly repaid to Borrower or credited to Bormwer on J monthly instalimenta of Funds. If the amount of the Funda held by I.ender shall not be aufficient to pay taxea, asseasmenta, inaurance s premiums and ground renta as they fall due, Borrower ahall pay to Lender any amount neceasary to make up the deficiency within 30 days ~ from the date notice ie mailed by l.ender to Borrower requeating payment thereof. ; Upon payment in full of aU aums aecured by this Mortgage, I.ender sha1) promptly retund to Borrower any funds held by Lender. If under ~ paragraph 18 hetsof the Property is sold or the Property is otherwine acquind by I.ender, I.ende~ shall apply, no later than immediately prior ~ to the sale at the Properiy or ite acquiaition by Lertder. any Funda held by I.ender at the time of applicetion ae a credit against the aums eecured by this Mortgage. 3. Applieation of Payments. Unless applicable law provides otherwise, aU payments received by Lender under the Note and paragraphs 1 and 2 hereof ehall be applied by Lender firaE in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, and then to intereet and principal on any Future Advancea. 4. Chargea; Liena. Borrowershall pay all taxes, assessments and otherrharges, fines and impositions 3ttributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground ~ents, 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. E3orrowershall promptly furnish to Lender all notices of amounts due under this paragtaph, and in the event Borrower shall make payment directly, Borrower shnll promptly turnieh to l.ender receipts evidenciog such payments. Borrower shall promptly disrhargr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so (ong as Borrower ahall aRree in writing to the payment of theobligation secured by such lien in a manner acceptable to l.ender, or shaU in Qood faith cv,ntest xuch lien by, or defend enlorrnmentof such lien in, lega) proceedings ! w•hich o rate to revent the enforcement of the lien or for(eiture of the Nro ~ Pe p perty or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property inaured againat loss by fire, hazards included within the term "extended coverage," and such uther hazards as I.ender may require and in such amounts and forsuch periods as Lender may require; provided, that l.ender shall not require that the amount of auch rnverage exceed that amount of rnverage required to pay the gums secured by this MortKaRe. . The insurance camer pro~~idinK the insuran~~• sh:dl 1?r ch~ti.rn hy Korrovicer subjeeK tn approval by txnder, pm~ ided, that such approcal shall not be unreasonably xithheld. All premiums un in~uran~~e pulicirs ~hall be paid in the manner pry?vid~ under paraRraph 2 hereof or, if not paid in such manner, by 13~?rrower makinK payment, w~hen due. direti•tly to thi• insurance carrier. All insurance policies aqd renewals thereof shall be in form accept~~ble to I.ender and shall include a standard m~rtgageclauae in favorof ; and in form acceptable to I.ender. I.ender shall ha~~e the riKh1 u~ huld the p~?licies and rnnewals thereof, and &?rrower shall promptly furnish to ~ i~ender all renewal notices and all receip~R of paid premiums. In the e~e~d of luss, Borruwer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by E3orrower. ' Unless Lender and E3orrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property s damaged, provided such restoration or repair is economically feasible and the arcurity of this Mortgage is not thereby'impaired. If such ~ i reatoraUon or repair is not economically [easible ur if the securit~r of this Murtgaqe would be impaired, the insurance proceeda ahall be applied ~ i to the auma secured by this Mortgage, w~th thc exma.g, if any, paid to Rorrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ ' reapond to Lender within 30 dz+ys from the date notice is maited by t.ender to E3orrowrr that the insurance carrier otters to setde a claim tor inaurance benefits, [.ender is authorize~i to collrct and apply the insurance proceeds at [.ender's option either to restoration or repair of the Property or the sums secured by this Mortgage. , Unlees Lender and Borrower otherwise aECree in writing, any such application of proceeds to principal ahall not e~ttend or postpone the due date of the monthly inslallments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments. If under paragraph 18 hereof the Property ia acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceede i thereof resulting from damage to Property prior to the sale or acqu~sition shall pass to I.ender to the extent of the auma secured by this ~ ~ Mortgage immediately prior to such sale or aequiaition. • 6. Preservation and Maintenance otProperty; Leaeeholds; Condominuma; Planned Unit Developments. Borrower ahall keep , ~ the Property in good repair and shall not commit v~aste or permit impairment or deterioration of the Property and ahall comply with the ~ proviaiona of any lease if this Mortgage is on a leasehold. It this Mortgage is on a unit in a condominium or a planned unit development, ~ Borronrer ahall pertorm all of E3orrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-lawa and regulationa of the condominium or planned unit devetopment, and conatituent documents. I[ a ~ondominium or planned unit deveEopment rider ia executed by Borrower and recorded together with thia Mortgage, the oovenante and ~ aKreements of such rider shall be incorpor:ited into and shall amend and supplement thecoven~nts and agreementaof thie Atortgageas ifthe , rider were a part hereof. _ i Protection ot Lender's 3ecurity. if Borrower fails to perform the oovenants and agreemente Contained in this Mortgage, or if any ° action or proceeding is commenced which materially affects L.ender e interest in the Property, including, but not limited to, eminent domain, ~ ineolvency. oode enforcement, or arrangements or proceedings involving a banlwpt or deoedent, then Lender at Lendei s option.upon ~ ~ notice to Borrower mey make such appearanoe~, diaburee such sums and take such action as is neceesary to protect Lendtr's interest, including, but not limited to, diebureement ot reasonable attorney's icea and entry upon the Property to make repeits. If Lender required ~ mortgage ineurance as a condition of making the loan secured by thia Mortgage, Borrower shall pay the premiums required to maintain ~ ~ such ineurance in eftect until such time as the requirement tor such insurance terminates in accordance with Borrower's and Lendrr'~ ; written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under y ~ paragraph 2 hereof. ~ ~ Any amounts diebureed by l.ender perauant to this paragraph 7, with intereat thereon, shall beoome additional indebtedness of ~ ~ Korrower eecured by thia Mortgage. Unleea Borrowar and Lender agree to other terms of payment, euch amounts shall be payeble upon ' ~ notice from Lender to Borrower requeeting payment thereof, and shsll bear interest from the date of diebureement at the rate payable from ~ time to time on outstanding principal under the Note nnleas payment of interest at auch rete would be oontrary to applicable law, in which ~ event euch amounte ehall bear interest at the higheet rate perrnisaible under applicable law. Nothin~ contained in this peragraph 7, shall ~ ~ require Lender to incur any expenee or take eny action hereunder. ~ ~ 1 f ~ ~ 'L~JOK t)c~U P6GE ~ j ~ ~ ~ ~ ~ ~ .