HomeMy WebLinkAbout0027 iusured or guaranteed by a Federal or state ugency linclucliug I.enaec ii I.ender is sucl~ an iustitution). l.ender
shall apply the Funds to ~wy saicl taxes, ussess~uents, insurance ~~mmiunis an~i ground rents. I.ender shall make no
charge for so holding and Applying the Funcls or ~•erifying i?nd co~upiling s~id nssessnients und bills. Borrower and
Lender may agree in writing at the tin~e oi exccution of tl~is ~[ortgage tl~nt intems~ on tl?c Funds shall be paid to
Bormwer, and unless such agreenicnt is ~nade, I.cnder shall not I~c mquimci to pay Aorro~~•er any interest on thc :
~nds. Lender shall gi~•e to Borrower, without chi~rge, an annunl accounting uf the Funds showin~ credits and
debits to the Funds and the purPose for which each ~tebit to tl~e Funds was made. The ~~nds nre pledged as uddi- -
tional security for the suma secured by this ~Zortgage.
If the amount of the Funds held by 1.ender, together ~vith thc [utu~r manthl~• inst:illu~ents of Funds payable
prior to the due dates of taxes, assessments, insurancc premiums nnd ground rents, shal) exceecl the amount re-
quired to pay said taxes~ t?ssessme~ts, insurance ~~mmimns nnd ~round rents as they fall due, such excess shall be, ~
at Bormwer's option, either promptly repaid to Bormwer or creditecf to Borro~ver on monthiy instmiimeni~s oi ~
Funds. If the amount of the Funds held I?y I.ender shall not l~e sufficient to pay tnxes, nssessments, insurance pre- ~
miums and ground rents as they fall due, Borro~ver shall pnv to I.ender nnv amount necessary to make up the
deficieney within thirty days aiter notice fmm I.ender to Borro~ver requesting payment thereof.
Upon payment in full of all sums secureci bv this ~iortgagc, I.ender shull prom~~tlv rehind to Borrower ~ny
~nds held by I.ender. .
If under paragraph 18 I~ereof the Pmperty is sold or tl~e Property is otl~ernise acquired by Lender, Lender
shall apply, no later than immediately prior to thc cnlc of the Yropert~~ or its ~cc~~~i~ition bv T.ender, any Funds
held by I.ender at the tims of Application as A cmdit nRainst the ~ums securccl b~~ thi~ ~~ortga~e.
3. Appfication of Payments. Unle.cc applicable ln~~ ~~ro~~ide: otherwise, nil pnyments recei~~ed Uy Lender {
uuder the Note nnd paragrnphs 1 and 2 hereof sl~all bc ~p~~licci 1?~~ I.ender first in pavment of amounts payable to
Lender by BorroNer under paragraph 2 hereof, then to intcirst pnyable on the Notc nnd on ~~ture Advauces, if
any, und then to the principal of the ~Iote And to the ~irincipal of Future Acivances, if any.
4. Ch~qes: Liens. Borrower sl~all pay all t~x~, nssessnients an~l ot.her charges, fines and i~n~~ositions attrib-
utable to the Property ~vhich may nttain a priority over thic \lortgAge, nnd ground rents, it any, at Lender's
option in the manner provided under paragrnph 2 Lereof or 1,~ Aorro~ver mnking pnyment, ~vhen due, directly to
the payee thereof. Borrower sl~all promptly furnisl~ to I.ender all notices oi nmounts due ~mder this paragraph,
and in the event Borrower shnll make pay~uent direckly. Rorro~ccr shall promptlv furnish to I.ender receipts evi-
dencing such payments. Borrower shall ~~rou~ptly ciiscl~argc nny lien ~vhich has priority over this Mortgage; pro-
vided~ tl~at Borrower shall not bc requireci to discl~n?~c anv ~ucli lien so long us Borro~ver sl~all Agree in ~vriting to
the payment of the obligation secureci Uy sucl~ lien in a mAUner ncceptable to T.ender, or shall in goocl faith contest
such lien by, or defend enforcement of sucl~ lieu in, le~nl ~?roceedings hicl~ o~~ernte to prevent the enforcement of
the lien or forfeiture of the Propertv or any ~~Art. tl~ereof. ;
5. Hasard Insuramce. Borroner shnll kee~~ the iro~~ro~•en~ents no~~- existin~ or hereniter erected on the Prop- i
crt~~ iusia~eci against loss by fire, huaards includeci ~vithin the tern~ "extended coverage", and sucl~ otl~er hasards as
I.ender may require and in sucl~ :?mounts and for sucL ~~erial~ u~ I.cnder ?n:~~ require; provided, that I.ender shall
not require thnt t.he ~~noimt of such co~•erage exceeci thnt. amount. of coverage required to pay the sums secured by ~
t.his Mortgage.
The insurauce carrier providing tl?e insurauce shnll hc chosen hy Borro~ver subject~ to upproval by Lender;
~n~ovidecl, tL~t• sucL approvul sl~all not. l~c unreasonably withheld. All premiums on insurance policics shall be paid
at Lender's option in thc manncr ~~rovided under ~~ar:~g~:i~~h 2 hcrcof or 1?} Rorro~~er making payment, when due,
directly to the insurance carrier.
All insumnce polieies and rene~val~ thereof ~L.~ll he iu fo~~n ac~~•~?table to T.e~?der nnd sh~ll include a standarci
u~ortgage clt?use in fn~or of an~i in torn~ :tcceptablc to T.endcr. I.ender ~hall l~a~•c thc right. to hold the policies and
renewstls thereof, and Borm~~er shall prompth• furnish to i.cn~ler all rene«•al notices and :~ll receipts of paid pre-
miums. In the event of loss. Borro«er ~1~a11 givc ~~rom~~t. i~otice to thc insurancc carrier and T.ender, and I.ender
' may ~nake ~~roo[ of lo~s if not ~nadc promptly h~ Borro~ver.
i Unless I.ender and Borro~ver otl~ernise :?grec in ~vi~ting. iosin:u~cc ~?roceed~ shall i~c applied to restoration or
f ?•epair of the Pro~~eri~• dauiaged. ~~ro~-idMl sucl~ restor~tion or ~r~~:tir i~ cconomieall~ fea5ible and the securit~ of
~ this \Iottguge is not therel~~ iu~pairecl. If such restorntion or repaic is not economicall~ feusible or if the security
of this \Iortgage ~~oiild be impairecl, tlic insurance ~~rocee~ls sliall he a~~plied to the sums seeured by tl~is Mortgage,
~ ~vith the excess, if auy, paid to Borro«er_ If thc Yroperty i~ ahan~ioneci by Borro~vcr or if Borm~ver f~ils to respond
~ to 1.ender o•ithin 30 days after notice b~• T.ender to Borro~~er that the insurance carrier ot~ers to settle a claim far ~
insurance benefits, I.ender is authorized to collect ~nci app1~ tlu~ insurance ~~roceed~ at I.ender's option either to
restor:ation or repair of the Prol~ert~ or to the swns secureci bv this Mortgnge.
Unless Lender and Borro~ver othern isc agree in ~vriting, am~ sucl~ applic:?tion of ~?roceeds to principal sha11
not extend or postpone the due date of tlie montlily installmcnts referrecl to in paragrapl~s l~nd 2 hereof or change
the amount of suci~ installments.
If uncier parag~:~ph 18 hereof the Yro~~ert~~ is acquireci b~• I.encier, :~Il ri~ht, title and interest ot Borro~ver in
and to am iusurance policies and in and to thc ~rroceecl~ thcrcof (to tl~c extent of tl~c ~u~us securecl by this Mort-
gage im~uecliately ~~rior to sucl~ salc or acquisitiou 1 resultinfi fron~ ~lau~age to thc Yropertv ~~rior to the sale or
:?cquisition shall pacs to Lender.
6. Presemation cmd Maintenance of Property; I.easeholds; Condominiums. Borro~ver sl~all keep the Prop-
erty in ~ood repair and shall not ~~ennit or co~nmit ~vaste, impairment, or deteriomtion of tl~e Property and shall
comply witl~ tl~e ~~rovisions of an~ leasc, if this \tortgage is ou a leasel~old. If tliis \lortgage is on a condominium
unit, Borro~ver shall ~~erfotm all ot Borro~~~er's obligations ~mder the declaration of condominiwn or master deed,
~ the by-I:tws an~l regulations of tLc condominiuu~ ~~roject aud constituent documents.
~ 7. Protection of Lender's Security. If Rorroiver fail~ to ~?erfonn the covenants and agreements contuined in
~ this \Iortgage, or if zn~~ action or procecding is contmenced ~vhich materiallv aft'c~ts I.ender's interest in the Prop-
erty, including, I~ut not limited to, eminent domain, insol~'enc~•, caic enforcement, or arranQements or proceed-
ings involving a bankrupt or decedcnt, then Lender at I.ender 5 o~ition. upon notice to T3orro~ver, ~nay make such
.tppearances, disburse such sun~s ancl takc such action as is nec~sary to ~~mtect Lender's interest, including, but
not limited to, disbursement of reasonablc attorney'~ fees an~l entn upon the Property to wake repairs. Any
amounts disbursc~i by Lendcr ~n~rsuant to this paragra~il? fi. «•ith interest thereon, sl~all become ndditional indebt-
eciness of Borro~ver secured hy this ~tortgage. Unless Borro~ver and I.ender agree to other terms of pay~nent, such
amounts shall be payable upon noticc from T.endcr to Borro~~cr requesting pay
nent thereof, :?nd shall l~ear inter-
est from tl~e date of di~bursement at thc ratc statecl in the Notc unless ~ray~nent of interest at sucl~ ratc ~vould be
contrury to appiicable IAw•, in ~~hich c~•ent such a~nounts shall I~ear interest at thc l~ighest rate ~iermissible Uy
applicable la~v. \othing contained in thi~ ~~aragrapl~ 7 shall re~uire I.ender to incur any ex~~ense or do any act
hereunder.
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