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HomeMy WebLinkAbout0014 Borrower and Leader covenant and agree as folbws: 1. Payment o! Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment wd late charges as provided in the Note. and the principal of and interest on any Future Advances secured by this Mortgage. 2 Funds for Taxes and lasuraaoe. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Leader oa the day monthly installments of principal and interest are payable undue the Note. until the Note is paid in full, a sum (herein "Funds'? equal to one• twelfth of the yearly taxes and assewmeats which may attain priority over this Mortgage. and ground rents on the Property. if any. plw ors twelfth of yearly premium installments for hasard insurance, plw onstvrelRh of yearly premium installments for mortgagainaurance, if any. all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Enacts shall be held in as institution the depodb or aeoounts of which are insured or guaranteed by a Federal or State agency (inducting Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments. insarance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analyzing said account. or verifying and compiling said aaessments and bill. unless Lender pays Borrower interest oa the Funds and applicable law permits Leader to make each a charge. Borrower and Lender may agree in writing at the time of execution of .this Mortgage that interest on the Funds shall be paid to Borrower, and unlew such agreement is made or applicable Iaw.requires such interest to be paid, Lender shall not be required to pay Borrower any intered or earnings on the Funds. Lender shad give to Borrower, without charge. an annual aooounting of the Funds showing credits and debits b the Funds and the purpose for which each debit to the P1mds was made. The Fonda ere pledged as additional security for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shall exoaed the amount required to pay said taxes, aa.essmenta, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly instalments of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay tares. assessments, insurance premiums end ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. Upon payment in fall of all sums secured by this Mortgage, Lender ahaU promptly refund to Borrower any funds held by Lender. Uunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no late: than immediately prior to the sale of the Properly ~ its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Leader ands the Note sad paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to We principal of the Note, and then to interest and principal on any Future Advances 4. Charges; Liens. Borrower shall pay all taxes. assessments and other charges, fines 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 hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph. and in the went Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower 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 Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith rnntest such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any -part thereof. 5. Hazard Insurance. Borrower shall keep the improvements sow existing or hereafter erected on the Property insured against loss by fin, haaarda inducted within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by ' state or federal regulations governing activities of Lender. or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall inducts a standard mortgage douse in favor of and in foam acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to I'', iender all renewal notices end all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided each restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. if such restoration aT repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to the same secured by this Mortgage, with the ezcces, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall note:tend or postpone the due date of the monthly instalments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, aU right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenarwe of Property; Leaseholds; Coadominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or eovenanta creatingor governing the rnndominium or planned unit development, the by-laws and regalations of the condominium or planned unit development, and oo6etituent docaments. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Propezty. inducting, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearaaaes, disburse such sums and take such action as is necessary to protect Lender's interest. inducting, bat not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiams required to maintain such insarance in gifted until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lends to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time oa outstanding principal under the Note salsas payment of interest at arch rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained is this paragraph 7, shall regain Lender to incar any expense or take any action hereunder. sow 300 14 . - -