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HomeMy WebLinkAbout0018 Borrower and Leader covenant and agree as follows: 1. Payment of Prlacipal and IIatereat. Borrower shall promptly pay when due the principal of and interest on the indebtednea evidenced by the Note. prepgymeat and late charges a. provided in the Note, and the principal of and interest on arty Future Advances secured by this Mortgage. 2. Funds for Ts~ee sad Iasuraaes. Subjed b applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest are payabk under the Note, until the Note is paid in full, a sum (herein "Inds") equal to oar twelfth o! the yearly taxes and assesamenb which may attain priority over this Mortgage. and ground rents on the Property. if any. plw one• twelfth of yearly premium installments for hasard insurance, plan one•twelfth of yearly pranium installments for mortgage insurance. 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 Funds shall bs held in as institution the deposits or aooounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said tarts, assessments, innocence premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing said account. or verifying and compiling said assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower . and Leader rosy agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless each agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower. without charge, an annual aeoounting of the Fandn showing credits and debits to the Fonda and We pnrpwe for which each debit to We Funds was made. The Inds are pledged as additional security for the sums 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 b pay said tares, asseesmeata, insurance premiums and ground rents as they fall due. ouch e:easi shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Indi• If the amount of We Funds held by Lender shall not be sufficient to pay taxes, aseeswnents,-insurance premiums and ground rents as Way 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 same secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, ao later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application ae a credit againstthe sumasecured - by this Mortgage. 3. Application of Fayments. Unless applicable law provides otherwise, all payments received by Lender Hader the Note and paragraphs 1 and 2 hereof shall be applied by Lender Cult 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 interest and principal on any Future Advances. 4. Charges;Liens. Borrower shall pay all taxes, assessments and other charges, fines and impoaidons 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. Borrowerahall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event 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 dincharge any such lien so long ere 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 contest such lien by. or defend 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 now existing or hereafter erected on the Property insured against loss by fire, hazards included 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 include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to I'` i.ender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may analce proof of lass if not made promptly by Borrower. ~ Unless Lender sad 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 i restoration or repair is not economically feasible or if the security of this Mortgage world be impaired, the insurance proceeds shall be applied to the anma secured by thin Mortgage, with the excess, 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 We sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Tf under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to say 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 soma eecured by this Mortgage immediately prior t9 such sale or aoquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; 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 thin 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 covenants creatingor governing the condominiam or planned unit development, the by-laws and regnlatione of the condominium or planned unit development, and eonatituent documents. If a wndominium 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 rnvenants and agreements of thin Mortgage as if the rider were a part hereof. 7. Protection of Lender's Secarity. S Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is eommrnoed which materially affects Lender'. interest in the Property. including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, thm Lender at Lender's option,npoa notice to Borrower may make such appearances, disburse arch sums and take such action as is necessary to protect Lender's interest. including, b~ not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lends: required - mortgage ins~ance as a condition of making the loan secured by this Mortgage, Borrower,ehall pay the preminma required to maintain such insurance in effect until such time.as the requirement for arch insarance terminates in accordance with Borrower's sad Lender's written agreement or applicabk Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbnreed by Lends: persuant to this paragraph- 7, with interest thereon, shall become additional indebtedness of Borrows: secured by this Mortgage. Unless Borrower and Lends agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at arch rate would be contrary to applicable law, in which event arch amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. F~ 6001ts~tJO PACE 10 j