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HomeMy WebLinkAbout0466 Borrower and Lender covenant and agree as follows: - 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and inlayed oa the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Tries and Insuraacee. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds'? equal to one- twelf W ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus one- . twelfth of yearly premium installments for hazard insurance. plus onetwelfW ofyearly premium 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 Ptitads shall be held in an institution We deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such an institution). Lender shall apply tea i:unaa w pay said faxes, assessments, insurance prrmiuma sad ground rents. Lender may not charge fm eo holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender b make such a charge. Borrower and Leader may agree in writing at We time of execution of this Mortgage that interest on the firnds shall be paid to Borrower, and unless such agreement is made or appUcable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings oa We Funds. Lender shall give to Borrower, without charge, an annual aooounting of the Funds showing credits and debits to W$ Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mostgage. If the amount of the Fonda held by Lender. together with the future monthly installments of Fonda payable prior to the due dates of taxes. assessments, insurance premiums and ground yenta. shall ezoeed the amount required to pay said tares, assessments. insurance premiums and ground renb as Way fall due, such ezcess shall be. at Borrower's option, either promptly repaid b Borrower or credited to Borrower on monthly installments of Funds. If We amount of We Funds held by Lender shall not be sufficient to pay fazes. assessments, insurance premiums and ground rer?ts as they fall due, Borrower shall pay to bender any amount necessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting payment Wereof. Upon payment is full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof the Property is sold or the Property is oWerwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property ce i!a acquisition by Lender. any Plrnds 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 Lender under We Note and paragraphs 1 and 2 hereof shall be applied by Lender fiist in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, Wen to inlayed payable on We Note, then to We principal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fazes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over Win 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 Wereof. Borrower shall promptly furnish to Lender all notices of amounts dqe under Wis 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, W at 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 faiW contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereof. 5. Hasard Insurance. Borrower shall keep We improvements now eziating or hereafter erected on the Property insured against loss by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may require and in such amounts and for such periods sa Lender may require: provided, that Lender shall not require such coverage amount exceeding the minimum, as may berequired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay We sums secured by this Mortgage, whichever is We greater. The insurance carries 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 poUciea and renewals Wereof shall be in foam 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 We policies and renewals thereof, and Borrower shall promptly furnish to 'i i.ender all renewal notices and all receipts of paid premiums In We event of foes, Borrower shall give prompt notice to the ineun3nce carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. Unless Lender and Borrower oWerwiee agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair ie economically feasible and We security of Wis Mortgage is not Wereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied to the soma secured by this Mortgage, wild the ezcess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from We date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is suWorized to collect and apply We insurance proceeds at Lender's option either to restoration or repair of the Property or We soma secured by this Mortgage. Unless bender and Borrower oWerwiae agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property ie acquired by Lender, all right, title and intermit of Borrower in and to any insurance policies and in and to the proceeds Wereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the eztent of the soma secured by this Mortgage immediately prior b such sale ~ acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominume~ Planned Unit Developments. Borrowerahall keep We Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply wild 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 oovenante creatingor governing We condominium or planned unit development, We by-laws and regulations of We condominium or planned Wait development, and rnnatituent documents. If a condominium or planned unit development rider is e:ecvted by Borrower and recorded togeWer wild this Mortgage, We covenants and agreements of such rider shall be incorporated into sad shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. - Protection of Lender's !Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any action or proceeding is e~meaeed which materially affects Lender's interest in We Property, including, bat not limited to, eminent domain. insolvency, code enforoment, or arrangements or pra~eedings involving a banlmrpt or deoedeat, Wen Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, dubnrsement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as We requirement for such insurance terminates in aeoordance wild Borrower's and Lender's written agreement or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. Aay amounts disbursed by Lender persuant to this paragraph 7, wild interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, each amounts shall be payable upon notice from Lender to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at the rate payable fiom { time to time on outstanding principal under We Note anless 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 in this paragraph 7, shall require Leader to incur any ezpense or take any action hereunder. 800K 30O PAGE ' - .