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HomeMy WebLinkAbout2404 Borrower and Lender covenant and agree as folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as pruvidcd in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicabk law or to a written waive: by Irnder, Borrower shall pay to l.enderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Fundy") equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelRh ofyearly premium installments for hazard insurance, plusonetweltW ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by (.ender on the basis of assessments and bills and reasonable estimates thereof. The Ftimda shall be held in an institution the deposib or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). [.ender shall apply the Funds to pay said tares, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asseeamenta and bills, unless Lender pays Borrower interest on the Funds and applicabk law permits Lender to make such 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 unless such agreement is made or applicable law requires such inter+ast to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, wiWont charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security for the some secured by this Mortgage. Itthe amount of the finds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground yenta, shall e:oaed the amount required to pay said tares, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower a option, ether promptly. repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonds held by Lender shall not be sufficient to pay tares, asaessmenta, insurance premiums and ground rents as they tall due, Borrower shall pay to Leader any amount necessary to make up the defidency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by Wis 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 Leader, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Portia held by Lender at the time otapplication 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 the Note and paragraphs 1 and 2 hereof shall be applied by Lender fast 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 Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all tares, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground 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. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly fumish to (,ender 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 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 We Property or any part thereof 5. Hazard Insurance. Borrower shall keep the improvements now eziating or hereafter erected on We Property insured against lose 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 wverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or Wat amount of rnverage required to pay We soma secured by Wis Mortgage, whichever is We greater. The insurance carrier providing We 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 We insurance carrier_ Ali insurance policies and renewals Wereof shall be in form acceptabk 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 polices and renewals Wereof. and Borrower shall promptly fumish to i.ender all renewal notices and all receipts of paid premiums In the event of logs, Borrower aha0 give prompt notice to the insurance carrier and Lender. Lender may make proof of lose it not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property damaged, provided such restoration or repair is economically feasible and We security of Wia Mortgage is not Wereby impaired. It such i 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 W is Mortgage, wiW We excess, if any, paid to Borrower. If We Property is abandoned by Borrower, or if Borrower fails to respond to Lender wiWin 30 days from We date notice is mailed by Lender to Borrower that We insurance carrier offers to settle a claim for insurance benefits, Lender k authorized to collect and apply We insurance proceeds at Lenders option either to restoration or repair of the E Property or We soma secured by Wis Mortgage. t Unless Lender and Borrower otherwise agree in writing, any such application of proceeds W principal shall note:tend or postpone thedue ~ date of the mon Wly installments 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, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof reaulti from dam ng age to Property prior to We sale or acquisition shall peas to Lender to We extent of the sums secured by Wis Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condomiaums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deteraration of the Property and shall comply with We - ~ provisions of any lease if this Mortgage is on a leasehold. If Wia 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 We condominium or planned unit development, We by-laws and regulations of We condominium or planned unit development, and rnnetituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded togeWer wiW Wia Mortgage, We oovenanfs and agreements of such rider shall be incorporated into and shall amend and supplement Wecovenanta and agreements of this Mortgagees if the rider were a part hereof. ~ Protection of Lender's Security. It Borrower fails to perform the oovenanta and agreements contained in Wis Mortgage; or if any action or proceeding ie commenced which materially affects Leaders interest in We Property, including, bat not limited to, eminent domain, t insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lenders option,upoa 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, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay We premiums required to maintain such insurance in effect until such time as We requirement for such insurance terminates in accordance wiW Borrower's and Lenders written agrcement or applicable Lew. Borrower shall pay We amount of all mortgage insurance premiums in We.manner provided under paragraph 2 hereof. Any amounts disbursed by Lender pereuant to this paragraph 7, wiW interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, arch amounts shall be payable upon f notice from Lender to Borrower requesting payment Wereof, and shall bear interest from the date of disbursement at We rate payable from ~ time to time on outstanding principal under We Note unless payment of interest at sock 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 Wis paragraph 7, shall require Lender to incur any expense or take any action hereunder. i~ ;.arc 5 a{ `r 301 _2399 - . ~ _ _ - :x ~~~t ~ F~fiYi. ~~'rf ~ ~ ~ ~