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HomeMy WebLinkAbout1105 Borrower and Lender covenant and agree as follows: . 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 provided in the Note, and the principal of and interest on any Future Advances se.-.ured by this Mortgage. 2. Funds foe Tares and lasuranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay tolender 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 twelfth of the yearly lases and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ono- twelfth of yearly premium installments for hazard insurance, plus ono-twelRh ofyearly premium installments fur 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 be held is an institution the deposib or accounts of which aro insured or guaranteed by a Federal or State agency (including Lender if Lender is such as institution). Lender shall apply the Fends to pay said taxes, assessments, insurance 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 !.ender 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 interest to be paid,.i.enda shall not be required b pay Borrower any interest or earnings on the Funds. Lender shall give to $orrower, without charge, an annual accounting of the Funds showing credits and debits to the . Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of lases, assessments, insurance premiums and ground rents. shall exozed the amount required to pay said taxes, assessments, 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 installments of Funds. If the amount of the Funds held by Lender shag not be sufficient to pay fazes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay b Lender any amount geceasary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secnreci Dy tbis Mor'tgsge. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the ~+oy in otlkerxrise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its aoquia[tiori by Len er, 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 Lender under the Note and i 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 We 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 impositions attributable to the Property which may attain a priority ova 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. 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 furnish to Lends receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided;'~liat 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 manna acceptable to Lender, or shall in good faith contest 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 lhereoL 5. Hazard Insurance. Borrows shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "e:tended rnverage; 'and such other hazards as Lender may require and in such amounts and for such paioda 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 sums secured by this Mortgage, whichever is the greater. The insurance carries providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval 4 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. Lends shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender 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. Lends may make proof of lose if not made promptly by Borrows. Unless Lends and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property Y I damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. if such f restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied E to the sums secured by this 1ltortgage, with the excess, if any, paid to Borrows. If the Property is abandoned by Borrows, or if Borrower fails to f respond to Leader within 30 days from the date notice is mailed by Lender to Borrower that.the insurance carrier offers to nettle a claim for ~ insurance benefits; Lends is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the some secured by this Mortgage. Unless I~nder and Borrows 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. 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 resulting fi^om damage to Property prior to the sale or aoquiaition shall pass to Lender to the a:tent of the soma secured by this Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and Maintenance otFroperty; Leaseholds; Condominums; Planned Unit Developments. Borrows shall keep the Properly 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 thin Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrows shall perform all of Borrows a obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded togeths with this Mortgage, the wvenants and agreements of such rider shall be incorporated 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 thin Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lends at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take each action as is necessary to protect Lendei s interest, including, but not limited to, disbursement of reasonable attorney a 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, Borrows shall pay the premiums required to maintain _ such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrows's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided ands _ paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph with falsest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrows and Lender agree to other tams 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 payablefrom - _ time to time on outstanding principal ands the Note unless payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible ands applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereunder. p BcoK X02 ~~~,F~lGS - . - . fi ~b