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HomeMy WebLinkAbout1735 Borrower and Lender covenant and agree as folbws: 1. Payment of Prlnclpal wad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charge as provided in the Not. and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Tuea and Inaurewoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installaneat of principal and interest are pewable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to oas. twelfth of the yearly lases and assessments which may attain priority over this Mortgage. and ground yenta on the Property. if any. plus one- twelfth ofyearly premium installments for hazard insurance, Plus one•twelRh of yearly premium installment for mortgage insurance. if any. all as reasonably estimated initially and froaa time to time by Leader on the basis of assessments and bills and reasonable estimates thereo! The Funds shall be held in an institution the deposit or account of which are insured ~ guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said teases, 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 mate such a charge. Borrower and Lender may agree is writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless anch agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings oa the Funds. Lender shall give to Borrower, witliont charge, as annual aooounting 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 sums secured by this Mortgage. If We amount of the Funds held by Leader. togeWer with the future monthly installment of Funds payable prior to the due dates of lases, aasesameats, insurance premiums and ground rents. shall ezored the amount required to pay said fazes. aaseaamenta, insurance premiums and ground rents as they fall due, such e:eesa shall be, at Borrowds option, either pmmpt>,j? repaid to Borrower or credited to Borrower on monthly installment of Funds. If the amount of the Fonda held by Lendm shall not be anificient b pay fazes. assessments. insurance premiums and ground rent as Wey fall due. Borrower ehaD pay to Lender any amount necessary to make up the deficiency within 30 days from the dat'notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in 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 otherwise acquired by Lasder, Lender shall apply, no later than immediately prior to the ask of the Property or it 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 payment received by Lender under the Not and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof, than to interest payable on the Not, then to the principal of the Not. and then to intresl and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all fazes. assessment and other charges, fines and impoaitiona attributable to the Property which may attain a priority over this Mortgage, and leasehold payment or ground rent, 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 amount due under this paragraph. and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipt evidencing such payment. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien eo long as Borrows shall agreein 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. Haaard Insurance. Borrower shall keep the improvement now ezisting or hereafter erected on the Property insured against lose by fire, hazards included within the term "eztended coverage," and such other hazards as Lender may require and in such amount and for such periods as Lender may regain; provided. that Lender shall not require each 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 $orrower subject to approval by Lender, provided, that such approval shall not be nnreaaonably 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 Wereof shall be in foam aeceptable 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 lender all renewal notices and all receipt of paid premiums. In the event of lass, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass 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 thin Mortgage is not thereby impaired. If such restoration or repair is sot economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property i8 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 Lendds option either to restoration or repair of We Property or the sums secured by this Mortgage. Unless Leader and Borrower otherwise agree in writing. any each application of proceeds to principal shall not eztead or postpone We due date of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of anch installment. ff under paragraph 18 hereof the Property is acquired by Lends, all 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 ezteat of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and 11laintenance 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 this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or covenant sveatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent document. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, We covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider were a part 6ereot. - 7. Protection of Lender's Security. If Borrower fails to perform the covenant and agreement contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lendda interest in the Property. including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at Lendds opfionupon ~ notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Leadds 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 the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain anch insurance in effect natil anch time as the regniremeat for such insurance terminates in aooordance with Borrowds and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage inanraace premiums in the manner provided under paragraph 2 hereof. Any amount 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, anch amount 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 such rate would be contrary to applicable law, in which event anch amount shall bear iatenat at the highest rat permissible under applicable law. Nothing contained in this paragraph 7, shall regain Lender to incur any expense or take any action hereunder. t 3, ~ so~~ 3U2 rtiCE1735 ~ ..sue vr~ _ ~ r H