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HomeMy WebLinkAbout1739 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and iater+est on We indebtedness ' evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances secured by this Mortgage. 2. Funds for Tares and lasuraaee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments o[ principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds") equal to o~~- twelith ofthe yearly tares and assessments which may attain priority over this Mortgage, and ground rents oa the Property, if any. plw o~~~ twelfth ofyearly premium installments for hazard inaurancee, plw oaetwelfth of yearly premium iastaUments 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 be held is an institution the deposits or e?eoouats of which an insured or guaranteed by a Federal or State agency (inducting Lender if Leader is such as institution). Leader shall apply the Funds to pay said tries. assessments, insurance premiums sad 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 oa the Funds and appUcabk law permits Lender to make such a charge. Borrower and Leader may agree is writing at We time of execution of this Mortgage that interest on We Funds shall be paid to Borrower, and reefers such agreement is made or applicable law requires such interest to be paid, Lender shall sot be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower. without charge, an annual aonouating of the Funds showing credits sad debits to the Funds sad the purpose for which ead? debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. - Ittheamount ofthe Funds held by bender. together with the future monthly installments of Funds payable prior to the due dates of tares. assessments, insurance premiums and ground rents. shall ezoaed the amount required to pay said taxes, aaaesamenta, insurance premiuau and ground rents as Wey fall due, such excess shall be, at Borrower's option, either promptly repaid b Borrower or credited to Borrower on monthly installments of Funds. If the amonat of tho Funds held by Lender shall not be auffiraent to pay taxes. assessments, insurance premiums and ground rents e• they 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 full of all soma secreted by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If ender paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its aoquisitioa by Lender, any Fends held by Lender at the time of application as a credit against the sums 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 appUed by Lender furet in payment of amounts payable to Leader 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 Entree Advances. 4. Charges; Liens. Borrower shall pay all taxes, aseeasmenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rent8, 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 render this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments. Borrower shall promptly, discharge any lien which has priority ov~i 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 the 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 "eztended coverage," and such other hazards as Lender may require and in such amounts sad 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 adivitiea of bender, 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. AU 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, duectly 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 We right to hold the policies and renewals thereof, and Borrower shall promptly fnmiah to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loos if not made promptly by Borrower. - Unless Leader and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided,auch restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such 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 soma eecared by this Mortgage. with the ezoess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to bender 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 the sums secreted by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not eztead or postpone the due date of the monthly inatallmente referred to in paragraphs 1 and 2 hereof or change the amount of arch installments. U under paragraph 18 hereof We 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 frrom damage to Property prior to the sale or aoquiaition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or aoquiaition. 6. Preservation sad Maintenance of Property; Leaseholds; t;ondominnms; Planned Unit Developments. Borrower 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 say lease if this Mortgage is on s 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 covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development. and coastitnent docnmenta. If a . condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage. the aovenanta and agreements of arch 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 Seprrity. If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any action or proceeding is commmoed which materially affects Leader's interest in the Property. including, bet not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or deoedeat, then Lender at Lender's option,npon notice to Borrower may make such appearances. disburse such soma and take such action ere is necessary to protect Lender's interest, ~ including, bet 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 lgar? secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Leader's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided reader paragraph 2 hereof. Any amomts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Leader 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 oa outstanding principal under the Note reefers payment of interest at such rate would be contrary to applicable law, in which -event arch amounts shall bear interest at the highest rate pemnissible under applicable law. Nothing contained in this paragraph 7, shall require Leader to incur say expense or take any action hereunder. r firr,, BOG!(3V r 2 ,..1739 _ ;s . _ r. ~A i _ 1 ~