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HomeMy WebLinkAbout1948 Borrower and Lender covenant and agree as follows: 1. Payment o[ Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment sad late charges as provided in the Note. and Wo principal of and interest on any Future Advances secured by this Mortgage. Z. Funds foe Tares sad Insurance. Subject to applicable law or to a writtetr waiver by Lender, Borrower shall pay to Lender on the day monthly inetalhnents of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? equal to ono- lwelfW of the yearly fazes and assessments which may attain priority over this Mortgage, and ground yenta on the Properly. if aqy, plus ono- twelfth of yearly premium installments for hasard insurance, plus one•twelRh of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and fran time to time by Lender on the basic of assessments and bills and reasonable estimates thereof. ' Ths Funds shall be held in an institution the deposits or aeoounts of which era insured or guaranteed by a Federal or State agency (including Lender if Lender is each an institution). Lender shall apply the Funds to pay said fazes. assessments, insurance premiums and ground rents. Londe: may not charge for so 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 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 wch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower. without charge. an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each .debit to We Funds was made.'R~e Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of fazes. assessments, insurance premiums and ground rents, shall ezoeed the amount required to pay said taxes. assessments, insurance premiums and ground Hats as Way fall due, such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly iastailments of Funds. If We amount of the Farads held by-Lender shall not be sufficient to pay tares, assessments, insurance premiums and ground rents as Wey fall due, Borrower shall pay to Lender any amount aeoessary to make up the deficiency within 30 days from We date notice is mailed by Lender to Borrower requesting Payment Wereof. Upon payment in full of all sums secured by this 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 oWerwise acquired by Leader. Lender shall apply, no later Wan immediately prior b the sale of We Property ar its soquisition 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 payments received by Lender render We Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, Wen to interest 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 taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over Wis Mortgage, and leasehold payments or ground yenta, if any, in the manner provided under paragraph 2 hereof or, if not paid in each manner, by Borrower making payment, when due, directly to the payee Wereof. Borrowerahall 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 Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over Win Mortgage; provided, that Borrower shall not be requjred to discharge any such lien so tong as Borrower shall agree in writing to the payment of the obligation secured by such lien is a manner aeoeptable to Lender, or shall in good faith contest such lien by, or defend enforcementof such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property ce any part Wereof. 5. Hazard Insurance. Borrower shall keep We improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "eztended coverage,° and anch other hazards ae Lender may require and in such amounts and for such periods as Lender may require; provided, Wat Lender shall sot require such coverage amount ezceeding We minimum, as may berequired by state or federal regulations governing activities of Lender, or Wat amount of coverage required to pay We soma secured by,thia Mortgage, whichever is We 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. All premiums on insurance policies shall be paid in We 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 form acceptable to Lender and shall include a standard mortgage clause in favor of and in form aeoeptable to Leader. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to lender all renewal notices and-all receipts of paid premiums. In the event of toes, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made promptly by Borrower. Unless Leader and Borrower oWerwise agree in writing, insurance proceeds shall be applied b restoration or repair of the Property I damaged, provided such restoration or repair is economically feasible and We security of this Mortgage is not Wereby impaired. If 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 We arms aecnred by Win Mortgage, with We excess. if say, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to r reapond.to Lender wiWin 30 dayei from the date notice is mailed by Lender to Borrower that We insurance carrier offers to settle a claim for _ insurance benefits, Lender is anWorized to collect and apply We insurance proceeds at Lender's option either to restoration or repair of the Property or We sums secured by Wis Mortgage. Unless Lender and Borrower oWerwise agree in writing, say such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 sad 2 hereof or change the amount of such installments. If render paragraph 18 hereof the Property is sognired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds Wereof resulting from damage to Property pray to We sale or aequiaigon shall pass to Leader to We extent of the sums secured by Wis Mortgage immediately prior to such sale or aoquiaitioa. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep We Property in good repair and shall sot commit waste or permit impairment or deterioration of the Property and shall comply with We provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned Wait development, Borrower shall perfonm all of Borrower's obligations under We declaration or rnvenanta creatingor governing We condominium or planned unit development, We by-laws and regulations of We condominium or planned Wait development, and constituent documents. If a condominium or planned unit development rider is ezecnted by Borrower and recorded togeWer wild this Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend sad supplement the covenants and agreements of this Mortgage ae if the rider were a part hereof. . 7. 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 eommenoed which materially affects bender's interest in the Property, including, bat not limited to, eminent domain. insolvency, node enforeernent, or arrangements or proeeedinga involving a banlunpt ar decedent, Wen Lender at Lender's option,npon notice to Borrower may make ouch appearances, disburse arch sums and take such action as is necessary to ported Leader's interest, including, but not limited to, disbursement of reasonable attceney's fees sad entry upon We Property to make repairs. Tf Lender required mortgage insurance as a eonditioa of making We loan secured by this Mortgage. Borrower shall pay We premiums required to maintain 1 such insurance in effect until such time as We requirement for such insurance terminates in soeordaace wild Borrower's and Lender's ~ ~ written agreemmt or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under f Paragraph 2 hereof. f Any amounts disbursed by Lender persuant to this paragraph 7, wild int~t Wereon, shall become additional indebtedness of Borrower secured by Wis Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment Wereof, and shall bear iaterrot from We date of disbursement at We rate payablefrom - time to time oa ontstandiag principal ender We Note nnleae 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 under applicable law. Nothing contained in this paragraph shall i require Lender to incur say expense or take any action hereunder. c~ nn t ~^P 302 F'.~:F~.J~p BuGr . ~ F