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HomeMy WebLinkAbout2428 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest on any Futuv Advances secured by this Mortgage. 2. Ptinds for Taws end Insuranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay b Lender 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 ono- twelfth of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ono- twelfth of yearly premium installments fro hazard insurance, plus ono-tweltth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to timeby Lender on the basis of assessments and bills and reasonable estimates thereof. _ The Funds shall be held in an institution the deposits or aeoounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). lender shall apply the Funds to pay said taxes, 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 assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lends may agree in writing at the time o[ execution of this Mortgage that interest on the Inds shall be paid b Borrower, and unless such agreement is made or applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Fnnda. Lender shaA give to Borrower, without charge. an annual aeoounting 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 the amount of the Funds held by Lender, together with the future monthly installments of Ptimds payable prior to the due dates of tares, assessments, insurance premiums and ground rents. shall ezezed the amount required to pay said fazes, asaceamenta. insurance premiums and ground rents as they fall due, such ezoess shall be. at Borrower s option. either promptly repaid b Borrower or credited to Borrower on monthly installments of Funds..If the amount of the Funds held by Lender shall not be aufflcient to psy fazes. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay b Lender any amount neceegary 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 secured by this Mortgage. Leader shall promptly refund to Borrower any funds held by Lender. if under paragraph IS hereof the Property is sold or the Property is otherwise acquired by [.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda 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 applied by Lender first 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 then to interest and principal on any Future Advances 4.Charges; Liens. Borrowerbhall 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 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 notieea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to . Leads receipts evidencing such payments. Borrower shall pranptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Borrows 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 ken 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 thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fin, hazards included within the term "extended rnverage,"and such other hazards as Lender may require and in such amounts and for such periods as Lender may regain; provided, that Lender shall not regain such coverage amount ezceeding 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 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 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. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i,ends all renewal notices and all receipts of paid premiums. In the event of loos, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may.make proof of loss if not made promptly by Borrower. - Unleas Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ie not thereby impaired. If such ~ restoration or repair is not 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 e:eess, if any, paid to Borrower. If the Property is abandoned by 13orrows, 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 Lender's option either to restoration or repair of the Property or.the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments refemd 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 vaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the some secured by this Mortgage immediately prior to such Bale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; Planned Unlt Developments. Borrows 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's obligations under the declaration or rnvenants rreatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned .unit development, and constituent documents. If . a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as ifthe rider wev a part hereof. 7. Protection of Lender's Security. Tf Borrower fails to perform the oQvenanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in We Property, including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lenders option,upon notice to Borrower may make sne6 appearances, disburse such sums and take such action as is necessary to protest bender's interest, { including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Leads required mortgage insurance as a condition of making the loan secured b this M y ortgage, Borrower shall pay the premiums required to maintain such insurance in efYed until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph T, wiW interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrows and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lends to Borrows requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal ands the Note uriless payment of interest at such rate would be wntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible undo applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any ezpense or take any action hereunds. t Y e a PY-a _ - ~ ~ 'S _ - _ _ _