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HomeMy WebLinkAbout2639 3 - ~ Borrower and Lender covenant sad ague u follews: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedaew evideaoed by the Not, prepayment sad late charges u provided in We Note, and the principal of and interest on any Future Advances secured by this Mortgage. - . 2. Fends for Tares sad tasuraaee. 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 "Fuads'~ equal to oaa twelfth of the yearly taxes and assessment which may attain priority over this Mortgage, and ground rents on the Property, ifany. plus ona` twelRh of yearly premium installments for hasard insurance. plw onatwelith otyearly premium inatalbaent for mortgage insurance. if any. all u naaonabljr estimated initially and from time to time by Lender on the basis of aaaeument and bills and reasonable estimates thereof. The Funds shall be held is as institntioa the deposit or account of which are iruund a guaranteed by a Federal or State agency ~ (including Lender if Lender is such as institution). Leader shall apply the Funds to pay said taxes, assessments, insurance premiums and { ground rents. Lender mqy sot charge for eo holding and applying the Funds, analysing said aeoount, or verifying and compiling said assessment and bills, unless Lender pays Borrower interest on the Funds and applicable law permit Lender to make such a charge. Borrower i and Leader may agree is writing at the time of sxecutioa of this Mortgage that retest on the Funds shaA be paid to Borrower. and unleu such agreement is made or applicable law requires aach interest to be paid, Lender shall not bs required to pay Borrower any retest or earnings on the Funds. Lender shall give to Borrower. without charge, an annual aeoouating of the Funds showing credit and debit to the ~ Funds and the purpose for which each debit to the Funds wu made. The Fends are pledged u additional security for the soma secured by this Mortgage. U We amount of the Funds held by Lender, together with the futon monthly installment of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rent; shall e:oaed the amount required to pay said fazes, assessment, insurance premiums and ground not u they fall due, such ezoess shall be, at Borrower's option, eiWer promptly? repaid to Borrower or credited to Borrower on - monthly installment of Funds. If the amount of the Fends held by Lender shall not be sufficient to pay traea, assessments, insurance - pnminms and gromtd rent u they fall due. Borrower shell pay to Lender any amount necessary to make up the deficiency within 30 days from the dat notice is mailed by Lender b Borrower requesting payment thereof. Upon prlymeat in full of all sums secured by this Mortgage, bender ahaA promptly refund to Borrower any fonds held by Lender. U ands ~ paragraph 18 hereof the Property is sold or We Property ie otherwise acquired by Lender, Lender shall apply, no later than immediately prior td the salt of the Property or it aognisitioa blr Les?der, any Fends held by Leader at the time of application as a credit against the sums secured by this 1y - - • ; 3. Applicatloa of Payments. Unless applicable law provides oWerwise, all payment received by Lender ender the Note and i paragraphs 1 and 2 henwf shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof, then to retreat payable on the Not, then to the principal of the Note, and then to interest and principal on any Future Advances 4. Charges; Liens. Borrower shall pay all fazes, assessment and other charges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and leasehold payment 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 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 Mortgages provided, that Borrower shall not be required to discharge any such lien eo long u Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptble to Lender, or shall in good faith rnntest such lien by, or defend enforcement of such lien in, legal proceedings wtiiic}t operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5: Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against loss by. fire, hazards inducted within the term "eztended coverage," and such other hazards as Lender may require and in each amount and for such ' pariads as bender may regain; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by f state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums eecnred by this Mortgage, whichever is the grater. - 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 inducts a standard mortgage dause in favor of and is form acceptable to Lender. Lender shall have the right Lo hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all noeipt of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lobs 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 sorb 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 would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the ezeesa, if any, paid to Borrower. If the Property is 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 benefit, 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_ t 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 installment referred to in paragraphs 1 and 2 hereof or change the amount of such installment. 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 from damage to Property prior to the sale or aequisition shall pass to Lender to the extent of the some secured by this I Mortgage immediately prior to such sale or acquisition. 6. Preservatlon and Maintenance 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 condominiwn or a planned unit development, Borrower shall perform all of Borrower's obligations under the dedaration or covenant creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conetitnent document. If a condominium or planned unit development rider is ezecuted by Borrower and recorded together with this Mortgage, the 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 hereof. 7. Protection of Lender's Secnritq. it Harrower fails to perform the covenant and agreement contained in this Mortgage, or if say action or proceeding is commenced which materially affects Lender's interest in the Property. including, bet not limited to, eminent domain, insolvency, code enforcement, ~ arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances. duba»e sorb sums and take such action u is necessary to protd Leader's interest, ~ indnding, bet not limited to, disbnrsemeat of reasonable attorney's fees and entry neon the Property to make repairs. If Leader required mortgage insurance as a condition of making the Loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance. in effect until such time u We requirement for arch inuurance terminates in accordance with Borrower's and Leader's b written. agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender paragraph 2 hereof. Any amount disbursed by Lender persuant to this Paragraph 7, with interest thereon, shall became additional indebtedness of Borrows secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amount shall be payable upon - & notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disiwrsement at the rate payable fl^om dme to time on outstanding principal ands the Note anless payment of interest at arch rate would be contrary to applicable law, in which event such amount shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall ~ regain Lender to incur any ezpenee or take any action hereunder. t e P a ~ ~ . BOOK ~Ul~ PACE~UVV , -