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HomeMy WebLinkAbout2120 q ~ j ~ Borrower and Lender covenant and agree u folbws: 1. Payment of Principal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenesd by the Mote, prepayment and late charge u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2 Fuada for Taxes and lasaraaee. Snbjed to applicable law or b a written waiver by [.ender. Borrower shall pay to 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 one- twelfth ofthe yearly taxes and asseuments which may attain priority over this Mortgage. and ground rents op the Property, if any. plus o~~- twelfth ofyearly premium inutallments for hazard inaururce, plus ane•twelfth of yearly premium installments for mortgage insurance. if any. all u reasonably estimated initially and froaa time to time by Lender on thebasis of assessments and bills and reasonable estimates thereof. 1be Fhads shall be held is as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (indnding Lender if Lender is such an institution). Leader shall apply the Funds to pay said taxes, assessments, insurance premiums and ground Hats. Lender rosy not charge for eo holding and applying the Funds. analysing said account, or verifying and eompiGng scud assessmerr4 sad bil4. unlea Lender pays Borrower interest oa 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 unlew such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pqy Borrower any interest or earnings oa We Funds. Lender shall give to Borrower, without charge. an annual accounting of the Funds showing credits and debits to the Fonds sad We purpose foi which each debit to the Funds wu made. The Funds are pledged u additional security for the sums secured by this Mortgage. . If We amount of the Funds held by Lender, Sogether with the future morethly installments of Fnnda payable prior to the due dates of taxes, auesennents, insurance premiums and ground rents, shall e:oaed the amount required to pay said fazes, asseuments, insurance premiums and ground teats u they fall due. such ezoaa shall be, at Borrower's option, either promptty repaid to Borrower or credited to Borrower on monthly installments of Plrnds. If the amount of the Funds held by Lender shall not be sufKcient to pay taxes. asaesaments, insurance premiums sad gro~md rents as they fall due, Borrower shall pay to Lender any amount necessary to makeup the deficiency within 30 days trom the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment is full of all same secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. Uunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Deader. Lender shall apply. no later than immediately prior to the sale of the Properly or its acquisition by Lender, any Fonda held by Lender at the time of application u a credit against the sums secured by this Mortgage. 3. Applicat3oa of Payraeata. 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, the to interest payable on We Note. then to the principal of the Noer and then to interest and principal on any Future Advances Charges; Liens. Borrower shall pay all fazes, assessnaenta 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 rrr such manner, by Borrower making payment. when due, directly to the payee thereof. Borrower shall 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 Leader receipts evidencing ouch pe~ymeirts. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired 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 manna acceptable to I.endet, or shall in good faith contest such Gen by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or for[eiture of the Property or any part thereof. - 5. Hazard Insuraaoe. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other heaarda u Lender may require and in such amounts and for such periods u Lender rosy require; provided, that Lender shall not require such 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 sums secured by this 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. Ail premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in sach-maaner, by Borrower making payment, when due, directly to the insurance carrier. All iruurance policies and renewals thereof shall be is form acceptable b Lender and shall include a standard mortgage clause in favor of and in form aooeptabie to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all rarewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier sad Fender. Lender may make proof of lass if not made promptly by Borrower. 'I Unless Lender and Borrower otherwise agree is 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 is not thereby impaired. If such E restoration or repair is not eoonanically 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 ezosea, ffany. 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 g insurance bene~'its, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the i Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any anch application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is aogaired by I.endes, ell right, title and interest of Borrower in sad to any insurance policaea and in and to the proceeds thereat resalting from damage b Property prior to We sale or acquisition shall peas to Leader to the extent of the sums eecurrd by this Mortgage immediately prior b ~ sale or aogniaition. 6. Preservation and Maintenaaoe of Property; Les~seholds; Condominnms; 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 shag comply with the provisions. of sny lease if this Mortgage is on a leasehold. If Chia Mortgage is on a unit in s condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor govrening the condominium or planned unit development, the by-laws end regulations of the condominium or plauned unit devebpment, and constituent documents. If a oondominiwn os planned snit development rider is ezecnted by Borrower and recorded together with this Mortgage, the covenants and agreements of such 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 Leader's t~ecaritp. It Borrower fails to perform the covenants and agreements contained in this Mortgage, or it any action or proceeding is commenced which materially affects Lender's intered in the Property, including. but not limited to, eminent domain, insolvency. node anforeemeart, or arrangements or proceedings involving a badanpt or deoedeat, -then Lender at Lender's option,upon notice to Borrower may make arch appearances. disburse such sus and take such action as is necessary to protect Leader's 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 u a condition of making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain each insorance in effect until such time as the requirement for such insurance terminates is accordance with Borrower's end Leadds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof ~ Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional iadebtednees of Borrower secured by this Mortgage. Unless Borrower and Lender 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 payrable fiom 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 such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Larder to incur any expense or take any action hereunder. . - - goal 303 ~E~~1.6 . - a r.~ ` ~ -