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HomeMy WebLinkAbout1234 ~.rv~ Eorrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest yin the indebtedness evidenced by the Note, prepayment and latechargea as provided in the Note, and the principal of and interest un any F uture Advances secured by this Mortgage. • 1. Fttnds for Taxes and lnaurtutce. Subject w applicable low or W a written waiver by Lender, ltarrower 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"1 equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the I'ruperty, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one•twelfth ofyeariy premium installments 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 rer+r+onabic estimates thereof. The Ilrnds shall be held in em institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency )including ).ender if Lender is such an institution). ).ender shall apply the Funds to pay said taxes, assessments, insurarnce premiums and ground yenta. Lender may not charge for ao holding and applying the Funds, analyzing said atty+unt, 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 Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless such agreement is made or applicable law require:a such interest to be paid, Lender shall nut be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds w•as made. The Fonda are pledged as additional security fur the sums secured by this Mortgage. If the amount of the ftirnds held by ).ender, together with the future monthly installments of Fonda pay able prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to ).ender any amount necessary to make up the deficiency K•ithin :t0 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of ail 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 otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda held by Lenderat 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 (.ender under the Nute and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to bender by Burrower 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. Borrower shalt pay all taxes, assessments and other rhurgea, fines and impositions attributable to the Property which rm+y attain a priority over this Mortgage, and le.•rsehuld payments or ground rents, if any, in the manner pruvidtd under par:+graph 'L hermf or, rf nut paid in such manner, by Burrower making payment, when due, directly to the payer thereof. Borrower shat{ promptly furnish to ).ender all notices of amounts due under this paragraph, and in the event Burrower shall make payment directly, Burrower shall promptly furnish to Lender receipt, evidencing such payments. Burrower shall promptly discharge any lien which has priority rover this'<lurtgage: provided, that li. ~rruwer shall not be required to discharge any such lien su long Borrower shall agree in writing to the pay mrnt of the obi i?;ation secured b> such lien in a manner atreptai+lr to [.ender, or shall in good faith contest such lien by, urdefend enforcement of such lien in, legal prcx•eerlings K-hich operate to prevent the cnforcemeni of the lien ur forfeiture of the Pnrperty ur any part thereof. 5. Hazard insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as [.ender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by Mate ur federal regetlationa governing activities of bender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. •Che insurance carver providing the insurunrr shall he chosen by Burrower subject to apprucal by 1.+•nder; providtYl, that tiuch approval ;hall not be unre:+sonabh• withheld. All premiums on insurance policies shall br paid in the manner pmeided under paragraph Y herrrrf or, if nit paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thertr+f shall be in form acceptable to Lender and shall include a standard mortgageclause in favor of and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to .ender all renewal notices and all receipts of paid premiums. In theevent of loss, Born+wer shall give prompt notice to the insuranre carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. - ~ Unless ).ender and Borrower otherwise a g, insurance proceeds shall be applied to restoration or repair of the Property gees in writin damaged, provided such restoration or repair is rxonomically feasible and the security of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasible or if the security of thin Mortgage would be impaired, the insurance proceeds shall be applied 's to the sums secured by this 1otagage, with the exa~ss, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 3U days from the date nonce is mailed by Lender to Borrower that the insurance carrier offers to settle a claim fur insurance benefits, bender 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 Alortgage- ~ Lrnleas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date o[ the monthly installments referred to in paragraphs 1 and 'L hereof or change the amount of such installments. If raider paragraph IR g hereof the Property is acquired by Lender, al! 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 ur acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. , 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned [,Toil Developments. Borrower shall keep the Property in good repair and shall not commit wavte 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 nn a unit in a condominium or a planned unit development. Forrower shall perform all of Borrower's obligations under the declaration or covenants creatinKor 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 executed by Burrower and recorded together with this 1ltortgage, the covenants and agreements of such rider shall be incurporaterl into and shall amend and t:upplement thecoveaants and agreements of this Mortgage as if the ~ rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any x action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse each sums and take such aMion as ie necessary to protect I.ender'e 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 as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such insurance terminates in accordance with Borrower a and Lender's °3 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 indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon eq g payment thereof, and shall bear interest from the date of disbursement at the race payable from notice from Lender to Borrower r uestin time to time on outstanding principal under the Note nnleas payment of interest at ouch 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 Lender to incur any expense or take any action hereunder. +z •:3 RC F 6U~t PAGE~~