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HomeMy WebLinkAbout1618 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latechargee as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonda for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnder on ?he day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F'unds'"? equal to one- twellth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the I'roperiy, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plusone•ty. el[ih of yearly premium installments for mortgage insurance, if any, all as reasonably estimated inifialiy and from time to time by I.cnder on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if (.ender is such an institution). (.ender 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 (.ender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and (.ender may agree in writing at the time of a:ecution of this Mortgage that interest on the Funds shall be paid to 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 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 the Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. ([the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior tothe due dates of fazes, assessments, insurance premiums and ground rents, shall exered the amount required to pay said taxes, aaseasmenta, insurance premiums and ground rents as they fall due, such ezcesa shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds heW by Lender shall not be sufficient to pay fazes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount ne~ceaaary to make up the deficiency within 30 days from the date notice ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by (.ender. 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 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 (.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal o[ the Note, and then 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 this Mortgage, and leasehold payments or ground rents, i tany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the pay ee thereof. Borrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to (.ender receipts evidencing such payments. $orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required 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 manner acceptable to Lender, or shall in good faith molest such lien by, or defend enforcement of such lien in, legal pn,ceedings 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 fire, hazards included within the term "extended coverage; 'and such other hazards as Lender 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 state or federal regulations governing activities of Ixnder, or that amount of coverage required to pay Lhe sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Ik,rmwer 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 pn,vidcrl under par.,gr:,ph 'l hercvf 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 acceptably to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to j Ixnder all renewa? notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. - E Unless (,ender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property ~ dhmaged, provided such restoration or repair is ernnomicaliy 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 sums secured by this Mortgage, with the ezoesa, 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 t insurance benefits, (.ender is authorized to collect and apply the insurance prareds at Lender a option either to restoration or repair of the G Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any ouch application of proceeds to principal shall not eztend 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 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 acquisition shall pass to [.ender to the a:tent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation andMaintenance of Property; Leaseholds; Condominuma; 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 rnmply with the proviaions.of any lease it this Mortgage is on s 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 covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the rnndominium or planned unit development, and rnnatituent documents. If a condominium or planned unit development rider is executed 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 Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any ~ 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 ouch appearances, disburse such sums and take such action as is necessary to protect Lender'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 as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain x such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders 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 pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of ~ Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teens 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 payable from K 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 hi heat rate rmiasible under a ircable law. Nothin contained in this ar a h 7, shall ri~ B Pe PP ~ B P a8T P x require Lender to incur any expense or take any action hereunder. r Br1o~~U4 ~Arcl~~s