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HomeMy WebLinkAbout1926 IINIFOR~t COVIExAA'iS. BorTOwtT and Lender covenant and agree as tollow•s: 1. Payment o[ Principal and Interest. Borrower shall promptly pay when due the principal o[ and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and inter- est on any Future Advances secured by this Mortgage. Y. I.lrnds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installments a[ principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds') equal to one-twelfth of the yearly taxes and assessments which may attain priority over this mortgage, and ground rents on the Property, if any, plus one•tweltth of }•early premium installments for hazard insurance, plus one-twelfth o[ yearly premium installments [or mortgage insurance. it any, all as reasortrbly estimated initially and from time to time by Lender 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 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 ac- count, or aeritying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and ap- plicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution o[ i this Aortgage 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 of earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debies 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 seS»red ' by this Mortgage. if the amount of the Funds held by Lender, together with the future monthly installments o[ Funds payable 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 tall due. such excess shall be, at Borrower s option, either ~ promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount o[ the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender any amount necessary 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, 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 h}• Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by i Lender at the time of application as a credit against the sums secured b}• this Mortgage. ; 3. Application of Payments. Unless applicable law provides otherwise, all- pa}•ments received by Lender under the :vote and paragraphs I 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 orr the Note, then to the principal of 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 pa}•ments or ground rents, if ar,y, in the man- ner prodded under paragraph 2 hereof or, it 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 amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such pa}ments. Borrower shall promptly discharge any lien which has priority over this Mortgage: proaided, that Borrower shall not be re- quired to discharge any such lien so long as Borrower shall agree in writing to the payment o[ the obligation secured by such lien in a manner acceptable to Lender. or shall in good faith contest such lien by, or defend enforcement of such lien in, le- gal proceedings which operate eo present the enforcement of the lien or forfeiture of the Property or any pare thereof.. r 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property in- sured against loss by fire, hazards included within the term "extended coaerage", and such other hazards as Lender may re- quire and in such amounts and [or such periods as Lender may require: provided, that Lender shall trot require that the amourie of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. ! The insurance carrier providing ehe 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 pa}•ment, 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 mort- ~ gage clause in [aaor o[ and in form acceptable to Lender. Lender shall have-the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event 1 of loss, Borrower shall gia•e prompt notice to the insurance carrier and Lender• Lender maa• make proof o[ loss if not made e 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 such restoration or repair is economically feasible and the security of this Mortgage rs not r thereby impaired. If such restoration or repair is not economically feasible or if the securit}• of this Mortgage would be im- paired, ehe insurance proceeds shall be applied to the sums secured b}• this Mortgage, with the excess, i[ any, paid to Bor- ` ~ rower. 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 otters to settle a claim for insurance benefits, Lender is ~ authorized to collet[ and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or to 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 referred tr, in paragraphs 1 and 2 hereof or change the amount of such installmenis. If under paragraph 18 hereof the Property is acquired b}• 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 the Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediatel}• prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominiums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration o[ the Property i r~ and shall comply with the proa•isions of any lease if this ;~[ortgage is on a leasehold. I[ 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 creating or governing the condominium or planned unit development, the by-laws and regulations of the condo- ~ minium or planned unit development. and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the coaenants and agreements of such rider shall be in- ~ corporated into and shall amend and supplement the rnaenants and agreements of this \(ortgage as it the rider were a part 5 hereof. 7. Protection of Lender's Security. If Borrower tails 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. insola•ency, code enforcement, or arrangements or proceedings ina•ola•ing a bankrupt or decedent, then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such sums ; and take such action as is necessary to protect Lender's interest. including, but not limited to, disbursement o[ reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition o Y making the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain such insurance in e[- feet until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's written CrI;C~~ 305 • .~,~:~-192z ~t_ry - _.-t.