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HomeMy WebLinkAbout2888 i i s Borrower and Leader covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due ehs principal of and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or eo a written waives by Lender, Borrower shall pay to Lender on the day monthly inatalLnents of 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- twelfth ofyearly premium installments for hasard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any. all a. reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Flinch shall be held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is ouch an institution). Lender shall apply the Farads to pay said taxes. aseeaamenta, insurance premiums and ground rents. Lender may act charge for so holding and applying the Funds, analyzing said account. or verifying and compiUng said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower sad 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 loch agreement is made or applicable law requires such interest to be paid, Leader shall not be required to pay Borrower any interest or eantings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the s Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this f Mortgage. If the amount of the I~nda held by Lender. together with the future monthly installments of Fuada payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exoaed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such e:eass shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly inataUmeats of Funds. Lf 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 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 some 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, say Funds held by Lender at the time of application as a credit against the soma aecared 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 Leader first in payment of amounts payable to bender by Borrower 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 shall pay all taxes, aeaesaments 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 in such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly furnish to Lender j 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 payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that ~ Borrower shall not be required to discharge any such lien eo 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 rnntest such lien by, or defend enforcement of such lien in, legal proceedings 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 lose by fire, hazards included within the tenor "extended ooverage,° and such other hazards as Lender may regaire and in such amounts and for such ~ periods as Lends may regaire; provided, that Lender shall not require such coverage amoant a:seeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by thin Mortgage, whichever is the 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. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in anch manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and reae~rala thereof shall be in foam acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the right to hold the policies and renewala'thereof, and Borrower shall promptly furnish to a lender all renewal notices and all r+eoeipte of paid premiums. Ia the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loan if not made promptly by Borrower. j Unless lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property I damaged, provided each 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 same secared by this Mortgage, wiW the ezceae, if say, 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 benefits, 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 thin Mortgage. Unless Lender and Borrower otherwise agree in writing. any sash 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 each 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 We sale or acquistion shall pass to Lender to the a:tent of the sums secured by this Mortgage immediately prior to such sale or aegnisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominume; 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 ie on a 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 rnndomininm or planned unit development, the by-laws and regulations of the condominium or planned unit development, and oonetituent documents. If a condominium or planned unit development rider is ezecuted by $orrower 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 Leer's Seicarity. 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, brat not limited to, eminent domain, ~ insolvency, node enfor~ocenent, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon notice to Harrower may make anch appearances. disburse such same and take anch 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 each insarance in -effect until anch time as the requirement for anch insurance terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amoants disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secared by this Mortgage. Unless Borrower and Lender agree to other tenors of payment, such amounts shall be payable upon requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable frown _ notice from Leader to Borrower ~ 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 Lender to incur any expense or take any action hereunder. 3 3 OP Q c~ K 305 : acs 2882 . - - r s~ Y, ram