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HomeMy WebLinkAbout2896 Borrower and Lender covenant and agree as follovw: 1. Payment of Prtneipal tad Iater~est. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment end late charges as provided in the Nots,and the principal of and interest on any Future Advances secured by this Mortgage. Z. Plurds for Ttxes sad Iasurtnosa Snbjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lenderon the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Ptinds'1 equal to ens twelfth of the yearly taros and auesamenta which may attain priority over this Mortgage. and ground rents on the Property, if any. plea or?s twelfth of yearly premium installments toe hazard insurance. plus one•twelRh ofyearly premium installments for mortgage insurance. if any. all as reasonably estimated initially and fMm time to time by Gender on the basis of assessments and bills and reasonable estimates tliereoi The Funds shall M held is an institution the deposits or accounts of which an iruured or guaranteed by a Federal or State agency (including Lender if Lender is such ea institution). Lends shall appljr the Funds to pry said tares, assessments, insurance premiums and ground Trots. Lender may not charge for so holding and applying the Funds. analysing said account, or verifying and compiling said asaeeaments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower acid Lender may agree in writing at the time of a:ecntion of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or spplicabk law regains 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 aeoounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fluids was made. The Funds an pledged as additional security for the sums secured by this Mortgage. - Iftheamount of WeFunds held by I.ender. together with the future monthly installments of i~nds payable prior to the due dates of to:es, assessments, insurance premiums and ground rents. shall exoaed the amount required to pay said tares, assessments, insurance premiums and ground ants as they fall due, such excess shall be. at Borrower's option, either promptly repaid to Borrows! or credited to Borrower on monthly installments of. Funds. If the amount of the Funds held by Lender shall not be safficient to pay tares, assessments, insurance premiums and ground Hats as they faA 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 by Lender, Lender shall apply. no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds 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 fiat is payment of amounts payable to Lender 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 Plrton 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, 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 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 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 contest such Gen 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 Insuraaoe. Borrower shall keep We improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended ooverage,° and such other hazards as Lender may require and in such amounts and for such periods as Lender may regain; provided, that Lender shall not regaire such coverage amount exceeding the minimum, ab may be required by state or federal regulations governing adivitiea of Lender, or that amount of coverage required to pay the sums secured by this 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 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 acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly famish to lender aU renewal notioce and all receipts of paid preminme. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose if not made 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 ie 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 t9 the Bums secured by this Mortgage, with the ezcess, 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 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 this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due ~ date of the monthly inatallmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is aegnired by I.ender. 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 Lender to the eztent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominums; 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 is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, - Borrower shall perform all of Borrower a obligations under the declaration or covenants cxeatingor 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 Borrower and recorded together with this Mortgage, the oovenanta 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 wen a part 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 eommenoed which materially affects Leader's interest in the Property, including, bat not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a banlQUpt or decedent. then Lender at Lender's option,npon notice to Borrower may make ouch appearances, disburse such anma and take such action as is necessary to ported Lender's interest, including, bat not limited to, disbursement of reasonable attorney's fees and entry upon We 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 equipment for each insurance terminates in accordance with Borrower's and Lender's each insurance in effect until such time as the r written agnemeat or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna: provided under paragraph 2 hereof. Any amounts diebnrsed by Lender perenant 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 amoante shall be payable upon { notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diaburs~ent at the rate payable from f time to time on outstanding principal under the Note anleea payment of interest. at each rate would be contrary to applicable law, in which f ~ event ouch 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. ~ 1i 3'. G R ao5 sax ~a,:2890