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HomeMy WebLinkAbout1173 Borrower sad Lender covenant and agree as [ollorw: 1. Payment of Principal and Iatere~et. Borrower shall promptly pay when due the 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 I~ture Advaneee secured by thin Mortgage. 2 Funds for Tasea and Iastuaaoe. Subject to applicable law or to a written waiver by Lender, Borrower 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") equal to oar twelfth ottee yearly tares and asseeamenta which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ores twelRh of yearly premium installments for hasardinsurance, pluaone-twelfth ofyearly 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 reasonable estimates thereof. The P1mds shall be held in sa institution the deposits or aooonnts of which are insured or guaranteed by a Rederal or Stets agency (including bender if Landes is such an institution). Lender shall apply the Funds to pay said fazes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds. analysing said account, or verifying and compiling said apeessmenta and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrows add Lender may agree in writing at the time of ezecutioa 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 firr?ds. Lender shall give to Borrower. without charge. an annual accounting of the Funds showing credits and debits to We Funds and the purpose for which each debit to the P1mda was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Itirads held by Lender, together with the future monthly installments of Fonda payable prior to the due data of tares, assessments, iasmance premiums and ground rents, shall szeaed the amount required to pay said tares, 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 Funds. If the amount of the Funds held by Lender shall not be sufficient to pay fazes. assessments, insurance Premiums and ground rents as they fall due, Borrower shall pay to Lender say 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 is full of all sums secured by thin 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 ar its acquisition by Lender, any Fuada held by Lender at the time of application as a credit against the same 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 ehaU be applied by bender first in 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 oa any Future Advances 4. Charges; Liens. Borrower shall pay all razes, aseesamenta and other charges, fines and impositions attributable to the Property which may attain a priority oyez 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 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 contest such lien by, ordefend 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 e:iating 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 requirt; provided, that Lender shall not require such rnverage amount exceeding 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 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 B_ orrower making payment, when due, directly to the insurance carrier. All insurance Policies sad 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. bender shall have We right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier 'i and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree is 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 is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage world be impaired, the insurance proceeds shall be applied ~ to We soma 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 ti+om the date notice is mailed by bender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is aathotized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the soma secured by this Mortgage. ! Unless bender sad Borrower otherwise agree in writing, any such application of proceeds to prim;pal shall not extend or postpone the due date of the monthly installments referred to is paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Leader, all right. title and interest of Borrower in and to any insurance policies and in and to the proceeds € party prior to the sale or a uisition shall ~roOf resultu>g fiom damage ~ Pro eq pees to Lender to the eztent of the sums 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 utit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or rnvenante creatingor 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 sad 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 i 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 eommenoed 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 Leader's option,upon notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to prated Lender's interest, ~nclnding, but not limited to, disburaemcet of reasonable etttorney's foss 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 insurance in effect until ouch tins as the requirement for such insurance terminates in accordance with Borrower's and Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under - paregraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of r Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment Wereof, and shall bear interest from the date of drsbnrsement at the rate payable from time to time on outstanding principal under the Note unless payment of interest. at such rate would be contrary to applicable law, in which t event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incw any expense or take any action hereunder. i _ _ C'AM' ~V6 r .1172 a. -