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HomeMy WebLinkAbout1181 Borrower and Lender covenant and agree as [ollowa: 1. Pwyment of Principal sad Interest. 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 intereston any Future Advances secured by this Mortgage. 2. Ptirrrds for Taxes sad Insurance. 3ubjed 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 toone- twelfth ofthe yearly taxes and asaeasmenta which may attain priority over thin Mortgage, and ground yenta on the Property, if any, plus ont twelfth of yearly premium installments for hazard insurance, plus onatwelRh of yearly premium inatalhnents for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of asseaementa and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or aocouab of which an 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 fazes, asaeeamenta, insurance premiums and ground rents. Leader may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aaseaamenta and bills, unless Lender pays Borrower interest on the Ftinde and applicable law permits Lender to make such a charge. Borrower and Leader may agree in writing at the time of ezecution 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 Funds was made. The Fonda are pledged as additional security for the some secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Ronda payable prior to the duedates oftazes, aasesementa, insurance premiums and ground yenta, shall exoted the amount required to pay said taxes. assessments, insurance premiums and ground nets as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly inataUmenta of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay razes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Leader any amount necessary to make up the deficiency within 30 days from the date notice is mailed by bender to Borrower requesting payment thereof. Upon payment is full of all sums secured by thin Mortgage, Lender shall promptly refund to Borrower any fends 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 sak of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the name secured by this Mortgage. . 3. Application of Psymenta. Ualeas 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 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 Future Advances. 4. Cbarges; 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 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 herea`ter erected on the Property insured against lose by fire, hazards included within the term "extended coverage," and such other hazards ae 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 activitiea.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 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 acceptabk to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to fender all renewal notices and all receipts of paid premiums. In the event of loan, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loan 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 ench restoration or repair is economically feasible and the security of thiB 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 excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Leader 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 soma secured by thin 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 installments referred to in paragraphs 1 and 2 hereof or change the amount of arch 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 g thereof resulting from damage to Property prior to the sale or aognisition shall pass to Lender to We eztent of the soma secured by thin € Mortgage immediately prior to such sale or aoquiaition. 6. Preservation and)tlaintenance of Property; 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 rnmpty 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's obligations under the declaration or covenants 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 rnndominium or planned unit development rider is ezecuted by Borrower and recorded together with thin Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the c rider were a part hereof. 7. Protection of Lender's Security. V 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, bet not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at bender's option,npon - notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to prated bender's interest, including, but not limited to, disbnrsemeat of reasonable attorney's fees and entry upon the Property to make repairs. If Lends: required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain - ~ such insurance in effect until such time as the requirement for arch insurance terminates in accordance with Borrower's and Lender's written agreement or applicable I.aw. 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 terms of payment, such amounts shall be payable upon notice from Lender b Borrower requesting payment thereof, and shall bear interest from the date of diabursernent et the rate payable from z 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 r require Lender to incur any expense or take any action hereunder. s 3 t i f ~i~r 3U6 f~rwEii.VO k 5 J 2