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HomeMy WebLinkAbout2829 Borrower and Lender rnvenant and agree as follows: 1. Payment of Priaclpal and lnterost. 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 Future Advances secured by this Mortgage. Z. Funds for Taxes sad lasuraaoe. 3ubjed to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on the day monthly installment of principal and interest are payable under the Note, until the Nob is paid in full. a sum (herein "Fonda")equal to ores' twelfth of the year)ry tares and aseeesment which may attain priority over this Mortgage. and ground rents on the Property, if any. plus one- twelRh of yearly premium installment for hasatd insurance. plus one-twelfth of yearly premium installment for mortgage insurance, if any, all as reasonably estimated initially and from time to time by lender on the basis of assessment and bills and reasonable estimates thereof. The Funds shall bs held in sn institution the deposit or account of which are insured or guaranteed by a Federal or Stab agency (including Lender if Lender is such an institution). Lender shall apply the Fund. to pay said taxes, assessment. insurance pvmiums and ground ants. Lender may cwt charge for so holding and applying the Funds, analysing said account, or verifying and compiling said assessment and biW, unless Lender pays Borrower interest on the Funds and applicable law permit Lender to make such a charge. Borrower and ~.enda may agree in writing at the time of execution 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 b pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge. an annual accounting of the Fonda showing credit and debit to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security for the some secured by this Mortgage. If the amount of the Funds held by Lender. together with the futon monthly installment of Fonda payable prior to the due dates of tares, assessment. insurance premiums and ground rent. shall exceed the amount required to pay said t:ea, asaesementa, insurance premiums and ground rent as they fall due. such excess shall be, at Borrower s option. either promptl,? repaid to Borrower or credited to Borrows on monthly installment of Funds. U the amount of the Funds held by Lender shall not be sufficient to pay taxes, aeseasmenta, insurance premiums and ground rant as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the dab notice is mailed by Lends to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrows any funds held by Lender. If under paragraph 18 henwt the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior b the sale of the Property or it acquisition by Lender, any Funds held by Lender at the time of application ere a credit against the soma secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payment received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on the Not, then to the principal of the Note, and then to inbrest and principal on any Future Advanoro. 4. Charges; Liens. Borrower shall pay all taxes, asaeaement and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage. and leasehold payment or ground rent, if any, in the manner provided under paragraph 2 hereof or, if not paid m ouch manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amount due ands this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipt evidencing such payment. 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 operab to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended oovaage,° and such other hazards as Lender may require and in such amount and for such periods as Lender may regain; provided, that Lender shall not regain such coverage amount exceeding the minimum, as may be required by elate or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the grater. 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 thereotahall be in foam acceptble W Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hoW the policies and renewals thereof, and Borrower shall promptly furnish to 'i ienda all renewal notices and all receipt of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance canner and Lender. Lender may make proof of lone if not made promptly by Borrower. f Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property 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 sums secured by this Mortgage, with the exeesa, 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 benefit, Lender is authorized to eolleM 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 bender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due dab of the monthly installment referred to in paragraphs 1 and 2 hereof or change the amount of such installment. U under paragraph 18 hereof the Property is aognired by Lender, all right, title and inbreat of Borrower in and to any insurance policies and in and to the proceeds thereof vaulting from damage to Property prior to the sale or acquisition shall pass to Lender to the e:bnt of the sums secured by this Mortgage immediably prior b such sale or acquisition. 6. Preservation and Maintenance of Property;Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good vpair 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's obligations under the declaration or covenant creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent document. If a condominium or planned unit development rider is executed by Borrows and recorded together with this Mortgage, the covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. U Borrower fails to perform the covenant and agreement contained in this Mortgage. or if any ~ action or pig is commenced which materially affects Lenders inbrest in the Property, including, but not limited to, eminent domain, 1 insolvency. code enforcement, or arrangement or proceedings involving a bankrupt or decedent, tlm Lender at Lender s option,npon i 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 of reasonable attorney's fees and entry upon the Property to make repair. If Lender required a mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in e8ect until such time as the requirement for such insurance laminates in aa:ordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manna provided rends paragraph 2 hereof. Any amount disbursed by Lends penuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrows secured by this Mortgage. Unless Borrows and Lender agree to other tams of payment, such amount shall be payable upon notice from Lender to Borrows requesting payment thereof, and shall bear interest from the dab of disbursement at the cab payable from t 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 ouch amount shall bear interest at the highest rat permissible ands applicable law. Nothing contained in this paragraph 7, shall requiv Lender to incur any expense or take any action hereunder. ~0~~16 X2825 5 • 1 - _ _ _ _ R asrzuaar .:sPreax~ee~ _ ~ .