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HomeMy WebLinkAbout2837 . _ _ ` Borrower and Lender covenant and agree w follows: 1. Payment of Principal and Iaterest. Borrower shall proaptly pay when due the principal of and interest on the indebtednea evidenced by the Note, prepayment and late charge as provided in the Note, and the principal of and interest on any Futuna Advances secured by this Mortgage. Z. Ftiruds for Tares and Insurance. Subject to appUcable 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 We Note is paid in full. a sum (herein "Funds")equal to one- twelfth ofthe yearly tares and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any, plw one- twelfth of yearly premium installments for hazard insurance, plwone-twelfth olyesrly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender oa the basis of assessments and bills and reasonable estimates thereof. The Flrnds shall be held in an Institution the depositat or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such sn 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, analyzing said account, or verifying and compiling said assessments and biW, unlew Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecvtion 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 We Funds. Lender shall give to Borrower, without charge, an annual accounting of the Ftirnds showing credits and debits to the Funds and the purpose for which each debit to the F1mds was made. The Funds are pledged as additional security for the sums secured by Wis Mortgage. If W e amount of We Funds held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shaA ezoaed the amount required to pay said fazes, assessments, insurance premiums and ground rents ere they fall due, such exosss shall be, at Borrower's option, eiWer promptly repaid to Borrower or credited to Borrower on monthly installment of Plrnds. if We amount of the Funds held by Lender shall not be sufficient b pay taxes, assessments, insurance premiums and ground rents as they tall 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 b Borrower requesting payment thereof. Upon payment in fall otall soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Itunder 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)~rnda held by Lender at the time of application ae a credit against the soma second by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, aq 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 or_ any Future Advances. 4. Charges; Liens. Borrower shall pay all tares, asaesamenta and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments orground 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 otamounte due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish 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 shat! 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 hereafter erected on the Property insured against loss by t fin, hazards included within We term "extended rnverage," and such other hazards as 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 activities of Lender, or that amount of rnverage 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 [.ender, 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, it 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 furnish to lender all renewal notices and all receipts of paid premiums. In the event of lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lase 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 is not thereby impaired. If such restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the ezcesa, 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 oRere to settle a claim for ' insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender a 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 extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such 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 the sale or acquisition shall pass to Lender to the a:tent of the soma secured by this s Mortgage immediately prior to such sale or acquisition. ~ 6. Preservation and Maintenance of Prnperty; Leaseholds; Condominume; Planned Unit Developments. Borrowerahall 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's obligations under the declaration or oovenante 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 ezecuted by Borrower and recorded together with this Mortgage, the oovenanta and ~ agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agre~ementa of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage. ~ if any action or proceeding is commenced 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 deoedeat, Wen Lender at Lender's option,upon s notice to Harrower may make such appearances, dubarse such sums and take each action as is necessary to prated Lender's interest, indnding, but not limited to, disbursement of reasonable attorney's tees and entry upon We Property to make n mortgage insurance as a condition of making We loan secured by this Mo P~re• If Lender required such insurance in effect until such time as We Borrower shall pay We premiums required to maintain requirement for such insurance terminates in accordance wild Borrower's and Lender's written agreement oT applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. My amounts disbursed by Lender persuant to Wis paragraph 7, with interest Wereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon notice from Lander to Borrower requesting payment Wereof, and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under We Note unless payment of interest at such rate would be contrary to applicable law, in which ` event such amounts shall bear interest at We highest rate permissible under applicable law. Nothing contained in Wia paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~ - t °Rc~~~+ 2833 3uaK JUU i'ACE a - _