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HomeMy WebLinkAbout2977 , ~ Borrower and Fender covenant and agree as folbvw: _ ' 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtednea evidenced by the Note, prepayment and late charges as provided in the Note. and the p»ncipal of and interest on any fl~ture Advances secured by this Mortgage. 2. Ftutds for Taws and Insurance. Subject to applicable law or to a w»tten waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are patyable under the Note, until the Note is paid in full. a sum (herein "Funds") equal b one twelfth of the yearly tares and assessments which may attain p»o»ty over this Mortgage, and ground renb on the Property, if any, plus one } twelRh of yearly premium installments for hazard insurance. plw onetwel~th ofyearly premium instalhnents for mortgage insurance, if arty, all as reasonably estimated iaitial~y and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof The Funds shall be held in an institution the deposits or aoooants of which are iruured ar guaranteed by a Federal or State agency (including Lender if Lender is such an itratitution). Ltnder ahaU apply the Funds to pay said fazes, assessments, insurance premiums and ` ground rents. Lender may rat charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and biW, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader 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 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 end the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by thin Mortgage. ? If the amount of the Fonda held by Lender, together with the futon monthly installments of Fonda payable p»or to the due dates of taxes, 4 asaesamenta, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, aasessmenta, insurance premiums and ground rents as they fall due, such excess shall be, at Borrowda option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. V the amount of the I~rnds held by Lender shall not be sufficient to pay taxes, assesamenta, insurance premiums and ground rents as they fall due. Borrower shall pay b Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender to Borrows requesting payment thereof. Upon payment in fall of all soma 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 appl~r, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fnnda held by Lender at the time of application as a credit against the soma second by this Mortgage. 3. Applksation 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 first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest pe~yable on the Note, then to the principal of the Note, and then to intenat and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all tazea, aaseeamenta 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 underparagraph thereof 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 hasp»o»ty 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 aeceptable to Lender, or shall in good faith oonteat 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 Insrrranoe. Borrower shall keep the improvements now eziating or hereafter erected on the Property insured against lose by fin, hazards included within tbe term "extended coverage." and such other hazards as Lender may regain and in such amounts and for such periods as Lender may require; provided, that Lender shall not regain such coverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities 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 insdrar?ce shall be chosen by Borrows aubjed 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. AU 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 loss, 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 in writing, insurance proceeds shall be applied to restoration or repair of the Property 'i damaged, provided each restoration os repair ie economically feasible and the secu»ty of this Mortgage is not thereby impaired. If such ' restoration or repair is not economically feasible or if the secruty of this Mortgage would be impaired, the insurance proceeds shall be applied ~ to We some secured by thin Mortgage. with the excess. if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to bender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for i insurance benefits, Lender is authorized to collect and apply the insurance prooeeda at lender's option either to restoration or repair of the ~ Property or the soma aecnred by this Mortgage. s Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due f date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each installments. If under paragraph 18 j 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 { E thereof resulting from damage to Property prior to the sale or eoquisition shall peso to Lender to the a:tent of the auma secured by this Mortgage immediately p»or to such sale or soquisition. 6. Preservation and >Ilaint~enance 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 comply with the i pmvisiona of any lease if this Mortgage is on a leasehold If thin Mortgage is on a unit in a condominium or a planned unit development, "t Borrower shall perform all of Borrower's obligations under the declaration or covenants creating or 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 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 rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the ooveaants and agreements contained in thin Mortgage, or if any action or proceeding is commenced which materially affects Lendds interest in the Property, including, bat not limited to, eminent domain, insolvency, code enforoem~t or arrangements or proceedings involving a bankrupt or decedent that Lender at Lende:'a option,npon ' notice to Borrower may make such appearances. disburse such sums and take arch 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 repairs. If Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain t such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrowds and Lendda ! written agreement ar applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amoanta disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms of payment such amounts shall be payable upon notice from bender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement 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 = went such amounts shall bear interest at the highest rate pamissibk under applicable law. Nothing contained in this paragraph 7, shall regain Lender to incur any expense or take any action hereunder. p . _ ~ ~o x 3U6 ~~~2973 .~s.. w . .