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HomeMy WebLinkAbout1231 Borrower and !.ender covenant and agree as follows: ' 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest un the indebtedness evidenced by the Note, prepayment and late charges ae provided in the Note, and the principal otand interest on any htiture Advances secured by this Mortgage. 2. blu~de for Taxes and Insurance. Subject to applicable law or to a written waiver by !.ender, liorruwer shall pay W Lender on theday monthly installments of principal and interest are payable under the Note, until the Nute is paid in full, u sum therein "Funds") equal W une- twelfth of the yearly taxes and uasesamente which may attain priority over this Mortgage, and ground rents un the 1'roperiy, if any, plus one twelfth of yearly premium installments for hazard insurance, plus onetwelfth ofyearly premium installments fur mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the basis of assessments and bills :end re:u~on:ible estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if !.ender is such an institution). Lender shall apply the Funds to pay said taxes, 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 bills, unless Lender pays Borrower interest on the Fonda and applicable law permits !.ender to make such n charge. Itorruwer and !.ender 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. !.ender shall give to Borrower, without charge, an annual accounting ottee Fonda showing credits and debits to the Fonda and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the h`unda held by Lender. together with the future monthly installments of Funds payable prior to the due dates of taxes, aeaeasmente, insurance premiums and ground rents, shall excYed the amount required to pay said taxes, 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. I[ the amount of the Fonda held by Lender shall not be autfcient to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Burrower shall pay to !.ender any 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 in full of all soma secured by this Mortgage, !.ender 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, nu later than immediately prior to the sale of the Property or its acquisition by Lender, any i•'unda held by !.ender at the time of application as a credit against the sums 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 shall be applied by !.ender 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. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the 1'roperiy which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under par:,graph'L hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thermf. Rorn,wershall promptly furnish to I.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, lorrower shall promptly furnish t<, (.ender receipts evidencing such payments. Burrower shall promptly discharge any lien which has priority over this Mortgage; pmvided, that Borrower shall not be required to discharge any such lien so long as Iorrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in g:x,d faith a,ntest such lien by, ordefend enfi:nrment of such lien in, legal pnx~ctixlings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thern,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the tens "extended coverage," and such other hazards as Lender may require and in such amounts and furauch periods ae Lender may require; 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 sums secured by this Mortgage, whichever is the greater. The insurance carrier providing the insurance shall be chosen by Korrower subject to approval by Lender; pnwid~Yl, that such approval shall not be unreasonably withheld. All premiums un insurance Ix,liciex shall I,e paid in the manner pn,vid:xl under paraKn:ph 'l heret?f or, if not paid in such manner, by Korrower 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 murtgageclause 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 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 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 such resbration 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 itthe 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 ie abandoned by Burrower, or if Bormwer fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carver offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance pmceeda at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. lJnless bender and Borrower otherwise agree in writing, any such application otproceeds to principal shall not extend or postpone thedue date of the monthly installments refemd to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 1K E 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 extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; Leaseholds; Condominums; Planned Unit Developments. Borrowershall 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 rnndominium or a planned unit development, Forrower shall perform all of Borrower's obligations under the declaration orcovenanta creutingor 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 i agreements of ouch rider shall be incorporated into and shall amend and supplement lhecovenanta and agreementaotthis Mortgagees ifthe rider were a part hereof. ~ 7. Protection of Lender's Security. If Borrower fails to perfonn the eovenanta and agreements rnntained in this Mortgage, or if any aMion or proceeding is commenced which materially affects Lender a 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 Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action ss is necessary to protect Lender's interest, inclnding, but not limited to, disbursement of reasonable attorney's fees 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 such time as the requirement for such insurance tenninatee in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant 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 to Borrower requesting payment thereof, and shall bear interest from the date of disbursement al 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 event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any aMion hereunder. ?."..OOy a 1230 e ~ ~ -