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HomeMy WebLinkAbout1247 liurn,wer and Lender cY,venanl and agree ae follows: 1. Payment of Principal and Interest. Burn,wer shall promptly pay when due the principal ut and interest un the indet,te?Ineas evidenced by the Note, prepayment and latecharges ae provided in the Nute,and the principal of and interest on any Future Advances secured by this Mortgage. 'l. Runde for Taxes and Insurance. tiubject w up{?liruble law or w a written waiver by tender, l;t,rruwrr shall pay to I.en?ler+,n the day monthly installments of principal and interest are payable under the Nute, until the Nule is paid in full, a sum (herein "h'undB eyu?+l lu one twelfth of the yearly taxes and aaaeasmenW which may attain priority over this Mortgage, and ground rents un the 1'ruperly, if any, plus une- twelfth ofyearly premium installments for hazard insurance, pluaunNtweltih ofyearly premium inat?+Ilments &,r murtgugrinsurance, ifany, all as reasonably estimated initially and from time to lime by Lender on the basis of usacaaments and hills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or Male agency (including Lender if Lender is such an institution). Lender shall apply the Ronda to pay said taxes, assessments, insurance premiums and ground rents. Lender may nut charge for eo holding and applying the Funds, analyzing acid account, or verifying and compiling said assessments and bills, unless bender pays Borrower interest on the F ands and applicable law permi4+ Lender to make such u charge. Burrower and Lender may agree in writing at the Time of execution of this Mortgage that interest on the Fonda shall be paid W Burrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Burrower any interest or earnings on the F ands. Lender shall give to Borrower, without charge, an annual accounting of the Fundy showing credits and debits to the Funds and the purpose for which each debit to the Fonda wcu+ made. The Fonda are pledged us additional security for the soma secured by this Mortgage. If the amount of the Fl?nds held by Lender, together with the future monthly installments of Funds payul,le prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, aaseaaments, insurance premiums and ground rents as they tall due, ouch excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Burrower on monthly installments of Funds. It the amount of the Fonda held by bender shall not be sufficient to pay wxea, ussesaments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :{0 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, I:eallRttil~i tEy~refund to Burrower any funds held by bender. If under paragraph 18 hereof the Property is sold or the !'roperty is otherwise I.ender,l:Ar+der shullapply, no later than immediately prior to the sale of the Property or itsacquiaition by Lender, any Funds held y '?i,e of application as a credit against the auma secured by this Mortgage. ' ~,y _ 3. Application of Payments. Unless applicable law provides atY/pyl!i~e, all payments'received by Lender under the Nute and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Burrower under paragraph 'l 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. Borrowerahall pay all taxes, asaesamrnls and other charges, fines and imp+?aitions at/ributuble u, the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragn?ph `L hero,for, if nut paid in such manner, by Borrower making payment, when due, directly to the payee thereof Borrower shall promptly furnish to ! w•nder all notices of amounts due under this paragraph, and in the event l;„rn,wer shall make payment directly, Borrower shall promptly furnish to !.ender receipts evidencing such payments. l;<,rrower shall promptly discharge any lien which has priority over this Mortgage; pn,vided, that fiurrower shall not be required to discharge any such lien au lung as Itorruwerahall agree in writing to the payment of theubligatiun secured by such lien in a manner acceptable to Lender, or shall in g+N,d f:+ith cY,ntexl such lien hy, ordefend enGrr+rment of such lien in, legal prvx•e?dings which operate to prevent the enforcement of the lien or forfeiture of the Property ur any part thenr,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 term "extended coverage," and such other hazards as Lender may require and in such amounts and fur such periods as Lender may require; provided, that Lender shall not require such rnverage amount exceeding the minimum, as may t,e reyuired 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 Borrower subject G, approval by lAnder; pn?vid?d, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall he paid in the manner provided under par-.+{;r-.?ph'l hen~,f ur, if not paid in such manner, by Burrower making payment, when due, directly to the insurance carver. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lenderahall have the right to hold the policies and renewals thereof, and &,rrower shall promptly furnish u, i.ender all renewal notices and all receipts of paid premiums. In the event of lose, [{orrower shall give prompt notice u, the insurance carver and Lender. Lender may make proof of lose it not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall he applied to reslr,ralion 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 economically feasible or if the security of this Mortgage would be impaired, the insurance proceeela shall he applied u, the auma secured by this Mortgage, with the excess, if any, paid W Borrower. If the Property is abandoned by Borrower, or if Burrower fails 1<, respond b Lender within 30 days from the date notice is mailed by !.ender W Burrower that the insurance carver offers U, settle a claim fur insurance benefits, (.ender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the p Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any ouch application otprocee~de to principal shall not extend or postpone thedue ~ date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 1K 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.l3orrowerahallkeep ~ 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 ie on n 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 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 Burrower and recorded together with this Mortgage, the covenants and agreements of ouch rider shall t,e incorporated inlr, and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. I! Borrower fails to perform the covenants and agreements contained in this Mortgage, or it any ~ action 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 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 Lender 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 each time as the requirement for such insurance terminates in accordance with Borrower a and Lender s written agreement or applicable Law. Borrower shall pay the amount of ell mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant 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 g notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outBtandinq principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall reyuire-Lender to incur any expense or take any action hereunder. ~3Uy 1246 F~ ~s