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HomeMy WebLinkAbout1776 J Borrower and Lender covenant and agree aa follows: 1. Psyment of. Principal sad Iaterest. Borrower shall promptly pay when due the principal ot and intereat o~ the i~debtrdneas evidenced by the Note, prepayment end late chargee as pmvided in the Note, und the principal of and intereat on any ~ture Advances secured by this Mortgage. 2. Ftiu~ds [or T~ea and Ineurance. Subject to applicable law or to a written waiver by I.ender, Borruwe~ ehall pay to L.enderon the day awnthly inetallmenta of principal and intereat are payable under the Nate. until the Note is paid in full, a aum (herein "~nds") equal to one- twelRh of the yeady teuces and aaeeesmenta which may attain priority oves this Morigage, and ground renls on the Property, if any, plue one twelfth of yearly premium inetallmente for haaard inaurance, plus onetwelRh of yearly premium inatallments for mortgage insura~ce, if any. all ae reasonably eatimated initially and firom time to time by Lender on ihe baeia of aseeeamenta and billa and reasonable eatimates thereof. ' 11~e FLnds ahall be held in an inatitution the deposite or accounts of which are inaured or guaranteed by a Federal or State agency (including Lender if I.ender is such an inetitution). Lender ehall apply the Funde to pay said taxee, esseeamente, ineurance premiums and ground rente. Lender may not charge for so holding aAd applying the Funds, analyzing said account, or verifying and compiling said aaseaementa and bills, unl~e Lender paya Borrower intereet on the F~nde and applicable law permite Lender Eo make euch a charge. Borrower and Lender may agree in writing at the time of execution of thia Mottgege that intereat on the ~Lnde shal! be paid to Borrower, and unless such agreement is made or applicable law requires such intereet to be paid, Lender ahall not be required to pay Borrower any intereat or earnings on the ~nds. Lender ahall give to Borrower. without charge, an annual accounting of the Funde ehowing credite and debits to the I~t?ds and the purpoee for which each debit to the ~nds was mede. The Funde are pledged as additional eecurity for the suma eecured by thie Mortgage. If the amount of the Funda held by l.ender, together with the future monthly inatallments of Funds payable prior to the due dat~ of taxea, aseeasmeats, inaurance premiume and ground renta, ahaU exctied the amoun! required to pay said ta:ea, aesesamente, insurxnce premiuma and ground rents ae they fall due, such e:cees ahall be, at Borrower s option, either prompdy repaid to Borrower or credited to Borrower on monthly installmeats of I~nda. If the amount of the Funde held by Lender ahall not be auf6cient to pay t~ea, assesamente, ineurance premiums and ground rente a8 they fall due, Borrower shall pay to Lender any amount neceasary to make up the de6ciency within 30 daye trom the dete notice is mailed by Lender to Borrower requesting payment thenwf. Upon payment in ful! of all euma eecured by thie Mortgage, Ler~der ehall prompdy;efund to Borrower any funde heid by I.ender. If under paragraph 18 hereof the Property is aold or the Property ie otherwise acquired by Lender, Lender ahall apply. no later than immediately prior to the sale of the Property or ita aoquiaition by Lender, any F~nds held by I.ender at the time of application as a credit against the euma secured by Lhis Mortgage. 3. Application of Paymenta. Unleas applicable law providea otherwiae, all payments received by Lender under the Note and paragraphs 1 and 2 hereoi ehall be applied by Lender firat in payment of amounte payable to I.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note. then to the principal of the Note, and then to intemst and principal on any Future Advances. 4. Chargea; Liene. Borrower ehall pay all ta~cea, asaeeamenta and other charges, finea and impositions attributable to the Property which may attain a priority ovet this Mortgage, and leasehold payments or ground mnts, if any, in the manner provided under paragraph 2 hereotor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. E3orrower shall promptly furniah to I.ender all noticea of amounta due under thia paragraph, and in the event Borrower shall make payment directly, Borrower shall prompdy furnish to I.ender teoeipts evidencing such paymenfs. Borrower ahall promptly discharge any tien which has priority over this Mortgage; provided, that Borrow~ shall not be required to diacharge any such lien ao long as Borrower ahall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, Qr shall in good faith contest such lien by, or defend entorcement 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 Inaurance. Borrower ahall keep the improvemente now existing or hereafter erected on the Progerty inaured against loss by fire, hazarda included within the term "extended rnverage," and such other hazards as Lender may require and in auch amounts and fur such perioda as L,ender may require; pmvided, that L,ender ahali not require such coverage nmount exceeding the minimum, as may be required by atate or federal ?egalations governing activities of Lender, or that amount of coverage required to pay the aums aecured by this Mortgage, whichever ie the greater. The inaurance carrier providinq the insurance ahall be chosen by Borrower subject to approval by l.ender; provided, that such approval ahall not be unreasonably withheld. All premiuma 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 inaurance policies and renewals thereof shall be in form acceptable to Lender and shall include a atandard mortgage clause in favor of ~ and in form aoceptable to Lender. I.ender ahall have the right to hold the policies and renewals thereof, and Borrower ahall promptly furniah to ~ ixnder all renewal noticea and all teceipts of paid premiums. In the event of loss, F3orrower ahall give prompt notice to the inaurance carrier ~ and Lender. Ler.der may make proof of loea if not made prompdy by Borrower. E Unlesa Lender and Borrower otherwise agree in writing, insurance proceede ahall be applied to restoration or repair of the Property 6 damaged, provided auch restoration or repair ia economicaUy feasible and the eecurity of this Mortgage ia not thereby impaired. If such ~ restoration or repair is not economically feasible or if the eecurity of this Mortgage would be impaired, the inaurance proceeda shall be applied to the aums aecured by this Mortgage, with the e:cesa, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower faila to ~ respond to Lender within 30 daya from the date notice is mailed by Lender to Borrower that the insurance carrier ofCers to aettle a claim for inaurance benefita, Lender ie suthorized to collect and apply the insurance proceeda at I.ender'a option either to restoration or repair of the ~ Property or the eama secured by this Mortgage. Unleas L.ender and Borrowet otherwiee agree in writing, any such application of proceeds to principal ehall not e:tend or postpone the dne date of the monthly inatallments referred to in paragraphs 1 and 2 hereof or change the amount of such inatallments_ If under paragraph 18 hereof the Property ia aequired by Lender. all right, title and interest of Borrower in and to any inaurance policies and in and to the proceeds thereof resulting from damage to Property prior to the eale or acquiaition shall pass to Lender to the eatent of the aums secured by this Mortgage immediately prior to such eale or aoquiaition. _ 6. Preeervation and Maintenance of Property; Leaeeholde; Condominume; Planned Unit Developmente. Borrowerahall keep ~ the Property in good repair and ahall not rnmmit waste or permit impairment or deterioration of the Property and ahall comply with the provisione of any leaee if thie Mortgage is on a leasehold. If this Mortgage ia on a unit in a oondominium or a planned unit development, Borrower ahall perform all of Borrower e obligationa under the declaration or covenants creatingor governing the rnndominium or planned unit development, the by-laws and regulationa of the condominium or planned unit development, and constituent documente. If a oondominium or planned unit development rider ia executed by Borrower and recorded together with this Mortgage, the oovenanta and agreementa of such rider shall be incorporated into and shali amend and supplement the covenants and agreementa of this Mortgage as if the rider were a part hereof. ~ ~ 7. Protection ot Lender'e Security. If Borrower fails to perform the o~venante and agreemente contained in thie Moitgage, or if any ~ action or proceeding ie commenced which materially afTects Lender'e intereet in the Property, including, but not limited to, eminent domain, ` insolvency. oode enforcement, or anangemente or proc:eedinge involving a bankrupt or decedent, then Lender at Lender s option.upon aotice to Borrower may_ ma1~e auch appearances. disburse auch eume and take ench action ae is neoeaaary to protect Lender'e interee~ including, but not limited to, diabureement of reasonable attorney'e fees and entry upon the Propedy b make repaire. If Lender required mortgage inaurance as a condition of making the loan eecured by this Mortgege, Borrower ahall pay the premiums required to maintain ~ sach insurance in effect until euch time ae the requirement for auch inenrance terminatea in aocordance with Borrower B and Lender's ~ written agreement or applicable I.aw. Borrower ehall pay the amount of all mortgege inaurance prnmiuma in the manner provided under paragraph 2 hereoL My amounte disbnreed by Lender perauant to thie paragraph with intereet thereon, shall beoome additional indebtednees of a ~ Borrower secured by this Mortgage. Unleae Borrower and Lender a~ee to other terme of payment, euch amounte ehall be payable upoa notice from Lender to Borrower requeating payment thereof, and ahall bear intereet from the date of diebursement at the rate payable from time to time on outetanding principal under the Note unleae payment of intereat at auch rate would be contrary to applicable law, in which event such amounte ehall bear interest at the higheet rate permiasible under applicable law. Nothing contained in thie paragraph ahall require Lender to incur any e:pense or take any action hereunder. , ~ ~ 312 e~~,F 1774 :