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HomeMy WebLinkAbout1168 • t ~ • Borrower and Lender covenant sad acres a. follows: 1. Payment of Principal and Interest. Borrows: shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment aad late charges as provided in the Note, sod the principal otand interest on any Future Advances ee~cured ti by thin Mortgages 2 Pltnda for Ta:ea and Insurance. 3ubjed b applicable 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 the Note ie paid in full, a sum (herein "Plrnds'~ equal to ono- twelttli of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property. itany, plw one- twelRh olyearly premium installments for hazard insurance, plus onetwelfth ofyeatly premium installments for mortgage insurance, if any, all as reasonably estimated initially and firoan time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The PLnda ahaU be held in an inditution We deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an inatitution)r Lender shall apply the Funds to pay said taxes, aaseaaments, insurance premiums and grour.3 t+r!ts. Lender may not charge for so holding and applying the Funds, analysing said account, or verifying and compiling Baud assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower • and Leader easy 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 Fends. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for whid? each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments. insurance prmniums and ground rents, shall exceed 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. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance preminma and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by [.ender to Borrower requesting payment thereoL Upon payment in full of all auras secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under i" paragrap818 hereof the Property is sold or the Properly 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 Rinds held by [.ender at the time of application as a credit against the soma 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 Lender first in payment of amounts payable to [.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principa: of the Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrowershsll pay all taxes, assessments 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 under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shat[ promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment direMly, Borrower shall promptly furnish to [.ender 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 shall 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, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property nr any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the term "extended coverage," 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 that the amount of such roverage exceed that amount of coverage required to pay the sums secured by this Mortgage. 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. Al) 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. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include astandard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, 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 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 proceeds shall be applied to the some secured by this Mortgage, with the excess, if any, paid to Borrower. Ifthe Property is abandoned by Borrower; or if Borrower fails to ; reapoad to Lender 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 author: to rollect and apply the insurance proceeds at Lender s 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 thedue date of the monthly inatatlmenta referred to in paragraphs I 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 extent of the sums secured by this 't Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance ofProperty; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep i the Property in good repair and shall not rommit 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 ail of Borrower a obligations under the declaration or rovenants creatinRor governing the condominium or planned ~ 4 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 ? :~Kreements of such rider shall be incorporated into and shalt amend and supplement therovenanta and agreementaof thiaMortgage as if the rider were a part hereof. 7. Protection of Lender's $ecurity. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or 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 decedent, then Lender at Lender's option,npon 4 notice to Borrower may make such appearances, disburse such sumo and take such action as ie 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, Bon-over shall pay the premiums required to maintain. such insurance in effect until each time as the requirement for ouch insurance terminates in accordance with Borrower's and Lender s written agreement or applicable I~w. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under t paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph 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 at the rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary 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 action hereunder. - . _ BOOKJ~4 PaGE~6G f