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HomeMy WebLinkAbout1181 i r 1 • i r F Borrower and Lender covenant and ague as lolbws: 1. Payment o! PNncipal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any flrture Advances secured ? by this Mortgage. 2 Funds for Taws and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one• twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one• twelRlr of yearly premium installments for hasard insurance. plus one•twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially surf from time to time by [.ender on the basis of aaaesaments and bills and reasonable estimates thereof. f 11re Ptirnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency r (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, asaeasmenta, insurance premiums and ground rents. Lender may not charge for so holding and applying the Flrnds, analyzing said account, or verifying and compiling said i aesesenaenta and bills. unless Lender pays Borrower interest on the Fends and applicable law permits Lender to make ouch a charge. Borrower and Lender may agree in writing at the time otexecution of this Mortgage that interest on the Fonda 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 b 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 and the purpose for which each debit to the Funds was made.'I7re Funds are pledged as additions! security for the sums secured by thu Mortgage. I[ the amount of the I~rnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shall exceed the amount required to pay said to:es, aseesamente, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Dads. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, aeseasmente, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 Jaya from the date notice is mailed by Lender to t'sorrower requesting pay.:.~~.::.e.-~..`. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property ie sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediaWy prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender at the time otapplication as a credit against the sums secured by this Mortgage. 3. Applkxrtion 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 ofamounta payable w 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 Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments. Bon*ower 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, ardefend enforcement ofsuch lien in, legs) proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 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 Ixnder may require and in such amounts and forsuch periods as Lender may require; provided, that tender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by linrrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums nn insuranrn policies shall be paid in the manner pn,vided 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 a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have theright 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 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 soma secured by this Mortgage, with the excess, if any, paid to Borrower: If the Property is abandoned by Borrower, or if Borrower fails to respond 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 insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unleae Lender and Borrower otherwise agree in writing, any such application ofproceedato principal shall nntextend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 Frereof 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 Properly prior to the sale or acquisition shall pass to Lender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; I.easeholda; 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 provisions of any lease if this blorigage is on a leasehold. If this Mortgage is on a unit in a condominium ar a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a crondominium 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 hereoL 7. Protection ot.Lender'e 3ecurtty. If Borrower fails to perform the covenants and agreements rnntained 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 notice to Borrower may make ouch appearances, disburse such soma and take such action se 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 such time as the requirement for such insurance terminates 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 undo paragraph 2 hereof. Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of $orrower secured by this Mortgage. Unless $orrower 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 contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in thin paragraph 7, shall rcyuire Lender to incur any expense or take any action hereunder. i . a~:ux 3~4 PAGE ~1~5