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HomeMy WebLinkAbout2806 t:; Borrower and Lender covenant and agree as follows: 1., Payment of Principal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by We Nots, prepayment and late charges as provided in the Note. and the principal of and interest on any PLtun Advances secured by this Mortgage. 2 Funds for Tares and tasuranoe. Subject to applicable law or b a written waiver by Lender. Borrower shall pay to Lender on theday monthly installments of principal and interest are payableunder the Note. until the Note is paid in full. a sum (herein "Fhnds'~ equal to ons twelfth of the yearly tares and assaaments which may attain priority over this Mortgage, and ground rents on the Property. if any. plus ons twelfth of yearly premium inatalhnen4 for hazard insurance. plus one•twelRh of yearly premium installments for mortgage insurances if any. all as reawnably estimated initially and ff<om time to time by Lender on the basis of assesamenta and bills and reasonable estimates Wereo[ 1Ls Pander shall be held in an inditntion the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender u Leader is such an institution). Lender shall apply the Funds to pay said taxes, aeseeaments, insurance premiums and ground rents.. Lender may not charge fat so holding and applying the Funds, analysing said account, or verifying and compiling acid assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at We time of execution of Wier Mortgage that interest on the Funds shall be paid to Borrowers and unless ouch agreement is made os applicabb law requires such interest to be paids Lender shall not be required b ppy Borrower any interest os earnings on We Funds. Leader shall give to Borrower. without charge, an annual accounting of the Funds showing credits and debits to We Funds and the purpose for which each debit b We Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. ~ j If We amount of the fitnds held by Lender, togeWes wi W the future more Wly installments of Funds payable prior to We due dates of fazes. assessments, insurance premiums and ground rents. shall exceed the amount required to pay said taxes, asaeaaments, insurance premiums and ground rents as Wey tall due. such a:ceas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. U We amount of We Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as Wey tall due. Borrower shall pay b Lender any amount necessary to make up We deficiency within 30 days from We date notice is mailed by Lender b Borrower requesting payment thereof. Upon payment in full of all sums secured by Wia Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Unnder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later Wan immediately prior to We sak of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides oWerwiae, all payments received by Lender under We Note and paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amowits payable to Lender by Borrower under paragraph 2 hereof. then to intend payable on We Note. then to We principal of the Note, and Wen 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 orground rents,if any, 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 thereof. Borrower shall promptly fnmiah to Lender all notices of amounts due under Wis paragraph, and in We spent Borrower shall make payment directly, Borrower shall promptly famish to Lends receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, Wat 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, or defend enforcement otsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazatd 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 forauch periods as Lender may require; provided, that. Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay We sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals Wereof 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 the right 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 We Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not Wereby impaired. If such restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied to the sums 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 We 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 r+eatoration or repair of the f Property or We sums secured by Wis Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or podpone Wedne date of the monWly installments 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 We sale or acquisition shall pass to Lender to We extent of the soma secured by this Mortgage immediately prior to ouch sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowerahallkeep ~ the Property in good repair and shall not rnmmit waste or permit impairment or deterioration of the Property and shall comply with We 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, Borrower shall perform all of Borrower's obligations under the declaration orcovenanta creatingor governing the condominium or planned unit development, We by-laws and- regulations of the condominium or planned unit development, and constituent documents. If a 1 condominium or planned unit development rider is executed by Borrower and recorded together wiW Wia Mortgage, We oovenanta and ~ agreements otsuch rider shall be incorporated into and shall amend and supplement thecovenants and agreementsofthisMortgageasifthe i rider were a part hereof. T. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage, or if any t action or proceeding is oommeneed which materially affects Lender s intered in We Property, including, but not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decadent, Wen Lender at Lender's option,upon notice to Borrower may make such appearances, dubnrse such soma and tame such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's foes and entry upon We Property to make repairs. If Lender required mortgage insurance as a condition of making We loan secured by this Mortgage, Borrower shall pay We premiums required to maintain such insurance in effect until such time 8. We requirement for such insurance terminates in accordance wiW Borrower's and Lender's { written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided render paragraph 2 hereof. Any amounts disbursed by Lender persuant to Wis paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by Wis 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 intered from We date of disbursement at We rate payable from time to time on outstanding principal under We Note unless payment of interest at such rate would be rnntrary to applicable law, in which event such amounts shall bear interest at We highed rate permissible under applicable lew. Nothing rnntained in Wis paragraph 7, shall E rqqurre Lender to incur any expense or take any action hereunder. t BauK 314 PaGEz~ i •