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HomeMy WebLinkAbout0722 Borrower sad Lender covenant and agree sa follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and ]rate charges w provided in the Note. sad the principal of and lateral on any Future Advances secured by this Mortgage. Y. Farads for Tames and Inwranca 8ubjed to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inataUmeats of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funcis'7 equal to oaa twelRh of the yearly faze and aasasments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus oas• twelRh of yearly premium inatalhnertts for hazard insurance, plus one•twelRh of yearly premium installments for mortgage insurance, if any, all a reasonably estimated initially and from time to time by Lender on the basis of assasmeata and bilb and rasonable estimates thereof. 'ILe Funds shall be held in an inatiMtioa the depodts or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institatioa). Leader shall apply the Funds to prey said taxes, assesarnenta, insurance premiums and tronnd rents. Lender may rat charge far so holding and applying the Farads, analyzing said account, or verifying and compiling said assessmenb and biW, nalaa Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of ezecution of this Mortgage that interest on the Frauds shall be paid to Borrower. and salsas such agreement is made ~ applicable law requires such interest to be paid. Lender shall not be required to pay Borrower any intered or earnings on the Frauds. Lender shall give to Borrower. wi W oral charge. an annual aeoountiag of the Fonda showing credits and debib to the Funds and the purpose for which each debit to We 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 aanthly installments of Funds payable prior to the due dates of lases, asaessanents, insurance premiums and ground rents. shall exozed the amount required to pay said fazes, asseeaments. insurance premiums and ground rents as they fall due, such exoea shall be. at Borrowds option. either promptly repaid to Borrows or credited to Borrower oa monthly iaaWiments of Funds. If We amount of the Funds held by lender shall rat be sufficient to pay tares, assaarnenta, insurance premiums and ground rents as they fall due. Borrower shall pay to bender any amount necessary to make rap the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereoL Upon payment in full of all same secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lends. If under paragraph IS hereof the Property is sold otr the Property 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 Funds 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 otherwise, all payments received by Lender under the Note and i paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to 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. Charsea; 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, 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. 8orrowershall promptly furnish to Lender all notieea of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender 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 ao 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 enforcementof such lien in. legal proceedings i 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 ezisting or hereafter erected on the Property insured against loss by ~ fire, hazards included within the teen "eztended rnverage," and such other h azards as Lender may require and in such amounts and lorauch { periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of rnverage required to pay the sums secured by this Mortgage. ' The insurance carrier providing the insurance shalt 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 hereotor, 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 the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i..ender all renewal notices and all receipts of paid premiums. In the event of lose, 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 each restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, the 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 the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender a option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs t 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 ~L,ender to the eztent of the sums secured by this Mortgage immediately prior to such Bale or acquisition. 6. Preservadon and Maintenance of Property; Leasehotda; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not rnmmit 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 s unit in a condominium or 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 condoleininm or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the oovenanta and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of this Mortgage a if the rider were a part hereof. 7. Protection of Lender's Security. 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 I~endei s option,npon notice to Borrower may make such appearance, disburse such sums and take such action as is necessary to protect Lendd~ interest. including, but not limited to, dtsbnreement of reasonable attorney's tees and entry upon the Property to make repairs. Ii Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such irtanrance in effect until such time as the requirement for such insurance terminates in accordance with Borrowds and Lendds written agreement or applicable Law. Borrower shall pay the amount of alt mortgage insurance premiums in the manner provided under paragraph 2 hereoL My amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtednea 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 contrary to applicable law, is which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender b incur any expense or take any action hereunder. ~~11~315 `720