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HomeMy WebLinkAbout1248 Borrower and Lender covenant sad agree as folbws: ~ 1. Payment of Prineipwl sad Interest. Borrower shall promptly pay when dos the principal of sad interest on We indebtedness sviderroed by the Nots. prepayment and late charges as provided is the Note, sad rho principal of sad interest on say Future Advances secured 4 by thin Mortgage: 2 IPtimds for Tares and Insrrraaoe. Subject to applicable law or to a written waiver by Lender. Bosrower shall pay to Lender oa the dqy monthly installments of principal and interest are payable under the Note. until the Note is paid in fuD, a sum (herein "Ifinda'~ equal to one? twelRh of the yearly fazes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus oae~ twelfth of yearly premium installments !or hazard insurance, plus oastwelAh of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to time by Leader on the basis of assessments and bills and reasonable estimates thereof. The Enacts shall be held is as institution the deposits or aooounb of which are insured or guaranteed by a Federal or State agency (including Leads: if Leader is sudr an institution). Leader shall apply the Ptimda to pay said fazes, assessments, iasunraoe premiums sad ground rents. Lender may sot charge for eo holding and applying the Funds. analysing said aooount, or verifying and compiling. said assessments and biW, udess Lender pays Borrower interest oa We Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of ezecntioa of this Mortgage that interest on the Fends shall be paid to Borrower, sad unless such agreement is made or applicable law regains such interest to be paid. Lender shall not be required to pay Borrower any interest or earnings oa the Fends. Lender shall give to Borrower. without charge. as annual aooouating of the Funds showing credits and debits to the Funds sad the purpose for which each debit to the Funds.waa made. The Funds are pledged ae additional security for the name secured by this Mortgage. If the amount of the Funds held by Leader, together with the future monthly installments of Phade payable prior to the due dates of fazes, aseeeements. insurance premiums and ground rents, shall ezoaed the amount required to pay said fazes, asseesazents, iruurence premiums and ground rents ae they fall due, such ezoees shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly iastalhneats of Fends. V the amount of the Funds held by Leader shall not be sufficient to pay tares, aasesam~t0. insurance premiums and ground rents as they fall doe. Borrower shall pay tD Lender any amount necessary to make up We deScieacy within 30 days from the date notice is mailed by Leader to Borrower requesting Payment thereof. Upon paym~rt in full of all name secured by this Mortgage, Lender shall promptly refund to Borrower aqy funds held by Lends:. Ttunder paragraph 18 beeeof the Property is sold or the Property is oWerwise acquired by Leader, Lender shall apply, no later than immediately prior to Wa sale of the Property or its acquisition by Lender. any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. - 3. Ap~pliication 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 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 Ftirtnre Advances. 4. Charges; Liens. Borrower shall pay all fazes. 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 hereof or, if not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly fur»sh to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender reeeipta evidencing each 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 sa 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 rnnteat such lien by, or defend enforcement 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 Insurance. Borrower shall keep the improvements now ezisting or hereafter erected oa the Property insured against loss by fire, hazards included within the term "ezteaded coverage," and such other hazards as Lender may require and in such amounts and for such periods a8 Lender may require; provided, that Lender shall not require such coverage amount ezceeding the minimum, as may berequired by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is We grater. 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 hereof or, 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 favor of and is 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 lass, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lose 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 j to the soma secured by this Mortgage. with the ezceaa, if say. 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 setae a claim for ~ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Leader's option either to restoration or repair of the t Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any arch application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of arch 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 eztent of the sumo secured by this Mortgage immediately prior to each sale or acquisition. 6. Preservation and 3laintenance of Property; Leaseholds; Condominums; Planned Unit Developments. $orrower 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 Mortgage is on a leasehold. If this Mortgage is on s unit in a condominium or a planned unit development. Borrows shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the oondomininm or planned 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 oovenanta 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 hereof. 7. Protection of Lender's Security. ff Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is oommmeed which materially affects Lender's interest in the Property, including, bat not limited to, eminent domain, insolvency, code enforcement, or arrangemeaL or prooeedinga involving a bankrupt or deoedeat, then Lender at Lenders optioa,npon notice to Borrower may make such appearances, disburse each sums and take such action as is n including, but not limited to, disbursement of reasonable attorney's fees and entry upon the ~ ~ Leader's interest, I mortgage insrrance as s condition of m y to make reparrs it Leader roq~ eking the loan secured by this Mortgage, Borrower shall pay the premiums regaind to maintain i such insurance is effect until such time as the requinmeat for such insurance terminates in aooordanoe with Borrower's and Leadds i written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. I Any amounts disbursed by Lender persuant to this paragraph T, with interest thereon, shall become additional indebtedness of I Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Linder to Borrower requesting payment thereof and shall bear interest from the date of disbursement at the rate payable from time to lima oa outstanding principal ender the Note anlees payment of interest at such rate would be contrary to applicable law, in which ~ event ouch amounts shall bear interest at the highest rate permissible ender applicable law. Nothing contained in this paragraph shall require Lender to incur say espense or take any action hereunder. E~~~K 315 P~~E1246 - ~