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HomeMy WebLinkAbout1517 F Borrower and Lender covenant and agree as follows: ~ 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness } evideaoed by the Note. prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advance secured by this Mortgage. Fttads for Tares and iasuraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest ere payable under the Note. until the Note is paid in full, a sum (herein "Funds") equal to one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus one- twelfth oiyearly premium installment for hazard insurance, plus onetwelftir of yearly premium installments for mortgage insurance. if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessment and bills and reasonable estimates thereof The l~rrrds shall be held in sn institution the deposit or account of which are insured or guaranteed by a Federal or Stt agency (including Lender if Lender is ouch as institution). Lender shall apply the Funds to pay said to:es. assessment, insurance premiums and ground r+enta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessment and bills, unless Leader pays Borrower interest on the Funds and applicable law permit Lender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecution of this Mortgage that interest on the Inds shall be paid to Borrower, and unless each agreement is made or applicabk law requires such interest to be paid, Lender shall not be required to pay Borrower any intrest or earnings oa the firads. Leader shall give to Borrower, without charge, an annual accounting of the Funds showing credit and debit to the Funds and the purpose for which 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 Plrads held by Lender, together with the future monthly installment of Funds payable prior to the due dates of taxes, assessment. insurance premiums and ground rents. shall exceed the amount required to pay said taxes, asaeasmenta, insurance premiums and ground rent as they fall due. such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installment of Plrnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, aeaesaments, insurance premiums 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 Lender to Borrower requesting payment thereof. 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 is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sak of the Property or it acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the soma secured i by this Mortgage. 3. Application of Payments. Unless applicable law provides otheryviae, all payment received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amount 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. Charges; Liens. Borrower shall pay all taxes, assessment and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payment or ground rent, 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. Borrowerahall promptly furnish to Lender all notices of amount due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to ' Lender receipt 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 acceptble to Lender, or shall in good faith contest 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. i 5. Hazard Insurance. Borrower shall keep the improvement now existing or hereafter erected nn the Property insured against loss by i fire, hazards included within the teen "extended coverage; 'and such other hazards as Lender may require and in such amount and for such ~ periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage 3 required to pay the 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 insuranrn policies shall be paid in the manner provided under paragraph 2 hereof or, if ~~'4 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 favor of r and in form acceptble 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 receipt 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 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 otters to settle a claim for insurance benefit, Lender is authorized to collect and apply the insurance proceeds at Lender a 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 pnncipal shall not extend or postpone the due date of the monthly inatllment refen-ed to in paragraphs 1 and 2 hereof or change the amount of such instllment. If under paragraph 18 E hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance polities and in and to the proceeds t 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 Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply 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 all of Borrower's obligations under the declaration or covenant creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent document. If a i condominium or planned unit devebpment rider is executed by Borrower and recorded together with this Mortgage, the covenant and agreement of such rider shall be incorporated into and shall amend and supplement the covenant and agreement of this Mortgage salt the 1 rider were a part hereof. Protection of Leader's Security. If Borrower fails to perform the covenant and agreement contained in this Mortgage, or if any action or proceeding is eommenoed which materially affects Lender a interest in the Property, including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangement or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such some and take such action as 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 Leader required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shat! 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 under paragraph 2 hereof. My amount disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, each amount 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 tom 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 amount shall bear interest at the highest rate permissible under applicable Iaw. Nothing contained in this panrgraph 7, shall require Lender to incur any expense or take any action hereunder. c~~K3i5 P~~E1515