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HomeMy WebLinkAbout2043 - - - - _ r _ - y ~ ` Borrower and Lender covenant and agree as lolbws: 1. Payment of Prlnelpeil and Interest. Borrower shall promptly Pay when due the principal of and inured oa the indebtednea evidenced by tbs Note, Prepayment and late charges as provided in the Note, and the principal otand interest on any Fhture Advances secured by this Mortgsge. 2 Ftirods for Tasea and Insuranea. Subject to applicable law or to a written waives by Lender. Borrower shall pay to Lender on the day monthly irutallaNa4 of principal and interest era payable under the Note, until the Note is paid in full, a sum (herein "Funds'q equal to one• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rants on the Property. if say, plus oae• . twelfth of yearly premium installments for hazard insurance. plus onetwelfth olyearly pranium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an inditution the depositr or aceonnts of which are insured or guaranteed by a Federal or State agency (including Leader ff Lender is snch an irutitutioa). Lender ahaU apply the Funds to pay said taxes. assesaaenta, insurance premiums and ground rents. Lender may trot charge for ao holding and applying the Funds, analyzing said account. or verifying and compiling said aasessm~ts and bills. unless I.andar pays Borrower inteseet on We Funds and applicable law permits Lender tp make such a charge. Borrower and Lander may agres is writing at We time of execution of this Mortgage that interest on We Funds ahaU be paid to Borrower. and unless such agreement is made or applicable law requires such interest to be Paid, Lender shall not be required to pay Borrower any intered or earnings on We Funds. Lender shall give to Borrower. without charge. an annual accounting of the Funds showing credits and debits to the ~ ds and the pnrPose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this rigage- i If the amount of the Fonda hdd by Leader, together with the future monthly installments of Funds payable prior to the due dates of taxes. 1 assessments, insurance premiums and ground rents, shall e:ozed the amount required to pay said fazes. assessments, insurance premiums 111, and gronad rents as they fall dne, arch excess shall be. at Borrower's option, either promptly repaid to Borrower or credited to Borroweron monthly irutallmen4 of Funds. Ii the amount of the Funds held by Lender ahatl not be sufficient to pay taxes, ssaeaaments, insurance premiums and ground rents as they fall dne, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lends to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any trends 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 sale 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. AppHcatioa 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 herro~ then to iatesed 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 oust 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 furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall m eke payment directly, $orrower shall promptly furnish to t 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 so long as Borrower shall agree in writing to the payment of the obligation secured by such lien in s manner acceptable 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. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass by fire, hazards included within the teen "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 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. Al) 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. AU insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of lase, 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 to the anme 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 ).ender 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 Lender's option either to restoration or repair of the Property or the snma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 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 Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation sad Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall 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 a 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 rnnstituent documents. If a condominium or planned unit development rider is executed by Borrower and rernrded 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 hereof. 7. ProteMion 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 Lendei s interest in the Property, including, but not United to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then ),ender at Lender's option,npoa notice to Borrower may make such appearances, disburse arch arms and take arch action as is necessary to protect Leader's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lends required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required b maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lmdds written agreement or applicable Law. Borrower shalt pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amonnta disbursed by Lender perapant 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, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and aha11 bear interest from the date of disbursement at the rate payable from time to time on outstanding principal render the Note unless payment of intered 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 rnntained in this paragraph 7, shall require Lender to incur any expense ar take any action hereunder. 8~~~3~5 PAGE2O~Q