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HomeMy WebLinkAbout0670 • t-~ a ' S 1 Borrower and Lender covenant and agree as folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by We Note. prepayment sad late eberges as provided in the Note. and the principal of and interest oa any Future Advances secured by this Mortgage. 2. Funds for Taxes sad Inerrrsaoe. Subject to applicable law or to a written waiver by Leader, Borrows shall pay to Lender oa the dsy monthly installments of principal and interest are payable under the Note, until the Note is paid in full. a sum (herein "Funds'? equal b ors twelfW of the yearly tares sad assessments which may attain priority over this Mortgage. and ground rents on the Property. if any, plus on~~ twelfW of yearly premium installments foe hasard insurance, plus one•twelf W ofyearly premium inataihments 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 Phads shaA be held in an institution the deposits or amounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lends: is such an institution). Lender ahaU apply the Funds to pay said tares. assessments, insurance premiums and grannd rents. Lender easy not charge far so hQMing and applying the Funds, anatyring said amounk or verifying and rnmpiling said - - assessments sad bills, nnlep Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Leader may agree is writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, sad unless each agreement is made or applicable law requires each interest to be paid. Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lendm ahaU give to Borrower, without charge. an annual amounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for We same secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior b the due dates oftaxes, asaasmeats, insurance premiums and ground rents, ahaU exosed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower's option. either promptly repaid to Borrower or credited to Borrower on monthly iastallmeats of Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments. insurance premiums and ground rents u they fall-due; Borirowelr shall pay to Lender any amount necessary t6make up the deficiency within 90days- from We date notice is mailed by Lender to Borrower requesting payment Wereof. Upon payment in fall o[ 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 Wan immediately prior to We sale of the Property or its aoquiaition 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 paragraphs 1 and 2 hereof shall be applied by Lender fast in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, rhea to interest payable on We Note, Wen to We principal of the Note, and Wen to interest and principal on -any Future Advances. 4. Chazgca; Liens. Borrowerahall pay e!I taxes, aAmenta and otherchargea fines and impositions attributable to WeProperty which f 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 Wereof_ Borrower shall promptly furnish 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 receipts evidencing ouch payments. Borrower shall promptly discharge any lien which has priority over Wis Mortgage; provided. West 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 of such lien in, legal proceedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part Wereot 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured againstloas by fire, hazards included within the tens "extended rnverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed Wat 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 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 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. to the event of lass, Borrower shall give prompt notice to We insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. ii 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 Wereby impaired. If such it restoration or repair is not economically feasible or if the security of this Mortgage would be impaired We insurance proceeds shall be applied to We soma secured by Wis 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 We date notice is mailed by Lender to Borrower Wat 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 restoration or repair of the Property or We sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall note:tend 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 We proceeds thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We a:tent of the soma 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 comply wild We provisions of any lease if Wia Mortgage is on a leasehold. I[ this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or rnvenanta creatingor governing We condominium or planned unit development, We 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 wild Wis Mortgage, We covenants and agreements of such rider ahalibe incorporated into and shall amend and supplement thecovenants and agreement~of Win Mortgageasifthe # rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform We ooveaanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lenders interest in the Property, including. bat not limited to, eminent domain. insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, Wen Lender at Lender's option,apon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Leaders interest, including. but not limited to, disbursement of reasonable attorney a fees and entry upon We Property to make repaire. If Leader 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 each time as We requirement for such insurance terminates in accordance wild Borrower's and Lenders written agreement or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to Wis paragraph 7, with interest Wereon, shall become additional indebtedness of Borrower secured by Wis Mortgage. Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from We date of disbursesneat at We rate payable from time to time on outstanding principal under the Note anlesa payment of interest at such rate would be contrary to applicable law, in which event such amounts shall bear interest at We highest rate permissible under applicable law. Nothing contained in Wis paragraph 7, shall require Lender to incur any expense or take say action hereunder. - a~x3Z6 PEE 6`70 . ~l.