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HomeMy WebLinkAbout0678 o , • t; f _ •t Borrower sad Lender covenant sad agree as folbws: 1. Pairment of Prilneipal and latered. Borrower shall promptly'pay when due the principal of and interest on the indebtedneq evidenced by the Note, prepayment and late charges as provided in the Note. and the principal of and interest on any Enters Advances secured by this Mortgage. . • Z. IN1~nds for Taaea and Luaranoe. 8ubjed to applicable law or to a written waiver by Lender. Harrower shall pay to Lender oa the day moaWly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds'? equal to ona- wellW ofthe yearly taxes and aweesments which may attain priority over this Mortgage, end ground rents on Weproperty, if any, plw one- ~we1Rh of yssrly pr+eminm installnneats for hasard insurance. plw one•twelfth of yearly premium installments for mortgage insurance, U any. all as reasonably estimated initially sad hone time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Enacts shall be held in as institution the deposits ~ aooounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such as institution). Lender shall apply the Funds to pay said taxes, assesanents, iasnranoe premiums and ground rents. Lwder mq? not drarge far ao bolding sad applying the Funds, anslysing said account, or verifying-and compiling said. assessments end biW, unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecutioa of this Mortgage that interest on the Fends shall be paid to Borrower, and unless _ such agreement is made os applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings oa the Fbnds. Fender shall give to Borrower. without charge, an annual aeoouating of the Funds showing credits and debits to the Enacts 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 We 1?linds held by Lender, together with the future monthly installments of Fends payable prior to the due dates of taxes. assessments, insurance premiums and ground rents. shall exozed the amount required to pay said taxes. assessments, insurance premiums and ground rents as they fall dw, such excess shall be, at Borrowei"s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of 1?1mds. If the amount of We Inds held by Lender shall not be sufficient to pay taxes, assessments. insurance pnmiuau and ground rents. as they fall due, Borrower shalt pay to Lender say amount necessary to make up the deficiency wiWin 30 days from the date notice is mailed by Leader b Borrower requesting payment thereof. Upon payment is fell of all sums secured by thin Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If ender paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lends, Leader shall apply, no later Wan 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 We soma secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise. all payments received by bender under We 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 We Note, Wen to We principal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Lieaa. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority ova: ibis Mortgage, and leasehold payments or ground rents. i[any, in the manner providetl 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 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, W at 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 acxeptable to Lender, or shall in good faith contest such lien by, ordefend enforcementof such lien in, legal pra:eedings which operate to prevent We enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the irnprovementa now existing or hereafter erected on the Property inanred against lose by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; provided. that Lender shall not require that the amount of such coverage ezceed that amount of coverage required to pay the sums secured by Win 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 W ereof 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 lender all renewal notices and all receipts 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 ernnomically feasible and the security of Wis Mortgage is not Wereby impaired. If such restoration or repair is not economically feasible or if the security of W is Mortgage would be impaired, We insurance proceeds shall be applied to the anms 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 W at W e insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply We insurance proceeds at Lender a option either to restoration or repair of the Property or We soma secured by Wis 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 We 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 aognired by Lender, all right, title and interest of Borrower in and to any inswance policies and in and to We prooe~eda 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; I.easehotds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply wiW the provisions of any lease if Wis Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development. Borrower shall perforan all of`Borrower's obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, We by-laws and regulationB of the rnndominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with Wis Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend and supplement Wecovenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform We.eovenants and agreements contained in this Mortgage, ar if any action or proceeding is oommeneed which materially affects Lender s interest in the Property. including, bet not limited to, eminent domain, insolvency. code enforcement, or arrangements or proceedings involving a bankrupt or decedent. then Leader at Lender's option,npoa notice to Borrower may make such appearances. disburse such some and take sack action as is necessary to protect Leader's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Leader regretted t mortgage insurance as a condition of making We loan secured by Win Mortgage, Borrower shall pay We praniums regretted to maintain such insurance in effect until such time as We requirement for such insurance terminates in aeoordance wiW Borrower's and Lender's 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 persnaat to this paragraph 7, wiW interest Wereon, 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 Wereof, and shall bear interest from We date of disbursement st We rate payable from time to time on outstanding principal under the Note unless payment of interest at such rate would be wntrary to applicable law, in which event sneh amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall require bender to incur any expense or take say action hereunder. g~x316 Pasf 6'7'8 '