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HomeMy WebLinkAbout1087 W , Borrower sad Leader vovenaat sad ague as faliorrs: 1. Payment o! Principal and lnter+est. Borrower shall P~Ptly P+tiY when due the principal of sad interest oa the indebtedness evidenced by tM Note. prepayment and late d?arges as provided in the Note. and the principal of and interest on any F1dun Advances secured by this Mortgage. 2. Fhnda for Taues and Irrsaranoe. 8ubjed to applicable law or to a written waiver by Lendes, Borrows shall pay to Leader on the day monthly instaUmeats of principal sad interest an payable under the Note. until the Note is paid in full. a sum (herein "Funds'? equal. b oas twelfth of the yearljr loxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plw oae~ twelfth of yearly premium installa~ts for hasard insurance, plus onetwelRh ofyearly premium installments far mortgageinsuranoe, if any. all as reasonably estimated irutialRy sad from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof: The Funds shall bs heW in an institutive We depodts or aoDOUats of whi..h an insured or guaranteed by a Federal or State agency (including Leader it Lends: is anch an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lender may not charge fa so holding sad applying the Funds, analysing said aecvunt. or verifying and compiling said + assenmenta sad bills, unlsss Lenderpays Borrower interest on tree Funds and appUcable law permits bender to make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unless each agreement is made or appUcable law regains anch interest to be pain, u:avm shall not be required to pay Borrower any interest or earnings oa the Funds. Leader shall give to Borrower, without charge, an annual aeoounting of the Funds showing credits and debits to the Funds and tbs purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgega. . If the amount of We Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asseesnnnents, insurance premiums and ground rents, shall e:ezed the amount required to pay said taxes, assessmmenta, insurance premiums and ground rents as they fall due, ouch excess shall be, at Borrowers option, eithe:promptly repaid to Borrower or credited to Bonwwer on monthly inalaUmenta of Funds. Tt the amount of the Funds held by Lender shall not be sufficient to pay taxes. assessments. insurance premiums and grognd rents as they fall due. Borrower shall pay to Lender any amount neoeesarx to make up the defiiaency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. Upva payment in full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Leader. 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 Bale of the Property or its aogniaition by Lender, any Funds held by Lender at the time of application as a credit against the awns secured by this Mortgage. 3. Application of Payments. Unless appUcable law provides otherwise, all payments received by bender under the Note and paragraphs 1 and 2 hereof shall be applied by Leader first in payment of amounts payable to Lender by Borrower ender 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, assessments and other charges, fines and impoaitionsattributable tothe may attain a riorit over this M Property which p y ortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or, f if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender ail notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly famish to 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 a manner acceptable to Lender, or shall in good faith rnntest such lien by, ordefend enforeerreent ofsuch lien in, legal proceedings hick 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 againatloss by fire, hazards included within the term "extended coverage," and anch 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 exceed that amount of coverage required to pay the soma 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. Ail premiums on insurance policies shat! be paid in the manner provided under paragraph 2 hereof or, if r,vi µiia'~ ;n 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 in form acceptable 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 receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and bender. 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 n~loration 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 offers to settle a claim for insurance benefits, Lender is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the { Property or the soma secured by this Mortgage. ! Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not eztend or postpone the due date of the monthly inataUment$ referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof We 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 and Maintenance of Property; Leaseholds; 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 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 rnvenants creatingor governing the condominium or planned unit development, the by-laws and r+egulationa 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 this Mortgage, the wvenants 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. If Borrower fails to perform the oove~nants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at bender's option,npon notice to Borrower may make anch appearances, disburse such sums and take such action ere is necessary to protect I.eadet"s interest, including, but not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repsurs. If Lender required mortgage iwurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminatee in accordance with Borrower s and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender perauant 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 shall bear interest from the date of disbursement at the rate payable from 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 amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any e:penee or take any action hereunder. a~oK 316 PA~f 1087 S