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HomeMy WebLinkAbout1030 i A• Bosrower and Lender covenant add agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges ae provided in the Note, and the principal of and inteirest on any Future Advances secured by this Mortgage. 2 Funds for Ter:es and Insurance. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under. the Note, until the Note is paid in full, a sum (herein "Funds'? equal b one twelfth of the yearl y fazes and assessments which may attain priority over this Mortgage, antl ground rents on the Property, if any, plus one• twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage uLsurance, if xny, all as reasonably estimated initially and from time to time by Lender on the basis of asseasmenta and bills and reasonable estimates thereof. The Fuada shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (inducting Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and groand rents. Lender rosy not charge for s+o hokling and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills. uaiess Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of ezecution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless soh agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower. without diarge. an annual aooauntiag of the Funds showing credits and debits to the Fonda 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 P1mda held by Lender. together with the future monthly installments of Funds payable prior tothe due dates of taxes, assessments, insurance premiums and ground rents. shall ezoaed the amount required to pay said fazes, sesessmeats, insurance premiums and ground yenta as they fall due. such ezoeea shall be, at Borrowe~a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fends. V the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, 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. - Uponpayment infull of all sums secured by thin Mortgage. Lender shall promptly refund b Borrower any fends held by Lender. $under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior - tothe sale of We Property or its soq_uisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by thin 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 first in payment of amounts 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 fazes, assessments and other charges. Ernes and impositions attributable to the Property which 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 thereof. Borrower shall promptly furnish to I.ender 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 thin 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 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 improvcenents now eziating or hereafter erected on the Property insured against lose by fire, hazards inducted within the term "eztended coverage,° and arch other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount ezceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the soma secured by this Mortgage, whichever is the greater. - The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval - ahall 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 policice and renewals thereof shall be in form acceptable to Lender and shall inducts a standard mortgage douse in favor of ~ and in form acceptable to Lender.Lender shall have the right to hold the policieF and renewals thereof, and Borrower shall promptly furnish to i.ender all r~iewal notices and all receipts of paid premiums. Ia 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, iiianrance proceeds shall be applied to restoration or repair of the Property 3 damaged, provided such restoration or repair is economically feasible and the security of this Mortgage ie not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the iaa:~ s~ce proceeds shall be applied to the soma se~cnred by this Mortgage, with the ezcess, if any, paid to Borrower. If the Property is abandoned by torrower, 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 iaauWorized to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property or the name secared by this Mortgage. ; Unless Lender and Borrower otherwise agree in writing, any each application of proceeds to principal shall not eztend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. ff 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 eztent of the soma secured by thin Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Maintenance of Property; Leeiseholda; 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 ie on a unit in a condominium or a planned snit development, Borrower shall perform ell 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, sad constituei;t documents. If a t t condominium or planned unit development rider is ezecuted by Borrower sad recorded together with this Mortgage, the covenants and agreements of such rider shall be inrnrporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. t 7. Protection of Lender's t3ecarity. Tf Borrower fails to perform t>ie wvenants and agreements contained in this Mortgage. or if any k action or proceeding is commenced which materially affects Leader's interest in the ProFerty, indading, bet not limited to, eminent domain, insolvency. code eafororn?ent, or arrangements or proc~~3dinge involving a banlmipt or decedent, then Lender at Lender's option,npon notice to Borrower may make such appearances, disburee arch same and take each action as is necessary to protect Lender's interest, inducting, but not limited to, diabnraement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage inaiaanee as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain wsh insurance in effect until each time ere the requirement for each insurance-terminates in soeordance with Borrower's and Lendet'd written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided ender paragraph 2 hereof. Any amounts diabareed by Lender persuant to this paragraph with interest thereon, shall berome additional indebtedness of Borrower secured by thin Mortgage. Unless Borrower and Lender agree to other terms of payment, each amounts shall be payable aeon notice from Lender to Borrower requesting payment thereof, and shall bear interest from tbe date of disbursement at the rate payable from time to time on outstanding principal under the Note unless payment of interest at each rate world be contrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible ender applicable law. Nothing contained in thin paragraph 7, shall require Lender to incur any e:pease or take any action hereunder. _ ~U~~ 3~7 ~~i~ .