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HomeMy WebLinkAbout1909 1 _ _ ~ - - _ ___s~_..._~ _ - - - lac~rrower and Lender covenant and ogres as folbwa: - 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest oa the iadebtedneae evidsnoed by the Note, prspaymeat sad late drarga as provided in the Note. and the principal of sad interest on any Ptitnre Advances secured by thin Mortgage. - - -S.Ponds for Taws sad Insurance. Subject to applicable law cr to a written wsiver by I.ender, Borrow~shaA pay to Lendm on the dqy monthljr inetallraenta of prlacipel and interest are payable under the Note, until the Note is paid in full, a sum (herein "Phnds'~ equal to oae- twel~th of the yeartjr takes and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any. Plus oar twelfth of yearly premium irustalhaents forLasard insurance, phis onst~relfth ofyearly Premium installments for mortgage insurance, if aqy, ' all as reaeonabljr estimated initieltyr and firora time to time by Lender on the basis of assessments and bills and reasonable estimates thereoL The a~lends shall bs held in an institution the dbpoaits or accounts of which are insured otguaranteed by a:Federal or State agency (indndiag Lender if Larder is arch an inatitntion). Lender shall apply the Pbndr to pay said tares, aaseesmaits. irunranee premiums and hronnd rears. Lender may not drarge for so hokliag and applying the Funds, analys;ng said account, or verifying and compiling said assessments and bills, unless Lender 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 execntioa of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreem~t is made or applicable few regaires wc>z interest to be Paid, Lender shall not be required to pay Borrower any interest or _ earnings on the Farads. Louder shall give to Borrower, without charge, an annual aooountiag of We Funds showing credits and debits to the Ponds and the purpose for which each debit to the Farads was made. The Fonda are pledged as additional security forthe sums secured by this Mortgage. Ifthe amount otth Farads held by Lender, togetherwith the fntnremonthlyinstallments ofFUndspayablepriortotheduedatesoftares, asaeeameats, inaaranoe premiums and ground rents, shall ezosed the amount required to pay said fazes, aseessarents, insurance premiums and ground rents as they fall doe, ouch excess shall be, at Borronrds option. either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. if the amount of the Funds held by Lender shall sot be anfficient to pay taus. aaseesraenta, inacuanoe premimns 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. Upon payment in fall of all sums erected bq this Mortgage, Lender shall promptly refund to Borrower any farads held by Lender. ffender paragraph 18 hereof the Property is sold or~he Property is otherwise sognired by Lender, Lender shall agp>,y, no later than immediately prior to the sale of the Property or its aognisition by Lender, any F'nnds held by Leader atthe time of application as a credit against the anma aecnred by this Morpgagr. - 3. Application of Pe4yments. Unless appficabk law provides .otherwise, all payments received by Lender under the Note and paragraphs 1 and Z hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof; they to interest payable on the Note. then to the principal of the Note, and the to interest and principal on any Fbture Advances. - 4.Charges;Liens. Borrower shall pay all fazes, aaeeesments and other drarges, fines and impositions attribntableto the Property which may attain a priority over this Mortgage, and kaaehold payments or ground rent. if any. in the manner provided under paragraph 2 hereof or. if not paid in inch manner. by Borrower making payment, when due. directly to the payee thereof: Borrower shall promptly fnnniah to L,ender all notices of amonnta due Hader this Paragraph, and in the event Borrower shall make payment directly. Borrower shall promptly furni9h to Leader reoeRpts evidencing such payments. Borrower shall promptly discharge any lien which has priority over t_hia Mortgage; Provided, that Borrowershall-not be required to discharge any such lien eo long as Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Leader, or shall in goad faith eonteat such lien by, or defend enforcement of such Gen in, legal proceedings which operate to prevent the enforcement of the Gees or forfeiture of the Property or any part thereof. 5. Aasard Instarance.,Borrowdrrhall keep the improvements now existing or hereafter erected oa the Property insured against loss by fir'0. hazards inducted within the term "e:teaded coverage," and such other hazards as Leader may require and in ouch amonnta and for such periods as Leader may require; Provided, that header shall not require inch coverage amount ezceeding the minimum, as may be required by state or federal regnlationa governing activities of Lender, or that amount of coverage required to pay the anma 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 shall not be nnreaeonably withheld. All pnmiume 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 thereof shall be in form acceptable to Lender and shall include a standard mortgage dense in favor of and in form aooeptabk to Lender. Leader shall have the right to hold the policies and renewals thereof, and Borrower shall promptlq furnish to - iranderall renewal notices sad all receipts of paid preminma In the event of loss, Borrower shall give prompt notice to the insurance carrier and Larder. Lender may make proof of loss if not made promptly by Berrower.- _ 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 thin Mortgage ie not thereby impaired. If such restoration or repair is not eoonomicallq feasible or if the security of this Mortgage would be impaired, t.!ne insurance proceeds shall be apgGed to the sums secured by this Mortgage, with the aoess, if aqy, paid to Borrower. ifthe Property is abandoned by Borrower, or if Borrower fails to respond to Leader within 30 dogs from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a dorm for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lendds option ether to r~eatoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not e:tead or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or d~ange the amount of inch inatallmenta. if Hader paragraph 18 hereof the Property is aegnired by Lender, all right, tick and inta+est of Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the axle or aognisition shall pass to Lender to the eztent of the suuas secured by this " Mortgage immediately prior to such sale or sogninition. 6. Preservation and Maintenance of Property; Leaseholds; Condominnms; 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 s planned Wait development, Borrower shall perform all of Borrowds obligations ender the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the oondomininm or planned Wait development, and coastitnent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the ooveaaats sad agreements of such rider shall be incorporated into and shall amend and anpplement the covenants and agreements of this Mortgage as if the rider were-a part hereof. - 7. Protection of Lender's Secarfty. Tf Borrower fails to perform the covenants and sgr+eemeats oontaiaed in this Mortgage, or if any action or proceeding is oomnn~ced whidr matErially affects Lendds interest in the Property, inducting, bnt not limited to, eminent domain, insolvency, code enforcement, or arrangements ~ grooeedinga involving a bankrupt or decedent, then Leader at Leader's notice to Borrower may make such appearances, disburse inch sus and take such action as is ~o4nP~ indmling, brat not limited to, dubnnement oaf resaoaabk attarney'a fees and entry npoa the Property to maketo pe+oted Leadda interest, mortgage insurance as a condition of m Tf Leader regnir+ed along the loan secured by this Mortgage. Borrower shall pay the premiums required to maintain sash insurance in effect until such time sa the regniremeat for andr insurance terminates in aooordanos with Horrowds sad I,eodda written agreaneat or applicable Law. Borrower shall pay the amount of all mortgage insurance preminma in the manner' Provided Hader paragraph 2 hereof: - Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured bq thin Mortgage. Unless Borrower and Lender agree to other terms of payment, sack amounts shall be payable upon notice from Leader to Borrower requesting payment thereof and shall bear interest from the date of disburaaaent at tlm rate pagabk fe+om time to time oa outstanding Principal Hader the Note unless payment of iatereat at ands rate world be contrary to applicable law, in which event sash amounts shall bear interest at the highest rate permissible ender applicable law. Nothing oonteined in thin paragraph 7, shall require Lender to incur any ezpwse or take any action hereunder. s~~K31? PA~E1~6