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HomeMy WebLinkAbout1921 i ; ~ t i~4 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay whey due the principal of and interest on the indebtedness evidenosd by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on say I~ture Advances secured by this Mortgage. 2 Pltnds for Taxes and Inasranos. Subject to applicable law ar to a written waiver by I.ender, Borrower shall pay to I.enda on the day monthly instalbneats of principal and interest are payable under the Note, until the Note is paid in frill, a sum (herein "Funds' equal to one twelfth of the yearl,? to:ea and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any. Plusone- twelfth ofyearlypremiuminstallments far hasard insurance, plea onetwelt'th of yearly premium inetalbnents far mortgageinsaranoe, if any. all as reasonably estimated initially and liroan time to time by Lender on the basis of assessments and bills and seasonable estimates thereof The Funds shall be held in an institution the depodh ar accounts of which are insnr+ed ar guaranteed by a Fedsal or State agency (inducting Lender if Lender is such an ioatitation), Lrnds shall apply the Funds to pay said fazes, assessments, insurance premiums and ground reab. Lender may not charge for so hoktiag and applying the Fends, analysing said accour?R or verifying and compiling said aaessmrnts and bills. unless bender pays Borrower intereston the Funds and applicable law permits Lender to make such a charge. Borrower and Leads may agree in writing at the time of ezecatioa of thin Mortgage that interest on the Fnnda shall be paid to Borrower, and udeee such agreement is made ar applicable law requires sneh interest b be Paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Borrower, without d•.arge, an annual accounting of the Farads showing credits and debits to the Fends and the purpose for which each debit to the Panda was made. Tlie Funds are pledged ae additional security for the nnms secured by this Mortgage. Tf the amount of the Funds held by Lender, together with the future monthly installments of Fnnde payable prior to the due dates of tries, assessments, insurance premiums and ground rents. shall ezoeed the amount required to pay said razes, assessments, insurance premiums and ground yenta as they fall due, such ezaees shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of F1mds. If the amount of the Fends held by Lender shall not be sufficient to pay lases. asaessanests, insurance premiums and gr+wmd rests as they fall due, Borrower shall pay to Lender any amount necessary to make cep the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting Payment thereof. - Uponpayment in full ofall anmssecured bythis Mortgage. Lender shall promptly refund to Borrower any rends held by Lender. If under paragraph 18 hereof the Property is sold ar the Property is otherwise aognised by I.ender, I~end~ shall ably, no later than immediately priar to the sale of the Property ar its aognisition by Lander,any Funds held by Lender atthe time of application as atredits~eiinsNhe sums secured by thin Martgage. - - ~ ~ - 3. Application of Pgymenta. Unless applicable law provides otherwise. all payments received by Len~,~nds the Note and paragraphs 1 and 2 hereof shall be applied by Lender first is payment of amounts payable to Lender by Borrower ender paragraph 2 hereof then to interest payable on the Note, then to the pyre©pal of the Note, and then to interest and principal on any Future Advances. 4. Charges; Bens. Borrower shall pay all lazes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over thin Mortgage. and leasehold payments ar 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 Lender all notices of amounts due ands 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, that { . Borrower shall not be required to discharge any arch lien no long as Borrower shall agree in writing to the payment of the obligation natured by t such lien in a manna acceptable to Lender, os shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings whid? operate to prevent the enforcement of the lien or forfeiture of the Property ar any part thereof. 5. Hazard Insuraaoe. Borrower shall keep the improvements now e:isting ar hereafts erected on the Property insured against loss by fire. hazards inducted within the term "eztended coverage," and such other hazards as Lends may require and in such amounts and for each periods as Leader may require; Provided, that Lender shall not require such coverage amount ezceeding the minimum, as may be required by state ar federal regulations governing activities of Lender, ar that amount of oovaage required to pay the sums secured by thin Mortgage, whichever is the greats. The insurance carries providing the insurance shall be chosen by Borrows subject to approval by Lender, provided, that such approval shall not be anreaaonably withheld. All premiums on insurance policies shall be paid is the manner provided ands paragraph 2 hereof or, if not paid in such manna, by Borrows making payment, when due. directly to the insurance carris_ All insurance poliiaes and r+eiewals thereof shall be in form stoeptable to Lends and shall inducts a standard mortgage dense in favor of and in form aeceptabk to Lends. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly farniah to mends all rrnewal notices and all receipts of paid premiums. In the event of lass, Borrows shall give prompt notice to the insurance carrier and Lends. Lends may make p. oof of Ices if not made promptly by Borrows. Unless Leader and Borrows otherwise ague in writing, insurance proceeds shall be applied to restoration or repair of We Property ~ damaged, provided each restoration ar repair is economically feasible and the a~~carity of this Mortgage is not thereby impaired. If such ~ f restoration ar repair is not economically feasible ar if the security of this Mortgage world be impaired, the insurance proceeds shall be applied f to the same secured by this Mortgage, with the e:oeas, if any, paid to Borrows. If the Property is abandoned by Borrows, or if Borrows fails to ~ respond to Lender within 30 days frrom the date notice is mailed by Lender to Borrower that the insurance carrier offers to setae a daim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration ar repair of the Property or the arms secured by this Mortgage. ~ - Unlese Lender end Borrows otherwise agree in writing, say each application of proceeds to principal shall not eztend ar postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof ar dsange the amount of arch installments. If Wade paragraph 18 hereof the Property is acquired by I.ends, all right, title and interest of Borrower in and to any inauraaoe policies and in and to the proceeds thereof resulting from damage-to Property prior to the sale or aogniaition shall pees to Lends to the ezteat of the sums secured by this Mortgage immediately prior to su~L sale or aognisition. - 6. Preservation and ilaintenance of Property; Leaseholds; Condomianma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not emit waste ar permit impairment ar deterioration of the Property and shall comply with the . provisions of any leaaeif this Mortgage is on a leasehold. Zf this Mortgage is on a unit in a condominium or a planned Wait development, Borrows shall perform all of Borrowa'a obligations under the declaration or covenants czeatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and oonstitnent documents. If a condominium or planned unit development ride is ezecsted by Borrows and recorded together with this Mortgage, the covenants and agreements of suds rids 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 t3ecarity. U Barrows fails to perform the ooveaants and agreements contained is this Mortgage, ar if any action or proceeding is oammenoed which materially affects Lender's interest in the Property. inducting, but not limited to, eminentdomain, - insolvency, code enforcement, ar arrangements ar proceedings involving a banlQnpt or decedent, then Leader at Leader's option,npon notice to Borrows may make such appearances, disburse each sums and take such action as is necessary to protect Leader's interest, indnding, but not limited to, disbursement of reasonable attorney's fees and entry neon the Property to make repairs. If Lender required mortgage inanranoe as a condition of making the loan secured by this Mortgage, Borrows shall pay the premiums r+egnired to maintain each iasmranoe in effect until such time as the requirement for ands insurance terminates in aooordanee with Borrorvds and Lender's _ written agreement ar applicable Law. Borrows shall pay the amount o[ all mortgage insurance premiums in the means provided Wads paragraph 2 hereof. Any amounts disbursed by Lender pereuaut to this paragraph T, with interest thseon, shall become additional indebtedness of Borrower secured by this Mortgage. Unkss Borrower and Leader agree to orbs tams of Payment. each amounts shall be payable upon notice t9rom Leads to Barrows regnesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outstanding principal ends the Note unless payment of iatarest at such rate would be contrary to applicable law, in which event each amounts shall bear interest at the highest rate permissible ands applicable law. Nothing ooatained in this paragraph shall require Lender to incur any expense or take any adios herennda. B~DK 3~.`~ PAGE ~9~5