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HomeMy WebLinkAbout1955 t _ . ; i ` Borrower and Lender oovemamt and agree as follows: 1. Payateat of Pelneipal sect Interest. Borrower shall promptly pay when doe the principal of and interest on the indebtednea evid~ead by the Note, prepayment and tats charges ar provided in the Note. and the principal of and interest on any Phture Advances secured by this ltottgage. 2 Fmtds for Tries and Insuraace. 3nbjed to applicable law or to a written waiver by I.ender. Borrower shall pay to Lender on the daffy monthly installments of prindpal and interest are payable under the Note. until the Note is paid in full, a sum (heroin "Fumds'~ equal to one- twelfth of rile yeaslytaxes and assessments which may attain prior:; over this Mortgage. and ground Teats on the Property. if any. plw one- twelfth ofyearlypremium installments for hasard insurance, plw onetwelfth of yearly pr+amium installnenta for mortgage insurance, if aqy. all as rsasw~ably estimated initially and llroan time to time by Lender on the basis of assessments and bills and r+easoneble estimates Wereof. The I•limds shall bs held in an inditntion the deposits or aaoounts of which ere insured or guaranteed by a Federal or Stara agency (including Lender ff Lemdier is arch an institution). Lender shall apply the Funds to pay said taxes, asseeameata, insurance premiums and ground rents. Leader may not charge far a holding and applying the Fonds, analysing said accowt, or verifying and oompilimg said assessments and biW, umlesa Leader pays Borrower interest on the Funds and appUcable;aw permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Inds shall-be paid to Borrawe~r. and nmless - snch agreement is made or apglKxbk law requires arch interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Ptimds. Leader shall give to Borrower. without charge, an annual aooounting of the Funds showing credits and debits to We Funds 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 Itthe amount of the Funds held by Lender, together with the future monthly installments of Eructs payable prior to the due dates of taxes, assessments, insurance premiums and ground rents. shall erased the amount required to. Pay said fazes, assessments, insurance premiams and ground Trots as they fatYdw, such e:aese ehaU be. ai Borrower's option, either promptly repaid b Borrower or credited to Borrower on monthly installments of fiends. ff the amount of the Funds held by Lender shall not be sufficient to pay tares. assessments, insurance premiums and geonnd 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 full of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any fonds held by Lender. Tf under paragraph 18 hereof the Property is-sold or the Property is otherwise acgnir+ed by Lender. Lender shall apply. no later than immediately Prm to the sale of the Property er its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this 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 b interest payable on the Note, then to the principal of the Note,-and_then to interest and principat~nn any Future Advances. _ - _ 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges. fines and impositions attributable to We 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 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, 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, ordefend enforcement ofsuch lien in,legs) 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 improvements now existing or hereafter erected on the Propert~r insured against loss by fire, hazards included within the term "extended rnverage,"and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such coverage exceed that amount of wverage required to pay the soma secured by this Mortgage. The insurance casrier providing the insurance shall be chosen by Borrower subject to approval by [.ender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. AU insurance policies and renewals thereof ahal l 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 t 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 economically feasible and the security of this Mortgage is not Thereby impaired. If such restoration or repair is not economically feasible or if the security of thin 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 bytender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect 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 installments refen~ed to in paragraphs 1 and 2 hereof or change-the amount of such instaUmeats. If 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 proseeda thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the eztent ofthe sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit lkvelopments. 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 Mortg~e 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 rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and conatitnent docnmente. If a rnndominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants 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. Protection of Lender's Security. If Borrower fails to perform the oovenante and agreements contained in this Mortgage, ar if any action or prooeoding is eommenoed 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 Lender's option,npon notice to Borrower may make each appearances. disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's face and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until ouch time as the requirement for each Insurance terminates in accordance with Borrower's and I.eada's written agreement or applicable Law. Borrower ehaU pay the amount of all mortgage insurance premiums in the meaner provided ender paragraph 2 hereof. Any amounts disbnnsed by Lender persuant to this paragraph 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 ehaU bear interest from the date of disbursems~t at the rate payable from time to time on outstanding principal under the Note unless payment of interest at ouch rate would be contrary to applicable law, in which evrot such amounts shall bear interest at the highest rate permiaeible under applicable law. Nothing contained in this paragraph ehaU require Lender to incur any asperse or take any action hereunder. e~x3~.7 P~E1~2