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HomeMy WebLinkAbout2195 _ , ~ ~ _ 1 Borrower anti Lender oovenaat and agree as follows. 1. Pwymeat of Principal and Interest. Borrower shall promptly pay wban due the principal of and interest on Ws indebtedness ` evidenced by the Note, prepe~yment and late charges as provided is the Note, and the principal o~ and interest on any Fnturs Advances secured by this Mortgage. 2 Ftiiads for Ta:es sad Iasuranos. Subject to applicable law or to a written waiver by Leader, 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 tbll, a sum (herein "Funds'? equal to one ~twelf W of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any. plusone- twelf W ofyearly praniuminstallments for hasard insurance, plus onetvrelf W ofyearly premium installments for mortgage insurance, if any. all ea reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Plrnds shall be held in as institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such an institution). Leader shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rests. Lender may not charge far so holding and applying-the Funds. analyzing said account, or verifying sad compiling said assessments and bills, unless Lender pays Borrower intereston the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage W at interest on the lends shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest or eamiags on the Funds. Leader shall give to Borrower. without charge, an annual aoDOUating of the Funds showing credits and debits to the 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. Tf the amount of We Funds held by bender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums sad ground rents, shall exceed the amount required to pay said lases, assessments, insurance premiums i and ground rents as they fall due, such exosas shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on 1 monthly installments of Phnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, asaesarnents. insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make rep the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf Hader paragraph 18 hereof the Property is sold or the Property is~Wswise. acquired by Lender. Lender shall apply, no later Wan immediately prior to the sale of We Property or its aequisition by Lender, any Funds held by Lender at the time of application as a credit against We soma secured by this Mortgage. . 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 sad 2 hereof shall be applied by Lender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, Wen to interest payable on the Note, Wen to We principal of the Note, and Wen to interest and principal on any l~rture Advances. 4.Charges; Liens. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to WePropaty which may attain a priority over Wis 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 We payee thereof. Borrowershall promptly furnish to Leinda all notices of amounts due unda3his 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 Wis Mortgage; provided, Wat 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 enforcemer~tof such lien in, legal proceedings which operate to prevent We 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 against lass by fire, hazards included within the term "extended coverage," 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 Wat amount o_f coverage required to pay We sums secured by Wis Mortgage. The insurance carries providing the insurance shall be chosen by Borrower subject to approval by bender; provided, that such approval shall 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, wher 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 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 lender all renewal notices and all receipts of paid premiums. In We event of logs, 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 pnx~eeds shall be applied to restoration or repair of We Property ~ damaged, provided such restoration or repair is economically feasible and We security of this Mortgage is not thereby impaired. If such ~ restoration 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 We 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 We Property or We soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postponethedne date of We monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of each installments. 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 proceeds = thereof resulting from damage to Property prior to We sale or acquisition shall pass to Lender to We extent of We sums secured by this r Mortgage immediately prior to such sale or acquisition. 6. Pre~aervation 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 wiW We provisions of say lease if Win 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 creatingvf governing the condominium or planned unit development, We by-laws and regulations of the condominium or planned unit development, and rnnstituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together wiW Win Mortgage, We covenants and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenants and agreements of Win Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform We covenants and agreements contained in this Mortgage. or if say 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. Wen header at Lender's option,upon t notice to Borrower may make each appearances, disburse each same and take such action as is necessary to prated Lender's interest, t including, but not limited to, drsbursement of reasonable attorney's fees and entry neon We Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by Wis Mortgage, Borrower shall pay We premiums required to maintain each insurance in effect until such time as We requirement for such insurance laminates in accordance wiW Borrower's and Larder's written agreement or applicable Law. Borrower shall pay We amount of all mortgage insurance premiums in We manner provided render paragraph 2 hereof. - Any amounts disbursed by Lender persuant to Wis paragraph wiW interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrows and Lender agree to oWa tams of payment, arch amounts shall be payable upon notics from Lender to Borrows requesting payment Wereof, and shall bear interest from We date of disbursement at the rate payable fiom time to time on outstanding principal ands 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 undo applicable law. Nothing eontained in Wis paragraph 7, shall require Lends to incur any expense or take any action hereunds. ` a ~3~7 ~a~E2192 .