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HomeMy WebLinkAbout2203 y ,~~~t~ Borrower sad Lender covenant and agree a, follows: 1. Payment of Prinelpal and Interest. Borrower shall promptly P4Y when due the principal of and interest oa the indebtedness evideaeed by the Note, prepe~yment and late charges as Provided in the Note. and the prin r~pal of and interest on any Pliture Advances secured by this Mortgage Z. Funds for Taxes and Insit~ranoe. Subject to applicable law or to a written waiver by I.ender, Borrower shall pay to Lender on the day monthly instalbaa$itta of principal and interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds'? equal to one- ' twelRh of the yearly taxes and assessments which may attain priority over this Mortgage. and ground rents on the Property, if any, plus oas twelRh of yearly premium installments for hasard insurance, plus one•twelfth of yearly preniam installments for mortgage insurance, if any, all as reasonably estimated initially sad from time to time by IRnder on the bans of assessments and bills and reasonable estimates thereof. The Fends shall be held in sa institurion We deposits or account's of which are insured or guaranteed by a Federal or State agency . (including Lender if Lender is such an institution). Lender shall apply the Fund's to pay said taxes, assessments. insurance premiums and ground rents. Lender array act charge for p holding and applying the Funds. analysing said account. or verifying and compiling said assessments and bills, unless Lender pays $orrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Fender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, sad unless each 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 Fends. Lender shall give to Borrower. wiWout charge. an annual aooounting of the Funds ahowingcredits and debits to the ' Funds and the purpose for which each debit to the Funds was made. The Ftiinds are pledged as additional aecarity for We sums secured by this Mortgage. - If the amount of the Ftimda held hy_I,erider, togeWer with the future monthly installments of Fonda payable prior to the due dates of taxes. assessments. insurance premiums and ground rents. shall exceed the amount required to pay said taxes. asaeesmerit0. insurance premiums ! and ground rents as Wey fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on ~ monthly installments of Ptiuids. If the amount of the Linda held by Lender shall not be sufficient to pay taxes. assessments, insurance i preniinma and ground vents 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 anma secured by this Mortgage, Leader shall promptly refund to Borrows any funds held by Lender. If under paragraph 18 hereof the Property is sold os the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior ~ to the sale of the Property or its aegiriaition by Lender, any Funds held by Lender at the time of application as a credit against thesams secured j by this Mortgage. 3. Applies;ion of Payments. Unless applicable -law provides otherwise. all payments received by Lender under the Note and I 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 We Note, then to the principal of the Note, and then to interest and principal on any Ftiiture Advances. - 4. Chargew; Liens. Borrower shall pay all taxes, assessments and other charges. fines 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 melriner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly famish to Lender all noticce of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly funush 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, ar 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 in.provenents now existing or hereafter erected on the Property insured againatlose by fire, hazards included within the term "e:tended coverage." and such other hazards as Lender raay regaire 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 coverage reganed to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender; 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, when due, direMly to the insurance carrier. - Allinsurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of ~ and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of losa~ Sormwer shall give prompt notice to the insunince carrier II 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 this Mortgage would be impaired, the insurance proceeds shall be applied to the same 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 the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnl1eM and apply the insurance proceeds at Lender s option either to restoration 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 extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If ender 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 extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominuma; Planned Unit Developments. BorrowerahaU 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 rnndominium or a planned unit development, Borrower shall perform all of Borrower a obligations under the declaration or rnvenanta creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium 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 rnvenants and agreements otthis Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perforrn the oovenanta and agreements contained in this Mortgage. or if any action or proceeding is commenced which materially affects Lender s interest in We 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 optioa,npon notice to Borrower may make such appeararioee, disburse such sums and take such action sa is necessary to protect Lende:•s interest, including, but not Umited b, disbursement of reasonable attorney's ices 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 We premiums required to maintain arch insurance in effect until each time a9 the requirement for such insurance terminates in aeoordance with Borrower's and Lenderr's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided nodes paragraph 2 hereof. Any amounts disbursed by Lender perauant to this Paragraph 7, with interest thereon, shall become additional indebtedness of Borrows- secured by this Mortgage. Unless Borrower and Lender agrce to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from . time to time on outstanding principal ender 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 under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. g3~.7 P~E~?00