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HomeMy WebLinkAbout0047 Borrower and Fender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o[ and interest un the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, t3orruwer shall pay to Lender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal toone- twelft6 ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the I'roperiy, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one~twelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time totune byIxnder on /he basis of assessments and bills and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Bon: ower interest on the F ands and applicable law permits !.ender to make Ruch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Burrower, 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 earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting 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. If the amount of the Funds held by Lender, together with the future monthly installments of Finds payable prior to the duedates of taxes, assessments, inswance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they tall due, such excess shall be, at BotTOwer's option, either promptly repaid to Burrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds held by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums 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 full of all sums secured by this Mortgage, i.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shall apply , no later than immediately prior to the sale of the Property or its acquisition by Lender, any Nunds held by Ixnder at the time of application as a credit against the sums secured 6y this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Ixnder 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 to interest payable on the Note, then to the principal of the Note, and then to interest and principal on any Future Advances. 4. Charges: Liens. Borrower shall pay all taxes, assessments artd other charges, fines and im{xsitions attributable tf+the Property which may attain a priority over this Mortgage, and leasehold payments ur {;round rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makinK payment, when due, dirf•c•th• to the payee thereof. Bormwer shall promptly furnish to Lender all notices of amounts due under this par.+Kraph, and in the event Iium,K•er shall make p:+yment directh•, Borrower shall promptly furnish to Ixnder receipts evidencing such payments. lic,rn,wer shall promptly disch:vKe am• lien K•hif•h has priority over this Mortgage; provided, that Borrower shall not be required todischarKe any such lien cu lonk as 1tl,rn,K'f•r shall ati~rc•f• in writin{; to the payment of theobliKation secured by such lien in a manner acceptable to Ixnder, or shall in Kfxxl faith contest such lien hy, urde•fend enfureernc•nt of such lien in, le{;al proceedings which operate to prevent the enforcement of the lien or forfeiture of thf• 1'ruperh• ur any part thenr,f. 5. Hazard Insurance. Borrudver shall keep the improvements now existinK or here:+fter erected on the Property insured against loss by fire, hazards included within the term "f•xtendfd coverage," and such ot#+er hazards as Lender may require and in such amounts and for such periods as Lender may require; providfri, that Lender shall nut rec{airs that the- amount of such nn•er.+Ke exceed that amount of coverage required to pay the sums sec•und by this MurtKaKe. i The insurance carver pruvidink the insurance shall Iw• chosen by Burn,+ver subject to approval by Lender: provided, that such approval ~i shall not be unreasfmabh• withheld. All premiums on insuranr•• policies :hall Ix• paid in the mannf•r pnn•idf•c) under par,+{;raph ? herer,f ur, i( not paid in such manner, by 1t„rrowe•r makin{; p:+rmf•nt, when duc. din•cth• t.. the insurance carrier. All insurance policies and renewals thereof shall lx in form ac•f•eptable to Lender:+nd shall include a standard mortgaKe clause in favoruf and in form acceptable to !.ender. [xndershall have the right to hold the {,•~licies and n•nev.•als thereof, and Borrower shall prompth• furnish to Ixnder all renewal notices and all receipts of paid premiurs. In the event of loss, BurmKer shall give prompt notice G, the insurance carrier and !.ender- Lender may make proof of loss if not made pmmpth• by Borrower. Unless Lender and 13c,rrower otherwiu• aKrfe in writing, insurance prfK•f•f•ds shall bf• applied to restoration or repair of the Property damaged, provided such restoration ur repair is f•f•onumically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically ff•usible nr if the security of this Mortgage would he impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any. paid to liorrow•er. If the Property is abandoned by &,rrower, or if Borrower fails to respond to !.ender within a0 days from the d;+te notie•e is mailfd by Lender to Ilf•rnrwer that the insurance carrier offers to settle a claim for insurance benefits, (.ender is authorized to collf•f•t and apply the insurance pn,f•eeds at Lender's option either to restoration ur repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agrf•e in writin{;. any such application of pnx•eeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'L herfof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of RormK•er in and to am• insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or antursitiun shall pass to !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall nf~t commit waste or pf•nnit impairment or deterioration of the Property and shall comply with the provisions of any lease if this 1ortgage is on a Irasf•hn?d_ 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 ur covenants creatingor governing the condominium or planned unit development, the by-laws and reguiaNons of the condominium ur planned unit development, and constituent documents. If a condominium or planned unit development rider is exfruted M- iiorn,w•er and recordfd together Kith this Mortgage, the covenants and agreements of such rider shall tx• incorporated into and .hall amend and supplement thecovenants and agreements otthis Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. if Burrower fails u, perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the I'ruperty, 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 upon notice to Borrower may make each appearances, disburse such sums and take such action as is necessary to protect Lender's interest, z including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repaire. If Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lender's written agreement or applicable law. Bormwer shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. s Any amounts disbursed by Lender persuant W this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree t<, other terms of payment, such amounts shall be payable upon notice from Ixnder 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 under 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 Ixnder to incur any expense ur take any action hereunder. ~ ~7