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HomeMy WebLinkAbout0354 Borrower and Lender covenan/ and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced !)y the Note. prepayment and late charges as provided in the Note, and the principal Oland intereston any Ftitture Advances second by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by I.ender, 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 full, a sum (herein "Funds") egos! to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, 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 to titre by Lender on the 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. bender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said aseesamenta and bills, unless Lender pays Borrower interest on the Fonda 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 that interest on the Funds 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 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 forthe sums secured by this Mortgage. If the amount of the Pltnda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shalt be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If 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 oral( sums secured by this bortgage, Lender 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 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 !aw provides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by [.ender 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. $orrower shall pay all taxes, assessments and other charges, Fines and impositions attributable to the Property which may attain a priorityover thix Mortgage, and leasehold payments urKmund rents, if any , in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof Burrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly. [irrower shall promptly furnish W [.ender receipts evidencing such payments. Rc,rruwer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower steal! not be required to discharge any such lien su IunK as Burn,wer shall agree in writing to the payment of theubligation secured by such lien in a manner acceptable to Ixnder, or shall in K+»xl G•?ith contest such lien by• ordefend enfon•ement of such lien in, let;at proceedings which operate to prevent the enforcement of the lien ur furfeitur?• of th?• Property ur any part thenr,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter ereMed on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not require that the amount of such ccrveraKe exceed that amount of coverage required to pay the sums secured by this blortKaKe. The insurance carrier providinK the insurance shall tK• chosen by Burn~wer subje•e•t to apprucal M• Ixnder; provided. that such approval shall not be unreasonably withheld. All premiums on insurance policies shall I,e• paid in the m:u?ner pmvide•cl under par:+Kraph'L hermfor, if not paid in such manner, by Itormw•er making payment, when due, dire•e•tl}• t., the incur.+nce r.+rrier. All insurance policies and renewals thereof shall be in form acceptable to Ixnderz+nd shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lender shall have the riKht to hold the policies and renewals thereof. and Borrower shall promptly furnish to ixnder all renewal notices and all receipts of paid premiums. In the event of loss, Burmese-shall give prompt notice to the insurance carrier and Lender- Lender may make prcx,f of loss if nut made promptly by Borrower. Unless Lender and Borrower ntherv?•ise 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 procecdsshall beapplied to the sums secured by this Mortgage, Kith the excess, if any, paid to Burrower. !f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within :30 days from the date notice is mailed by (.ender G, Borrower that the insurance carrier offers to settle a claim for insurance benefits, (.ender is authorized to colhrt and apph• the insurance pn,c•eeds at Ixnder's option either to restoration or repair of the Property or the sums secured by this Mortgage.. Unless (.ender and Borrower otherwise agree in x•ritinK, any such application of prcxeeds to principal shall not extend or postpone thedue date of the monthly installments referred t<, in par.?Kraphs 1 and'2 hereof or chanKe the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, 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 acctutsition steal! pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior fo such sale or acquisition. b. Preservation and frlaintenartceof Property; Lcnscholds; Condominums; Planned C~nit nevelopmentx. Borrowershall keep the Property in good repair and shall not commit waste ur permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a }easehold. If this MortKage is on a unit in a condominium or a planned unit development, Borrower shall perform all of F3urrower's obliKations under the declaration or covenants rrc•atint;or goverrong the condominium or planned unit development, the by-laws and regulations of the rundominium or planned unit development, and constituent documents. If a rundominium or planned unit development rider is executed by Forrower and recorded together with this Mortgage, the covenants and agreements of such rider shall t,c inc•urpurated into and steal! amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any aMion or proceeding ie 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, then Lender at Lender's option,upon notice to Borrower may make each appearances, disburse such soma and take each action ae is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time ae the requirement for such insurance terminates in accordance with Borrower's and Lendei s written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by [.ender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree 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 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 i.ender to incur any expense or take any action hereunder.