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HomeMy WebLinkAbout0973 . Borrower and Lender covenant and agree as follows: 1. Payment o! Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges ae provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. I•lutds for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal and interest are payable under the Nate, until the Note is paid in full, a sum (herein "Funds") equal 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 mortgagg insurance, if any, all as reasonably estimated initially and from time to tune by !.ender 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 ~ iincluding bender 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 aaa~amenta and bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree iti writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement ie 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 Fundec 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 Fonda 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 excr+d the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, ouch excess shat) 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Ixnder any amount necessary to make up the deficiency within 30 days imm the date notice is m+ulyd t,y Lrn+lrr to Surruwre reyu~sting payment hereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property ie otherwise acquired by !.ender, 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 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 and 2 hereof shall be applied by Lender first in payment of amounts payable to [.ender 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 Advancer. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines anJ impoaitioi?s 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 manner, by Borrower making pay ment, 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 bender 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 f:+ith 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 improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extruded coverage." and such other hazards as lender may require and in such amounts and forauch periods as Lender may require; provided, that )xnder sh:+ll not require that the :+mount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall tx• chosen by Borrower subject to approval by Lender-, provided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~licies shall 1?c• paid in the manner provided under paragraph `L hereofor, if not paid in such manner, by fiurrower making payment, when due, dire•e•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. !.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to +.ender all renewal notices and all receipts of paid premiums. In the event of loss, I3eerrower shall give prompt notice to the insurance carver and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise. agree in writing, insur:nce 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 sums secured by this Mortgage, with the excess, if any, paid to Borrower.! 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 Lender in Borrower that the insurance carrier offers to settle a claim for I insurance benefits, Lender is authorized to collect and apply the insurance proceeds at [.ender's option either to restoration or repair of the ~ Property or the sums secured by tl+is 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'L heree?f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by !.ender, all right, title and interest of Iorrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acyu~sition shall pass to Lender 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. Borrowershall keep the Property in good repair and shall not commit waste or per+nit imp:+irment 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 condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration orcovenantg creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. It a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreementsof this I1lortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in thin Mortgage, or if any } action or proceeding is commenced which materially affects l,ender'e 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 such appearances, disburse such soma and take such action as 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 ~ t 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 such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders ' written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ~ Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall bernme additional indebtedness of , Borrower secured by this Mortgage. Unleae Borrower and Lender agree to other terms of payment, such amounts shall be payable upon 3 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 rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall g require Lender to incur any expense or take any action hereunder. f 1 aa~K318 972