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HomeMy WebLinkAbout1181 Borrower and Lender rnvenant and agree as follows: 1. Payment of Principal and Inteeeat. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latechargea 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, Borrower shall pay to Ixnder on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sure (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, itany, plus one- twelfth ofyearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by bender 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 (+ncluding 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 eo holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless (.ender pays Borrowerinterest onthe Funds and applicable law permits (.ender 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 Fonda. 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 Fonda held by !.ender, together with the future monthly installments of Funds pay able 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, each excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to (.ender any amount necessary to make up the deficiency within 30days from the date notice is mailed by Lender to Korrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Fender shall promptly refund to Borrower any funds held by Lender. if under • ,rsn:sgh 1'1 ht`reaf the Property is s^!d or the P*^~•t•ty .a ntherwi,w. aE•~+~irEut by t Pnrlvr, 1 PndPr shat a{+{+ly, nn later than immediately prior to the sale of the Property or its acquisition by (.ender, 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 law provides otherwise, all paymentsg received by (.ender 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 and other charges, fines and impositions attributable to the Property which ..a_.• attain a priority over this MortgagE, and lc::schold p:+yments•?r gr+:and r.•nts, if :env, to the manner pro~•idE:l under par.+graph 2 hereof or; if not paid in such manner, by Borrower making p:+yment, when due. dirE•E•tly to the payer thercr+f. Burrower shall promptly furnish to Lender :+Il notices of amounts due under this pan+graph, and in the event Borrower shall make payment din•E•tly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall prompth• discharge any lien which has priurih• user this Mortgage; provided, that E;orrower shall not be required to discharge any such lien su long as l;,+rnrwEr shat agree in writing to the payment of theobligation secured by wch lien in a manner accepl:+ble to LEnder, or shall in g+Nxl faith contest such liE=n by, urdefend Enfi+n•EmEnt of such life in, legal proceEdings which operate to prevent the enforcement of the lien ur forfeiture of the 1'n.lx•rty nr am• part therE•of. 5. Hazard Insurance. Borrower shall keE•p the impn?vements now existing or hereafter ErectE•d un the Property insured against loss by fire, hazards included within the term "ExtendEd E•over+gE," and such other hazards as Lender may rEquire and in such amounts and for such periods as Lender may require; providEd, that I.Ender shall nut rE•duire that the amount of such Eti»•er.+ge excE•E•d that amount of coverage r+quired to pay the sums sEE•und by this ~L.r[gagE•. The insurance carrier providing the insurance shall Ix• chosen by Iturnnver suhj+•c•t to upprocul h}• Lender: providE•r1, that wch approval Thal! not be unreacc+nabh w•ithheld.:111 premiums on insur-.+nce policie..hall iK• paid in the manner pn+cid+yl under par.+gruph'~ henrdor, if n~+t paid in such mam+er, by }iurn+wer making paymEnt, whEn due, direct(}• to the insurance currier. Ail insurance policies and renewals thereof shall tx in form acceptablE to l,E•nder and shat include a standard mortgageclause in favorof and in form acceptable to Lender. !.ender shall have the right t:+holdlhE policies and renewals thereof, and Borro«er shall promptly furnish to ~ ,ender all renewal notices and all rE•cripts of paid premiums. In the Event of loss, Borrower shall give prompt notice to the insurance carrier .+nd Lender. Lender may make pr«+f of loss if not made promptly M• Burrower. CJnleas Lender and Borrower otherwise agree in writing, insurance prv+ceEds shall M• applied to restoration or repair of the Property d:+maged, provided such restoration or repair is Ec•onumiE•ally feasible and the sE•E•urity of this Dortgage is not thereby impaired. If such restoration or repair is not economically feasiblE or if the u•curity of this Mortgage would be impaired, the insurance proceeds shall be applied to thesums secured by this Mortgage, with the excess, if any, paid to Fiorn+wer. If the I'ruperty is abandoned by Borrower,orif Rorr~wer fails to t respond to Lender within 311 days from the date notice is maib•d by I.E•nder to Born+wer that the insurance carrier offers to settle a claim for E insurance benefits, (.ender is authorized to cull+•E•t and apple the insurance pr«•Erds ut l.E•nde~ s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Burrower otherwise agrEe in writing, any such application of prrxeeds to principal shall not extend or postpone thedue ~ date of the monthly installments referred to in paragraphs 1 and L hereof or change the amount ofsuch installments. If under paragraph I8 hereof the Property is acquired by Lender, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resuiting from damage W Properly prior to the sale or acywsition shall puss to (.Ender to the extent of the sums secured by this 1 JL,rtgage immediately prior to such sale or acquisition. 1 fi. Preservation and Maintenanceof Property; Leaseholds; Condominums: Planned i~nii ireveiopments. i'sorrowershaiikeep 1 the Property in good repair and shall not commit watitE or pE•rnrit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a IEasehuld. If this Mortgage is on a unit in a comdominium or a planned unit development, Burrower shall perform all of forrower's obligations under the dEY•lar-.+tion or covenants cn•utingor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a a + undominium or planned unit development rider is E•xEruted by 13E+m+wEr and rE•+•ordcEl together with this Mortgage, the covenants and 3 .+greements of such rider shall }+E incurporatE•d int+. and .hall amend and supplenu•nt thecovenants:+nd ugreementsof this Mortgageasifthe rider were a part beef-of. 7. Protection of Lender'B Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects bender's interest in the Property, including, but not limited tE?, eminent domain, insolvency, rnde 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, including, but not limited to, disbursement of reasonable attorney's fees 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 the premiums required to maintain I Fuch insurance in effect until such time as the requirement fur such insurance terminates in accordance with Borrower's and Lendei s written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. g Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of x }torrower secured by this Mortgage. Unless Borrower and Lender agree W other terms of payment, such amounts shall be payable upon notice from Lender to Borrower reyuesting 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 c require Lender to incur any expense or take any action hereunder. n '~x 3~.8 ~a~E 1176