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HomeMy WebLinkAbout1406 ~r- Borrower and Lender covenant 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 by the Note, prepayment and late charges as provided in the Note, and the principal of and interest on any i•`uture Advances secured by this Mortgage. 2. Ftitrtds for Taxes 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 Note, 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 ofyearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any. all ae reasonably estimated initially and from time to time by Ixnder 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. 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 Borrower interest on the Funds 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 ouch 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 Ftinds 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 Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount reyuired to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall 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 from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment ire fret! of all AumR secured by this Mortgage, Lender shat) 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 law 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. Borrower shall pay all taxes, :+ssescments and uthercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in suckmanner, by borrower making payment, 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. Born,wer shall promptly furnish to lender receipts evidencing such payments. l;<,m,wer shall promptly disch:vg+• :+ny lien w•hirh has priority over this Mortgage: provided, that Borrower shall not be required to discharge any such lien so long as t;„rrow•er shall agree in writing to the pay ment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in g«,d faith contest such lien hy• urdefend enforcement of such lien in, legal proceedings ~~hich operate to prevent the enforcement of the lien or forfeitun• of the I'n,pert~• ur any part thenti,f. 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 "extended coverage." and such other hazards as Lender may require and in such amounts and forsuch periods as !.ender may require; provided, that L~•nder shall nut require that the amount of such coverage exceed that amount of coverage required to pay the sums secured M• this Mortgage• The insuranm carver providing the insurance shall Ix• chosen b~• Born,w,•r subje+•t to approy:+[ b.• Lender: provided, that such approval shall not be unreasunahh• withheld. All pn•miums on insuruu-e policies shall ix• paid in the m:canner proyid+rl under paragraph 3 hereof or, if not paid in such manner, by Ftom,w•er making I,ayment. H-hen du+•. direct!}• to the insurance carrier. i All insurance policies and renewals thereof shall he in form acceptable to l.+•nder and shall include a standard mortgageclause in favorof and in form acceptable to 1.ender. !.ender shall hays the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the scent of loss. Born,wer shall give prompt notice to the insurance carrier and Lender. !.ender may make proof of loss if nut made promptly by Borrower. Unless !.ender 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 sums secured by this Mortgage, with the excess. if an>•, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to I respond to Lender within :;U da_rs from the date nutim is mailed by bender to Burrower that the insurance carrier offers to settle a claim for ~ insurance benefits, !.ender is authorized to n,llcrt and appl}• the insurance pnx•crds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. t Unless Lender and Borrowernstherwiseagree inwriting, any such application of proceeds to principal shall not extend or postpone the due - date of the monthly installments referred to in paragraphs I and `L hereof or change the amount of such installmentsg. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Burruw•er in and to any insurance policies and in and to the proceeds I thereof resulting from damage to Property prior to the sale or acgwsition shall pass to Lender to the extent of the sums secured by this titurtgage immediately prior to such sale or acquisition. 6. Preservation and 4laintenance otYroperty; Ixaseholda; Condominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not comma waste car 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 Alurtgage in nn a unit in a condominium or a planned unit development, Borrower shall perform all of Born,wer's obligations under the declaration or covenants creat+ngor governing the condominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and constituent documents. If a ^dom~^~n:r^. or planned unit r~a~•s.in~manl nrlPr ~s Pxrrutwl by l;r,rn,wer and recorded together with this Mortgage, the covenants and _ agreements of such rider shall t,e incorpurat+d into and shall amend and supplement thecocenants and agreementsof this Mortgageasifthe rider were a part hereof. ` 7. ProteMion of Lender's Security. If Borrower fails Un perform the covenants and agreements contained in this Mortgage, or if any a action or proceeding is 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 such appearances, disburse such sums and take such 'action as is necessary to protect Lender a interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required g 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 fur such insurance terminates in accordance with Borrowei s and Lender's written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under r. ~ paragraph 2 hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender 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 Lender to incur any expense or take any action hereunder. .~';•~X `1k~18 PaGE14Q1