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HomeMy WebLinkAbout0586 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 Future Advances secured by this Mortgage. 2. Funds forTa:es and Insurance. Subject to applicable I:+w or to a written waiver by Lender, Konuwer shall pay to (.ender un the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Funds") equal to one' twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one twelfth of yrarl y 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 tiros by lender on the basis of:+ssessments and hills and re:sonable estimates thereof. The unds shall be held in an institution the deposits or accounts of which are insured or guaranteed 6y 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, (.ender 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 (.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, (.ender shall not be required to pay Borrower any interest or earnings on the Flrnds. 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 F unds was made. The Funds are pledged as additional security for the sumssecured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of F unds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxer,, a~sessmenta, insurance premiums and ground rents as they fall due, such exrnss shall be, at Borrower's option, either promptly repaid to $orrower 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 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, Ixnder 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 Ixnder, (.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Ixnder 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 bender under the Note and paragraphs 1 and 2 hereof shall be applied by Ixnder first in payment of amounts payable to Ixnder 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, f ncs anti impositions attributable to the Property which may attain a priority over this tllortgage, and leasehold payments or gnnrnd rents, if any, in the manner provided under paragraph 2 hereof or, ,f not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Burmwershall promptly furnish to (xnder all notices of amounts due under this paragraph, and in the went Borrower shall make payment diree•th•. Borrower shall promptly furnish to Ixnder receipts evidencing such payments. Ik,rn,N•er shall prompth• discharg+• any lien which has priorih• over this Mortgage; provided, that Karrower shall not be required to discharge an~• such Ilefl SOlong as Borru?ver shall agree in writing to the payment of the obligation secured by such Len rn a manner acceptable to (xnder, ur sL:+ii in KcwKi is+itl+ conic-st such lien hy-, ur defend enforcement of such lien in, legal procw•dings which operate to prevent the enforcement of the lien or forfeiture of thc• Pn,pert~• ur :+ny part then•uf. :i. Hazard Insurance. Korrgw•er shall keep the improvements now exi.iueK s hereaficrczerlcd :;r. the I'zsp:•rt:• sr.~lred :rgair_st Inca by fire, hazards included within the term "extend+d rover:+ge.'• and such other hazards as Lender may require and in such amounts and for such periods as [xnder may require; provided, that Lender shall nut reyuin• the+t the amount of such c•e,ver+ge exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providing th+• insuranc+• shall h+• chosen by Bormwer subjc•e•t to appn,v:+1 by Lender, providtd, that such approval shall not be anreasunably withheld. All premium..,n insur:uu•e policies shall t,.• paid in the m::::^cr gro:•i:?:~! ~s~-!e•~ ,~:e•••;;• +gh ? ho•••,,f if nut paid in such manner, by Ite,rruw•er making payment, when due' dinr•tl)• to the insurnce carrier. All insurance policies and renewals thereof shah 1>r in firm accept:+ble to Iwmder and shall include a standard mortgageclause in favorof :+nd in form acceptable to Lender. !.ender shall have the right to hold the pulic•ies and renewals thereof, and Borrower shall promptly furnish to +.ender alt renewal notices and all receipts of paid premiums. In the event of loss, Born,wer shall give prompt notice W the insurance carrier and (.ender- Ixnder may make proof of toss if not made prumpti~• h~• Bnrn,w•er. Unless Lender and Borrower otherwise agree in writing. insurance pre,ec•c•ds shall 1?e applied to restoration or repair of the Property damaged, provided such restoration ur repair is +runumicatly feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not econumic•ally fe:+sihl+• e,r if the security of this Mortgage would Fx• impaired, the insurance proceedsshali be applied to the sums secured by this Mortgage, with the excess, if any', paid to lie,rrower. If the Prop+•rty is abandoned by Borrower, or if Borrower fails to respond to Lender within 3if) day's from the date notice is mailed by l,c•nder to Burrower that the insurancecarrier offers to settle a claim for insurance benefits, Ixnder is authorized to coll+•e•t and apple the insur,+nc•e pre,e•ecds at l.ender•s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ixnder and Borrower otherwise agree in writing, any such application of prex•eeds to principal shall not extend or postpone thedue date of the monthly installmentti referred tc, in paragraph, 1 and 'L hen•+,f ur change 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 insuranm policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass G, [:e•nder to the extent of the sums secured b_v this Mortgage immediately prior to such sale or acquisition. 5. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall nut commit w•a~te or permit impairment or deterior.+tiun of the Property and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, borrower shall perform all of Borrower's obligations under the dcrlar,+tiun ur c•m•enants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent documents- If a condominium or planned unit development rider is executeel by F3um,wer and recorded together with this Mortgage, the covenants and agreements ofsuch rider shall tx• incorperr.+ted into and sh:Jl :+nu•nd :ui<I supplernent thecuvenants and agreementsofthis 1lortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. It Borrower fails U, perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects I.ender•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'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 requited to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and Lender's 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 [xnder persuant to this paragraph 7, with interest thereon: shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree tci 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 taw, in which event each 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. . E'~~~ .,~1y PNGE c~0 ~ 300K 3~ ~ PaGf ~e.Rec 837 Qrd