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HomeMy WebLinkAbout1397 Borrower and Lender covenant and agree as follows: 1. Payment,ot 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 for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnderon 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 of yearlypremium 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 time 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 (including Lender if (.ender 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 (.ender to make such a charge. Borrower and (.ender 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 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 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 required 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 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 soma secured by this Alortgage, (.ender 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 (.ender, (.ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any•Funds held by (.ender 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 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 Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:sehold p:+yment_~ or gmund rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Bonrower making pay meat, when due, dircti•tly to the payee thereof Bormwcr shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borruw•er shall make payment directly, Borrower shall promptly furnish to lender receipts evidencing such payments. 13urn,w•er shall promptly discharge, any lien which has priority over this Mortgage;provided, that Korrower shall not be required todischarge any such lien so long as Borrower shall agree in writing to the payment of theuhligation secured by such lien in a manner acceptable to 1 xnder, or shall in gexxl faith eY,nte•st such lien by, ur defend enfun•eme•nt of such lien in, h•ga1 proceedings which operate to prevent the enforcement of the lien or fixfeiture of the Properly or any part thereof. 5. Hazard Insurance. Borrower shall keep the impmvementc now existing or hereafter erected on the Properly insured against losaby fire, hazards included within the term "extended coverage," and such other hazards as (xnder may require and in such amounts and for such periods as Lender may require; pn?vided, that lxnder shall nut require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall Ix• chosen b~• Itnrruw•er subject to approval by lxnder; pnn•ided, that such approval shall not be unreasunabh• withheld. All premiums un insurance policies shall tx• paid in the manner pn,vide•el under paragraph L hereof or, if nut paid in such manner, by Burn,wer making payment, when due, direrth• to the inwr,+nce carrier. All insurance policies and renewals thereof shall be in form acceptable to lxnder and shall include a standard mortgageclause in fa"vorof and in form acceptable to [.ender. lender shall have the right L<~ hold the p~lie•ies and renewals thereof, and I;orrower shall promptly furnish to xnder all renewal notices and all receipts of paid premiums. In the t•veut of loss, liurmwer shall give prompt notice to the insurance carrier I and Lender. lxnder may make proof of loss if nut made promptly by Borrower. j Unless Lender and Borrower otherwise agree in vuriting, insurance proct•+•ds 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 feasihle or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied i to the sums secured by this Mortgage, with the excess. if any, paid to Burrower. If the I'ruperty is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice, is mailed by lxnder to Burrower that the insurance carver offers to settle a claim for 1 insurance benefits, lxnder is authorized to rnllect and apply the insurance proceeds at Lender's option either to restoration or repair of the ~ Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in par:+gr+phs 1 and'L I?ereedor change the amow+l of such installments. If under paragraph 18 hereof the Property is acquired by lxnder, all right, title and interest of Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acqusition shall pass to lxnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; I.easeholdx; ('ondominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste ur permit impairment nr deterioration of the Property and shall comply with the provisions of any lease if this Aortgage 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 declar:+tion ur covenants creatingor govern+nq the condominium or planned g unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents- If a condominium or planned unit development rider is executed by &,rrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and .hall amend and supplement the covenants and agreementsuf this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the mvenanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder'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 sumo and take such 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 r mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain I such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and (.ender e - written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. t Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall bernme additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and lxnder agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fmm 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 rontrary 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. a 3~ )K 319 PaGE 1.~9