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HomeMy WebLinkAbout1527 Borrowet and Lender covenant and agree ae follows: 1. Payment of Principal and interest. Burrower shall promptly pay when due the principal of and interest un the indchtcdneas evidenced by the Note, prepayment and late charges ua provided in the Note, and the principal of and interest un any Future Advances secured by this Mortgage. 1. l~tttds for Taxes and Insurance. Subject to applicable law or to a written waiver by I.eudcr, Ik?rruwer shall pay to lxnderun theday monthly installments of principal and interest are payable under the Nute, until the Note is paid in full, a sum therein "Funds") equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the Property, if any, plus one- lwelfth ofyearly premium installments for hoard insurance, plusune-twelfth ofyearly premium lost++Ilmrnts fur mortgage insurance, if any, all as reasonably estimated initially and from time to time by I wander on the !?usis of assesmenta and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits cr 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, usaesamenta, insurance premiums and ground rents. Lender may not charge for so holding and applying the I•tirnda, analyzing said arccount, or verifying and compiling said assessments and bills, unless lender pays Borrower interest un the Funds wed appiicaLir law prnuitw i.euurr to waver nucL a ciuuKr. Iiurruwrr and Lender may agree in writing at the time of execution of this Illortgage 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 I•'unds. [.ender shall give to Borrower, without charge, an annual acruunting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Fonda are pledged as additional security fur the sums soured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly instatlments of Funds p:?yable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said ta>;ea, 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 Funda_ If the amount of the Funds held by Lender shall not be sufficient to pay taxes, asses.9menta, insurance • premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days from Lhe dale notice is mailed by f.erder to I3orr:,wer re+tuesiit:g pa}ment there+:f. Upon payment in full of all sums secured by thin Mortgage, lendct shall promptly refund to Borrower any funds held by Lender. (fonder paragraph 18 hereof the Property is sold cr the Property is otherwise acquired by !.ender, (.ender shall :tpply, nu later than immediately prior to the sale of the Property or its acquisition by 1 ender, any Funds held by Lender at the time of application as a credit against thc• 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 I 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, assessmentsg and other ehargcs, fines and impositions 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'! hereof ur, if not paid in such manner, by Borrower making payment, when due, directly to the payc~t• thercr+f. Burrower shall promptly furnish to 1 xnder all notices of amounts due under this paragraph, and in the event Burrower shall make p:?ymenl directly, Burrower shall promptly furnish to tender receipt. evidencing such payments. Borrower shall promptly discharge any lien which has priorih• aver this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Burrower shall agree in writinK to the paym+•nt of theubligation secured by such lien in a manner acceptable to (xnder, ur shall in good faith contest such lien by, ordefend enfi+rcemrnt of.ue•h lien in, legal pnK•eedinKs which operate to prevent the enforcement of the lien ur forfeiture of the Pmperh• or any purl 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 "extended coverage," and such other hazards as (xnder may require and in such amounts and for such periods as !.ender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of (xnder, or that amount of croverage required to pay the sums secured by this 1lortgage, whichever is the greater. The insurance carrier providing the insuranm shelf he c•husen by Burrower subject to approval by (xnder: procirlc•d• that such approval shall not be unreasonably withheld. All premiums on insurance pcdicies shall i?e paid in the manner pruv?d+•+1 under parakr.+ph herer,f ur, if not paid in such manner, by Korruwer making payment, when due. directly to the, insurance carver. Al! insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. (xnder shall have the right G, hold the policies and renewals thereof, and Borrower shall promptly furnish to lender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice tv the insurance carver and Lender. Lender may make proof of loss if not made pmmptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property i 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. If 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 to Borrower that the insurance carver offers to settle a claim for insurance benefits, Lender is authorized to collect 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 the due date of the monthly installments referred to in paragraphs 1 and'! hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by !.ender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds 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 Mortgage immediately prior to such sale or acquisition. 6. Preservation and :Maintenance of Property; Leaseholds; Condominums; Planned !Jolt Developments. Borrower shall keep the Property in good repair and shall not commit waste or 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 Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants cre:rtingor governing the condominium or planned unit development, the by-lava and regulations of the condominium or planned unit development, and constituent documents. If a t 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 inc•urporated into and shall amend and supplement the covenants and agreements of this Mortgagees ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the oovenanta and agreements contained in this Mortgage, or if any aMion or proceeding is commenced which materially affectB 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 a 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 required to maintain such insurance in effect until each 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 'i 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 (.ender agree to other terms of payment, such amounts shall be payable upon notice from (xnder 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 (xnder to incur any expense or take any action hereunder. a F 3~~K 319 P~~E 1524