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HomeMy WebLinkAbout1993 .m.- Borrower and Lender covenant and agree ae follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of :+nd interest on the indel,teclness evidenced by the Note, prepayment and latecharges ae 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 u, a written waiver by Ixnder, Iturn?wer shall pay to lxnder on the day monthly installments of principal and interest are payable under the Nute, until the Nute is paid in full, sum (herein "Funds"1 equal to une- twelfth ofthe yearly taxes and asaessmenta which may attain priority over this Mortgage, and ground rents un the Property, if any, plus one •.welRh of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insur:nce, ituny, all as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates thereof. The ~?nda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency lincluding Lender if Lender is such an institution). Fender shall apply the Fonda to pay said taxes, assessments, insurance premiums and ground rents. lxnder may not charge far ao holding and applying the Funds, analyzing said am,unt, 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. Iorrower 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 Funds. Lender shall give to Borrower, without charge, an annual accounting ottee Fonda showing credits:+nd 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. I[ the amount oithe Funds held by Ixnder, together with the future monthly installments of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground mots, shall exceed the amount required to pay said ti+xes, aesessmrnta, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either pro?npUy repaid to Borrower or credited to Borrower on monthly installments of Funds. If tl+e amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground mote as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :iQ 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, Lender shall promptly refund to Borrower any funds held by I.encler_ If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender ah:+l l apply, no later than immediately prior to the sale of the Property or its acquisition by I.ender, any Funds held by lxnder at the time of applic:tion as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by lxnder under the Note and paragraphs 1 and 2 hereof shall be applied by lxnder 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 inteinst and principal un 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 leasehold payments or ground rents, if any, in the ma+nner providcKl under paragraphs herec,f or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thercr,f. fic,rn,wer sh:+11 promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Burrower shall make payment directly, Borrower shall promptly furnish to lender receipts evidencing such payments- Borrower shall promptly discharge any lien which has priurih• over this Murtg.+ge; provid+•d, that Borrower shall not be required to discharge any such lien so long as Burrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to lxnder, or shall in gaud faith n,nlcst such lien by, urdefend enfurc•e?nent of such lien in.legal pn,c-+•cdings «•hich operate to prevent the enforcement of the-lien or forfeiture of the Property or any part thenr,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 lxnder may require and in such amounts and for such periods as Ixnder may require; provided, that lxnder shall not requim such coverage amount exceeding the minimum, :+s may be required by :+tate or federal regulations governing aMivitiea of lxnder, or that amount of coverage inquired to pay the sums secured by this ~tortgage• whichever is the greater. The insurance carrier providing the insuranm shall be chosen by Borrower suhject to approval by Iw•nder: providf•tl. that such approval 5ha11 not be unreasonably withheld. All premiums on insurance pcdicies shall be paid in the manner provid+d under par-.+gr.?ph 'L henr,f ur, if nr.f nai~t in cnrh manner by Borrower makine oavment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Ixnder and shall include a standard mortgage clause in favor of and in form acceptable to Ixnder. Ixnder shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to . ?.ender all renewal notices and al) receipts of paid pmmiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier f :cod Lender. Lender may make proof of loss if not made promptly by Borrower. ~ L'nlesa 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 tails to respond to Ixnder within :l0 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for ~ insurance benefits, Ixnder is authorized to collect and apply the insurance proceeds at Ixnder's option either to restoration or repair of the Property or the auma 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 inata]lmenta referred to in paragraphs 1 and 'l hereof or change the amount of such installments. If under paragraph lri hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds thereof reaufting from damage to Property prior to the sale or acgmaition shall pass to Lender to the extent of the auma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance o[Property; Leaseholds; Condominums;Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply with the urovisiona 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 Bon owei s obligations under the declaration or covenants c•reatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ,•ondominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and agreements4 of such rider shall Fx• incorporated into and shall amend and supplement thernvenants and agreements of this Mortgage as if the rider were a part hereof. , 7. Protection of Lender's 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 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 Ixnder at Lendei s option,upon notice to Borrower may make each appearances, disburse such auma 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 such time as the requirement for such insurance terminates in accordance with Borrower's and Lender a ~ 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 Lender persuant 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 Ixnder 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 Ixnder to incur any expense or take any aMion hereunder. +X r 31g PaGE 1981