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HomeMy WebLinkAbout2220 Borrower and Lender covenant and agree as follows: I. 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 latechargea as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. lh~trtde for Taxes and Insurance, Subject to applicable law or to a written waiver by [.ender, 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 '1 equal to one• twelfth of the year! y taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium insl:+llmenta for mortgage insurance, if any, all as reasonably estimated initially and from time to tinge by Ixnder on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal of State agency (including Lender if Lender is such an institution). Lender shall apply the F ands 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 Ixnder to makesuch a charge. Borrower and Lender may agree in writing at the time of execution o! 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 .•Arninga f?n the Funds. 1 ruder shall hive to Borrower, without charge, an annual accounting of the F ands showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as addruonal security for tnesums secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly installments of Funds payable prior tothe duedates 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 Funda• if the amount of the Funds held by Lender shall not be sufficient to pgy taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to mATte up the deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment therec+t Upon payment in full of all sums secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by !.ender. if under paragraph 18 hereotthe 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 itsacquisition by bender, any Funds held by !,ender at the time of application as a credit against the sums secured by this Mortgage. 3. Appleeation 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 Lender first in payment of amounts payable to bender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, :+nd then to interest and principal on any Future Advances. - 4. Charges; Liens. Borrowershall pay all taxes, assessments and uthc•n•harges, finfs and imlwsitions attributable to theProperty which may attain a priority over this Mortg:+ge, and le:+srhuld payments or ground rents, if any, in the manner provided under paragraph `L hereof or, +f not paid in such manner, by Borrower making payment, when due, direa•th• to the payer thrrel,f. Borrower shall promptly furnish to !.ender all notices of ami,unts due under this par-.+graph, and in the r~•rnt Rorraw•er shall make payment din•c•th•, Bormaer shall prornptlyfurnish to Lender receipts et•idencing such payments. lil,rruwer shall prumptlr discharge any lien which has priorih• o~•rr this MurtgaKe; provided, that Burrower shall not be required to discharge any sue•h lien su look as Itl,rn,wer shall agrrf• in writing to the payment of the obligation secured by .uch lien in a manner acceptable to Ixn+lrr, ar shall in t;lN,d faith cont/•st such hen hy, urdeff•nd rnfunenu•nt of such lien in, Irgal pn,cefdings which operate to prevent the f•nfurcemrnt of the iien ur forfriturr of the Pnq+f•rh• or any p:+rt then.,f. 5. Hazard Insurance. Korruwer shall kef•p tha• impn,ti•ements now existing or hereafter rrerted on the Property insured against less by fire, hazards included within the term "extended cuver.+gr." and such other h:+z:+rds as Ixnder may require and in such amount_ti and for such Ix•riods as Lender may require; pnn•idcrl, that l.e•nder shall not reyuin• that the amount of such coerr.+gr c•xcerd that amount of coverage required to pay the sums sea•urfd by this Mortgage. The insurance comer prodding the insurance sh:Jl be• chosen by B„rrower xubjf•a•t to appru~ al by I.evuler, pruvidlrl, that such approral .hall not I,e unreasunabh w•ithhl•ld. All premium: on inwrunce p,~licil :.shall !a• paid in the m:uu+er providf•/1 under p:+r:+graph hrrrr,f or, if nut paid in such manner. I,y lil,rruwer making pa~-ml•nt. whf•n due. din•a•t!}• t.. thl• insurance• a•arrier. All insurance policies and renewals therfv,f shall ter in form accept:+ble d, Lf•nder and shall include a standanl mortgagedause infavor of and in form acceptable to Lender. !.ender shall ha~•e thf• right to hold the pldicirs and renrw•:+Is therf•l,f, and Borrower shall promptly furnish to +.ender ail renewal uoticrs .+nd .+11 rrceipts::f paid prc•r..iums. Iri ihre~•er+t „t'1,,.~. Itorn~wf•r sh:+11 give prompt notice ta+theinsurancecarrier and [.ender. Lender may make pnx,f of loss if not made prompth• by Burrower. Unless Lender and li/+m,wer otherwise agn•e• in writing. insurance pr/x•fvds shall br applied to restoration or repair of the Property damaged, provided such restoration or repair is e/•unomically fr:+sible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically frasi[rle or if the sa•e•urity of this Murtgagewuulal br impaired. the insurance proceedsshal) beapplied to the sumssecured by this Mortgage. with the•e?ccf:tis. if any, paid to Borrower. If the Property is abandoned by Borrower,orif Borrower fails to respond to [.ender within :;tl days from the datf• notice is mailed by Lender to Borrower that the.insur.+nce carrier offers to settle a claim for insurance benefits, Fender is ilUthl,rl"lfd tU ChIIfY't :end apph• the insur:mcr pn,a•e•eals at Lenders option either to restoration or repair of the Property or the sums secured by this ,\U,rtgage. 1lnless Lender and Borrower otherw•isr agrr•l• in writing, any such application of prl+a•erals to principal shall nut extend or pf+stponethedue date of the monthly installments referred to in paragraphs 1 and l+rrrldor change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, all right, title and interest of Borrow•rr in and to any insurance policies and in and to the proceeds thereof resulting from damage to Propert_• prior tr, the sale or acywsitiun shall pass to I,rnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and NaintenanceotProperty; leaseholds; ('undominums; Planned Unit Developments. Borrowershall keep the Pnrperiy in good repair and shall not commit w•aar l,r permit impairment or deterioration of the I'ropf•rty and shall comply with the provisions of any lease if this Mortgage is un a leasehold. If this 1lortgagr is un a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the dre•laration or covenants cn•atingor governing the condominium or planned snit development, the by-laws and regulations of the condominium or planned unit development. and constituent documents. if a ,•undominium or planned unit devrG,pment rider is rxfa-utfd h\' It/,rrl,wer and rf-e•ordfd together with this Mortgage, the covenants and agreements of such rider shall I,f• incorplaate•d into and ,hall :unrnd and supplement thecovenants and agrtvmentsofthi:c Mortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If liorruwer fails G, perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [.ender's interest in the Property, including, but not limited lo, eminent domain, insolvency, Bode enforcement, or arrangements or proceedings involr•ing a bankrupt or decedent, then Ixnder at Ixnder'e option,upon notice to Borrower may make such appearances, disburse ouch soma 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 far such insurance terminates in accordance with Borrowei s and Lender's written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with intrreat thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree u, other terms of payment, such amounts shall be payable upon notice from [.ender 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 :+t such rate would be contrary fo 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. 319 P~GE2~,U0