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HomeMy WebLinkAbout2420 .a.. l3onrower 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 late charges as provided in the Note, and the principal of and interest on any Fltture Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by !.,ender, Borrower shall pay to !xnder 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") 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- tsvrlfth ofyearly premium installmenta fnr hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, ?y:~ as reasonably estimated initially and from time to tune by Lender on the basis otassessments 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 Lender is such an institutionj. Lender shalt 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 Lenderpays Borrower interest on the Funds and applicable law permits Lender 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 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 F1nda 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 Tall due, such excess shall be, at $o+TOwer s option, either promptly repaid to Borrower or credited to Borrower on ?nonthly installments of lends. I! the amount of the Funds held by (.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender 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 auma secured by this Mortgage, !.ender shall promptly refund to Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, Lender shall apply, no laterthan immediately prior to the sale of the Property or its acquisition by [.ender, any Funds held by Ixnderat the time ofapplication as a credit against thesums 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. Borrowershall p:+y all taxes, assessments and c?there•harKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kn?und rents, if any, in the manner provided under paragraph 2 hereof or, if not paid In such manner, by Borrower making payment, when due, directly to the payee theree?f. Bormwer shat l promptly furnish to !xnder :+11 notices of amounts due under this par.+Kraph, and in the event Borrower shall make payment directly, Bormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharKe any lien which has priorih• over this Mortgage; provided, that Borrower shall not be required to discharKe any such lien so IonK as lie?rn?wer shall agree in writinK to the payment of the obliKation secured by suoh lien in a manner acceptable to !xnder, or shall in Kex?d faith contest such lien hy. ordefend enforcement ofsuch lien in, IeKal proceedings which operate G? prevent the enforcement of the lien ur fi?rfeiture• of the Property or any p:+rt'then~?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 cover+Ke," and such other hazards as 1 xnder may require and in such amounts and for such periods as !.ender may regales; pn?vided, that (xnder shall not re•ctuire that the amount of such cemerat;e exceed that am:?unt of coverage required to pay the sums secured by this MortKage. The insurance carrier provident; the insurance shall 1?e• chosen by Bum~wer subje•e•t to approval by I.e•nder• pn?vide•et, that such .+pproval shall not be unreasonably withheld- All premium. on insuruu•e tN~licie-.shall !?e• paid in the, manrn•r providedf under par.+Kr,+ph 'L hereof or, if not paid in such manner, by Borrower makinK payment, whin due, dire•e•tk to the insurance carrier. All insurance policies and renewals thereof shall be in form accept:+ble to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. l.endershall have the right to hold the p??liciesand renewals thereof, and Borrowershall promptly furnish to ?.ender all renewal notices and all receipts of paid premiums. In the event of loss. Rorn?wer shall give prompt notice to the insurance carrier and !xnder. Lender may make proof of loss if not made promptly by Burrower. Unless bender and Borrower otherwise aKre•e in writinK• insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the serurit}• of this MortKage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortt;aKe would be impaired, the insurance proceeds shall be applied to the sums secured by this MortKage, with the excess, if any, paid to 131?rn?wer. If the 1'roperiy is abandoned by Borrower, or if Borrower fails to respond to (xnder within 30 days from the date notice is mailed by !.ender to Burrower that the insurance carrier offers to settle a claim for insurance benefits, !.ender is authorized to cotl+•ct and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortKaKe- - Unless Lender and Borrower otherwise agree in writinK• any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred G? in paragraphs l and 'L hereof or chanKe the amount of such installments. If under paragraph 1R hereof the Property is acquired by Lender, aU right, title and interest of l3<,rrower 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 [.ender to the extent of the sums secured by this 1lorigage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; !'tanned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste ur pe•rmit impairment or deterioration of the Property and shall comply with the provisions of any lease if this MortKage is on a leasehold. If this Morit;aKe is on a unit in a condominium or a planned unit development, Borrower shall perform all of 13orrower'a obliKatiuns under the dec•laratiun or covenants e•reatinKor KovermnK the condominium or planned 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 exrevted by liorrv?wer and recorded together with this Mortgage, the covenants and aKreements of such rider shall be ineurpem+teel into and shall amend and supplement the covenants and aKreementsof this MortKage as if the rider were a part hereof. 7. Protection of bender's Security. If Borrower fails Lo perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects 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 [.ender at Lender's option,upon notice to Borrower may make such 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 1liortgage, 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. Bormwer shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph `l hereof. Any amounts disbursed by !.ender persuant to thin paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage- Unless Borrower and (xnder agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest frt?m 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 I:+w. Nothing contained in this paragraph 7, shall require (xnder to incur any expense or take any action hereunder. . 3i9 p~~E24Q~