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HomeMy WebLinkAbout0215 f torrower and Lender covenant and agree as [ollows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepaymentand 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 Ixnder, 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")equal toone- twelfth ofthe yearly 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 ofyearly premium installments for mortgage insurance, if any, e; l as reasonably estimated initially and from lime to time by Lender 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 Lender is such an institution). [.ender 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 accoont, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Le++der to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the ~+nds 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 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. It 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 sacred the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bonrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ptitnds. If the amount of the Funds held by Fender 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 sums secured by this Mortgage, Lender 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 Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by Lender 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 Lender 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:LSehold payments or ground 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 thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this parigr.+ph, and in the event Borrower shall make payment directly, Bo: mover shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge am• lien which has priority over this Dortgage;provided, that Borrower shall not be required to discharge any such lien so long as &,rrower shalt agret• in writing to the payment of the uhligation secured by ~uc•h lien in a manner acceptable to Iw nder, or shall in ge,od L•+ith etin+test such lien hy, or defend enforc-e•ment ofsuch lien in, legal proceedings ~chich operate to prevent the enforcement of the lien or furfeiturr of the Property or any part 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 n,verage," and such other hazards as tinder may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not reyuire that the amount of such rnveragr exceed that amount of coverage n•yuired to pay the sums secured by this Mortgage. The insurance carrier providing the insur•.?nc+• shill b+• chosen by linrrower suhj+•e•t to approval by 1.e•nder, provided, that such approval shall not be unre:+sonabh• withheld. All premiums on insurance {H,licic~ ~h:+ll t,e• paid in the m:mner provid,d under paragraph hereof or, if not paid in such manner. M• Fi:~rrotver making payment. when due, dir<yth• to the insur•.mce carrier. All insurance policies and renewals thereof shall be in form accept:+ble d? Lender and shall include a standard mortgage clause in favor of ~I and inform acceptable to Lender. Lender shall have the right d~ hold the policies and renewals thercy,f, and Borrower shall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of loss, Korrower shall give prompt notice to the insurance carver j and Lender. (.ender may make proof of Toss if not made promptly by Borrower. F Unless (.ender and Korrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is ec•onomic•ally feasible and the security of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically fe•a.ihle or if the security of this Mortgage would be impaired, theinsurance proceeds shall be applied to the sums secured by this Mortgage, with the c•xc•ess. if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to re, pond to Lender within :;n days from the tl:+te notice is mailed by bender to Rorn,wer that the insurance carver offers to settle a claim for ~ insurance benefits, (.ender is authorized to colh.•c•t and apply thc• insurance pr,?cerds at Lender's option either to restoration or repair of the € Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agre•+• in rr•riting, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and Z her+Kd or change the amount of such installments. If under paragraph IA hereof :he Property is acquired by Lender, all right, title and interest of Bormw.•r in and to any insurance policies and in and to the proceeds thereof resulting from damage W Property prior to the sale or acywsition shall pass to bender to the extent of the sums secured by this ~'lortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; (bndominuma; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmply 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, I Borrower shall perform all of Borrower's obligations under the dee•lar:+tion or covenants creatin~;or governing the condominium or planned unit development, the by-lava and regulations of the condominium or planned unit development, and constituent documents. If a ~ ordominium or planned unit development rider ig exe•e•uted by Bc,rn,w•er and recorded together with this Mortgage, the covenants and :t'reementgofsuchridershallbeincorporate•dintoandshallamf•ndandsuppleme•ntthecovenantsandagrermentsofthisMortgageasifthe rider were a part hereof 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any z 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 Lender at Lender's 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 [sea 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 Borrowei a and Lender a ~•ritten 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 th+a 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 Lender to Borrower requesting payment thereof, and shall bear interest fn,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 rnntrary 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. 3 ~~~x320 P~~E 214