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HomeMy WebLinkAbout1298 Borrower and Lender covenant and agrce as follows: 1. 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 latecharges as provided in the Note, and the principal of and intereaton any Future Advances secured by this Mortgage. 2. Funds for Tazes and Insurance. Subject to applicable law or to a written waiver by L,ender, Borrower shall pay to Lender on theday 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 theProperty, ifany, pluaone- ~ twelfth of yearly premium installments for hazard insurance, plus one-twelfth of yearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to tine 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 f including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and i 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 Lender W make such a charge. Borrower and bender 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 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 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 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 Funds. if the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Fender 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 IS 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 (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment otamounts payable to bender 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 alt taxes,:Lgscssments and othercharges, 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 2 hereof or, if not paid in such manner, by Burrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Korrower shall make payment directly, Kormwershall promptly furnish to (,ender receipts evidencing such payments. lorrower shah promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any surh lien so long as ltC,rn,wer shalt agree in writing to the payment of the obligation secured by wch lien in a.manner acceptable to lender, or shall in good faith contest such lien by, ordefend enfi,rcrment ofsuch lien in, lc-gal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Pn,perty ur any part thertY>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 :+s (.ender may require and in such amounts and for such periods as lxnder may require; provided, that (.ender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insuranm shall lx• chosen by Kurruwer subject tc, appnrvaE by (.ender; provided, that such approval shall not be unre:+sonably withheld. All premiums on incur.+nce twlici+•s shall Ix• paid in the manner provicE+d under paragraph 2 hereof or, if nut paid in such manner, by Borrower makinK payment, when du<•, dinr•tlp to the• insuranre carrier. All insurance policies and renewals thereof shall be in form accet~tahle to l.enderand shall includes standard mortgageclausein favorof and in form acceptable to tender. (.ender shall have the right ta, hold the policies and renewals thereof, and Borrower shalE promptly furnish to +.ender all renewal notices and all receipts of paid premiums. In the event of loss, 13orrt?wer shall give prompt notice to the insurance carrier and Lender. [,ender may make proof of loss if not made promptly by l;r,rrower. Unless !.ender and Borrower otherwise agree in writing, insuranm proceeds shall be applied to restoration or repair of the Property 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 +,r if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with theexcess, ifany, 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 carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance prcK•eeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortgaKe. Unless Lender and Borrower otherwise agree in writing, any such applic:+tion of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'L hereof or chanKe the amount of such installments. [f under paragraph 18 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 resulting from damage to Property prior to the s:+le or antuisition shall pass b, Lender to the extent of the sums secured by this 4ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrowerahall 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 Eeaae if this Mortgage is on a leasehold. If this MortgaKe is on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or rnvenants 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 condominium or planned unit development rider is executed by &,rrower and recorded together with this Mortgage, the covenants and aKreemenLg of such rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgageas ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenanta and agreements contained in this Mortgage, of if any action or proceeding is commenced which materially affect$ 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 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 (..ender 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 (.ender s 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 [.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 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 Lender to incur any expense or take any action hereunder. ~~~K 320 PAGE 1296