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HomeMy WebLinkAbout0308 Borrower and Lender covenant and agree ae 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 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 Lender, Borrower shall pay to I.enderon theday monthly installments otprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "H'onda'")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- twelRh ofyearly 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 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). Lender 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 account, 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. 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, 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 ii+e 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 sacred the amount required W pay said taxes, assessments, insurance premiums and gmund rents as they tall 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 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, (.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 [xnder, [.ender shall apply, no later than immediately prior to the gale of the Property or its acquisition by Lender, any Funds held by [.ender 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. Rorrowershall pay all taxes, assessments and other charges, fines and impositions attributable W the Property which g!l~e~anrnrity4v£rthis!~IOrt~~~P,:~n[41e:'cPhn4doaympnfc~r~.mt~nrlr~>nfc-if;,nv,IrlthemAnnPrt,r„YIdP(IUndPrparagraohZhereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Bormwershall promptly furnish to Lender al I notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Burrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to disch:use any such lien so long as I~,rn,w•er sh:+ll agree in writing to the payment of the obligation secured by sue h lien in a manner acceptable to larder, or shall in good faith contest such lien hy, ordrfend enforcement of such lien in, legal proceedings x-hich operate to prevent the enforcement of the lien or forfeiture of the Protx•rh• or :+m• part there•+,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 (.ender may require and in such amounts and for such periods as Lender may require: provided, that (.ender shall nut require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insur-,+nce shall Ix• chus+•n by Borrower subjee•t to approaal by I.e•nder: pn,vided, that such approval shall not be unreasonably withheld. All premiums un insurance IN~licie: shall t,+• paid in the manner provided under par-.+graph L hertY,f or, if n.+t paid in such manner, by liurruw•er making pa~•me•nt when du+•• dire•e•th- to the insurance carrier. All insurance policies and renewals thereof shall he in firm acceptable to bender and shall include a standard mortgagedause in favorof and inform acceptable to Lender. Le±niler shall have the right to heNd the pedicies and renewals thereof, and Korroaa•er shall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of Toss, Borrower shall give prompt notice to the insurance carver and Lender. [.ender may make proof of loss if not made promptly by Burrower. Unless Lender and Borrower otherwise agree in writing, insurance pnx•e•eds shall he applied to restoration or repair of the Property damaged, provided such restoration or repair is cY•unumi+•ally feasible and the security of this Mortgage is not thereby impaired. If such I restoration or repair is not economically feasible ur if the s+rurity 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 fails to f r-;pond to Lender within a0 days from the date notice is mailed by Lender b, Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance pre,cerds at Fender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless (.ender and Borrower otherwise agree in writing, :+ny such application of pmce>eds to pri ncipal shall not extend or postpone the due date of the monthly installments referred d, in paragraphs I and'L hereof or change the amount of such installments. if under paragraph IR hereof the Property is acquired by Lender, all right, title and interest of lte,rrower in and to any insurance policies and in and to the proceeds thereof resulting from damage tr, Property prior to the sale or acgwsition shall p:?ss to Lender to the extent of the sums secured by this s \t~~rtgagP immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Rorrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a cnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration +,r roa•rnantti creatint;or govern:ng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a :~nndominium or planned unit development rider is executed M• Burn,wer and re+•orded together with this Mortgage, the rnvenants and .:Krrements of such rider shall Ix incorporated into and shall amend and supplement the coa•enantc and agreements of this Mortgage as if the rider were a part hereof. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects bender'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 1 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 Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain ouch inBUrance in effect until such time as the requirement for such insurance terminates in accordance with Borrower a and Lender s E written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph `L hereof. 1 Any amounts disbursed by [.ender perauant ~ 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. 3~l?K J~1 PeGE ~UJ