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HomeMy WebLinkAbout2356 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o[ 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 Ta:es 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") equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus one-twelfth otyearly premium installments for mortgage insurance, itany, all ae 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). [.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 account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable Isw 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 the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security fortheauma secured by this Mortgage. If the amount of the ~tnda 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 excted the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+rower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fl+nds. If the amount of the Funds held by [.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae 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 sums secured by this Mortgage, [.ender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acyuired b} [.ender, 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. Bc?rrower shall pay all taxes, :~tisessments and other charges, 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 Borrower making payment, when due, directly to the payee thereof. Burrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event l;,?m?wer shall make payment directh , Born?wer shall promptly furnish to lender receipts evidencing such payments. liurrow•er shall promptly discharge any lien which has priority over this Mortgage; provided, that F?orrower shall not be required to discharge any such lien so long ac Runruw•er shall agrm in writing to the payment of theubligation secured by such lien in a manner acceptable to !.ender, ur shall in ga?d faith eY~nte•st sue•h lien by, or defend enforcement of such lien in• legal proceedings - which operate to prevent the enforcement of the lien or forfeiture of the I'n,perh• or am• part therer?f. 5. Hazard Insurance. Korrow•er 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 Lender may require and in such amounts and for such periods as [.ender may rcyuire; provided, that bender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortg.+ge. The insuranm carrier providing the insurance shall t?e• c•hosen Ioy liurn.w•er suhjer•t to appruv:+1 br I.c•nder, provided, that such approval shall not be unreasonably withheld. All premiums un insurance tH~licies shall Ix• paid in the manner pryn•ided under paragraph 'L hen•cof or, if not paid in such manner, by li??rnow•er making payment, when due. dirc•c•th• to thc• insur.+nc•e carrier. All insurance policies and renewals therec?f shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to lender. lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to j i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall give prompt notice to the insurance carver f and Lender. (.ender may make proof of loss if not made promptly by 1~?rrower. Unless Lender and Borrower otherw•iu• agree in writing, insurance proceeds shall he applied to restoration or repair of the Property I damaged, provided such resG?ratiun or repair is economically feasible and the stcurih of this Mortgage is not thereby impaired. If such IIII restoration or repair is not economically feasible ur if the security 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 l;,?rrower. l f the Property is abandoned by Borrower,or if Borrower fails to respond to Lender within :?0 days from the date notice is mailed by Lender to licornower that the insurance carrier offers to settle a claim for insurance benefits, [.ender is authorized to collect and apply the insurance pn?c•eeds at Lender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Fender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'l herec?f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right, title and interest of l;,orn?w•er in and to any insurance policies and in and to the proceeds thereof resulting from. damage W Property prior to the s:+le ur acgwsitiun shall pass to Lender to the extent of the sums secured by this '.Morgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Ixaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit w•a~te or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this lllortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, Korrower shall perform all of Borrower's obligations under the declaration ur covenants cn•atingor governing the condominium or planned unit development, the by-laws and regulations of the condomimum ur planned unit development, and constituent documents. If a ' , undominium or planned unit development rider is executed by &?rnow•er and re•c•orded together wtith this Mortgage, the covenants and ~ :~greement_4ufsuchridersha111?eincurpuratedintuandshall:+mendandsupplemt•nttht•cuvenantsandagreements of this Mortgage as if the , rider were a part hereof- 7. Prote~etion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any E action or proceeding ie commenced which materially affects bender's interest in the Property, including, but not limited to, eminent domain, i insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at [.ender a option,upon ~ notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lendei a 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 Mc?rtgage, Borrower shall pay the premiums required to maintain " such insurance in effect until ouch time as the requirement fur such insurance terminates in accordance with Borrower a and Lender e 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 pereuant to this par:+graph 7, with interest thereon, shall bernme additional indebtedness of Borrower secured by this Mortgage- Unless Borrower and Lender 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 1 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. c~ r 3~1iK+~~~ P3GE2~3