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HomeMy WebLinkAbout2884 . Borrower and Lender covenant and agree 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 late charges ae provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Tasea and Insurance. Subject to applicable law or to a written waiver by Lender, 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 of yearly premium installments for mortgage insurance, if any, :+II as reasonably estimated initially and from time to titre 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 ~ tincluding 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 :?ssesaments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Fender 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 Botrower, 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 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 excxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer'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, 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 oritsacquisition 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 (.ender first in payment +.f 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 pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priorityover this Mortgage, and le:?sehold payments orgmundrents, ifany, inthe manner provided underparagraph'l hereofor, if not paid in such manner, by Borrower making payment, when due, din~•tly to the pay+•e thereof. Borrower shall promptly furnish to Fender a}I notices of amounts due under this paragraph, and in the event 13„rrower shall make p:+yment directly, Rornrwer shall pn,tnptly furnish to f .ender receipts evidencing such payments. (;,~rnrwer shall prompt)}• discharge any lien which has priority o~•er this Mortgage: provided, that Burrower shall nut be required to disch:vge any such lien so long as Borrower shalt agre+• in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in gtxxl Grith rontc•st such lien by, orde•fend enfonrment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeitun• of the 1'n.{x•rty or am• part then.~f. 5. Hazard Insurance. Born?wer shall keep the impnn•enu nts now• existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended co~•erage," and such other hazards as lender may require and in such amounts and for such pericxis as (.ender may require: provided, that Lender shall not nr{uire that the amount of such cY?vernge exceed that amount of coverage rc•yuired to pay the sums secured b~• this Mortgage- The insurance carrier pro~•iding the insurance shall Iw chosen he Iturruwi•r subj+vt to approval by (.ender: procid+•cl• that such approval shall not be unreasimably withheld. All premiums on insurance policie :..hall Iw• paid in the manner pru~•id+rl antler par.graph here•of or, if nut paid in such manner, by li:~rrower making p:?~•ment, when due. die+ti•th• to the insurance c•:+rtier. All insurance policies and renewals thereof shall be in firm a?-ceptatde to 1.+•nder and shall include a standard mortgageclause in favorof and in form acceptable to Lender. lender shall have the• right to hold the {x,licies and renewals thereof.:+nd Rorrowershallpr~mptly furnish to i.c•nder all renewal notices and all receipts of paid premiums. In the event of loss, f{urniwer shall give prompt notice tc? the insurance carrier and Lender. Lender may make proof of loss if not made promptly b~~ l;r+rn?wer. ~ Unless Lender and Borrower otherwise agree in writing, insurance pnx-eeds shall he applied to restoration or repair of the Property ! damaged, provided such restoration or repair ir• eci~nomic:+Ily feasible and the security of this Mortgage is not thereby impaired. If such E restoration or repair is not economically feasible or if the security of this Mortgagewould he impaired, the insurance proceeds shall beapplied 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 respond to (.ender within at) days from the date notice is mail?•d by Lender ti? Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance pr~x•eeds at bender's option either to restoration or repair of the Property or the Burns secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments4 referred to in paragraphs 1 and 'L hen•of or change the amount of such installments. If 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 ff thereof resulting from damage u? Property prior to the sale or acywsition shall pass G~ Fender to the extent of the sums secured by this Jlurtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur drterior.+tion of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, Burrower shall perform all of Borrower's obligations under the declaration or covenants creatingorgoverntng the condominium or planned . snit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~ ~ undominium or planned unit development rider is executed by Borrower and n•?•onled together with this Mortgage, the covenants and aR regiments of such rider shall tx• incur{x?ratf•d into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the wvenanti+ 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 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 fees and entry upon the Properly to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this 111ortgage, 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 Lendei 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 (.ender perauant to this paragraph 7, with interest thereon, shall become 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 dtsbursement 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 shall require Lender to incur any expense or take any action hereunder. },~K321 P~~E2880