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HomeMy WebLinkAbout0909 . Borrower and Lender rnvenant and agree as follows: 1. Payment o[ Prlnelpal sad 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 nn any Future Advances secured by this Mortgage. 2. Funds for Tomes 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 toone- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one, twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all ?ur reasonably estimated initially and from time to tithe by Lender on the basis o[ 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 lincluding Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assesamenta, 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 the Fonda and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If the amount of the Flrnds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of to:es, 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 BotTOwer 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 shat) 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 alt sums secured by this Mortgage, Lender shalt 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 Bale of the Property or its acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma 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 alt taxes, assessments and other charges, noes and impositions attributabie io the Property which may attain a priority over this Mortgage, and leasehold payments or gmund rents, if any, in the manner provided under paragraph 2 hereofor, 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 paragraph, and in the event Borrower shall make payment directly, Bormwer shall promptly furnish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Burrower shall not be required to discharge any such lien so long as Borrower shall agree in writinK to the payment of theobligation secured by such lien in a manner acceptable to Lender, ur shall in gorwl faith contest such lien hy, urdefend enforrnment ofsuch lien in, leKal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the Properrty or any part therec,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term "extended rnverage," and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall nut require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providinK the insurance shall he chosen by Burruw•er suhjec3 to approval by Ixnder; provided, that such approval shall not be unreasonably withheld- All premiums on insur-.?n<r p?dicic•s shall Ix• paid in the manner provided under parcKraph'Lhereof or, if I' nut paid in such manner, by Bnrn?wer makinK payment, when due, dinc•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form accept.-rble to Ixnder and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the riKht to hold the policies and renewals thercr,f, and Burrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Bormwer shall give prompt notice to the insurance carrier and Lender. [.ender may make proof of loss if nut made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration ur repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to Burrower. I f the Property is abandoned by Borrower, or if Bormwer tails to re,pond to Lender within :IQ days from the date notice is mailed by Fender to Ikrrrower that the insurance carrier offers to settle a claim for insurance benefits, (.ender is authorized to collect and apply fire insurance prucceds at Ixnder's option either to restoration or repair of the ' Property or the sums 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 installments referred to in paragraphs I and'L 1?ereof or change the amount of such installments. If under paragraph IS hereof the Property is acquired by Lender, all right, title and interest of Bormwer in and to any insurance policies and in and to the proceeds thereof reaultin¢ from dama¢e tp Procerty ariur to the sale or acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; I.easeholds;('ondominums;Planned Unit Developments. Borrowerahallkeep 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 hlortgaKe is on a unit in a condominium or a planned unit development, ~ Burrower shall perform all of Borrower's obligations under the declaration ur covenantsg creatinkor 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 exec~,ted by Borrower and recorded together with this Mortgage, the rnvenants and agreements of such rider shall 1?e incorporated into and shall amend and supplement thecuvenants and agreements of this Mortgagees ifthe rider were a part hereof. . ~ 7. Protection o! 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 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,upan notice to Borrower may make such appearances, disburse such some and take such action ae is necessary to protect Lender's interest, including, but not limited tu, 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 such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lender s `s written agreement or applicable Law. Bormwer 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 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. 1 onn~R~// crC[ IX