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HomeMy WebLinkAbout1194 Borrower and Lendei covenant and agree as follows: 1. Pwyment 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. PLnds for Tares 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 ,twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelRh of yearly premium inatallrtienta for hazard insurance, plus one-twelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tin-,e by Lender on the basis of assessments and bills and reasonable estimates thereoL 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 yenta. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaeaamente 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 ~intereat 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 b the Fonda was made. The Funds are pledged as additional security for the some secured by thi8 Mortgage. If the amount of the bl?nds held by Lender, together with the future monthly installments otFunds payable prior to the due dates of tares, asaeeaments, insurance premiums and ground yenta, shall excxd the amount required to pay said taxes, assessments, insurance premiums and ground yenta as they fall due, such excess shall be, at Borrower a 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 ae 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 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. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Morigage, and leasehold payments or ground 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, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which h:+s priority over this Morigage; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment of theobligalion secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in,-legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 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 coverage; 'and such other hazards as Ixnder may require and in such amounts and for such periods as Ixnder may require; provided, that Lender shall nc?t 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 insurance shall be chuFen by Borrow•rr subject to approval by Ixnder; provided, Thal such approval shall not be unreasonably withheld. All premiums on insurance IHdiciea shall be• paid in-the manner pn?vide<I under paragraph 'l hereof or, if ~ not paid in such manner, by Fiorruwer making p:+yment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Ixnder and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Ixnder shat} have the right G, hold the policies and renewals thereof, and Borrower shall promptly furnish to i xnder all renewal notices and all receipts of paid premiums. In the event of lose, Burrower shall give prompt notirn to the insurance carrier and Lender. [.ender may make proof of loss if not made promptly by Borrower. Unle~sa Lender and Borrower otherwise agree in writing, insurance 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 or if the security of this hortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to &,rrower. 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 Ixnder u, Borruw•er that the insurance carrier offers to settle a claim for ~ insurance benefits, [.ender is authorized to rnllect and apply the insurance proeeeds at Ixnder's option either to restoration or repair of the Property or the sums secured by this Morigage. Unless Lender and Borrower otherwise agree in venting, any such application otpmceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs I and 2 hereof 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 thereof resulting from damage to Property prior to the sale or acquisition shall pass to !xnder to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Ixaseholds; Condominums; 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 lease if this Mortgage is on a leasehold. If this Mortgage ix on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ~ ?•ondominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenanta and :+greements of such rider shall be incorporated into and .hall amend and supplement thecovenants and agreements otthis Mortgage as ifthe rider were a part hereof. 7. 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 Ixnder's interest in the Property, including, but not limited to, eminent domain, g insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender a option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's teen 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 ef[eM until such time as the requirement [or such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. a Any amounts disbursed by [.ender perauant to this paragraph 7, with interest thereon, al,all 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 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 Ixrnler to incur any expense or take any action hereunder. I BOOK322 P~~E1193 3