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HomeMy WebLinkAbout1664 • P • ~ Borrower and Lender covenaat and agree u tolbwa: I. Psyment 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 intetrat on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder, Borrower shall pay to bender on the day m •nthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one- ~:elRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus oae• twelfth of yearly premium iastallments for hazard insurance, plus onetwelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to tine 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 iincluding 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 tht 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 Leader 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 taw 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 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 excxd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fat) 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 Fonda 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 [.ender W IloROwer requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, bender shall promptly refund to Borrower any funds held by (,ender. (fonder paragraph 16 hereof the Property is sold. or the Property is otherwise acquired by Lender, (,ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by (.ender, 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 ih 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 e•harges, fines and impeuitions attributable to the Property which may attain a priority over this Mortgage, and le:+sehuld payments orground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by EioROwer making payment, when due, directly to the payee thereof lt++rrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event (i,+ROwer shall make payment directly. Korrower shat{ promptly furnish to Lender receipts evidencing such payments. RoROw•er shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien s,) lung as (ioROwer shall ague in writing to the payment of theobligation secured by such lien in a manner aevrntabtP t.. I ,..,aP..,. ~ti;;n r-•=~+- urire,v a•niurerment of such hen tn, lc al roceedin s which operate to prevent the enforcement of the lien or forfeitun• of th+• I'roperta• ur any part (hereof. 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 Lender may require and in such amounts and forauch periods as Lender may require; proaided, that lxnder shall nut require that the amount of such n?verage exceed that amount of coverage required to pay the sums secured by this Mortgage. I~{ ~ The insurance carrier providing the insurance shall tw• chosen by It.+m,wer subject to appnn•:+1 by Lender; pnn•ided, that such approval shall not be unreasonahly w•ithhrld. All premiums on insurnce tN+hcie•s ::h:+Il tx• paid in the manner provided under paragraph ? hereofor, if not paid in such manner, by Ii,+m+w-er making payment- when du+•, din•+•tl>• t+. the insurance carrier. 4 All insurance policies and renewals thereof shall twin form accept<+ble to Lender and shall include a standard mortgageclause in favor of and in form acceptable te? (.ender. Lender shall fierce tfie right t.+huld the policies and renewals thercr+f, and BoROwer shall promptly famish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss, &+rn+wer shall give prompt notice to the insurance carrier and Lender_ Lender may make proof of loss if not made promptly by ItOROw er. Unless [.ender and HoROwer othervrise• agree in writing, insurance proceeds shall Fx• applied to restoration or repair of the Property damaged, provided such restoration or repair is economical{y feasible and the seturity of this Mortgage is not thereby impaired. If such restoration or repair is not ece+nomically feasible or if the security of this Mortgage would t+e impaired, the insurance proceedsshall be applied to the sums secured by this Mortgage, with the excess. if any. paid to (ioROw•er. If the Property is abandoned by E3oROwer, or if Borrower fails to respond to Lender within at) days from the date notice is mai)ed M• (.ender to lic+ROwer that the insurance carrier offers to settle a claim for insurance benefits. Lender is authorized to collee-t and apply the insurance pr+xeeds at gender's option either to restoration or repair of the Property or the sums secured by this MoriK:+Ke- • Unless Lender and BoROwer otherwise agree +n w•ntinK. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments refeRed te) in paragraphs i and'L hereof or change the amount of such installments- If under paragraph 18 hereof the Property is aequired by Lender, all right. title and interest of ltc+rn+wer in and to any insurance policies and in and to the proceeds thereof resulting from damage W Property prior te+ the s;+le or ae•ywsition shall pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: leaseholds: Condominums: Planned Unit Developments. ~oROwershall 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 ~lurtgage is un a unit in a rnndominium or a planned unit deaelopment, ~oROwer shall perform all of Ik+Row•er's obligations under the declaration or covenants rre•:+tingor 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 deyelopment rider is executed by 13++m,w•er and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorp+m+ted into and shall amend and supplement thecoa•enants and agreementsof this Mortgagees ifthe rider were a part hereol. 7. Protection of Lender's Security. If IloROwer fails to perform the covenants and agreements contained in this Mortgage, or itany aMion or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, 3 inso)vency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at I.ender'e option,upon {l notice to Borrower may make such appearances, disburse ouch soma 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, ~oROwer shall pay the premiums required to maintain such insurance in effect until such time as the requirement for ouch insurance terminates in accordance with Borrower's and Lenders 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 perauant to this paragraph i, with interest thereon, shall become additional indebtedness of ~oROwer secured by this Mortgage. Unless ~oROwer 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 eutetanding principal under the Tiote 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 per•misaible under applicable law. Nothing contained in this paragraph shall ~ require Lender to incur any expense or take any action hereunder. at,~~ 322 QecE 1659