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HomeMy WebLinkAbout1677 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 latecharges as provided in the Notr,and the principal of and interest on any i•~rture Advances secured by this Mortgage. 2. fluids for Taxes 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 Therein "Fonda") equal to one twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- tavelfthotyearly premium installments for hazard insurance, plus one-twelfth otyearly premium installments for moRgage insurance, if any,. all as teasonabiy estimated initially and from time to tirr+e 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 titate agency (including Lender if Lender is such an institution). (,ender shall apply the Fonda 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 law permits !.ender to make such a charge. Borrower and (.ender 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, l.endet shat{ 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 Fonda 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 N ands payable prior to the duedates oftaxea, 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 Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds he{d by Ixnder shat! not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to (.ender any amount necessary to make up the deficiency within 30daye from the date notice is mailed by (.ender to Borrower requesting payment thereof. Upon payment in full of ail sums secured by this Mortgage, bender shall promptly refund to Borrower any funds held by (,ender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by lender, any Funds held by bender at the time of application as a credit against thesums 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 bender 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 othen•harges, fines and impositions attributableto the Properly which may attain a priority over this Mortgage, and leasehold pad menu or gmund rents, if any, in the manner provided under paragraphs hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Born,wer shall promptly furnish to Lender all notices of amounts due under this parrt,•raph, and in the event 1{orrower shall make pa~•ment directly. Borrower shall promptly furnish to [.ender receipts evidencing such payments. l;<,m,wer shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required to discharge am such 1..•., F.,..g n ~ r ; +:.11,,~r ee u: w riling to the payment of the obligation secured by such lien in a manner acceptable to (,ender, or shall in g+,+,rl faith contest such lit•n by, ordefend enfimrment ufsuch lien in. legal proceedings which operate to prevent the enforcement of the lien ur furfeiturf• of the I'ropert}• ur am part thereof. b. Hazard Insurance. Korrewer shah keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended cuveragc•." and such other hazards as Lender mad require and in such amounts and for such periods as bender may require: provided, that Lender shall not require that the amount of such nn•er,rge exceed that amount of coverage required to pay the sums secured br this Mortgage. The insurance carrier providing the insurance shall IN• +•h+rsCO Ir}• Il++rruN'(•r.ubj+•+•t to appn+val h~• { a•nder, pnn•idtvl, that such approval shad not be unre:~u,nably withheld. All premiums on insurnce I+++lici+:. sh:+!! Ix• paid ur the m:urner provid+vl under paragraph 'L hear+f or, if nut paid in such m:+nner• by fiorrower makinf,• p:r}~nu•nt. when due, dirw•tl}~ to the insur:nce cam+•r. All insurance policies and renewals thereof shall he in form acceptable to I~•nder and shall include a standard mortgageclause in favorof and in form acceptable to Lender. Lender shall have the right to hold the t++dicies and renewals thercr,f. and Ronuwershall promptly furnish to ?,ender all renewal notices and all receipts of paid pr,miums. In the event of loss, Rormw•er shall give prompt notice W the insurance carrier i and Lender (.ender may make proof of loss if not made pmmpth• b~• BorroK•er. Unless Lender and Borrower otherwise agree in writing, insurance pr+K•eeds shall bc• applied to restoration or repair of the Property damaged, provided such restoration or repair is e+•unumic:+lh• feasihk• and the security of this 1lurtgage is not thereby impaired. If such i restoration or repair is not economically feasibly ur if the security of this Mortgage would be impaired, the insurance pn,ceeds shall beapplied to the sums secured by this Mortgage, with the excess, if any, paid to It+,rn,wer. l f the Yropr•Ry is abandoned by Burrower, or if Borrower tails to respond to bender within all days from the date notice is maihd by bender to lit+rruwer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apph• the insurance proceeds at bender's option either to restoration ur repair of the Property or the sums secured by this MoRgage. Unless Lender and Born,wer otherwise agree in writing, any such application of proeeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'l here++f ur change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [,ender, all right, title and interest o[ Burrower in and to any insuranm policies and in and to the proceeds ! thereof resulting from damage U+ Property prior G. the sale or acywsition shall pass d, I,c•nder to the extent of the sums secured b~• this ~ tiloRgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; LeaseholdK; ('ondominums; Planned ('wit Developments. F3orrowerahal) keep the Property in good repair and shall not commit waste or tx•rmit impairment or deterioration of the PropeRy and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Fiorrower shall perform all of Borrower's obligations under the dec•I:aaUun or covenants cn•:rtrngor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a a condominium or planned unit development rider is rxctivled by l;r,m,wer :+nd recorded together with this MoRgage, the covenants and ~ :+gees~mentsofsuchridershallbeincnrt>.+rrtedintoandshalf:+mendandsupplementthecoven:?ntsandagrevmentsofthisMortgageasifthe ' rider were a part hereof. 7. Protection of Lender's Securit if Borrower fails u, dorm the covenants and a Y• Pe greements contained in this MoRgage, 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 ma make such a Y ppearancea, 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 fees and entry upon the Property to make repairs- If Lender required P 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 ouch time as the requirement for such insurance terminates in accordance with Borrower's and Lenders written agreement or applicable l.aw. Borrower shall pay, the amount of all moRgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by. Lender persuant tr+ this paragraph 7, with interest thereon, shall bernme additional indebtedness of s Fi<,rrower secured by this Mortgage. Unless Borrower and [.ender agree k, other terms of payment, such amount$ shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of diahuraement 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 late. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder- _ I R ~7~ ~