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HomeMy WebLinkAbout1681 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 as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to !xnder 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- twelfih 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 of yearly premium installments for mortgage insurance, i[any, all as reasonably estimated initially and from time to tine by !.ender 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 (including Lender if Lender ie such an institution). [.ender shall apply the F ands to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Fonda, 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 of applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or earnings on the Fonda. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose [or 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 Fonda payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall excrcd the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such exceatc shall be, at Bo+TOwe~ s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds_ If the amount of the Funds held by !.ender 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, !.ender shall promptly refund to Borrower any funds held by !xnder. If under paragraph 18 hereotthe Property is sold or the Property is otherwise acquired by (.ender, l xnder 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 thin Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by bender 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; Liana. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or {;round rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payef• thereat Bormwershall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Bornrw•er shall make payment directly, Borrower shall promptly furnish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lienx•hich has priority over this Mortgage; provided, that Borrower shall not be required todischarge any such ~irn so look as lirrrnrwer shall a{Sree in writinK to thepaymf•nt of theubligation secured by such lien in a manner acreptabie to Ixnder, or shah in K«rd Caith contest such lien try, orfif•trttii+•niorce•+nt•nt ufsuch lien in, if•Kai pretceedings which operate to prevent the enforcement of the lien nr furff•iturf• of the Pr+perty or am• part thenYrf. 5. Hazard Insurance. Borrower shall keep the improvements now existinK or hereafter rrfrtfd un the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Ixnder may require; providcYl, that Ixndf•r shall not resoles that the amount of such rnveriKe exceed that amount of coverage required to pay the sums secured by this Mortgage. The insuranm c:+rrier pnrvidinK the insurance shall tw• chosen by Born~wer subjcrt to appru~:d by I.endf•r; providfd, that such approval shall not be unreascrnabh• withheld. All premium. on imuruu•e p. nc~ie. shall lx• paid in the mannf•r pro~•idf•+i under paraKr.+ph henrrf or, if not paid in such manner, by Ei,rmrwer makinK payment, when due. dire+•th- to the insurance c:+riier. All insurance policies and renewals thereof shall tee in form accept:+hle to I.f•nder and shall include a standanl gtortgage clause in favorof and in form acceptable to Ixnder_ Lender shall ha~•e the ri{;ht to hold the {trdicies and renewals therfYrf, and Borrower shall promptly furnish to i xnder all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall Kia•e prompt notice ttr the insurance carver and Ixnder. (.ender may make pr«rf of loss if not rnadr promptly by Borrower. Unless [xnder and Borrower otherwise agree, in writinK, insurance prcrc•eeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is fY•onomically feasible and the security of this Mortgage is not thereby impaired. If such i restoration or repair is not economically feasible or if the security of this MortK:+Ke would be Impaired, the insurance proceedsshal) beapplied to the sums secured by this Mortgage, with the excess, if any, paid to Rorruw•er. If the Property is abandoned by Borrower, or if Borrower fails to ` respond to Ixnder within aft days from the date notin• is mailed by 1 xnder to l;<rrrower that the insurance carver offers to settle a claim for f insurance benefits, Ixnder is :+uthbrlZfd t0 cf1111Y't and :+pph• thf• inwranc•e prrrf•ef•ds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ixnder and Borrower otherwise agree in writinK, am• such application of prex•recls to principal shall not extend or postpone thedue date ofthe monthly installments referred to in par.+Kr.+phs 1 and 'L IeenYrf or change the amount of such installments. If under paragraph IA hereof the Property is acquired M• Ixnder, all right, title and interest of Borrower in and to am• insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale ur acquisition sh:+Il pass Gr Ixnder to the extent of the sums secured by this Riortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Ixaseholds; ('ondominums; Planned !'nit Developments. Borrowerahall keep the Property in g«rd repair and shall nut commit wa~tc or permit imp:?irment or dete•rior.+tion of the Property and shall rnmply with the provisions of any lease if this Mortgage is on a leasehold. If this MortgaKe is on a unit in a condominium or a planned unit development, (Brrower shall perform all of lierrtower's obligations under thf• df•c•lar-.dion or covenants cnatinK or gm•ern+ng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a 1 condominium or planned unit development rider is exfY•utfd by licrrnrwer and rfrorded together with this Mortgage, the covenants and ~ agreements of such rider shall tte incorporiicd into and .hall :upend :+nd supplement thecocenants and agree•mentsuf this D1ortKageas ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrewer fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects Ixnder'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 Ixnder at Ixnder'e 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 Property to make repairs. If Lender required mortgage insurance as a condition of making the loan secured by this tiiortgage, &?rrower shall pay the premiums required to maintain ouch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and [xndei s written agreement or applicable law. Borrower shall pay the amount of all mortgage in»urance premiums in the manner provided under I paragraph 2 hereof. ` Any amounts disbursed by Ixnder perauant Lcr this paragraph 7, with interest therecm, shall become additional indebtedness of Borrower secured by this :liortgage. Unless Borrower and (xnder agree to other terms of payment, such amounts shall be payable upon notice from Ixnder to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time ctn 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 7, shall require Ixnder to incur any expense or take any action hereunder. r ~ocK 322 ~a~E 1676