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HomeMy WebLinkAbout0241 ~ 13or•rower 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. Fwtds for Taxes and lneurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to I.enderon 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, twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth otyearly premium installments for hazard insurance, plus onetweifth ofyeariy premium insiaitmrntrr tur rortgage insurance, if any, all as reasonably estimated initially and from time to tune 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 tincluding Lender if Lender is ouch 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 the Funds, analyzigg 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 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 Bums 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 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 Funds. If the amount of the Funds held by [.ender shat! not be sufficient to pay taxes, assessments, insurance premiums and ground-rents as they tall 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 tl±e ~±1n 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 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. Borrower shall pay all tazes,:+s_sessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground 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 payee thereof. Korrowershall promptly furnish to Lender all notices o[ amounts due under this paragraph, and in the event Kormwer shall make payment directly, Kormwer shall promptly furnish to I .ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long:rs Borrower shall agree in writing to the payment of the obligation secured by such Gen in a manner acceptable to Lender, or shall in Kood faith rnntest such lien hy, 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. Kormwer shall keep the improvements now existing or hereafter erected on 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 Lender may require: provided, that Lender shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MortK~rKe- The insurance carrier providing the insurrncr shall i,e ehosf•n by Kurruwer subject to approval by Iw•nder, provided, that such approval shall not be unre.'rsonably withheld. All premiums un insurance lN:lir•irs shall lK• paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by &?mrwer making payment, when due, dinrtly to the insurance carrier. All insurance policies and renewals thereof shall he in form acceptable w Lenderand shall includes standard mortgageclausein favorof and in form acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of loss. Korn?wer shall give prompt notice to the insurance carrier and Lender. Ixnder may make proof of loss if not made promptly b> Kormwer. Unless 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 cronomically teasibie and the security of this iMiortgagr is rut 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 sums secured by thin Mortgage, with the excc•sc. if any, paid to Borrower. Ifthe Property is abandoned by Borrower, ar if Borrower fails to respond to i,ender within :iQ days from the date notice is mailed by Lender to Kormwer that the insurance carrier offers to settle a claim for insurance benefits, !.ender is authorized to collect :end apply the insurance proceeds at bender 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 the due date of the monthly installments referred u, in paragraphs 1 and'L hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, all right, title and interest of Kormwer in and to any insurance policies and in and to the proceeds thereof resulting frrom damage to t roperty prior to the lair ur :.a'yu~a~tivii ~naii pass :c: iA•nciri to t=IY Y~ter:: e•:` t'iP 8=„T~r :-t':'CCre'.'! t !!:iS ~'iortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperty; Leaseholds; ('ondominuma; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Pn?perty and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this 6ortgage is on a unit in a condominium or a planned unit development, Borrower shall perform ail of Borrower's obligations under the declaration or covenants creatinkot 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 executed by &im~wer and recorded together with this Mortgage, the covenants and agreements of such rider shall he incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgagees if the rider were a part hercvrL 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 ?.ender'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 rosy make such appearances, disburse such sums and tafce such action as ie 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, Borrower shalt pay the premiums required to maintain such insurance in etfeM until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender's 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 7, wi?h interest thereon, shall become additional indebtedness of Kormwer secured by this Mortgage- Unless Kormwer 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 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 Lender to incur any expense or take any action hereunder. - auoK323 PacE 241