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HomeMy WebLinkAbout0249 Borrower and Lender covenant and agree as folbws: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness rv iden+.•e+l Ly il+e !Viola', prepayment and late charges as provided in the Notr;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 Lender on the day monthly installments olprincipa) and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one :::::t!? of the y early !axes sod sss~emente w1li~ta mwy attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance. if arty, a.: as reasonably estimated initially and from time to time 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 Slate agency (including 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 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 Lender to make such a charge. Bon; over 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 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 instal Imenta 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 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 Lo 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, Fender 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, I:ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by I.enderat the timeof application as a credit against thesumssecured 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 Borrowerunder 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. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which m iy attain a priority over this Mortgage, and leasehold pay menls 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 shalt promptly furnish to !.ender receipts evidencing such payments. Burrower 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 as Iiorruwer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to (xnder, or shall in g++od faith contest such lien by, or defend enfonrment of such lien in, legal proceedings K•hich operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof Hazard Insurance. Borrower shall keep the iri+provements 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 !xnder may require and in such amounts and forauch perods as Lender may require; provided, that Ixndershall not require that the amount of such coverage exceed that amount of coverage rc•cluired to pay the sums secure) by this Mortgage. The insurance carver providing the insuranc+• shall b+• chosen h~• liorruw•er subject to appnn:+l by ].ender; pmeided, that such approval shall not be unreasonably withheld. r111 premiwns on incur.+nc<• tN,licie:. shall l,r paid in the m:+nner provided under paragraph `L hereof or, if not paid in such manner, by Born+w•er making payment, when due. dincth• to the insuranm carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favor of and in form acceptable to !.ender. !.ender shall have the right to hold the p+dicies and renewals thereof, and Borrower shall promptly furnish to sender ail renewal notices and all receipts of paid premiums. ]n the event of loss. Borwwer shall give prompt notice to the insurance carrier and !.ender. Lender may make proof of loss it not made prompth• by Borrower. 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 c•conomicall~• feasible and the sc-curtly of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to I3„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 (.ender to &,rrower that the insurance carrier offers to settle a claim for insurance benefits, [.ender is authorized to collect and .+pph• the insurance pr+xeeds at !.ends! s option either to restoration or repair of the Property or the sums secured by this MortK:+Ke• Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and'L hereof or change the amount of such installments. If under paragraph 18 hs.rPnf the Property is acquired by bender, all right, title and interest of 13orrow•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to !xnder to the extent of ti+e sums ara-ur~~l Ly tlii6 `tortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; l,eaaeholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit watite 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 is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenantsg 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 condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and aKreementg of such rider shall be incorporated into and shall amend :+nd supplement the n,venants and agreements of this Mortgage as if the rider were a part hereof. 7. ProteMion 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 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 a option,upon f notice to Borrower may make each 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 tees and entry upon the Property to make repairs. If Lender required mortgage insurance ae a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect 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 ail mortgage insurance premiums in the manner provided under paragraph 2 hereof. - [ Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall 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 contrary to applicable law, in which event such amounts shall bear interest at the highest rate penniaaible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. ~~~~323 PeGE 249 -