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HomeMy WebLinkAbout1542 a 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 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 lxnder, 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 "Funds")equal to onto 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 of yearly premium installments for hazard insurance, plus onetwelfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Ixnder 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 ti ~cluding 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 eo holding and applying the ttitnds, 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 Fonda 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 F unds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fu nds 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 duedates 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 Ixnder 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 BoROwer requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by l.ender• 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 r„ fF,o aalo of the Prnnorty nr itc amuiaitinn by 1 vndor• ano Rnndc held by I vndpr at lht> timt• of annlicatinn as a credit atrainst the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by i.ender 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 taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gn,und rents, if any • in the manner provided under paragraphs hereof or, f .^.o! paid in such manner, by BoROw•er making payment, when dur• dir+•r•th• to the payee therw?f Iturmwer shall promptly furnish to [.ender ;111 notices of amounts due under this paragraph, and in the event lit?rn,wer shall make payment directly, Iorrower shall promptly furnish to Lender receipts evidencing such payments. liorn,wer shall prumpth• discharge any hen which has priority over this Mortg:+ge; provided, that Ei~ IROwer shall not be required to discharge any such lien so lung as Borrower shall agrtr in writing to the pay?nent of the obligation soured by such lien in a manner acceptable to Lender, or shall in t;otxl faith tr?nt?•st such lien by, ordefend enfurct•ment otsuch lit•n in.legal proceedings which operate to prevent the enforcement of the lien ur forfeiture of the 1'n,perty ur any part then`t,f. 5. Hazard Insurance. Borrower shall keep the improvements ne?w existing ur hereafter erected on the Property insured against lossby fire, hazards included within the term "extended cover.+ge," and such other hazards :+s Lender may require and in such amounts and forsuch periods as Ixnder may require; provided, that Ixnder shall nut require that the amount of such ctn•erage exceed that amount of coverage nYtuired to pay the sums set•und by this Mortgage. The insuranm r.+mer providing tht• insuramce shall Ix• chosen by Kurruwer suhjt•ct to approcnl by Lender, pn,vidtd• that such approval shall not be unreasonably withheld. x111 pn•miums un insurance policit~. sh;+ll t,t• paid in the marnt•r pruvidtd under paragraph henof or, if ''i not paid in such manner, by lir,rrr,w•er making payment, when due, directt>• h, the insur:mtr c:+mt•r. All insurance policies and renewals thertotshall be in form acceptable G? L1•nder and shall include a standard mortgagedausein favorof :Ind in form acceptable to Lender. Lender shall h ave the nigh t to hold the prlicies a nd renewals there+?f, and Burrower shall promptly furnish to I,c•nder all renewal notices and all receipts of paid premiums. In the event of loss. Burn,wer shall give prompt notice W the insurance carver and Lender. [.ender may make prc?of of loss if not made promptly by Burrower. Unless Lender and Borrower otherwise agree in writing, insurance prcxt•tds shall Fx• applied to restoration or repair of the Property damaged, pro~~ded such resG,r.?tiun or repair is t•c•onumicalh• feasible :+nd the strurity of this Mortgage is not thereby impaired. If such i n•storation or repair is not cronumically feasible ur if the security of this Mortgage would Ix impaired, the insur.+nm proceeds shall be applied l to the sums secured by this Mortgage, with the excess, if any. paid to lic?ROwer. If the Property is abandoned by Borrower,or if Bc?ROwer fails to re.;pond to Lender within 30 days from the date nutlet, is mailed by Lender to Korn,wer that the insurance carrier offers to settle a claim for [ insurance benefits, Lender is authoriztd to colhvt and apply the incur.+nce pn,ctrds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. UnlessLenderandBorrowerotherwiseaKreeinwritinK.:+nysuchapplicationofprtrceedstoprincipalshallnotextendorpostponethedue date of the monthly installments refeRed to in paragraphs I and'l herec,f or change the amount of such installments. If under paragraph 18 hert>of the Property is acquired by Lender, all right, title and interest of Burn?wer in and b, any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgwsitiun shall pass to Lender to the extent of the sums secured by this ~tnrtgage immediately prior to such sale or acquisition. 6. Preservation and :Maintenance of Property; Leaschold~l; ('ondominums; Planned Unit Developments. Borrowershall keep the Property m good repair and shall not commit w•asu• or pt•rmit impairment or deteriur.?tion of the Property and shall comply wiih the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is un a unit in a condominium or a planned unit development, fiorruwer shat! perform all of Iiorn,wPr's obligations under the dte•laratiun nr covenants ere:?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 ~mduminium or planned unit development rider is extt•uted by IiuROwer and ncurded together with this Mortgage, the covenants and .Ik ret•ments of such rider shall Irt> incurpurattd into ;Ind shall amend and supplement the c•uven:+nts and agreements of this Mortgage as if the nder were a part hereof. 7. ProteMion of Lender's Security. If Borrower fails tt? 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's 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 Mortgage, BoROwer shall pay the premiums required to maintain ouch insurance in effect until ouch time as the requirement for such 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 persuant tc? this paragraph 7, with inirreat thereon, shall btrome additional indebtedness of Borrower aecurtd by this Mortgage. Unless Borrower and [.ender 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 Hole 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. [~R ~r~~323 PG~E1533