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HomeMy WebLinkAbout1708 E Borrower and Lender rnvertant and agree as folbwa: ' I. 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 se provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. f 2. Funds for faxes and Insurance. Subject to applicable law or to a written waiver by I.ender, Borrowershall pay to I.enderon the day monthly installments of principal and interest are payable under the Note, until the Note ie 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 ofyearly premium installments for hazard insurance, plus one-twelfth of yearly premium instaiiu+ruis fur +nurtt{agr itisu?:;r,~e, ifa;,y, all 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 State agency (including Lender if Lender is such an institution). Lender shall apply the Fonda to pay said taxes, asseaamenta, insurance premiums and i 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 Fonda 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 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 Fonda was made. The Funds are pledged as additional security [or the Bums secured by this Mortgage. If the amount ofthe Funds held by Lender, together with the future monthly installments of Funds payable prior to theduedates 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 Flrnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fat] due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by bender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereotthe Property is sold or the Property is otherwise acquired by Lender, Fender 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 this Mortgage. 3. Application of Paymeate. 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 Horrower under paragraph ~ 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 ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making p:+yment, when due, directly to the payee thereof. Borrower shall promptly furnish to bender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Elurn?wer shall promptly furnish to [,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 as liorruwer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to (,ender, or shall in grxx) faith contest such lien hy, ur defend enton•ement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thercuf. 5. Haxard Insurance. Borrower 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 bender may require and in such amountsand forsuch ~ periods as Lender may require; provided, that Lender shall nut require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. - The insurance carrier providing the insurance shall tx• chosen by Korrower subject to appn,v:+I by I,rnder: provided, that such approval shall not be unreasonably withheld. A11 premiums on insur.+ncr p~?lici+• shall hr paid in the manner provid+•d under paragraph 'L hereof or, if not paid in such manner, by Korrower making payment. whin due, dinY•th• to the insurance carrier. A11 insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Lender shall have the right to hold thepolicies and renewals thereof, and Rorrowershallpromptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Ilorn,wer shall give prompt notice to the insurance carrier and Lender. [.ender may make proof of loss if nut made promptly by Iorrower. Unless Lender and Borrower otherwise agree in writing, insuranm proceeds shall l,r applied to restoration or repair of the Property { damaged, provided such restoratir?n or repair is ecr,nomically feasible and the security of this INortgage is not thereby impaired. If such restoration or repair is not economicallyfeasihle or if the security of this Alortgage would he impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to l;r?rrower. If the Property is abandoned by Burrower, or if Borrower faits to respond to Lender within 30 days from the date notice is malted by Lender tt? Burrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to rnllert and apply the insurance proceeds at bender's option either to restoration or repair of the Property or the sums secured by this Aortgage. Unle~sa Lender and Borrower otherwise agreein writinK, any such application of pmceedsto principal shall notextend or postpone thedue date of the monthly installments referred t,o in paragraphs 1 and 2 t?ereof or change the amount ofsuch installments. If under paragraph 18 hereof the Property is acquired by bender, all right, title and interest of Ik,rrt,wer in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to Lender to the extent of the sums secured by this 1ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; C:ondominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste 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 covenants creatingor governing thecondominium 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 agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Leader's Security. If Borrower fails to perform the rnvenante 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 notice to Borrower may make such appearances, disburse such sums and take such aMion ae is necessary to protect Lender a 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 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 Lender's written agreement or applicable I.aw. Borrower shall pay the amount of all 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 [.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 Note unless paymentof interest at such rate would be rnntrary 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.