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HomeMy WebLinkAbout2321 c ~ a- • ~ F I Fioreower sad Lender covenant and a~ as follows: ~ 1. Payment of Principal and Interest. Borrower shall PromPtlY Pay when dw the principal of and interest oa the indebtedness I eviderasd by the Note. prepayment sad late charges as provided in the Note, sad the principal of and interest on any PLture Advances secured 4' by this Mortgage. ~ ~ - ' Fonds for Ta:ea and I•awranee. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender oa the day monthly it?stalltnente of principal eu:3 interest are payable ands the Note. until the Note is paid in full, n sum (herein "P1mds") equal to ones twelfth of the yearly taxes and assessments which may attain priority aver this Mortgage and ground rents on the Property. if any. plus one• j twaltth of yearly premium installments far hazard insurance. plus onatwdtth of yearly premium installments for mortgage insurance, if any. F all ss reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable intimates thereof. The Funds shall be held in an iastitntioa the deposits or aoeounts of which are insured or guaranteed by a Federal or State agency (including Lender if bender is such an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums sad i ground rents. Lends: may tat drarge for so holding sad applying the Funds, analyring said account, or verifying and compilitrg said - j aaseesmeats and bills, anises Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower - and Leader rosy agree in writing at the time of execution of this Mortgage that interest on the Funds shaA be paid tr Borrower. and udess i such agreaneat is made or applicable law tegnirea such interest to be paid, Lender shall not be required to pay Borrower any interest or 1 earnings on the Pleads. Leader shall give to Borrower. without charge, an annual accounting of the Fonda showing credits and debits to the ~ Funds and thapurpose for which each debit to the Funds was made. The Funds are pledged as additional security for We sums secured by this Mortgage. If the amow?t of the Funds hdd by Lender. together with the foresee monthly installments of Ftitnds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall ezceed We amount required to pay said taxes, assesetaarta. insurance preminnrs and ground trots as they fall doe, each excess shall be, at Botmwei a option. eiWer promptly repaid to Borrower or credited to Borrows on monthly inatallmeats of Fonds. U the amount of the Fapds held by Lender shall not be sufficient to pay taxes. assessments. insurance premiums ated ground rants 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 mruled by Lender to Borrower requesting Payment thereof. - Upon payment is full of all same secured by this Mortgage. Lender shall P~PdY refund to I3orrovver 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 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 oy 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 Borrower under paragraph 2 hereof. then to interest payable oa the Note, then to the principal of the Note, and then to interest and principal on any Furore Advances. 4. Charges; Liens. Borrower shall pay all tares, assessments and other charges, fines and impositions attributable to the Property which may attain a priority ova this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereof or. it not paid in such manner, by Borrower making payment, when due. directly to the payee thereof. Borrower shall promptly famish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender 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 Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, 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. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lass 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 each coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. i The insurance carver providing theinsurance shall be chosen by Borrower subject to approval by Ixnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid i~ the manner provided under paragraph 2 hereof or, if ' not paid in such manner, by Borrower makin6 payment, when due, direMly to the insurance carrier. :Ul insurance policies and renewals thereof shall be in for~r. acceptable to Lender and shall include a standard mortgage clause infavor of - and inform acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly famish to i.ender all renewal notices acid all receipts of paid premiums. In the event of loses, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of lass if not made promptly by Borrower. - Unleea Lender and Borrower otherwise agree in writing, insurance Proceeds shall be applied to restoration or repair of the Propesty damaged, provided anch restoration or repair is economically feasible and-the security of this Mortgage is not thereby impaired. If each i 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 this Mortgage, with the excess, if any, paid to Borrower. 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 Lender to Borrower that the insurance carrier otters to settle a claim for 6{ insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lendei s option either to restoration or repair of the Property or the sums eecared 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 insta~lmenta referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is aequtred by Lender, all right, title and interest of Borrower in and to any insurance policies and iti and to the proceeds thereof resnltiag-from damage to Property prior to the sale or acquisition shall pass to bender to the extent of the soma secured by this Mortgage immediately prior to each sale or acquisition. - 6. Preservation and Maintenance of Property: Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair aed ahali not com,nit 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 Iforrower's obligations under the declaration or covenants creatingor governing the pndominium or planned unit. development, the by-laws and regulations of the condominium or planned unit development, and oonstitnent documents. If a condominium or planned unit development rider is executed by Borrower and rernrded together with this Mortgage, the wvenanta and agreements of such rider shall be incorporated into and shall amend and supplement the rnvenanta end agreements of this Mortgage as if the rider were a part hereof. 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 cetnmer?ced which materially affects Lender s interest in the Property. including, bat not limited to, eminent domain. ! insolvency, code enforcement,. or arrangements or proceedings involving a bankrupt .~r decedent. then Lender at Lender's option,npon notice to Harrower may make such appearances. disburse such sums and take such action as is necessary to lnotect Lender's inte:eet, including, bat not limited to, disbursement of reasonable attorney's toes end entry apon the Property to make repairs. If Larder required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower ahali pay the premiums required to maintain ( ouch insurance in effect until such time as the requirement for such insurance terminates in accordance wiW Borrower s and Lmdds written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance prerniuma in the manner prhvided under paragraph 2 hereof. Any amounts diabarsed by Lends perauant 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 sine to time on outstanding principal ender the Note unless payment of interest at such rate would be contrary to applicable law. in which event such amonnta shall bear interest at the highest rat.. permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. - - ~ ~~324 P~23~7 1 _ i - ~ ~