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HomeMy WebLinkAbout0030 s ~ ..s~ - - - - - - - _ Borrower sad Ltttdsr oovenaat and arse Y folbws: 1. Puyasent of Prinelpal and Interest. Borrower shall promptly pay when due the principal of and intered on the indebtedneq evidenced by the Note. prepayment and late charges as provided in the Note, and the principal of and interest oa any Future Advances sernred by this Mortgage. Funds for Ta:es and Insurattoe. Subject to applicable law or to a written waiver by Larder, Borrower shall pay to Lender on the day monthly inatalbnents of principal and interest ere payable under the Note. until the Note is paid in full. a sum (herein "Funds' equal to oae• twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground Hots on the Property, if any. plus one { twelfth of yearly preminm installments fa hesard insurance. plus oae•twelfth of yearly premium installments for mortgage insurance. if any, ~ all as reasonably estimated initially and irorrt time to time by Larder on the basis oI aaaesaments and bills and reasonable estimates thereof. The Funds shall be held is as inditutioa the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Treader if lender is such as institution). bender shall apply the Funds to pay said to:es, assessments, insurance premiums and groiwd rents. Larder mavy not charge for so holding and applying the P1mds, analyzing said account, or verifying sod compiling said assessments sad bills. nnleas Lender pays Borrower interest on the Fends and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, sad unless snch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to p~qy Borrower any interest or i earnings on the Pbnds. Treader shall give to Borrower, without charge. an annual seoounting of the Funds showing credits and debits to the Funds sad the purpose for which each debit to the Phnds was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If We amount of the Funds held by Leader, together with the future monthly installments of Funds payable prior to the due dates of taxes, assesannents. insmaaoe premiums and ground rents. shall exceed the amount required to pay said taxes, aasessmenta, insurance premiums sod gronnd rents as they fap due. such esoesa 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 anfficient to pay fazes. assessments, insurance preminms sad gronad 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 bender to Borrower requesting payment thereoL Upon payment in fell ~ all some secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. Tf under paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lander shall apply, no later than immediately prior fn the ~aL of !hw Pmnwety ~ iti wrnniwitinn by i Pndnr, wry f~ndw held by 1 Winder at the time of application Bs a credit aaainat the soma aecura~ by this Mortgage. 3. Ap~plicstion of Payments. Unless applicable law provides otherwise. all payments received by Larder under the Note sad paragraphs 1 and 2 hereof shall be appUed by Lender first in payment of amounts payable to Lender 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 ground rents, i f any, in the manner provided under paragraph 2 hereof or, if not paid in snch manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish 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 loss by fire, hazards included within the term "extended rnverage," 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 soma secured by this Mortgage. The insurance carrier providing the insurance 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 in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ~I ixnder ail renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly 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 economically feasible and the security of this Mortgage is not 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 soma secured by this Mortgage, with the excess, i[any, paid to Borrower. If the Property is abandoned by Borrower, or J Borrower fails to E respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of We monthly installments referred to in paragraphs l and 2 hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the procxeda 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 Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Maintenance of Property: Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit 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 the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and rnnstituent 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 thecovenanta and agreements of this Mortgagees ifthe 1 rider were a part hereof. 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 Lender a 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,npon notice to Borrower may make such appearances, disburse such arms and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's feet and entry neon the Property to make repairs. If Larder required mortgage inswance as a condition of making the loan secured by thin 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 Lendds written agreement or applicable Law. Borrower shall pay the amount of all mortgage inswance premiums in the manner provided Hader paragraph 2 hereof. My amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teens of payment, such amounts shall be payable neon 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. 8~(~~ PAGf ~