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HomeMy WebLinkAbout1057 o . ~ . ~ ~ Borower and Lander cov~ant sad agree as folbws: 1. Payaseat of Principal and Interest. Borrower shag promptly pay when due the principal of and interest on the indebtednea °^~txt! tlss Note, grepaym~t ~sl lets ~.:ce ss grevs~ i:: Lhe Note, erd the pzitsciga! of a.~a istt~t oQ soy I~sturt Advsnc~ by this Mortgage. 2 Fltnds for Tares and Insurance. Subject to applicable law or b a written waiver by Lender, Borrower shall pay to Lender on the dqy monthly irutalhaeats of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds'? equal to one• t t Wlfth of the yearly tomes ar?d assesam~fs which may attain priority over this Mortgage:, and ground rents nn the Property= itany, plus ores twelfth of yearly premium installments for hasard insurance. plus onatwelRh of yearly premium installments for mortgage insurance. if any. ~ 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 depodts air aorouats of which are insured or guaranteed by a Federal or State agency (including Leader if Lender is such as institution). Lender shall apply the Funds to pay said taxes, aaseaaments. insurance premiums and ground. rants. Leader may not charge for so holding and applying the Funds. analyzing said account, or verifying and compiling said z assessmrots and bilk, unless Leader pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Leader may agree is writing at the tuna of ezecutioa of this Mortgage that interest on the Fonda shall be paid b Borrower. and unless i ouch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any interest ~ 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 We Funds was made. The Funds are pledged se additional security for the soma secured by this t Mortgage. I! We amount of the Funds held by Lender. together with the future monthly installments of Fonda payable prior to the due dates of tares, ' assessrnenta. insurance premiums and ground rents, shall exoaed the amount required to pay said taxes, aeseeaments, insurance premiums and ground rents as they fall due. such excess shall be, at Borrower a 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 tares, aaseasnaenta, insurance premiums and grormd 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 ie mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender 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, Lender shall apply. no later than immediately prior to the sale of the Property or ifs acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured j by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraplu 1 and 2 hereof shall be applied by Lender first in payment olamounts 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. 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 payment, when due, directlyto 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 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 berequired to discharge any such lien so long as Borrowerahall agree in writing to the payment of theobligation 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 teen "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch 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 sums secured by this Mortgage. t. The insurance carrier providing the insurance shall be chosen by 13orruwer subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~licies shall be paid in the manner provided under paragraph 2 hereof or, if t not paid in such manner, by Borrower making payment, when due, directly 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 F and inform acceptable to Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ixnder all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier j 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 i damaged, provided such restoration or repair is ernnomically feasible and the security of this Mortgage is not thereby impaired. If such _ f restoration or repair is not ernnomically 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, 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 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 sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedne date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ?±erPc+f the Property ip acquired by Lender, al! right, title and intermit of Borrower in anr! 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 ~ 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 rnndominium or a planned unit development, f Borrower shall perform all of Borrower's obligations under the declaration or rnvenants creatingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and eonatituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage. the covenants and agreements otsuch rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage ae if the 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 prooeading is commenced which materially affects Lender's interest in the Property. including, but not limited to, eminent domain, ~ insolvency. node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lendei s option.upon € notice to Borrower may make such appearances. disburse such sums and take such action as is necessary to prated Lender's interest, including. but not limited to, drsbursement 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 such insurance in effect umtil such time as the requirement for such insurance terminates in accordance with Borrowei s and Lender's written agreement ~ applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. My amounts disbursed by Lender 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 tenon of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of du+bursement 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. ~ { ~ ? 6325 ~~1051 ~ ~ E i