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HomeMy WebLinkAbout1442 • , Borrower sad Lender covenant sad agree a. follows: 1. Ps~rmertt of Principal and Interest. Borrower shall promptly pay when due the principal of sad ir?prest on the indebtedness evideaed by the Note. prepayment sad late dtarga as provided in the Note. sad the principal of and iatersst on any Fltture Advaaoa secured by this Moetgaga P~tnds for Tues and Iasttraaoe. 3ubjed to applicable law or to a written waiver by Leader, Borrower shall pay to Lender on the day monthly instsUntertp of principal and interest are payable under the Note. until the Note is paid in full. a sum (herein "Funds' equal to one- 'tweltth of the yeat~y tars and aaseaaaenta which may attain priority over this Mortgage. and ground rents on the Property, iiany, plw oae~ twelfth of Yearly pretainm iastalhnents for hssard insurance, plw orte•twelRh of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially sad from time to time by Lender on the basis of assessments and bills and reasonable estimates thereo! TM Phnds shall bs held is an iaNitntion the deposits or accounts of which are insured or guaranteed by a Federal or State agency (indadiag Lender ff Leztde: is such an institution). Lender shall apply the Funds to pay said fazes, aseeeaments, insurance premiums and gronud reap. Lender may not dtarge for so holding and applying We Funds, analyzing said account, or verifying earl compiling said assessmenp and bills, unless Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing st the time of ezecution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless anch agreement is made or applicable law requires such interest to be paid, Lender shall not be required to pay Borrower any inpsest or earnings oa the Fends. Fender shall give to Borrower. without charge, an annual accounting of the Funds showing credip and debip to the Funds and the purpose for which each debit to the Ponds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. U the amount of the Fends hdd by Lender, together wild the future monthly installments of Funds payable prior to the due dates of fazes, aasesameats, irunrartce premiums and ground reap. shall e:oaed the amount required to pay said fazes. assessments, insurance premiums and ground rents as they fall due, such ezoeas shall be. at Botmwers optics, either promptly repaid to Borrower or credited to Borrower on monthly irtstaUmenp of Funds. U the amount of the Funds held by Lender shall not be auffieient to pay fazes. assessments, insurance preminme and 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 mailed by Lender to Borrower requesting payment thereof. Upon payment in fell of all sums secured by this Mortgage. Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Properly is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of We Properly or ip acquisition by Lauder, any Fhnda held by Lender at the time of application as a credit against the sums secured by this Mortgage. . 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lander under the Note and paragraplu 1 and 2 hereof shall be applied by Lender first in payment of amounp payable to Lender by Borrower render paragraph 2 hereof, then to interest payable on the Note, then to the principal of We Note. and then to interest and principal on any Future Advances. !.Charges; Lieas. 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, directly to the payee thereof. Borrower shall promptly furnish to Lender e _ u_ a- 1 • .i'....,.~ I A 1. ai, nvaia6 of amounts due undo, u~sa ern?a~ial'ih, and ir....~ ;3o~*z¢r steal. r.:aks pa;z:.er,...:,.,...13, Bot ~•.-rgr shall prompt.y .z.:,:s.. to - Lender reoeipp 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 steal l 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 lose by fire, hazards included within the term "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Lender shalt 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 l.ender•, 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, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgageclause in favor of and in form acceptable to Lender. [.ender shall have the right to hold the policies and renewals thereof and Borrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carries and Lender. Lender may make proof of lose 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 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 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 f 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 6 insurance benefits, Lender is authorized to rn11eM and apply the insurance proceeds at Lender s option either to restoration or repair of the Property or the soma secured by this Mortgage. Udeas Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall notextend orpostpone Wedae - date of the monthly installments referred to in paragraphs 1 and 2 hereotor change the amount of such installments. Unnder 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 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 arch sale or soquiaition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowerahall 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 Borrowers obligations under the declaration or covenants creatingor governing the rnndominium or ph?nned 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 the covenants and agreements of this Mortgage as 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 proceeding is oommenoed which materially affects Lenders interest in the Property, induding, bet not limited to, eminent domain, ~ insolvency, code enforoemettt, or arrangemenp or proceedings involving a bankrupt or decedent, Wen Lender at Lenders option,npon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to prated Lenders interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon We Property to make repairs. If Lender required - mortgage Insurance as a condition of making We loan secured by Wia Mortgage, Borrower shall pay We premiums required to maintain such insurance in effect until such time as We requirement for such insurance terminates in aoDOrdance wild Borrower's and Lenders written agreement or applicable Law. Borrower shall pey We amount of all mortgage insurance premiums in We manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to Wia paragraph 7, wild intercat Wereon, shall become additional indebtedness of Borrower secured by this Mortgage_ Unless Borrower and Lender agree to older terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting paymcnt Wereof. and shall bear interest from We date of disbursement at We rate payable from time to time on outstanding principal under We 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 rnntained in this paragraph 7, shall require Lender !o incur any expense or take any action hereunder. . 8325 p,~~43~ ~