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HomeMy WebLinkAbout0181 v• Borrower and (.ender covenant and agree as follows: 1. 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 as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. F'unde for Taxes and Insurance. Subject to applicable low or w a written waiver by Lender, Born,wer shall pay to [.ender on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds"1 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 of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortg:ge insurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of tssessments and bills and re:+sunuble 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 (.ender if (.ender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for ao holding and applying the Funds, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the F ands and applicable law permits Lender to make such a charge. Borrower and [.ender may agree in writing at the time of execution of this Mortgage that interest on the F ands shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest k/ be paid, (.ender shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give to Bormwcr, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to theFunds was made. The F ands are pledged :ts additional security for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together N•ith the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exc •ed 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 Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground 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 Ixnder to Bc,RUwer rtyut>sting payment thereof. Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by (.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise atyuirt>d tn• Lender, (.ender shall apply, no laterthan immediately prior to the sale cf the Property or its acquisition by (.ender, any Funds held by Lender at the time of application as:r credit against thesums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Ixnder under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to bender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the princip:tl'of the Note, and then to interest :tnd principal on any Future Advances. A. Charges; Liens. Kormwer shall p:p• all tuxes, assfssments and other charges, finfr and iiniwsitiony attribut:+ble to the Property which may attain a priority over this Mortg:+ge, and leasehold payments orgruund rents, if any, in the mannrrpnn•ided under paragraph `l hereofor, if not paid in such manner, by RoROwer makinK p:+yment, when due, din•(•th• to thf• p:+yf•f• thereof. Ilurruwershall prompth• furnish to Ixnder all notices of amounts due under this partgr.+ph, and in the event RormN•er shall make payment dirf•(•tly, Iturmwer shall prompth• furnish to 1 xnder receipts evidencing such p:yments. l;„rmwer shall pri,mpth• discharge any lien N•hich has priority osf•r this Mortgage; provided, that Korrower shall not l?r reyuirf•d to discharge am• suc•h lien su lung as ftorn,N•er shall ukTf•f• in N•riting to the p:n•nu•nt of theobligution set•und by .uch lien in a manner ac•c•eptable to !xnder, ur sh:al in grwxl faith contest wch lien by, urdefend enfon•enu•nt of such lien in, legal pr(x-etdings N•hich operate to prevent the enforcement of the lien ur forfeitun• of the 1'ruix•rty or am• part therf•of. i. Nazard Insurant•e. Borrower sh:+11 ktrp the improsemc•nts nnw existing or hereafter erf>cted on the Property insured against loss by tire, hazards includf•d within the term "extendf•d coseragf•,"and such other hazards as Ixnder may rtyuin• :+nd in such amounts and for such periods :+s Ixnder may rfYluin•; provided, that (xnder shall not reyuirf• that the amount of such c(n•er•.+Ke excf•frl that amount of coverage rf•yuirf•d to pay the sums sec•urf•(1 by this Uurtgage. The insurance carrier providing the incur;uu•e shall Ix• chus(•n be Norruwer suh~(•(•t to appror:(1 h.• Lender, provirh•(1, that.suf•h approval shall not be unn :+s(nwbly N•itbhel(1- rill pn•miums on insurance p~~lici(•. shall Iw• paid in the mann(•r pro~•id(til under par::Kraph L hen~,for, if not paid in such manner, Icy li(,Rowrr rn:?kinK p:n•m(•nt. t,~hen due, dire•(•tly to the insur:?nc(> carrier. All insurance policies and renewals then•of :hall Ix• in form ac•cept::hle to Ixnder and shall include a standanl murtg:+geclause in favorof and in form acceptable to I,f•nder. Ixndershall have the right to hold the 1>.~licies and r~•newals then•of, and Bnm,wer shall prompth• furnish to bender all renewal notices and ail nreipts of paid premiums. In the event of lass, Iturn,N•er shall Kise prompt notice to the insurance carrier and Lender. Ixnder may make prrrof of loss if not mad(, prompth• by Itomlwer- Unless Ixnder and Iir:ROwe•r otherN•isr agar in N•nting, insurance prcK•f•(•ds shall tx• applif•d to retituratiun or repair of the Property ~ damaged, provided such restnratiun ..r repair is frunomicalh• feasible and th(• sfr•urity of this Mortgage is nut thereby impaired. If such restoration or repair is not eionomically feasible or if the s(•(•urity of this Mortgage would I,e impaired, the insurance pn,f•e>eds shall beapplied to the sums secured by this 1lortgagr, N•ith the exc(•s• +t :ury. pall to I3uriuwer. I f the 1'ropf•rty is abandoned by RoRnN•er, or if li„ROwer fails to respond to Ixnder within :3~1 days fmrn the date notice is mailed by l.(•nder to IioROwer that the insurance carver offer to settle a claim for i insurance benefits, !xnder is authoriz(•(1 to collw•t and apph• th(• insurmc•e pnK•(•f•ds at Ixnder's option either to restoration or repair of the j Property or the sums secured by this Mortgage. ~ Unless (xnder and BoRV,wer otherwise :+gn•e• rn N•nUng, any such appiic•ation of pmceeds to principal shall not extend or postpone thedue E date of the monthly inst:+llrnents reff•Rfd to in paragraphs :and 'l henrlf ur changf• the amount of such inst.-+ilments. If under paragraph 18 hereof the Property is acyuirfd by Ixnder. all right, title and inten•st of f3ormN•er in and to any insurance pdicies and in and to the pr(xeeds ~ thereof resulting from damage to I'mtwrty prier t!~ the s:fle e,~ :(e•etnr~ition .hall pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or anluisition- 6. Preservation and Maintenance otl'ropt•rty; Ixasehulds; ('undominums; Planned Unit Developments. Borrowershall keep the Property in g«,d repair and shall not commit waste or permit impairment or deterinr.+tinn of the iroperty and shall n,mph• Nth the provisions of any lease if this Mortgage is on Ieasehnld. If this Aortgage is ..n a unit in a condominium or a planned unit development, }iurruwer shall perform all of I~URnNf•r•S obligations under the dw•laration ..r cotenants creatingor gm•erning the condominium or planned unit development, the by-lawn and regulations of the condominium or i,lann(d unit development, and constituent documents. If a + condominium or planned unit development rider is exeY•uttd by Iir,m,N•er and rf•(•orded together N•ith this Mortgage, the Covenants and agreements of such rider shall hf• incurpor.+ted into and sh:dl anu•nd and supplement thecncenants and agreements of this Mnrtgageas ifthe rider N•er(• a part ht•rf•nf. 7. Protection of Lender's Security. if Borrower (arts to perform the rnvenants and agreements containeu in this Mortgage, or if any action nr proceeding is commenced which materially affects Ixnder'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 Ixnder at Lender'B option upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required i mortgage insurance as a condition of making the loan atrured by this Mortgage, Burrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement far such insurance terminates in accordance with Borrower's and Lender s written agreement or applicable law. Borrower shall pas the :rml,unt of all mortgage insurance premiums in the manner provided under paragraph 'l hereof. Any amounts disbursed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of KoROwer secured by this Mortgage. Unless BnRnwer and Ixnder agree to other terms of payment, such amounts shall be payable upon 1 notice from Ixnder to Bormwcr requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on outvtanding principal -under the tints unless payment of interest at such rate would be contrary to applicable law, in which ~ event such amuuntg shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall ~ require Ixnder t0 incur any expense or take any action hereunder. i . ~4~~327 ~a~E 180 3 n