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HomeMy WebLinkAbout0185 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and lntereet. Borrower shall promptly pay when due the principal of and interest un 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. FLrrds for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder,l3orrower shall pay to Lender on the day monthly installments of pritcipal and interest are payable under the Nute, until the Note is paid in full, a sum (herein "Funds")equal toone- lwelRh ofthe yearly taxes and assessments which may attain priority over this Mortgage, and grc+und rents on the Property, if any, plus one t+ •elfth of yearly premium installments for hazard insurance, plus ane-twelfth ofyearly 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 il+nds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such an institution). Lender shall apply the F unds to pay said tuxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaesament8 and bills,unlesa Lender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be paid, !.ender shall not be required to pay Borrower any interest or 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 1o the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. ~ If the amount of the Funds held by Lender, together with the futum monthly inst,•+llments of Funds payable prior to the due dates oftaxea, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwei s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of ~tnda. 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 !.ender any amc?unt necessary to make up the deficiency within :30 days from the date notice is mailed by Ixnder to Ik,rrower requesting paymPn? th~rr•nf. Upon payment in full of all soma secured by this tllortg;+ge, !.ender shall promptly refund to Borrower any funds held by [xnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by !.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by bender, any Funds 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 !:ender under the Note and paragraphs I and 2 hereof shall be applied by Lender first in payment of amounts payable to !.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest :+nd•principal on any Future Advances. 4. Charges; Liens. Borrower shall pap all t:+xrs• :?ssE»sments and other chargE•s, fines and imp,sitions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or Kruund rents, if ant . in the manner pnn•idEd under paragraphs hereof or, if not paid in such manner, by Burrower making payment, when due- i)in•c•th• to the payE•E• thercr,f. Burn,wE•rshall promptly furnish to lender all noticesof amounts due under this paragraph, and in the eeE~nt Korn+wer shall make payment dire•c•th•. 13urnn+•er shall promptly furnish to Lender receipts evidencing such paynx•nts. lic,rn,wer shall prompth discharf;+• arsy liE•n which has priorih• over this Mortgage; prorvided, that Borrower shall not be required to discharge any such lien so lonK as Borrowershall agrE•E• in writing to the paynwnt otthE•obliy;atiun sccurrd by such lien in a manner acceptablE• to Lender- or shall in t:«,cl G•+ith runtest such lien by• ordefend enfi,n-E•+ni•nt of such lien in. IeKal pn,ct•Edings which operate to prevent the enfun•ement of the lien or furl+•iture ut th+• 1'n~p+•rt~• +,r any part then+,L Hazard Insurance. Burn,wer shall kcr•p the improvements now existinK or hereafter erE•c•tE•d on the PropE•rty insured against loss by fire, hazards included within the term"+extendE•d core•r.+Kr.•' and sue•h other hazards as I xnder may rE•quire and in such amounts and for such periods as Ixnder may rectuire•; pn,vidEr3, that Lender sh:?II not n•ctuirE• that the amount of such n,cerake E•xcErd that amount of coverage required to pay the sums sE•c•urE•cl by this MortK:+K+•. The insurance c:+rrier pnn•idinK the insurance shall he chosen by Borrower suhjert to appro~~:+l by Lender; pn,vidc•cl, that such approval ::hall not be unreascrnahlt• withheld. All pn•miums on insurance policies sh:dl bc• paid in the manner providwl unifier par:+Rr.+ph'_' herEti,fur, if not paid in such manner, by lic+m~wer makinK p:+cment• wh+•n due. din•c•th to the insurance c:+rrier. All insurance policies and renewals thereof shall tee in form :u•reptable to I.e•nder+nd shall include a standard mortgageclausein favorof and in form acceptable to Lender. I A ndershall have the- rikht to hold the 3r,licies and renewals therE•of, and Kom,K•ershall pmml?th• furnish to i.ender all renewal notices and all receipts of paid premiums. In th+• event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender map make prcx,f oC loss if not made prompth• by Borrower. ~i unless Ixnder and Born,K•er nth+•rwisE• agre•c• in w•ritink, insurance prc,c•eeds shall t,e• applied to restoration or repair of the Property damaged, provided such restoration ur n•p:+ir is eronomically feasible and the sc•e•urity of this MortKage is not thereby impaired. It such restoration or repair is nut economically feasible or if the sE•E•urity of this :1lortkage would }x• impaired, the insurance proceeds shall be applied to the sums secured by this 1tlortKage• with the excess, if anp• paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to i respond to [.ender within 31~ days from the date notice is m:+ilc•d by I.e•nde•r to Burrower that the insurance carrier offers to settle a rlaim for insurance benefits, Lender is authorizE•d to e•ollE•e•t :+nd apph• the insurance- pn,c•e•E•ds at Lender's option either to restoration or repair of the Property or the sums secured by this ~L,rtKay;e. Unless Lender and F3orn,wer uthenn•ise :+grce• in writinK. any such aoplication of prc?c•e•e•dc to pnnotpal eF.att r+.^t exte^d ~.sti.as the due date of the monthly installments mferre•d to in par:+Kr:+phs 1 :+nd Y hereof or chanKe the amount of such installments. If under paragraph 1K hereof the Property is acquired by i.e•nder, all right, title and intrn•st ut liorrowt•r in and to any insurance policies and in and to the proceeds thereof resulting from damaKe to Property prior to the sale ur acetu+sition shall pass to lw•nder to the extent of the sums secured by this I .`.lortgage immediately prior to such lair or antuisition. 6. Preservation and Maintenance of Property: l.c•useholds: ('ondominumK:1'lanned !?nit Developments. Borrowershall keep the Property in g«?d repair and shah not commit waste or permit +mpairment ccr deterioration of the Property and shall comply with the provisions of any lease if this 1~lnrtgage is on a leasehold. If this :~1ort}C:+Ke is on a unit in a condominium or a planned unit development, Borrower shall perform all of F3erm,wer's ubliKatiuns under the de•edar,+tion orc•ove•nants cn•atinKor Kovernmg the condominium or planned unit development, the by-laws and regulations of the condominium ur planne•el unit development, and constituent documents. If a condominium or planned unit development ridE•r is E•xee•utcd h.• Iiorrv,w•e•r and recorded together with this Mortgage, the covenants and ,iKreements of such rider shall tn• incorpur:+ted into and .hall amend :?nd supplenu•nt thecuvevrmts and aKre•ements of this Mortgage as if the rider were a part hereof. 1. ProteMion of Lender's Security. If Borrower fails to perform the rnvenants and aKrP•ement!+ contained in ihts !lorgage, a: if ary action or proceeding is commenced which materially affects Lender's interest in the I'ruperty, including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder at Lendei a option,upon g 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 [.ender required mortgage insurance as a condition of making the loan secured hp this tilortgage, Borrower shall pay the premiums required to maintain such insurance in effect until each time as the requirement for such insurance terminates in accordance with Borrower's and Lender e written agreement ar applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant tc? this paragraph with interest there•,n• shall become additional indebtedness of Borrower secured by this Mortgage. finless Borrower and !.ender agree Ur other terms of payment, such amounts shall be payable upon notice from Ixnder to Borrower r~queating 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 Ixnder to incur any expense or take any action hereunder. e~~ 327 Pa~E 184 ~ r