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HomeMy WebLinkAbout0514 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and lntereat. 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 Fl+ture Advances secured by this Mortgage. 2. ~trtds for Tattes and Insurance. Subject to applicable law or to a written waiver by [.ender, Borrower shall pay to Ixnder 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") egos! to one- cweltth ofthe 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 onertwelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Ixnder on the basis of assessments :?nd bills and re:+sonuble estimates thereof. The Funds shall be hell 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 Fonda to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and ~rompiling said asseeamente and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender 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, Lender 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 F unds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The F unds are pledged as additional security for the soma secured by this Mortgage. [f the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedatea of taxes, 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, al 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 bender any amount necessary to make up the deficiency within 3b days from the date notice is mailed by Ixnder 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 1R hereof the Property is sold or the Property is otherwise acquired 13y Ixnder, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, 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 Fender under the Note and paragraphs 1 and 2 hereof shall be applied 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 :+ny Future Advances. A. 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 pnwided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payer thereof. Born>we•r shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Bomnver shall make payment dire•e•tly, Rorn,N•er shall promptly furnish~to lender receipts evidencing such payments. liurruwer shall promptly discharge, any lien which has priorih• over this Mortgage; provided, that Borrower shall not he required to discharge am• such lien so long as liom?wer shall agree in writing W Uu• payment of the ublig:?tion secured by such lien in a manner acceptable to Ixnder, or shall in g,N?d faith contest such lien hy, urdefend enfunrment of such lien in, legal pn?ceedings which operate to prevent the enforcement o[ the lien ur forfeiture of the Pn?pe•rty or any part ihenti?f. 5. Hazard Insurance. Korrow•er shall keep the improvements now existing ur hereafter erected un the Property insured against loss by fire, hazards induded within the term "extended cu:•er.+ge,"and such other hazards us l.endei• may ree{uin• and in such amounts and forsuch periods as Lender may require; provided, that Lender shall nut n•yuin• that the amount of such nn•er.+ge exceed that amount of coverage required to pay the sums secured by this Mortgage. The insur.?ner carrier providing the insurance sh:dl t,e• chosen by Born~wer suhjee•t to approval by Lender, provided, that such appnn•al shall not be unreasonabh• withheld. All premiums un insurux•e p~~licic~ .hall 1?e• paid in th?• n+anner provide•el under paragraph herr+?f or, if nut paid in such manner, I» li:?m,w•er m:+king {r.?yment, when due. diree•th~ to the insurance carrier. All insurance policies and renewals theree,f shall he in form acceptable to I,e•nder and shall include a standarel mortgagedause in favorof ~ and in form acceptable to Ixnder. Le ndershall have the right to hold the {wlicies and re•ne:a•als thereof, and Borruwershall promptly furnish to ~ i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Burn?wer shall give prompt notice to the insurance carrier and Lender. Lender may make pn,of of loss if not made prumpth• by Borrower. I Unless Lender and Re?rrow•er otherwise, ague in writing, insurance pnx•eeKls shall h?• :+pplied to restoration or repair of the Property t damaged, provided such restoration or repair is ee•unumically feasible and the see•urih• of this Mortgage is not thereby impaired. If such ~ restoration or repair is not economically feasible or if the security of this Mortgage would he impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with th?• excess, d any. pa,d to Ite,rrower. if the Property is abandoned i?y Burn,N r+, ui if Iivrrowrr fails u, respond to Gender within 30 days from the date notice is mailed by :,ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Fender is authorized to colh•ct and apply the insurance pox eels at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. ' i Unless Lender and Barro:ver aiher•.ti•a:• +vrite-^-g, :+ny s:1rh :?ppli, ;+tion of pnK•rrds to principal shall not extend or postpone thedue date of the monthly insti+llments referred to in pargraphs 1 and'L hereof ur change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all sight, title and interest of Burn,K•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale ur acymsitiun 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: ('ondominums: Planned-Unit Developments. Borrow•ershall keep the Property in good repair and shall not commit xaste ur pern+it impairment ur 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 der•larrtiun or covenants cn•atingor governing the condominium or planned unit development, the by-laws and regulations of the cundomini?,m or planned unit development, and constituent documents. If a condominium or planned unit development rider is exer•uted by F3.?rrower and recordccl together with this Mortgage, the rnvenants and ,:k regiments of such rider shall tre• incurpur.,ted into and shall :,me•nd 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 commenced which materially affects Lender'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 Lender at [xnder'e 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 reasunebie 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, Burrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in aerordance with Borrowei s and Lenders written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under - paragraph 2 hereof. ? Any amounts disbursed by [.ender persuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless.Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to lime 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. - annK32`7 P~~E 513 - ___.k__