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HomeMy WebLinkAbout1260 . trs ~ Borrower and Lender covenant and agree as folb.va: 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. Ftittds forTa:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrowershall pay to L.enderon theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum !herein "Funds") equal toone- twelfth ottheyearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelRh ofyearly premium installments for hazard insurance, plus onetwelfth of yearly premium inalallmenta [or mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency !including Lender if Lender is each an institution). Lender shall apply the Funds 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 compiling said aaeeesments and bills, unless !.ender pays Borrower interest on the Funds and applicable law permits Lender to makeauch a charge. Borrower and Lendez 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 b be paid, Lender shall not be required to pay Borrower any interest or earnings on the Flrrrds. 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 the Fonda was made. The Fonda are pledged as additional security !or the aurna secured by this Mortgage. If the amount of the 1!Lnda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asaeaements, insurance premiums and ground rents, shall exet~d 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 FLnda. 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 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 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 its acquisition by !.ender, 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 Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender f?cst 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 Note, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrowershall pay all taxes, assessments and othercharges, Ones and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, itany, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower makingpayment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender all r?otices 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 shat! promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long a_s Borrower sharll agree in writing tothe payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, ordefend enformmentofsuch [ien 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 lass by tire, hazards induded within the term "extended coverage," and such other hazards as !,ender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carver providing the insurance shall lx~ chosen by Burrower subjetK to approval by Ixnder; provided, that such approval shall not be unreasonably withheld. All premiums on incur,+nrn policies shall be paid in the manner provided under paragraph 2hereofor, if not paid in such manner, by Borrower making payment, when due, directh to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to !.ender and shall include a standard mortgage clause in favorof and in form acceptable to !.ender. Lender 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, Born?wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof oflaca if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance praeeds shall be applied to restoration or repair of the Property 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 proceedashall beapplied 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 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 I.ender'a 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 thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph IS hereof tlae 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 such sale or acquisition. 6. Preservation and MaintenanceofProperty; I.easeholds;Condominums; Planned Unit Developments. Borrowerahall keep the Property iri good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a cunduminiwo yr a planned unit der~lapment, Borrower shall perform all of Borrower's obligati~ms under the declaration or covenants creatingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent 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 thecovenants and agreementaof this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the oovenante and agreements contained in this Mortgage, or if any aMion or proceeding is commenced which materially affects I.ender'e 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 Lender's option,upon notice to Borrower may make ouch appearances, disburse such sums and take such aMiori ae 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 mortgage insurance 88 s condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lenders t written a Bement or a licable Law. Borrower shall { gr PP pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any 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 terms of payment, such amounts shall be payable upon ~ notice from Lender to Borrower requesting pay relent thereof, and shall bear interest fr^:n the date of dic+burtwment at the rate payable from 1 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. BU K ~ PACE~L~G,~