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HomeMy WebLinkAbout1838 • Borrower and Lender rnvenant and agree as follows: I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal o[ 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 second by this Mortgage. 2. Funds for Taxes stud Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender 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") 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 ofyearly premium installments for hazard insurance, plus onetwelfth of yearly 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 billb and reasonable estimates thereof. The Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal pr State agency t including Lender if Lender is such 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 assessments and bills, unless Lender pays Borrowerintereat onthe Fonda and applicable•lavrpermits 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 Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The F unds are pledged as additional security for the sums secured by this Mortgage. if the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates 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, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. 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 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 Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 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 [.ender 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 any Future Advances. 4. 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 pay ments 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, din•r•tly to the payee thereof- Bormwer shall promptly furnish to Lender xli notices of amounts due under this paragraph, and in the event fioROwer shall make payment directly, Kormwer shall promptly furnish to I .ender receipts evidencing such payments. l;<?ROwer shall promptly discharge any lien which has priority over this i\Iortgage; provided, that Kormwer shall not be required todischarge any such lien so long as Itr?rn?wer shall agree in writing tolhe payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in grxxl faith contest such lien by, ordefe•nd enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of th.• Property or any part thereof. 5. Nazard I nsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage," and such other hazards as Ixnder may require and in such amounts and for such periods t+s Ixnder may require; provided, that Lender shall not r+>quire that the amount of such coverage exceed that amount of coverage n•yuired to pay the sums secured by. this MortK:+Ke• The insurance carver providing the insur,mc+• shall Ix• chosen by Borrowr>r wbj+•r•t to approval by Ih•nder, provided, that such approval shall not be unreasonabh• withheld. All premiums on insurance tN,lic•ie shall tx• paid in the manner pnn•id+>rl under paragraph's hererof or, if not paid in such manner, by Kr,ROwer making payment. when due. directly to the insurance rnrrier. All insurance policies and renewals therer?f shall be in form acceptable G?1.+•nder and shall include a standard mortgageclausein favorof =end in form acceptable to Ixnder. Ixnder shall have the right to hold the policies and renewals thereof, and BoROwer shall promptly furnish to ,.ender all renewal notices and all receipts of paid premiums. In the event of loss, Bormwer shall give prompt notice to the insurance carrier and (.ender. Lender may make proof of loss if nut made pmmpth by Borrower. l Unless Lender and BoROwer otherwise agree in writing, insurance pr~?c•ceds shall be applied to restoration or repair of the Property ~ damaged, pro~~ded such restoration or repair is er•oriomically feasible and the security of this itifortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the seYurity of this Mortgage would he impaired, the insurance proceeds shall be applied b ~ the sums secured by this l1[ortgage, with the excess. if any, paid to Kr?ROwer. if the Property is abandoned by Borrower, or if BoROwer fails to respond to Lender within 3t1 days from the date notice is mailr>d by Ixnder to Borrower that the insuranm carrier offers to settle a claim for tnsurance benefits, Ixnder is authorized to collect and apph• the insurance pn?c•eeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree inventing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments refeRed to in paragraphs 1 and here•r?f or change the amount of such installments. If under paragraph l8 hereof the Property is acquired by Lender, all right, title and interest of Kurn?wer in and to any insurance policies and inand to the proceeds 1 thereof resulting from damage to Property prior to the sale or acgwsition shall pass to (,ender to -the extent of the sums secured by this \[urtgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unil Developments. Borrower shall 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 6ortgage is on a leasehold. If this Mortgage is on a unit in a cnndominium or a planned unit development, Kormwer shall perk?rrn all of 13oROwer's obligations under the declaration nr covenants creatingor govern+ng the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a onduminium or planned unit development rider is executed by liorn,wer and recorded together with this Mortgage, the rnvenants and ~ .iKreements of such rider shall be incorporatc>d into and shall amend sort supplement the covenants and agreementsof this Mortgage asifthe ruler were a part herer?f. 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 bender'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 Lender's option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender's interest, tncluding, but not limited to, disbursement of reasonable 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, &?ROwer 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 Lendei e n written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. r Any amounts disbursed bye Lender persaant to this paragraph 7, with interest thereon, shall become additional indebtedness of Kormwer secured by this Mortgage. Unless BoROwer and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest fn,m 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 crontrary 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. ' 327 PaGE 183 7 e):nK -c X