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HomeMy WebLinkAbout2175 ! > torrower and Ixndet 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 latechargea as pn,vided in the Note, and the principal of t+nd interest on uny 1•'uture Advanrea secured by this Mortgage. 'l- Funds for Taxes and Insurance. Subject to applicable h+w or to a written waiver by Ixnder, I;orrowrr shall pay to Lender un the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, t? sum Therein "F unds'•1 equal to one welflh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents un the Property, if any, plus one- twetRh ofyearly premium installments for hazard insurance, plus one twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Ixnder un the basis of assessments and bills :ind reasonable estimates thereof. .'he Funds shall be Feld in an institution the deposits of accounts of which are insured or guaranteed t,y a Federal or State :+gency lincluding Lender if lender is such an institution). Ixnder shall apply the Funds to pay said taxes, assessments, insurance premiuns and ground rents. Lender may not charge for eo holding and applying the Funds, t+nalyzing said account, or verifying and compiling stud assessments and bills, unless Lender pays Borrower interest on the F ands and applicable law permits lender to makesurh a t•harge. Korrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shalt be paid W Korrower, 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 Fonda. Lender shall give to Borrower, without charge, an annual accounting of the F ands showing credits and debits to the Funds and the purpose for which each debit W the Funds w:+s made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the F ands held by Ixnder, together with the fat are 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 ?axes, assessments, insurance premiums and ground rents as they fall due, such excess shall t,e, at Bo+mwer's option, either promptly repaid to Korrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds held by Ixnder shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ate they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 days from the date notice is mailed by Lender to Korrow•er n•questing payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to IioROwer any funds held by Ixnder. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Ixnder, Lender shall apply, no later than immediately prior to thesale of the Property or its acquisition by Ixnder, any Funds held by Ixnder at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law prov+dPS otherwise, all payments received by Ixnder under the Note and paragraphs 1 and 2 hereof shall be applied by Ixnder Srst in payment of amounts payable to Ixnder 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 utherrharges, Pints and imlwsitions attrihutahle to the Property which may attain a priority over this Mortgage, and (easc•huld payments urground rents, ifuny, in the manner pn,vidtd underpar.+graph l hereofor, if not paid in such manner, by KorrowPr makir+g paymt•nt• when due, dirt•t•th to the paytr thertr,f. Rurmwer shall promptly furnish to Ixnder :,11 notices of amounts due under this par:+gr:+ph, and in the t•cent Borrv,wer shall make payment dirt•t•tly. Bormwer shall promptly furnish to Lender receipts evidencing such payments. It+,RUwer shall promptly discharge any lien which has priority over this Mortgage: provided, that BoROwer shall not t,e required to disch:+rgt• any such lien sn long as tioRowersh:dl agnv in writing to the pa}•nu•nt of theubligatitn: secured by such lien in a manner acceptablt• to l.endt•r, ur shall in g„ud faith contest such )ien by, ordefend enfon•en+ent of such lien in• legal prot•teclings which operate to prevent the t•nfurc•ement of the lien .,r forfeitum „f the !'n,pt•rt>• or :+m• part thenr,f. 5. Hazard Insurance. Burrow•t•r shall kt•t•p the impnwements now existing ur hert.+fter ert•c•ted on the Property insured against toss by ire, hazards included within the term "extendt•d c•uverage•" ant! .ut•h utht•r h:aards as Lender may nvtuire and in such amounts and fur such peritxls as !xnder n+ay n•duire; pruvidt•d, that Lt•nder shall not n•quin• that tht• amount of such coverage exct•td that amount of coverage • rt•yuirtd to pac the sums st•c•unvl by this Mortgage. The insurance carrier pro~•iding the insurance +hall b<• chosen h\~ Korn,w,•r sul,jert to appnn•al h~• Lendt•r, providedd, that such appnwal shall not tx• unreasonabl}• withheld. All pr+•miun+s on u,sur;uu a policies .half 1w• paid in the manner prorid+•t1 under par.+graph ht•nr,f or. if not paid in such manner, by ItoR+,wermaking pa}~ment, when due. din•cth t., the insurance c:+rrier. All insurance policies and renewals thereof shall f,t• in form ac•ct•pt;+I,le U, lender and shall include a standard murtgageclause in fuvorof and in form acreptahletcr I xnder. Ixndt•rshap ha~•e theright to},old theE>.,liciesand renewals thcrtr,f, and Borrowershall promptly furnish to render all renewal notices soil all rt•c•eipts of paid premiums. In tht• e~•eut of hss. Borrower shall give prompt notice G, the insurance carrier and Ixnder. Ixnder may make prv,of of lass if nut made promptly by Borrower. lJnless Lender and IioRower otherwise agrtr in writing, insurance proct•t•ds sh:+11 t,t• applied to restoration or repair of the Pn,perty damaged, provided such rPStnration or n•pair ix +•+•onumically ft•asible and the strurih• of this Mortgage is not therehy impaired. If such restoration or repair is not tronumically ft•:+sihle.,r if the str•urity of this Mortgage would t,e impaired, the insurance proct•tds shall be applied to the sums secured by this AU,rtgage, with the excess. if am•, p:nd to Itt,RUwPr. If the Prupt•rty is abandoned by Borrower, or if Iit,ROwer fails to respond to [xnder within aft days from tht• date notice is rn:+ihd by Lender to BoROwt•r that the insurance carrier offer U, settle a claim for :nsurance benefits, Lender is authorizcrl to culh•t•t and :+pply the insurance prtx•t•t•cls at lender's option either to m$toration or repair of the Property or the sums secured by this 1lorigage_ lJnless Ixnder and BoROw'er otherwise agrt•t• m w•nting, an}• such application of prott•eds to principal shall not extend or postpone thedue date of the monthly installments refeRt•d to in paragraphs 1 and'? hen•of.,r ch:urge the amount of such installments. If under paragraph lEi hereof the Pmperh• is acquired by Ixnder, all right. title :,nd inten•st .,f Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to .the sale or acgms+tion shalt pass to Ixnder to the extent of the sums sccurtd by this Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Maintenanceof Property: Lt•s+seholds: ('ondtrminums; Planned Unit Developments. Borrower shall keep the Property in g«rd repair and shall nut commit waste, or permit impairment ur dt•terioration of the Property and shall comply with the pnn•isiuns of any lease if this Mortgage is on a leasehold. If this Jtortgagt• is .,n unit in condominium or a planned unit development, Burrower shall perform alt of Rorn,wer's ohligatinns under the dt•c•lar.+tiun r,rcocenants creatingurgovermng the condominium ar planned unit development. the bV-Iaw5 and rt>Kulations of the condominium or planned unit de~•Plopment, and constituent documents. 1f a wnduminium or planned unit de~•elupmt•nt rider is cxecutt•tl by lioRowrr and n•c~urdtd together with this Mortgage, the rnvenants and ,,grt•t•ments of such rider shall l.t• uu~orp,~rated into and sh:+ll amend and supplenu•nt the. co.~c•nants and agn•c•ments ofthis ~lurtgageas ifthe rider wert• a part hereof. Protection of Lender's Security. If Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, insolvency, rnde enforcement, or arrangements or proceedings invoh•ing a bankrupt or decedent, then bender at Lender's option upon notice to torrower may make such appearances, disburse such sums and take such action as is necessary to protect [xnder's interest, including, but not limited W, 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 l:,an secured by this Mortgage, RoRUwer shall pay the premiums required to maintt+in Ruch insurance in effect until such time as the requirement for such insurance terminates in accordance with BoROwer's and Lenders written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph `L hereof. Any amount.9 disbursed by Ixnder persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage- Unless 13om,wer and Ixnder agree to other terms of payment, such amounts shall be payable upon notice from Lender to Kormwer requesting pa_r•ment thereof, and shall bear interest from the date of disbursement at the rate payable from time to time on out.9tanding principal under the Note unless payment of interest at such rate would be rnntrary to applicable law, in which event such amounts shall bear interest at the highest rate permissible wader app[ic•able law. Nothing contained in this paragraph 7, shall require bender to incur any expense or take any action hereunder. . - BUS 327 PdGE 2174