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HomeMy WebLinkAbout2188 Borrower and Ixnder 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. I:ltride for Taxes and Insurance. Subject to applicable law or to n 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, t+ sum Therein "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 of yearly premium inatallmenta fur hazard insurance, plus une•twelfth of yearly premium insl:+llments 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 Funds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency lie.`:uding Lender if Ixnder 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 assesament8 and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Ixnder 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 atrounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Fonda was made. The Funds are pledged as additional security for theaums secured by this Mortgage. ~ If the amount of the Fonda 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 Funds. If the amount of the Funds held by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pa+y to Ixnder any amount necessary to make up the deficiency within 30 days from the date notice is mailed by lender to Borrower reyuesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Ixnder, !.ender shall apply, no later than immediately prior to the sale cf the Property or its acquisition by Ixnder, any Funds held by I xnder at the time of application as a credit against the sums secured by this Mortgage. • 3. Application of Payments. Unless applic:+ble law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shall be applied by Lender first 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. A. Charges: Liens. Borrowershall pay all taxes, assessments and uthercharges, tints and im}?(+sitions attributable to the Property which may attain a priority over this Mortgage, and leasehold pay menu or Kround rents, if any, in the manner provided under paragraph 2 hereofor, i f not paid in such manner, by Rorrow•er makinK payment, when due, directh• to the payte there(+f. Rarrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment dirt•ctly. Borro~•er shall promptly furnish to Ixnder receipts evidencing such payments. Borrower shall promptly discharge any lien whit•h has priority Deer this Mortgage; provided, that Borrower shall not be required to discharge any such lien so look as Borrower shall aKttt• in writinK to the payment of thenbligation secured by such lien in a manner acceptable to I xnder, ar shall in K(+cx1 f:+ith contest such lien hy, ordefend enfun•ement of such lien in, le};al proceedings which operate Lo pre~•ent the enforcement of the lien ur forfeiture of the Pro}+erty ur any part thertuf- S_ Hazard Insurance. Knrroa•er shall ktt•p the impn+vemrnts now existinK or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coveraKt•." and such other hazards as Ixnder may require and in such :.mounts and for such periods ;as Lender may require; pro~•idtd, that Lender shall nut n•quirt• that the amount of such rnverage excrt•d that amount of coverage r(-quired to pay the sums secured by this Mort}taKt•. The insur.+nm t•arrier procidinK the uasurance shall he chosen by Burrower subject to appruc:al h}• Lender; pnwid(vl• that such approval shall not be unreasunablr withht•Id. All pn•miums un insur-.uu•e policies shall i><• paid teethe manner prueid(d undt•r par-.+Kraph'l hert•(+for, if nut paid in such manner, by li((m(wer makinK }r.+yment, when due. directlc t.. tlae insurance carrier. Ali insurance policies and renewals thereof shall t+t• in form acceptable to Ixnder and shall include a standard mortgage clausein favorof and in form acceptable to !.ender. Ixnder shall ha~•e the nKht to hold the p(((ietas and renewah thereof, and lt((rrowpr shall promptly furnish to (xnder all renewal notices and all receipts of paid premiums. In tht• event of loss. Borrower shall love prompt notice to the insurance carrier and Ixnder. Lender naay make pr(saf of loss if not made promptly by Borrower. I Unless Ixnder and Borrower otherwise agree in writinK, insurance pra•eeds shall }x• applied to restoration or repair of the Property I damaged, provided such restoration ur n•pair is trunumic•ally feasihlt• and the strunh• of this Mortgage is not thereby impaired. If such restoration or repair is not ecnnomicalh• feasible nr if the security of this Mortgaxe would be Impaired, the insurance proceeds shall beapplied u. the sums secured by this MortKaKe, with the excess. if any, paid to It(+rrower. If the Property is abandoned by Borrower, or if Burrower fails to respond to Ixnder within at) days from the date notice is maihd he Lender to Borrower that the insurance carver offers to settle a claim for 1 insurance benefits, !,ender is authorized tc. colh•t•t and apply the insurance pr(x•trds at Ixnder's option either to restoration ur repair of the t Property or the sums secured by this MorigaKe. Unless Ixnder and Borrower otherwise aKre~t• in writinK• any such ap}rlication of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred G. in paragraphs 1 and hereof or change the amount of such installments. If under paragraph 18 hereof the Property is.acquired by Ixnder, all right, title and interest of Borrower in and to any insur,antr policies and in and to the proceeds thereof resulting from damage to Property prior to tht• sae or acywsition shall pass U( Ixnder to the extent of the sums secured by this Llorigage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property: leaseholds: ('ondominums: Planned !.'nit Developments. Borrower shall keep the Property in good repair and shall not commit waste ur permit impairrnent or deterioration of the Property and shall comply with the provisions of any lease if this MurtKage is on a leasehold. If this Mortgage is un unit in a condominium or a planned unit development, Kurrower shall perform all of Borrower's obligations undt•r the dt•(•laratiun ur coven:uats cn•atinKor KovernmK the condominium or planned unit development, the by-laws and regal:+tinns of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is cxe(•utcd by &+rrower and rtrorded G+Kether with this Mortgage, the covenants aad ' aKret•ment_s of such rider shall t+c• inc. (r}+oratt•d ind ~ and shall :amend and supplement tha• covenants :rod aKrt•t•ments of this MortKaKe as if the rider were a part hereof. ProteMion of Lender's Security. If Borrower fails t(+ 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 [xnder at Lender's option,upon notice to Borrower may make such appearances, disburse such sumo 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 Lender required mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Ixnder e written agreement or applicable Law. Borrower shall pay the amount crf all mortgage insurance premiums in the manner provided under } paragraph 2 hereof. Any amounts disbursed by [xnder perauant to this paragraph 7, with interest therec+n, 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 [xnder to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from time to limp on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which event each amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require (xnder to incur any expense or take any action hereunder. - l,f; c~ i:l:r+x 327 pdGE~187 _Rn _ _ _ ,