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HomeMy WebLinkAbout2436 X • + • .J Burrower and Lender rnvenant 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, prepay ment and late charges as provided in the Note, and the principal of and interest on any F aloes Advances secured by this Mortgage. 2. Etit?ds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, BoRuwer sh:+ll 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- twelflh ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Properly, if any, plus one twelfth of yearly premium installments for hazard insurance, plus one-twelfth 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 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 iincluding Lender if (.ender is such an institution). (.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. (.ender may not charge for eo holding and applying the Funds, analyzing said account, or verifying t+nd compiling said assessments and bills, unless (.ender 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 Fonda shall be paid to Borrower, and unless such agreement is made or applicable law requires such interest to be (,aid, I.rnder 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 w the Panda was made. The F ands are pledged as additional security for the sums secured by this hlorigage. If the amount of the Funds held by Lender, together with the future monthly installments of Ponds 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 13o+TOwer'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 Lender any :+mount necessary to make up the deficiency within :i0 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, Ixnder shall promptly refund to Ik,ROwer any funds held by !.ender. If under paragraph 18 hereof the Property is sold or the Property is otherwise :+cquirfd by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Panda held t+y Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law proa•ides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 hereof shall be applied by (.ender first in payment of amr,unts payable to lender by BoROwer under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, :+n(1 then to interest and principal on any Future Advances. 4. Charges: (.tens. Bormwershall pay all taxes,:+ssf•ssments and ~therchargex,tines and impositions attrihutahle to the Property which nr+y attain a priority over this Mortgage, and leasehold payments or gn,wul rents. if any, in the manner pn,a•ide(t under paragraph 2 hereof or, if not paid in such manner, by Borrower making p:n•ment, when due, directly to the payf•f• therfr,f. Bormwershall promptly furnish to (.ender :+II notices of amounts due under this paragr.+ph, and in the ea•ent Borrower sh:dl make payment flin•(•th•, Bormw•f•r shall promptly furnish to I xnder receipts evidencing such payments- lir,rnrwer shall promptly discharge any lien which has priority over this Mortg:+ge; provided, that Borrower shall not t,e required todisch:+rge• any such lien so lung as Burnrwer shall agrf•e• in writing to the payment of theobligation secured by such lien in a manner acceptable to Lender, or shall in gor,(1 faith contest such lien hy, or(le•fend enforcenu•nt of w(•h lien in, legal proceedings K~hich operate to prevent the enforcement of the lien or torfeitun• of the 1'rupe:ty or any part thenv,f. Hazard Insurance. Borrower shall keep the impnea•ements now existing ur hereafter erected on the 1'nrperiy insured against loss by fire, hazards included within the term "extendfd coeer-.+ge," and such other h:+zurds as Lender may n•(tuire and in such amuuntsandforsuch periods :~ti Lender may require; provid+d..that I.rnder shall not n•quire that the amount of such rncerage exct•ed that amount of nn•erage rryuired to pay the sums sef•ured by this Mortgage. The insurance (:+Rier pnn•iding the insurance shall he chosen by Bornace•r suh~ert to apprrrval by Lender. provided, that such :+pproval .hall not tx unrcasrmabh• withheld. All pn•nnums on in.uru+ce IHrGcir•s sh:+ll Irf• p:ud in the m:uurer provided under par:+graph'~ herer,fur, i! Wert paid in such manner, by liurn,we•r making payment, w•he•n due. dirw~th• to the, inwrance carrirr- All insurance policies and renewals then•of hall tx• in form acceptable to I,f•nder and shall include a standard mortgagedause in favorof and in form acceptable to (.ender. Lender shall have the right ter hold the t,edicie•s and renewals there(rf, and Borrower shall promptly furnish to e.f•nder all renewal notices and all receipts of paid premium.. In the event of loss, Kurruwer shall give prompt notice tb the insurance carrier and Lender. Lender may make pnrof of loss if not mule prumpth• by Borrower. Unless Lender and &rrn,wer utherw•ise agree in writing, insurnce pn,(•eeds shall tx• applied to restoration ur repair of the Property damaged, provided such resU,r.+tiun nr repair is f•conumically feasible and the sf•c•urity of this Mortgage is not thereby impaired- If such _ reswration or repair is not economically feasible err if the sf•(•urity of this Mortgage would tee impaired, the insurance proceeds shall t,eapplifd to the sums secured by this Mortgage, with the Px1'e•~S, If an\', paid t0 liorrrlav(•r. Ifthe Property is abandoned by Kurruwer,or if IioROwer fails to i respond to (.ender within ah days from the date notice is mailfd hy•l.e•nder to Kornrwer that the insurance carrier offers to settle a claim for iE insurance benefits. Lender is authurizerl to colle•(•t and apply thf• inwrance prr,cf•+•ds at Lender's option i•ither to restoration ur repair of the ? I'roperiy or the sums secured by this Mortg:+ge. f Unless (.ender and liurn,wer otherwise agree in w•riUng. an}•suet?:+pplicatiun of pmcfrds to principal shall nut extend or postpone thedue ~ date of the monthly installments n•feRed to in paragrphs 1 and 'l hereof or change th+• amount of such installments. If under paragraph IR hereof the Property is acquirfrt M• Lender, all right, title and interest of Borrower in and ±o any insurance p,licies and in and to the proceeds I thereof resulting from damage to Property prior to the sale or sego?sition shill pass G, I.f•nder to the extent of the soma securfd by this g! Mortgage immediately prior to such sale or acquisiti~n- i 6. Preservation and MaintenanceotProperty; Leaseholds; ('ondominums; Planned ('nit Der•elopments. Bormwershall keep _ p the Property in gait repair and shall not commit waste or l,f•rmit impairment or drtf•riorntiun of the Property and shall comply with the o proa•isions of any lease if this Mortgage is un a leasehold- If this Mortgage is ern a unit in condominium or a planned unit development, Burrower shall perform all of li(rmrwer's obligations under the df•r•lar-.+tiun or e•oa•en:u+ts cn•aungor gocern?ng the condominium ur planned unit dea•elopmt•ni, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a c•undominium or planned unit development rider is exf•(•utfd by li,rRUwPr :+nd recorded together with this Mortgage, the covenants and ) aKref•ments of wch rider shall irf• incorpor-.?ted into and shall amend and supplenu•nt the c•oven:mts and agrfvments of this Mortg:+ge as if the nder were a part hereof. 7. Protection of Lender's Security. [f Borrower fails to perform the rnvenants and agreements rnntained in this Mortgage, or if any $ action or prceeeding is commenced which materially affects bender's interest in the Property. including, but not limited to, eminent domain, s insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at (.enders option,upon notice to Borrower may make such appearances, disburse such sumo and take such action as is necessary to protect Lender's interest, rnduding, 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, BoROw•er 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 Lenders written agreement or applicable law. Bormwer shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 'l hereof. Any amounts dishursfd by Lender persuant kr this paragraph 7, with inten•st then•un, shall become additional indebtedness of Borrower secured by this Mortgage. L'nleas Fiorruwer and !.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Burrower requesting payment thereof, and shall hear intere•at from 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 t,e n,ntrary to applicable law, in which event such amounts shall tear interest at the highest rate permissible under applicable law- ;aiuthing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. • E«~327 Pa~E2435 •k ~ • - - ~N -