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HomeMy WebLinkAbout2441 - ; , Borrower and Lender 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 latecharges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fttnde for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments otprincipal 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 asaesamenta which may attain priority over This Mortgage, and ground rents on the Property, itany, plus one- twelfth ofyearly 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 tiros 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 !including Lender if Lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground yenta. 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 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 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 Funds 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 duedatea of taxes, a8aeasments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they [all due, such excess shall be, at Bonrower's option, either promptly repaid. to Borrower or credited to Borrower on monthly installments of Funds. It the amount of the Funds held by Lender shall not be soft cient to pay taxes, assessments, insurance ~ premiums and ground rents as they fall due, Borrower shall pay to Lender any amount nemasary 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, !.ender 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 !.ender, 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. 3. Application o! 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 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. Borrowershall pay all taxes, assessments and other charKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ar Kround rents, if any , in the man rise provided under paragraphs hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payer theree,f.l;orn,wer sh:dl promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Korn,wer shall make payment directly, Borrower shall promptly furnish to l xnder receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not berequired to discharge any such lien so lonK as Il+,rruwer shah agree in writinK to the payment of the obliKation sec need by wch lien in a manner att-eptable to Ixnder, or shall in ge,exl faith eY,ntest such lien by, or defend enfi,n•ement of such iie•n in, iegal pnx-rrdings which operate to prevent the rnforcemrnt of the lien or forfeiture of the 1'rope•rty or any part thercr,f. - :i. Hazard Insurance. Borrower shall keep the impn?vements now existing ur hereafter erected on the Properly insured against loss by fire, hazards included within the term "extended coverage." and such other hazards as Ixnder may rryuire and in such amounts and for such periods as Ixnder may require; provided. that Ixnder sh:+Il not nyuire that the amount of such cerver?ge exceed that amount of coverage required to pay the sums secured by this Mortgage. • The insurance carver providing the insur:u?ce shell he• chosen by Borrower subje•e•t to appn»:d by Lender, pn,~•ided, that such :?pproval ,hall not be unreasonably withheld. All prerniwns on insurance tH,licie. shall I,e• paid in the manner provided under par.?graph'2 hrrc•of or, if not paid in such manner, by lie,m,wer making payment, when due, din•e•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgagedause in favor of and in form acceptable to [.ender. Ixnder shall have the right G, hold the p„licirs and renewals thereof, and Borrower shall promptly furnish to i xnder all renewal notices and all receipts of paid premiums. In the event of loss, Burrower shall give prompt notice W the insurance carrier and Lender- Ixnder may make proof of loss if not made promptly by Borrower. Unless Ixnder and Borrower otherwise agn•e in writing, insurance pn,c•ercls shall br applied to restoration or repair of the Property damaged, provided such restoration or repair is r•?•onomically feasible and the s<rurity of this MortKaKe is not thereby impaired. If such restoration or repair is not economically feasible.,r if the security of this Mortgage would be impaired, the insurance proceeds shall beapplied to the sums secured by this Mortgage. with the exec-ss. if any, paid to Forrower. if the Property is abandoned by Borrower, or if Borrower fails to re3pond to Lender within a0 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for f insurance benefits, Lender is authorized to collect and apply the insurance procer+is at Fender's option either to restoration or repair of the Property or the sums secured by this Mort K:+Ke'- Unless Lender and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue f date of the monthly inst<•+llmrnts referred to in paragrnphx 1 and l her.v,f or change the amount of such installments. If under paragraph 1R hereof the Property is acquired by Lender. all right. title and interest of Rormw•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acgmsition shall pass G, Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borruwershall keep the Property in good repair and shall not commit waste or permit impa+rment or deterioration of the Pmperiy.and shat! comply with the provisions of any lease if this Mortgage is un a leasehold. If this Mortgage is on a unit in a cnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants e•re•aturgor governing the condominium or planned 1 unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a cnndominium or planned unit development rider is exee•uted by Fie,rn,wer and recorded together with this Mortgage, the covenants and t agreementsg of such rider shall be incor{wrated into and shaA amend and supplement the co~•enants and agn•ements of this Mortgage as if the rider were a part hereof 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie comn?enced which materially atfecte 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 [.ender at Lender a option,upon notice to Borrower may make such appearances, disburse such soma 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 ef[ect until such time as the requirement for such insurance terminates in accordance with Borrower's and Ixnder a written agreement or applicable Law. Borrower shall 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 !.ender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interest 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 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. I ~~~K •'~R 327 PEE 2440 z