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HomeMy WebLinkAbout0014 8ormwer and Lender rnvenant and agree as lollowa: 1. Paya+ent 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 otand interest on any Future Advances secured by this Mortgage. 2. Funds !or Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder, Borrower shall pay to Ixnder on the day monthly installments o[ principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Fundy •1 equal to one- tweltth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one twelfth otyeariy premium installments for hazard insurance, plus onetwelfth ofyearly premium installments for mortgage insurance, if any, • all as reasonably estimated initially and from time to once by Lender on the basis of assessments and bills and reasonable estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including !.ender if Lender is such an institution). !.ender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge fos 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 (.ender 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 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 Fonda 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 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 duedateaof 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 Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Sonrower shall pay to (.ender any amount necessary to make up the deficiency within 30 Jaya from the date notice is mailed by !.ender 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 !.ender. !fonder • 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 cf the Property or itsacquiaition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof shalt 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. Charge's; Liens. Borrower shall pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and lea.4ehold pay menu 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, directly to the paycr• therec,f. Burrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event tiom:wer shall m:+ke payment direEtly, Borrower shall promptly furnish to Lender receipts evidencing such pm menu. Burrower shall promptly discharge any lien which has priority over this 1Vtortgage; providEd, that borrower shall not be required to discharge any such lien so long as ItCrrrna•er shall agrt•e in +a•riting to t he p:+yment of the obligation secured by such lien in a manner acceptable to Ixnder, orshall in gc,cxl f:+ith cc,ntE•st such lien hy, ordefend enfi,n•E•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the 1'mtx•rty or ant• part therE•of 5. Hazard Insurance. Korrow er shall keep the improvements now existing or hereafter erected on the Property insurEd against loss by fire, hazards included within the term "extendEKt coverage," and such other haz:+rds as Ixnder may require and in such amounts and for such periods as Ixnder may require; provided, that Ixnder shall nut rE•yuire that the amount of such rnverage exceed that amount of coverage re•ctuirEd to pay the sums securEd by this Mortgage. The insurance carrier pruc•iding the insurnce• shall Ik• c•hosc•n by Itorrower subjcrt to approv:l by LE•nder; provided, that such approval shall not be unre:~a,nably withheld. All premiums on insurance tN,liciE•. shall I,e• paid in the manner pruvulc•cI under parrgraph'L hercr,f or, if not paid in such manner, by Borrower making payment, when due, din•e'th• to the insurance carrier. All insurance policies and renewals thereof shall t,e in form acceptable to f xnder.+nd shall inc•ludra standard mortgagedausein favorof and in form acceptable to Lender. Ixnder shat! have the right to hold the policies and rnnewals thereof, aqd Borrower shall promptly furnish to i ,ender all renewal notices and all receipts of paid premiums. In the event of loss, Korn,wer shall give prompt notice to the insurance carrier and Lender. !.ender may make proof of loss if not made promptly by Kom,wer. Unless Lender and Burrower otherwise agree in writing, incur+nm proceeds shall bE• applied to restoration or repair of the Property damaged, provided such restoration or repair is ec•unomically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not E•conomic•ally feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, vv+th the excess, if :+m•, paid to Borrower. Ifthe Property is abandoned by Itorrow•er, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to collE•c•t and apph• the insurance pn,cErds at bender s option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ixnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postponethedue date of the monthly installmentsQ rrferre•cf to in paragraphs !and 'L hen~c,f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds 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 titortgage immediately prior to such sate or acquisition. 6. Preservation and Maintenance of Property; IxE+aeholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment ur deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Morig:+ge is on a unit in a condominium or a planned unit development, borrower shall perform all of Borrower's obligations under thedE•claratiun or covenants creatingurgoverning thecondominium orplanned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Born,wer and recorded together with this Mortgage, the covenants and ~ct;reements of such rider shall be incurtwr.+ted into :rod shall amend and supplement the covenants and agreements of this Mortgagees iifthe 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 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 Lender at Lender a option,upon notice to Borrower may make such appearances, disburse such sums and take aucli 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 a and Lender s - µ-ritten agreement or applicable Iaw $orrower 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 burrower secured by this Mortgage. Unless Borrower and Lender agree L<, 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. - , ~l,'~328 P~~E 14