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HomeMy WebLinkAbout0267 . .....~r~o Borrower and Lender covenant and agree as follows: 1. Payment of Prlnelpal 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 iltture Advances secured by this Mortgage. 'l. 6'unds for Tazes and Insurance. Subjeri to appiir+ble la+a or to a written waiver by Lender, Born,wcr shat! pay to Ixndpr on the day monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum Therein "rltnda"1 equal to one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one- tvelfth ofyearly premium installments for hazard insurance, ptusonetwelfth ofyearly premium installments for mortg:+geinsurance, ifany, all as reasonably estimated initially and from time to tirr,e by Lender on the b:+sis 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 Lender if Lender is such an institution). Lender shall apply the F ands to pay said taxes, assessments, insurance premiums and ground rents. Lender may not charge for so holding and applying the Nl?nds, analyzing said account, or verifying and compiling said assessments and bills, unless Lenderpaya Borrower interest on the Funds and applicable law permits Lender to makesuch a charge. Burrower 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 Fonda. 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 Fonda held by Lender, together with the future monthly installments of Funds payable prior to the duedates of taxes, assessments, insurance premiums and ground rents, shall ezcred the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+TOwer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Fonda. If the amount of the Funds held by Lender shall not be sufficient to pay k+xew, assessments, insurance Yre:^.iums and ground rents as they fall due, Borrower shall pav k+ ?.ender any amount necessary to make up the deficiency within 30 day8 from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, bender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by Lender, Lender shalt apply, no later than immediately prior to the sale cf the Property orita acquisition by Lender, any Funds held by Lender at the time of application ass 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 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, :+nd then to interest and principal on any Future Advances. A. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:+sehold payments or ground rents, if any, in the, manner provided under paragraph 2 herebfor, if nut paid in such manner, by Burrower making payment, when due, directly, to the payee the rec,f. Burn?w•ershall prompth• furnish to Ixnder alt notices of amounts due under this paraKr.+ph, :rod in the event Borrower shall make payment dirc•c•th•, Rorn,wer shall promptly furnish W Lender receipts evidencing such payments. 13„rrower shall prompth• discharge any lien which has priorih• over this Mortgage; provided, that Burrower shall not be required to discharge am• such lien so lung as lic,rrower shall agre"e" in writing to the paymt•nt of the ubtigation secured by such lien in a manner acceptable to Lender, or shall in gcx?d faith e'c,nte•st such lien !>y, orde•fend e•nfon•e•ment ufsuch Dien in. I+•ga1 proceedings H•hich operate to prevent the enforcement of the lien or G,rfeiture of the Prot,e•rh• or any part thenr,f. - 5. Hazard Insurance. Borrower shall ke"e"p the impn,vements now existing or hereafter erected on the Yruperty insured against loss by tire, hazards included within the term "extended coverage,"' and such other hazards as Lender may rcyuire and in such amounts and forsuch periods as Lender may require; provided, that lxnder shah nut n•etuin• that the amount of such rneer.+);e exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance, shall iw• chosen !,y Iturn,wer subje"c"t to appn,v:rl by Le"nder" prucided. that such approval shall not be unre:iu,nahly yithheld-All peen+iams rin insur:uu•e tw,licic•s shall Ix• paid in the mannecpruvide•il under par~graph''L heree?for, if nut paid in such manner, by Borrower making p:n•ment, when due, din•e•tly t., the insurance carrier. ' All insurance policies and renewals thereof shall be in form an•eptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to [.ender. Lendershail have the right to hold the t,ulic•ies and renewals thereof, and 13e,rrow•ershall promptly furnish to c.ender all renewal notices and all receipts of paid premiums. In the event of loss. Korrc,wer shall give prompt notice to the insurance carrier and Ixnder. Lender may make proof of loss if not made promptly by Burrower. [Jnless Lender and Burrower othervc•ise• agree in writing, insurance pre,e•eeds shall tx• applied to restoration or repair of the Property, damaged, pro~tided such restoration or repair is e•c•onomicalh• feasible and the, se•e•uriiy of this !1lortKage is not thereby impaired. If such restoration or repair is nut economically feasible nr if the security of this Mortgage would l?e impaired, the insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess. ifany-, paid to lic,rrower. if the Properly is abandoned by Burrower, or if Borrower fails to respond to [.ender within a0 days from the date notic•e• is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to coNe•e•t and apply, the insurance pn,c•erds at Lender's option either to restoration or repair of the Property or the sums secured by this M~rtgage- Unless [.ender and Borrower otherwise agree in writing, any such application of prex•ee•e1s to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'L hereof urchange• the arnuunt of such installments. If under paragraph 18 hereof the Property is acquired by [,ender. al! 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 stile or acqursition shall pass to Lender to the extent of the sums secured by this 'Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty: i.euseholds: Condominums: Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit w:+ste 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 Mortgage is un a unit in a n,ndominium or a planned unit development, Burrower shall perform all of Borrower's obligations under the de•c•laralion or covenants cn•atingor governing the condominium or planned unit development, the by-taws and regulations of the condominium ur planned unit development, and constituent documents- If a condominium or planned unit development rider is exe•cutcd by &+m,wer and rerurderl together with this Mortgage, the covenants and :et;reements of such rider shall I,e incurtwrate•d into:uui shall amend and supplement thecoven:+nts and agrcementaofthis blortgageasifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in thiB 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, enaolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at [.ender'8 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 inauranm terminates in accordance with Borrower's and Lender's written agreement or applicable Law. Borrower shall pay the amount of aN mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender perauant W this paragraph with interest thereon, shall become additional indebtedness of Burrower secured by this Mortgage. Unless Borrower and Lender agree to other terns of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear interrat 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. -~~~_s._