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HomeMy WebLinkAbout1629 s 1 Borrower and Lender covenant $nd agree as folbws: 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 Mortgages 2. Inds for Ta:er and Insurance. Subject to applicable law or b a written waiver by Lender, Borrower shall pay to !.ender 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 tdrelfth 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 year! y premium installments tot hazard insurance, plus onetwelfth 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 (including Lender if Lender is such an institution). Lender shall apply the Funds to pay said !axes, assessments, insurance premiums and ground rents. !,ender 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 ~nda and applicable law permits Lender to make such a charge. Borrower and bender may agree in writing at the time of execution of this Mortgage that interest on the l~nda 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 FLnda was made. The Funds are pledged as additional security for the soma secured by this Mortgage. If tht amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of tares, assessments, insurance premiums and ground rents, shall excxd 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 fat) due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 3() 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, Lender 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 shall apply, no later than immediately prior to the sale of the Property orifs acquisition by Lender, any Funds held by Lender at the time of application as a credit against the soma secured by this Mortgage. 3. Application of Payments: Unless applicable law provides otherwise, alt payments received by Lender under the Note and paragraphs L and 2 hereof shall lie 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. 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 leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender a+Il notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to bender receipts evidencing such payments. Borrower shall promptly disch:,rgr any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long as Bom,wer shall agree inwriting to thepayment of theobligation secured by such lien in a manner acceptable to Lender, or shall in good faith cY~ntest such lien by, ordefend enformment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the I'ruperty or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term''extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as bender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage required to-pay the sums secured by this Mortgage. The insurance carrier providing the insurance-steal he chosen by Rom+wer subject to apprm•al M• lender, provided, that such approval shall not be unreasonably withheld. All premiums un insurnce I?++licies shall be paid in the manner pn?vided under paragr.,pH'L hereofor,.if not paid in such manner, by Borrower makinK payment, when due, directly to the insurance carrier. A!1 insurance policies and renewals thereof shall be in form acceptable to I.enderand shall include a standard mortgage clausein favorof and inform acceptable to Lender. I.endershall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish fo i.ender all renewal notices and all receipts of paid premiums. In the event of loss, E;orruwer shall give prompt notice to the insurance carrier ; and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or it the security of this Mortgage would be impaired, the_insurance proceeds shall be applied to the sums secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing. any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs I and `l hereof or change the amount of such installments. If under paragraph IS hereof the Property is acquired by Lender, ail 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 acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation snd Maintenance of Property; Leaseholds; (:ondominuma; Planned Unit Developments. Borrowershall keep ( the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obligations undei the declaration or covenants creatingor governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or planned unit development, and constituent dacumenta. If a condominium or planned unit development rider is executed by Burrower and recorded together with this Mortgage, the covenants and agreements otsuch rider shall be incorporated into and shall amend and supplement thecovenants and agrepmentsof this Mortgagees ifthe rider were a part hereof 7. protection of Lender's Security. If $orrower fails tP perform the covenants and agreements rnntained in this Mortgage, or if any action or proceeding ie commenced which materially affects Lendei a interest in the Property, including, but not limited to, eminentdomain, = 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 soma and take such action as ie 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 ae the requirement for such insurance terminates in accordance with Borrower's and Lender's 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 ~ Korrower secured by this Mortgage. Unless Borrower and Lender 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 outstandin g principal under the Note unlea8 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 t require Lender to incur any expense or take any action hereunder. ~ ~~QQ ~~cc~~ i BI)QK~~A PAGE~V~.e~