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HomeMy WebLinkAbout1850 . Borrower and Lender covenant and agree ae 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lenderon 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- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, 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 tirr+e by Ixnder 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 rents. Lender may not charge for eo 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 torthesumasecured by this Mortgage. It the amount of the F,tnds held by Lender, together with the future monthly installments of F ands 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 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 soft " p} tp pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lendec any amount necettr tb~make up the deficiency within 30 days from the date notice is mailed by Ixnder to Borrower requesting payment lhereoL • ~ Upon payment in full of all sums secured by this Mortgage, Lendershal) 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, bender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Ftinds held by Lender at the tiro! 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 shall be applied by Lender first in payment of amounts payable to Fender 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, as_~ssment_s and othc rcharKes, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments+?rKmund 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 p:+yee thereof. Itormwer shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments. lionrower shall promptly discharge am• lien which has priority over this Mortgage; provided, that Forrower shall not be required to discharge any such lien so IonK as li+?rn,wer shall agree in writing to the payment of the obligation securedby such lien in a manner acceptable to Lender, or shall in gc?+xl faith +Y,ntcst wch lien by, or defend enfi,n•ement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fi?rfeiture of th+• Property or any part then~c?f. 5. Hazard Insurance. Bonow•er shrill keep the improvements n+,w existing or hereafter erected un 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 fur such periods as Lender may require; provided, that Lender shall not require that the amount of such cover+Ke exceed that amount of coverage rr•yuired to pay the sums secured by this Mortgage. The insurance carrier providinK the incur:m+-+• shall tx•_ chosen by liormw•er subj+•ct to approval b~• 1.+•nder; provided, that such approval € ahxll not be unre:+sonabh withheld. All premiums on incur:+ace Iw~lici+•s shall I?+• Ir,+id in th+• manner provid+rl under par.+Kr.+ph here•c?fur, if not paid in such manner, by lAinower makinK pa~-ment. when due, dirr•+•th• to the insurnce caret+•r. All insurance policies and renewals thereof .hall he in f+u-m acceptable G, Lender and shall include a standard mortgage clause in favorof _ and in form acceptable to Lender. Lender shall have the right t+? hold the policies and renewals thereof, and Borrower shall promptly furnish to +.ender all renewal notices and all receipts of paid premiums. In the event of loss, li+?rn,rver shah Kive prompt notice to the insurance carrier and Lender. [,ender may make proof of loss if not made pmmptlti• 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 ur repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or if the security of this MortKaKe would t?eimpaired, theinsuranceproceedsshall beapplied to the sums second by this 1lfortgage, with theexcc:,s, if:my, p:+id to l;<orrower_ 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 bender to Borrower that the insurance carrier offers to settle a claim for :nsurance benefits, Lender is authorized to collect and apph the insurance pn?ceeds at Lender's option either to restoration or repair of the Property or the sums secured by this MortKaKe. Unless Lender and Born,wer otherwise agree in writinK, any such appier.+tion of proceeds to principal shall not extend or postpone thedue date of the monthly installmentsR refereed t+o in paragraphs I and 'L hereof 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 acymsition shall pass to Lender to the extent of the sums secured by this Sorgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Ixaseholds; Condominums; Planned Unit Developments. Borrowershail 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 MortKaKe is on a unit in a condominium or a planned unit development, - Knrrower shall perform all of Borrower's obligations under the declaration or covenants creatinKor governing the condominium or planned 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 Borrower and recorded together with this Mortgage, the covenants and aKreementg of such rider shall be incurp+mete•d into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof. 7: Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage,or it any action or proceeding is commenced which materially affects Lender s interest in the Property, including, but not limited to, eminent domain, insolvency, oode enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's 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 effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable Law. Borrower shall pay the amount of a!1 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 o[ payment, such amountB shall be payable upon notice from Lender to Borrower requesting payment thereof, and shall bear intrreat 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 i require Lender to incur any expense or take any action hereunder. B~ 3~'8 P~~E1849 - ,