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HomeMy WebLinkAbout1854 s 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. lE~tnds for Taxes and Insurance. Subject to applicable taw or to a written waiver by !.ender, 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 "Fuads'")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 ane- 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 tithe by lender on the basis of assessmentx and bills and reasonable estim~ter tlter«?f 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 !.ender 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 so holding and applying the Funds, analyzing said account, or verifying and compiling said asaeastnenta and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make ouch 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, !.ender 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 Fonda are pledged as additions) security for the sums secured by this Mortgage. If the amount of the I•ltnda held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, asaeasmenta, 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 promptjy repal~to BoA~ver 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 ae they fall due, Borrower shall pay to Lender any amount neceaaary~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 aumsaecured 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 [.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the sums secured= by this Mortgage.- 3. Application of Payme»ts. Unless applicable .law provides otherwise, a)1 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 !,ender 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 pays!! taxes, assessments and othercharges, 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 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower 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 furnish to [.ender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to discharge any such lien so long :rs Borrower shall agree in writing to the payment of the obligation secured by } ue h [i2rt i^ a :^.„^.ap* a~ntable to !.ender, orshall in good faith n?ntest such lien by, ordefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against lose by fire, hazards included within the term `'extended coverage; 'and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not require that the amount ofsuch coverage exceed that amount ofcoverage - required to pay the sums secured by this Mortgage. i The insurance carrier providing the insurance shall be chosen by bom?wer subject to approval by ixncier, provided, that such approval shalt not be unreasonably withheld. All premiums on.insurance p~?tiries shall t?e• paid in the manner pn?~•ided under paragraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due. din•c•tly to the, insurance carrier. All insurance policies and renewals (hereof shall l?e in form acceptable to (.ender and shall include a standard mortgageelause in favorof and inform acceptable to (.ender. !.ender shall have the right W hold the policies and renewals thereof, and Borrower shall promptly furnish to i,ender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt.notice to the insurance carrier and Lendet. 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 if 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 !.ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect :end apply the insurance proceeds at (,ender 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 prcxeeda to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'L I?ereof or change the amount of such instalments. If under paragraph 18 hereof the Property is acquired by (,ender, all right, title and interest of Borrower in and to any insurance policies and in and to t}.e proceeds thereof resulting from damage to Property prior to the sale or acquisition shall pass to (.ender to the extent of the sums secured liy this 1ortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Properly and shall comply with the a provisions of any lease if this bloriKage is on a leasehold- If this Mortgage is on a unit in a condominium or a planned unit development, r j Borrower shall perform all of Borrowei s obligations under 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 documents. If a condominium or planned unit development rider is executed by borrower and recorded together with this Mortgage, the covenants and i agreements of such rider shall be incorporated into andshall.?mendandsupplemPntthecovenantsandagreementsofthisMor~tgageasifthe i rider were a part hereof. t i 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any j ~ 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'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 rnndition 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 tetrrrinatea 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 `L hereof. Any amounts disbursed by Lender perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of, ! borrower secured by this Mortgage. Un1eaB Borrower and Ixnder agree to other terms of payment, such amounts shall be payable upon ~ notice from (.ender to Borrowei requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from E - time to time on outstanding principal under the Note unless payment of interest at such rate would be contrary to applicable law, in which i event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph shall require Lender to incur any expense or take any action hereunder. _ 800KJ~G?O P~GE~~~ t" ~