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HomeMy WebLinkAbout1875 • - ` • Y`• Borrower and Lender rnvenant 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. Fonda for Ta:ea and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender un 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 of the yearly taxes and asaeaements which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one- twelfth ofyearly premium installments for hazard insurance, plus one-twelfth ofyearly 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 )tirnds 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 Fonda to pay said taxes, asaeasmenta, insurance premiums and ground rents. Lender may not charge for eo holding and applying the Fonda, analyzing said account, or verifying and compiling said asaeearnenta and bills. unless Lender pays Borrower interest on the Fonda 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 os applicable law requires such interest to be paid, Lender shall not be required to pay $orrower any interest or earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Fonda and the purpose for which each debit to the Fonda was made. The Fonda 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 due dates of ta:ea, aeaeaementa, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents ae they a~ due, such excess shall be, at Borrower s option, either promptly'epaid to Borrower or credited to Borrower on monthly installments of ~trndbylf the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and gr~tndnrEnits as they fall due, Borrower shall pay to Lender any amount necessary 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 soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by bender. If under paragraph 18 hereof the Property ie sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition 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 I 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, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrowershall pay all taxes, assessments and othercharges, fines and impositions attributable tothe Property which may attain a priority over this Mortgage, and leasehold payments orground 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 Ixnder all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Born?wer shall promptly furnish to lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this 1lfortgage; provided, that Borrower shall not be required to discharge any such lien so long as liorrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to lxnder, or shall in gc,od faith n,ntest such lien hy, or defend enforrnment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or fi,rfeiture 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 loss 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 lxnder shall not require that the amount of such rnverage exceed that amount of coverage required to pay the.sums secured by this Mortgage. The insuranm carrier providing the insurance ;hall Ix• chosen br Borro..•er subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance t>,~licie•. shall t,c paid in the manner provided under paragraph ? hereof or, if not paid in such manner, by Borrower making payment, when due, direY•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to l.enderand shall include a standard mortgage clause in favorof . and in form acceptable to Lender. l.endershall have the right to 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 notirn to the insurance carrier and Lender. Lender may make proof of loss iC 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 serurih 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 ex~ctis, 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 Fender to Borrower that the insurance carrier offers tosettle a claim for insurance benefits, lxnder 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. Un[esa Lender and Borrower otherwise agree in writing, any such application of pnx Beds to principal shall not extend or postpone the due date of the monthly installments referred G, in paragraphs 1 and 2 hereof or change the amount oC such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, all right, title and interest of Born,wer 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 bortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds; C'ondominums;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 nn a unit in a condominium or a planned. unit development, Borrower shall perform all of Borrower ~ obligations under the declaration or covenants c-rea?ingor 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 U,gether with this Mortgage, the covenants and agreements of such rider shall I,e incorporated into :end shall :emend and supplement thecovenants and agreements of this 1lfortgageas ifthe 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 if any aMion 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 sums and take such action ae is necessary to protect Lender's interest, i 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 effeM 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 all mortgage insurance premiums in the manner provided under paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Ixnder agree to other terms of payment, such amounts shall be Qayable 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. _ Bo~3?8 P~E18T4 , • - - -