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HomeMy WebLinkAbout2057 , ~v . >t r \ ~ ~ 1~4I ~ Borrower and Lender rnvenant and agree as folbwa: 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 Futurn Advances secured by this Mortgage. 2. Plirtds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Ixnder on the day monthly installments utprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal ~oon~- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plus one- + twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments for mortgage insurance, if any, all se 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 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 assessments and bills. unless Lender pays Borrower interest on the Funds and applicable law permits [.ender 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 aha1F 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 I•Lnds. 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 auma secured by this t Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments otFunds 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days fram the date notice is mailed by bender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shalt 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, ].ender 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 lime of application as a credit against the sums secured :.y ~i,ia i•i3iyfd~b. 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 W 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, asse:~sments and other charges, fines and impositions attributable to the Properly which may attain a priority over this Mortgage, and leasehold payments or Krc+und mots, i f 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 thercv?f. Burrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in ttre anent Borrower shall make payment directly, Borrower shall promptly furnish to (.ender receipts evidencing such payments. Burrower shall promptly discharge any lien which has priority over this Mortgage; provided, that { Korrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the pay ment of theobligation secured by such lien in a manner acceptable to Ixnder, or shall in gcxxl faith contest such lien by, or defend enfunrmant of such lien in, legal proceedings which operate to prevent the enforcement of the: lien or forfeiture of the Properly or am• part therer+f. 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 roveraKe,"and such other h:+z:+rds :+s bender may require and in such amounts and for such periods as Ixnder may require; provided, that Lender shall nut require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier proa•idimg the insurance shall tx• chosen by liurn,wer subjc•c-t to appn+val by Lender, pn»•ided, that such approval, shall not be unreasonably withheld. All premiums on insur:mce {Ndicic•s shall Ix• paid in the manner pru~•id+•+) under paragr,+ph'l hereof or, if t nut paid in such manner, by liorruwer making p:+yme•nt.-when due, din•c•th• to the inwt:+nce carrier- All insurance policies and renewals thereof shall he in form acceptable to Lenderand shall include a standard mortgagedause in favor of i and in form acceptable to Ixnder. Lender shall have the right to hold the policies and renewals thereof, and Borrowershall promptly furnish to +.ender all mnewal notices and all receipts of paid premiums. In theevent otloss, Korn+wershall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nit made prompth• by Borrower. Unless Ixnder and Borrower otherwise agree in writing, insuranm proceeds shall bc• 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 ur if the security of this Mortgage would beimpaired, the insurance proceeds shall be applied to the sums secured by this MortKage, with the excess, if any, p:+id to Korrower. lithe Property is abandoned by Borrower, or if Sor•rower tails to reipond to Lender within :10 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to collect and apply the insurance prxeeds al Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ixnder 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 Loin paragraphs 1 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 Burrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale or acdwsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. c 6. Preservation and Maintenanceof 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 s provisions of any lease if this 11,ortgage,is on a leasehold. If this Mortxage is un a unit in a condominium or a planned unit development, Fiorrower shall perform all of Borrower's obligations under the declaration or cmenants crc•atingorgoverning thecondominium or planned unit development, the by-laws and regulations of the condominium yr 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 rnvenants and agreements of such rider shall be• inrorpc+r:rted into and shall amend and supplement the covenants and agreementsof this Mortgageas ifthe rider were a part hereof- 7. Protection of Lender's Security. If Borrower fails to per[orn the covenants and agreements contained in this Mortgage, or if any action or proceeding ie rnmmenced 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 a option,upon notice to Borrower may make such appearances, disburse such auma and take such action se is necessary to protect I.endei 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 Lendei e 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 with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. l,'nieas Borrower and Lender agree to other terms of payment, such amounts shall be payable upon notice from Lender to Borrower requesting payment thereof, and shalF 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 pennisaible under applicable law. Nothing contained in this paragraph 7, shall require Ixnder to incur any expense or take any action hereunder. 800 ~ PAGF~~ 800'RK c~G7 P~GE~~ Re•Fecer~