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HomeMy WebLinkAbout2072 • ~ ~ Korrower and Lender covenant and agree ae follows: 1. Payment of Principal and lntereet. 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. F~utds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender 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 twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus onetwelflh ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by Lender on the bests of assessments at+ci oiiis and reasonauie estimates i.itrrevf. The I'Lnds 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 asaeasmenta 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 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 for the soma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Fonda 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 Fonda. If the amount of the Funds held by Lender shall not be soft cient to pay taxes, asaeasmenls, 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 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, Fender 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 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, assessments and othert•harges, 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 pay ee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Korrower shall make payment directly, Korrower shall promptly furnish to I .ender receipts evidencing such payments. Korrower 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 as Korrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to !.ender, or shall in gc?c+d faith ct?nttst such lien by, ordefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or am• part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property ins::r~. ag:.i:.at l..~ by fire, hazards included within the term "extended coverage; 'and such other h:+zards as Lender may require and in such amounts and forsuch periods as Lender may require; provided, that Lender shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier pn.vidink the insur.+nn• sh:+ll Fx• chosen by Iturn~wer subject to approval M• Lender, provided, that such approval shall not be unreasonably withheld. All premiums un insurance tH?licies shall Ix• paid in the manner pmvidecf under paragraph'! hermf or, if nut paid in such manner, by Korrower makink payment, w•ht•n due, dinctly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lemder and shall include a standard mortgage clause in favorof and in form acceptable to !.ender. Lender shall have the rght to hold the policies and renewals thereof, and &?rrower shall promptly furnish to .ender all renewal notices and all receipts of paid premiums. In the event of loss, lic?rrower shall give prompt notice tc? the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Korrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration ar repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not tronomically feasible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied j to the sums secured by this Mortgage, with the excess, if any, p:+id to Borrower. If the Property is abandoned by Borrower, or if Korrower fails to respond to Lender within 30 days from the date notice is mailed by Lender W 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 i Property or the sums secured by this MurtKaRe. S Unless Lender and Borrower otherwise agree is writing, any such application of proceeds to principal shall not extend or pc?stpone thedue date of the monthly installments referred to in paragraphs I and'! 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 acquisition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; I.eascholds; (:ondominums; Planned Unit Developments. Kc?rrowershall keep the Property in good repair and shall not commit waste or permit imp:+irment or deterioration of the Property and shat! comply with the provisions of any lease if this Mortgage is on a leasehold. If this Mortgage is ~?n unit in a condominium or a planned unit development, Borrower shall perform all of Borrower's obliKations under the declaration or cocenant.4 cre:+tingor governing the condominium or planned unit development, the by-laws and regulations of the condominium c?i• planned unit development, and constituent documents. if a ~•ondominium or pianned unit development rider is executed by Korrower and recorded together with this Mortgage, the covenants and ,igre•c•ments of such rider shall be incorporated into and sh:+Il :+mend and supplement the covenants and aRreementsof this Mortgagees if the ~ rider were a part hereof. k 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects [,ender'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 soma and take such action as is necessary to protect Lender 8 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 each time as the requirement for such insurance terminates in accordance with Borrower a 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 persuant 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 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 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. - 800~1(c~+GO P~Cf(Jl/ / 1 ~ -