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HomeMy WebLinkAbout0311 tr. . i Iorrower 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 intereston any Future Advances secured by this Mortgage. 2. FLnds for Taxes and Insurance. Subject to applicable law or to a written waiver by lender, Borrower shall pay to lxnder on theday monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal toone- twelfth ottheyearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus ane- 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 tines by Lender on the basis of assessments and bills :ind re:+son++ble estimates thereof. The Fonda shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Gender if Lender is ouch 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 Borrowerinterest on the Funds and applicablelaw permits Lender to makesuch a charge. Borrower and bender may agree in writing at the time otexecution of this Mortgage that interest on the F ands 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 Bot•rower any interest or earnings on the ~Inde. 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 additionalsecurity for the sums secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the duedates oftaxea, 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 Fonda 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 from the date notice is mailed by Ixnder 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 b_y Lender. If under paragraph 18 hereof the Property is sold or the Property is otherw ise acyuired by bender, bender shall apply, no later than immediately prior to the sale of the Property or its acquisition by !.ender, any Funds held by !.ender 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 l 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 pay all taxes, assessments and othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and k :+sehuld paymen is or t;nrund rents, i f any, in the manner provided) under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, dinY•tly to the payee therer,f. Borrower shall promptly furnish to Ixnder :111 notices of amounts due under this par.+gr.+ph, and in the event Borrower shall make p:+yment din•c•th•. Borrower shall promptly furnish to Lender receipts evidencing such payments. Itcrrrower shall prompth• discharge any lien which has priurih• over this Mortgage; provided, that Aurrower shall not be required to discharge any such lien so Tong as liurrowershall agree, in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in grN,d faith contest such lien by, urdefend i•nforcf•ment of such lien in, legal proceadings which operate to prevent the enforcement of the lien ur forfeiture of the Pn,perty ur any part therec,f. Hazard Insurance. Borrower shall k+rp the improvements now 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 for such periods as Lender may require; pn,videcl, that Lender shall nut nvluin• that the amount of such toverrge exceed that amount of coverage required to pay the sums secured by this ~lortt:aKe'- The insurance carver pnn•iding the insurance shall be• chosen by Bornrwer subject to approval by I.c•nder, providc•c1, that such approval shall not be unreasonably withheld. All premiums on imur:ulce policies .hall Ix• paid in the manner providal under par,rgnlph'~ hererrf or, if nut paid in such manner, by Ittrrnrwer making payment. when due. dirl•e•th• U. the-insurana-E• earner. Alt insurance policies and renewals thereof shall be in firm acn•ptable to l.r•nder and shall include a stand:+n! mortgage clause in favor of and in form acceptable to !.ender. !.ender shall h ave the right to hold the IN~lic•ies and n•newals thereof, and Borrower shall promptly furnish to :lender all renewal notices and all receipts of paid premiums. In the c•eeut of loss. Burrower shall give prompt notice to the insurance c:+rrier and (.ender. Lender may make pra,f of loss if not made prompth• be fil,rn,w•er. Unless Fender and Borrower otherwise agrlr in venting, insurance proceeds shall trc appli+•d to restoration or repair of the I'roperh• damaged, provided such restoration or repair is ec•onumiculle feasible :+nd the scc•unty of this Mortgage is not thereby impaired. If such restoration or repair is not economically teasibla~ or if the scvunty of this Mortgagewould be impaired, the insurance proceeds shall heapplied to the sums secured by this Mortgage, with the exE•f•ss, if any, paid to liarrruwer. If the I'rupc•rty is abandoned by Borrower. or if Itorrower fails to re,pond to [.ender within 3(l days from the date notice is mailed by Lender to Born,wer that the Insurance tamer Offers to settle a claim for insurance benefits, Lender is authorized to collc•c•t :uui app!}• the insurance prax•eeds at Lender's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Lender and ROrnrwer otherwise agree in writing, any such application of proceeds to principal shall not extend or postpcane thedue date of the monthly installments referred to in paragraphs 1 :+nd'L hereof or change the amount of such installmentsg. If under paragraph IS hereof the Property is acquirEd by !.ender. all right, title and inten•st of Burrow+•r in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sale ur acquisition shall pass to I,c•nder to the extent Of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and :Maintenance of Property; Leaseholds; ('ondominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit watite or tx•rmit impairment or deterioration of the Property and shall comply with the provisions of any lease if this Mortgage is on a leasehold. ff this \turtgaga• is un a unit in a condominium Ora planned unit development, }torrower shall perform aN of 13omrwer's obligations under the d+•c•laration or covenants cnatinKor governing the condominium or planned unit development, the by-laws and regulations of the condominium ur planned unit development, and constituent documents. If a • ondominium or planned unit development rider is executed by li.rrn,w•er and rec•ordcd together with this Mortgage, the covenants and aKrea~ments of such rider shall tx• incorporated into and shall anu•nd and supplenaen t the coa-c•nantti and agn•ements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails ur perform the rnvenants and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects I~ender'e 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 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 !.ender 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 Lenders written agreement or applicable Law. Borrower shall pa_r• the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. ' Any amounts disbursed by Lender persuant tc? this paragraph 7, with interest thereon, shall become additional indebtedness of lsorrower secured by this Mortgage. Unless Borrower and Lender 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 caf interest at such rate would be rnntrary to applicable taw, in which event such amounts shall bear interest at the highest rate prrnaisaihle under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense Or take any action hereunder. 8uU1c '"R329 PAGE 311