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HomeMy WebLinkAbout1732 • 1 Borrower and Lender covenant and agree as folbws: 1. Payment of Principal sad Interest. Borrower shat) 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. Funds forTaxeaand Insurance. Subject to applicable law or to a written waiver by bender, Boirowershal) pay to Lender on the day monthly installments of principal and interval 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 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 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 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 or applicable law requires such interest to be paid, bender 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 securedby this Mortgage. If the amount of the Fl+nda held by Lender, together with the future monthly installments of F ands payable prior to the due dates of taxes. assessments, insurance premi,lma 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 Fltnds. 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 from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all soma secured by this Mortgage, Ixnder shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold or the Property is otheriwise 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 1 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 other charges, fines and imposi/ions attributable to the Property which t may attain a priority over this Mortgage, and leasehold payments or ground 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. Kormwer shall promptly furnish to Ixnder } alt notices of amounts due under this paragraph, and in the ea•ent l3urn,wer shall make payment directly, Born,wershall 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 as Iorrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Lender, or shall in ge,od faith contest sue•h lien hy. ur defend enforcement ofsuch lien in. legal proceedings which operate to prevent the enforcement of the lien or fi?rfeiture of the Yrotx•rty or ana• part thereof. 5. Hazard Insurance. Borrower shall keep the improvements ni?w 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 forsuch periods as !.ender may require; provided, that lxnder shall not require, that the amount of such coverage exceed that amount of rnverage required to pay the sums secured by this Mortgage. The insurance r.+mer providing the insurancee• shall t,e• chosen by Borrower subject to approval by Lender; provided. that such'approval shall not be unreaw?nabiy withheld. All premiums on incur-.+nce policies shall l,e• paid ire the, manner pr+,vided under paragraph hereof or, if nut paid in such manner, ht liorruwc•r making payment. when due. din•e•tly to the insurance carrier. All insurance policies and renewals thereof shall ix in form acceptable to Lenderand shall include a standard morigageclause in favorof and in form acceptable to (.ender. !.ender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to :.ender ail renewal notices and all receipts of paid premiums. In the event of loss,l3,?rrowershall give prompt notice to the insurance carrier and !.ender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and &?rrower otherwise agree in aa•riting, insurance proceeds shall t,e applied to restoration or repair of the Property damaged, provided such resG,ration or repair is ec•unomir<+Uy 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 aerated by this Mortgage, a+~th the excess, if any. paid to Borrower. If the Property is abandoned by Borrower, or if Borrower tails to respond to !.ender within :30 days from the date notice is mailed by Lender te, Borrower that the insurance carrier ofTers to settle a claim for insurance benefits, [.ender is authorized to e•ollen•t and apply the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this blorigage_ Unless Lender and Borrower otherwise agree in writing, any such application of pn,rerds to principalshall not extend or postpone thedue date of the monthly installments referred b, in par:+graphs 1 and 'L hereof e,r c•h:+nge the amount of such installments. If under paragraph I8 hereof the Property is acquired by bender, all right, title and interest of Borrower in and to:+ny insurance policies and in and to the proceeds t thereof resulting hom damage to Property prior to the sale or acqu+sitie,n 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; Leaseholds; C'ondominums; Planned Unit Uevetopments. Borrowershall keep the Property in good repair and shat! 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 on a unit in a rnndominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants cn•atingor 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 Born,wer and recorded together with this Mortgage, the rnvenants and agreements of such rider shall l,r inc•orporatcd into and shall amend and supplement the covenants and agreements of this Mortgage as ifthe rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenanta and agreements contained in this Mortgage; or if any action or proceeding is commenced which materially affects Fender's interest in the Property, including, but not limited to, eminent domain, 1 insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender's option,upon notice to Borrower may make each appearances, disburse such sums and take such action as ie 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 condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain each 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. Borrov~rer shall pa_a• 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 sha1J be payable upon notice from [.ender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable from ) time to time on outstanding princi al under the Note unless a I p p yment 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. • j E 8 329 p~E1731 F