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HomeMy WebLinkAbout1101 • ; .r i Borrower and Lender covenant and agree as follows: 1. Paytaeat of Prlaelpal sad Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. blutds for Tases and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day i monthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "F~tnda'")equal to one twelfth of the yearly taxes and aasessmenta which may attain priority over this Mortgage, and ground trots on the Property, if any, plus ono- twelfth of yearly premium installments for hazard insurance, plus ono-twelRh of yearly premium installments for mortgage insurance, if any, gall as reasonably estimated initially and from time to time by Lender on the basis of assessments and bills and reasonable estimates therm! The Funds shall be held in an institution the deposits or accounts of which an 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 rnmpiling said assessments and bills, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to makesuch 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 b be paid, Lender shall not be required to pay Borrower any interest or j earnings on the Funds. Lender shall give to Borrower, without charge, an annual accounting ottee Funds showing credits and debits to the : Funds and the purpose for which each debit to the Funds was made. The Funds are pledged ae additional security for the sums secured by this Mortgage. 1 If the amount of the Funds held by Lender. together with the future monthly installments of Funds payable prior to the due dates of ta:ea, { 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 Flrnds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance , premiums and ground rents as they tall 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 foil of all auras 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 [.ender, Lender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Fonda 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 fimt 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. Borrower shall pay all taxes, assessments and otherchargea, fines and impositions attributable to the 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, direMly to the payee thereof. Burrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the event Burrower shall make paymentdirectly, Borrower shall promptly furnish to lender receipts evidencing such payments. Borrower shall promptly discharge:rny lien which h:ss priority over this Mortgage: provided, that Borrower shall not be required todischarge any such lien so long as Rorrowershall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to lxnder, or shall in good faith contest such lien by, ur defend enforcement of such lien in, legal proceedings K•hich operate to prevent the enforcement of the lien or forfeiture 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 lose 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; provided, that lender shall not require that the amount of such coverage exceed that amount otcoverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall tx• chost•n by lium?wer subject to approval by Lender, pn,vided. that such approval shall not be unreasonably withheld. All premium, on insurnnce p,?licie..hull t?e paid in the manner pn?vide<1 under paragraph 'l hereof or, if not paid in such manner, by Kormwer making payment, when due, direrth• t?. the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable W Lender and shall include a standard mortgageclause in favor of and in form acceptable to l.endet. Lender shall 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,l3orrowershall give prompt notice W the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borroaver. 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 security of this Mortgage is not thereby impaired. If such - reatoration or repair is not economically [easible or if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to Borrower. if the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within :i0 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, [.ender 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. Unless Lender and Borrower otherwise :agree in writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 taereof 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 acgwsition shat! pass to bender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall 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 blortgag~ik on~a unit in a condominium or a planned unit development, Rorruwer shall perform all of Borrower's obligations under the declaration or covenants creatint; ur governing the condominium or planned snit 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 together ariih this Mortgage, the mvenanta and agreements of such rider shall be incorporated into and shall amend and supplement the co~•enants and agreementsof this 1'Iortgage as ifthe rider were a part hereoG 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 [.tinder's interest in the Property, including, but not limited to, eminent domain, insolvency, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then [.ender at Lender's option,upon notice to Borrower may make ouch 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 Lender required r mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain i such insurance in effect until such time as the requirement for each insurance terminates in accordance with Borrower's and Lenders ~ written agreement or applicable [.aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof.a' Any amounts disbursed by Lender pereuant to this paragraph 7, with interest thereon, shall become additional indebtedness of Harrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon ' i 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. ~ itR e~ 330 p~E 1094 u _ ~ - -