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HomeMy WebLinkAbout1123 Borrower and Lender covenant and agree as follows: I. Paymeet 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 Future Advances secured by this Mortgage. 2. Fttnds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly inatalhnenta 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 4ortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium inatalirt+enta fob hazard insurance, plusonetwelfth of yearly premium installments for mortgage insurance, itany, 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, asaesamenta, insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asseasmenta 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, 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 F ands are pledged as additional security 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 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 Bo+TOwer'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 :10 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, Lender shall promptly ref and to Borrower any funds head by Lender. liunder 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 Funds held by (.ender at the time otapplication as a credit against the sums secured by thin Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Fender 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. Borrower shall pay all taxes, assessments and other charges, fines and imp?sitiuns attributable to the Property which may attain a priority over this Mortgage, and le:+sehold p:+yments or Kr<?und rents, if any, in the manner provided under paragraph'( hereofor, i f not paid in such manner, by Rarruwer making payment, when due, directly to the payee thereof. Burrower shall promptly furnish to Lender :?ll notices of amounts due under this paragraph, and in the event Rorn,wer shall make p:+yment directly, Rorn?wer shall promptly furnish to !.ender receipts evidencing such payments. Ilurmw•er shall prrunpth• disch:vKe any lien which has priorih•aver this MortKage; provided, that Borrower shall not be required to discharge any such lien so IonK as li+,rn,wer shat l agre+• in write nK to the payment of the obliKatiun secured by such lien in a manner acceptable to Lender, or shall in Kixx1 G+ith cunt+•st such lien by, ordefend enfonrment ofsuch lien in, le{;al pnx•eedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part then~,f. 5. Hazard Insurance. Borrower shall keep the improvements now existing ur hereafter erected on the Property insured against loss by fare, hazards included within the term "extended cover<+Ke," and such other hazards as Ixnder may require and in such amounts and forsuch periods a.4 Ixnder may require; provided, th?! Ixnder shall nut n•quire that the amount of such cyn•er.+ge exceed that amount of coverage required to pay the sums secured by this MortK:+Ke- The insurance carver pn,vidinK the insurance shall la• chosen h~• Korruw+•r suhj+•c•t to approval by I xnder; pmvid+rl. that such approval shall not be unreasonably withheld. All premiums un insurnce• {N~licies shall 1?+• paid in the manner prnvid+d under p:+raKr-.+ph 'L hereY,f or, if nut paid in such manner, by F3urrow•er makinK payment, when due, dinY•tly to the insurance carrier. All insurance policies and renewals thereof ;hall t?e• in form acceptable U? Lender and shall include a standanl mortgage clause in favorof and in form acceptable to bender. Ixndershall have the riKht G, hold the {N~licies and renewals thereof, and Borrower shall promptly furnish to i i,ender all renewal notices and all receipt. of paid premiums. In the event of loss, Borrower shall Kive prompt notice to the insurance carrier and Lender. (.ender may make proof of loss if not made promptly b~- Iiorn,wer. Unless [.ender and Borrower otherwise aKrer in writinK, insurance proceeds shall t,e applied to restoration or repair of the Property ~I damaged, provided such restorati::;. ur repair is economically leasible and the se+•urih• of this MortgaKe is not thereby impaired. If such i restoration or repair is not economically feasible nr if the security of this MortKaKe would t,e impaired, the insurance proceeds shall be applied to the soma secured by this Mortgage, with the excess, if any, paid to F3um?wer. If the Property is abandoned by Borrower, or if Iorrower fails to respond to Lender within :10 days from the date notice is mail+d by Lender d, Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collee•t and app(>• the insurance proceeds at Lender's option either to restoration or repair of the Property or the sums secured by this 11ortKaKe. Unless Lender and Borrower otherwise agree in w•ritinK, any such application of pmceedstoprincipal shall not extend or postpone thedue F date of the monthly installments referred te, in paraKr,+phs 1 and 2 hereof or chanKe the amount of such inst<+Ilments. If under paragraph 18 hereof the Property is acquired by Lender, all riKht, 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 ur acgwsition shall pass to bender to the extent of the sums secured by this ~ ~tortgage immediately prior to such sale or acquisition. 1 6. Preservation and Maintenanceof Property; Leaseholds; ('ondominums; 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 t provisions of any lease if this MortKa{;e is on a leasehold. (f this MortKaKe is un a unit in a n?ndominium or a planned unit development, g Borrower shall perform all of Bc?rruwer's obliKations under the de<•lar.+tion or rnvenants creatinKor govern)n{t the condominium or planned unit development, the by-laws and regulations of the condominium or planncl unit ueveiupment, and constituent documents. If a condominium or planned unit development rider is exeY-uted by Burrower and recorded to{~ether with this Mortgage, the covenants and ~ ::Kreements of such rider shall Fx• incor{xm+ted into and shall amend and suppl+•ment the co~•enants and a{;rermentsof this 11ortKaKe as if the i rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action ur proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, I I insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Ixnder 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 Lender required 3 mortgage insurance as a condition of making the loan secured by this Mortgage, Burrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in aceordance with Borrower's 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 perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon , notice from Ixnder 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 ;,ayment 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. dL'OX c~z PdCE~'~ _t • ; ,.w J C