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HomeMy WebLinkAbout2519 Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal +,f and interest on the indebtedness evidenced by the Note, prepayment and late charges as provided in the Note, and ?he principal of and interest o+. any Future Advances secured by this Mortgage. 2. Fltrtds for Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, Burrower shall pay to Lender 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 loons, twelth 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 onetwelfth 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 ~tnde 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 r?f this Mortgage that interest on the !•l+nds 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 acrounting 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 sums secured by this Mortgage. If the amount of the fl+nds 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 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 sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Burrower shall pay to !.ender 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, ! gender shall promptly refund to Borrower any funds held by Lender- If under paragraph lA 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 !,ender, 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 [.ender by Borrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Nute, and then to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and c,ther c•h:+rges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le.•+sehold payments ur ground rents, if:+ny, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directh• to the payee thereof. Burrower shall promptly furnish to [.ender all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall 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 Burrower shall agrees in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in goexl faith contest such lien hy, urdefend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Properth• or :+m• part there+,f. 5. Hazard I nsurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the teen "extended coverage," and such other hazards as 1 xnder may require and in such amounts and for such periods as !.ender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall I,e• chosen by Bomr-ver subject to appn,val by Lender; provided. that .uch approval shall nul be unreasrmabh• withheld.:111 pn•miums on insurance twlicies shall t,r paid in the manner provided under paragraph L hereof or, if nut paid in such manner, by lirmuw•er making payment, whe=n due, din•c•tly to the insurance carrier All insurance policies and renex~als thereof shall be in form acceptable tr? [.ender and shall include a standard mortgage clause in favor of and in form acceptableto !.ender-Ixndershaa have theright G?hold the policies and renewals thereof, and Burrower shall promptly furnish to ~ ? ender all renewal notices and all receipts of paid premiums. In the event of loss. Born,wer shall give prompt notice to the insurance carrier ~ and Ixnder. !.ender may make proof of loss if nut made prompth• by Borrower- ~ Unless Ixnder and Borrower otherwise agree in writing, insurance prc,cevds shall I?e applied to restoration or repair of the Property damaged, pro~~ded such restoration or repair is economically 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 k to the soma secured by this Mortgage, with the excess, if any ,paid to &?rrower. If the I?ruperty is abandoned by Borrower, ur if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Ixnder to Borrower that the insurance carrier offers to settle a claim for insurance benefits, Ixnder is authorized to cr,llcct and apph• the insurance pn?ceeds at bender'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 par:+graphs I and'L 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 Burrower 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 tr? Ixnder to the extent of the sums secured by this ?liurtgage immediately prior to such sale or acquisitiun- 6. Preservation and Maintenance of Property: Ixaseholds; Condominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit watite 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 condominium or a planned unit development, Borrower shall perform all of Borrower's obligations under the declaration or covenants e•reatiny: ur governing the condominium or planned ~ unit development, the by-laws and regulations of the cr,ndr,minium ur planned unit development, :+nd constituent documents. If a condominium or planned unit development rider is executed by Burrower and recorded together with this Mortgage, the eovenante and agreements of such rider shall be incurpuratcd into and shall :emend and supplement thecovenants and agreements of this Alortgageas if the rider were a part hereK?f- ~ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any rfi action or proceeding is commenced which materially affects Lender'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's optiun,upon notice to Borrower may make such appearances, disburse such soma 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 ~ 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 t s : written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under i paragraph 2 hereof. Any amounts disbursed by Ixnder perauant to this paragraph 7, with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage- Unless Borower 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 un 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 perniaeible under applicable law- Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder- Er;~KV•.~~ PAGE~~i2 ~ ~ - ~ ~ - f='. -