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HomeMy WebLinkAbout0793 Borrower and Lender covenant and agree as folbws: I. 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 interest on any Future Advances secured by this Mortgage. . 2. Fonds for Tares and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments 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 tares 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 titre 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 fm so holding and applying the Funds, analyzing said account, or verifying and compiling said ameaamenta and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Lender may agree is writing at the time of execution of this Mortgago that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable lsw requi*ea 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 We 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 Funds held by (.ender, 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 Bonower'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 preri+iuma and ground rents as they fall due, Borrower 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 sums secured by this Mortgage, (.ender 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 Lender, 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 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 (.ender 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 leasehold payments or ground rents, if any , in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender a[l notices of amounts due under this paragraph, and in the event I3orrc?wer shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired to discharge any such lien so long as Borrowershall agree in writing to the payment of iheobligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property c?r am• part thereof. 5. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on 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; 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 tx• chosen by Kurrower subjccK to approval by Lender; provided, that such approval shall not be unreasonably withheld. All premiums on insurance p??licirs shall Ix• p:+id in the manner pr,n•ided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, N•hen due, diren•th• to the in.ur-.mce carrier. All insurance policies and renewals thereof shall be in form 5cceptahle to Lender and shall include a standard mortgage clause in favorof and in form acceptable to Lender. Ixndershall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to mender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier If and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and $orrower otherwise agree in writing, insurance proceeds sh:+ll be applied to restoration or repair of the Property ~ damaged, provided-such restoration or repair is en>nomically 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 beapplied to the sums secured by this llfortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to k respond to Lender within 30 days from the date notice is mailed by Lender G? Borrower that the insurance carver offers to settle a claim for E insurance benefits, Lender is authorized to collect and apply the insurance prc+ceeds at Ixnder's option either to restoration or repair of the Property or the sums secured by this Mortgage. Unless Ixnder and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred W in paragraphs l and 21+ereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by Ixnder, 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 acquisition shall pass to Ixnder to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenanceof Property; Leaseholds;Condominums; Planned Unit Developments. Botrowershallkeep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the pro~~sions of any lease if this Mortgage is on a leasehold- If this bortgage 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 creatingor 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 Borrower and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into andshallamendandsupplementthecovemantsandagreementsofthisMortgageasifthe _ 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 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 pr«-eedinga involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such aMion as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney a 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 tet•minates in accordance with Borrower'8 and Lender a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under E paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of 9 Borrower secured by this Mortgage. Unless Borrower and Lender agree to other teens 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 1 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 s require Lender to incur any expense or take any action hereunder. i ao'rn~ ~3 PACE 791