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HomeMy WebLinkAbout0872 Borrower sad Lender covenant and agree as [ollovw: 1. Payment of Principal and Iatered. Borrower ehaA promptly pay when due the principal o! 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 Enacts for Tares and Irrsuraaoe. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installments of principal sad interest are payable under the Note. until the Note is paid in full, a sum (herein "Funds")equal to oae- twelfW ofthe yearly texas and assessments which may attain priority over this Mortgage, and ground rents on the Property. if any, plus oae- twelfth ofyearly premium iadalhnenb for hazard insurance. Plus onetwelRh of yearly premium installments for mor/gageinsurance, 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 heW is as institution the deposits or aeoounts of which are insured or guaranteed by a Federal or State agency (including Lends if Leader ie wch an institution). Lender shall apply the Funds to pay said taxes. assessments, insurance premiums and ground rents. Lander may not charge for so holding and applying the Funds, analyzing said account. or verifying and compiling said aaseasaaents sad bills. unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make ouch a charge. Borrower and Lender may agree in writing at Wa time of execution of this Mortgage Wet interest on the Funds shall be paid to Borrower, and unless such sgreeir?ent is made or applicable law requires such interest to be paid, Lender shall not be required to prey Borrower any interest or earnings on the Funds. Lender sball give to Borrower, wiWout charge. an annual aooounting of the Funds showing credits and debits to the Funds sad We purpose for which each debit to We 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 Lender, togeWer wi W We future monthly installments of Funds payable prior to the due dates of taxes, asseeameats. insurance premiums and ground rents. shall ezceed We amount required to pay said tares, assessments, insurance premiums and ground rents ss Wey fall due. such excess ahaU be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If We amount of We Fends held by Lender shall not be sufficient to pay taxes, aasesamenta, insurance premiums and ground recta as Wey faU due, Borrower shall pay to Lender any amount necessary to make up the deficiency wiWin 30 days from We date notice is mailed by Lender to Borrower requesting Payment Wereof. Upon payment in fall ~ all same secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. U under paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sale of We 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 We Note and paragraphs 1 and 2 hereof shall be applied by bender first in payment of amounts payable to Lender by Borrower under paragraph 2 hereof, then to interest payable on We Note. Wen to We prin~apal of the Note, and Wen to interest and principal on any Future Advances. 4. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this~ortgage, 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. Borrower shall promptly furnish to Lender all notices of amounts due under Wis paragraph, and in the event Borrower 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, W at Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment ottheobligation secured by such lien in a manner acceptable to Lender, 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 or any 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 Lender shall not require that the amount of such coverage exceed Wat amount of rnverage required to pay We sums secured by Wis Mortgage. The insurance carrier providing the insurance shall be chosen by Borrower subject to approval by Lender, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, direMly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favor of and in form acceptable to Lender. Lender shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to I' ixnder all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if riot made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of We Property damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not ernnomically feasible or if the security of this Mortgage would be impaired, We insurance proceeds shall be applied to the sums 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 30 days from the date notice is mailed by Lender to Borrower that We insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proc~eeda at Lender a option either to restoration or repair of the Property or We sums secured by Wis Mortgage. UnleBS 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 hereof or change the amount of such installments. If under paragraph 18 hereof the Froperty 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 We sale or acquisition shall pass to Lender to We extent of the soma secured by Wis Mortgage immediately prior to such sale or acquisition. 6. Preservation and ldaintenance of Property; Leaseholds; Condominuma; 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 rnmply with We 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 creatingor governing the rnndominium or planned unit development, We by-laws and regulations of the condominium or planned unit development, and constituent documepts. If a condominium or planned unit development rider is executed by Borrower and rernrded together with Wia Mortgage, the oovensinfa and agreements of such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Mortgage as if the rider were a part hereof 7. Protection of Lender's Security. If Borrower fails to perform We 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 proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice to Borrower may make such appearances. disburse such sums and take such action se is necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attorney's foes and entry upon We Property to make repairs. If Lends required mortgage insurance as a condition of making We loan secured by Wis Mortgage, Borrower shall pay We premiums regained to maintain such insurance in effect until such time as We requirement for such insurance terminates in accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in We manner provided under ~ paragraph 2 hereof. My amounts disbursed by Lender pereuant to Wis paragraph 7, wiW 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 Lender to Borrower requesting payment thereof, and shall bear interest from We date of disbursement at We 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 each 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. - g~~334 P~f 871 ~ 1[ '2C I rt.-:-`J