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HomeMy WebLinkAbout0759 r Borrower and Lender covenant and sgree u folbw~: 1. 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 chugs u provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Fonda for Tw:es and Insurance. Subject b 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 t~elfth of the yearly taxes and assessments which may attain priority over ?his Mortgage, and ground rents on the Property, if any, plus one- twelfth ofyearly premium installments for hazard insurance, plus onetwelRh of yearly premium installments for mortgage insurance, if any, all u reasonably estitnated initially and from time to line by !.ender on the basis of assessments and bills and reasonable estimates thereoL The Funds shall be held in an institution the deposits or accounts o[ which are insured or guarantsed by a Federal or State agency (including Lender if bender is ouch an institution). Lender shall apply the Fonda 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, unleu Lender pays Borrower interest on the Funds and applicable law permits !.ender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Borrower, and unless ouch agreement is made or applicable law requirea•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 Fonda was made. The Funds are pledged as additional security for the sumo secured by this Mortgage. 1 [the amount of the Fonda held by Lender, together with the future monthly i natal l menu 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 yenta u they fall due, such excess shalt be, at Borrower 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, aaseasmenta, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :i0 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, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph IS hereof the Property ie sold or the Property is otherwise acquired by !.ender, !.ender shall apply, no later than immediately prior to the sale of the Property or ifs 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 !.ender 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. Borrowerahall pay all taxes, assessments and othercharges, fines and impositions attributable k, 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 thercY,f. Borrowershallpromptly furnish to Lender all notices otamounta due under this paragraph, and in the event Ii+,rrower shall make payment directly. Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrc,wer shall promptly discharge any lien whic h h:+s priority over this Mortgage; provided, that Borrower shall not be required W discharge any such lien so long ax I3t,rn,wer shat! agree in writing to the payment of throbligation secured by such lien in a manner acceptable to bender, or shall in gw?d faith contest such lien by, or defend en fi,rcr•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thercr,f. 5. Nazard Insurance. Borrower shall keep the impn,vrmenls now existing or hereafter erected nn the Property insured against loss by tire, hazards included within the term "extended coverage," :+nd such other hazards as Lender may require and in such amounts and forsuch periods ae Lender may require: provided, that Lender shall nut require that the amount of such rnveraKe exceed that amount of coverage required to pay the sums secured by this MorlKaKe• The insurance carrier providing the inane.+ne•+• sh:+Il Iw ch„s+•n by l;r,m,wer subj+rrt to appnn•al In Lender: provided, that such approval shall not be unreasonably withheld. Ali premiums on insur.+nrr tH,liri+-x shall tK• paid in th+• manner provid+rl under paragraph `L hereof or, if not paid in such manner, by [iurrower making pa_r•mr•nt. when due, din•c•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable G, lender and shall include a standard mortgage clause in favor of j and inform acceptable to i.ender. !.ender shall have the right G, hold the fs,liciex and renewals thereof. and Borrowershall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of 1„tis, Korn,wer shall give prompt notice to the insurance carrier ~ and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such reatorati~,n or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible ur if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the some secured by this Mortgage, with the excess, if any, paid to &,rrower. 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, Lender 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. _ E Unless Lender and Born,wer otherwise agree in writing, any such application of proceeds to principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 I+ereuf or change the amount otsuch installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Born,wer 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 jo Lender 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 Mortgage is on a unit in a rnndominium or a planned unit development, ~ Borrower shall perform all of Borrower's obligations under the declaration or covenants rreatingor governing thecondominium 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 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 the rnvenante and agreements contained in this Mortgage, or if any s action or proceeding is commenced which materially affects Lender a 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 ouch appearances, disburse such sums and take such action as is neoeeury to protect Lender's interest, including, but not IimifRd to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required q mortgage insurance u a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain F such insurance in effect until such time as the requirement for ouch insurance terminates in accordance 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. 3 Any amounts disbursed by Lender perauant to thin 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 Lender to Borrower requesting payment thereof, and shall bear interest from the date of disbursement at the rate payable [rom time to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrsry 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 l require Lender to incur any expense or take any action hereunder. s ~ - Bco~ ~5 PacE 758 ~ ~ ~~3 _ 4f a