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HomeMy WebLinkAbout0002 + Borrower and Lender covenant and agree as follows: 1. Payment o! 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. Funds for Ta:ea 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 "Fonda") equal to one- twelfth ottee yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, ifany, plusone- _ 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 ti+rie 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 o[ which are insured or guaranteed by a Federal or State agency (including Lender if Lender is such 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 Fonda, analyzing said account, or verifying and compiling said assessments and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Ixnder 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 euch 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 ~+nds. Lender shall give to Borrower, without charge, an annual accounting of the Fonda 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 auma secured by this Mortgage. If the amount of the Funds held by Lender, together with the future monthly installments of Fonda payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, asaesamenta, insurance premiums and ground rents se 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 1•unds. If the amount of the Fonda 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 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of sll sums secured by this Mortgage, Lender 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 Lender at the time of application as a credit against the auma 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 Fender 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, a_4sesament_s:+nd c,therrharge~s, fines and impc,sitiuns attributable to the Property which may attain a priority over this Mortgage, and leasehold payments ur ground rents, if any, in the manner provided under paragraph 2 hereof or, if not paid in such manner, by Bon: over m:+king p:+yment, when due, directly to the p:+yee thereof Burrower shall promptly furnish to Ixnder all notices of amounts due under this paragraph, and in the ev ,nt Borrower shall make payment directly, Borrower shall promptly famish to Lender receipts evidencing such payments. F3c?rrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Borrower shall not be required todischarge any such lien so long :+s l~,rn,wer shall agree in writing to the payment of theubligation secured by such lien in a manner acceptable to Ixnder, or shall in good L•+ith contest such lien by, ur defend enforn•ment of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of thc• Property ur any part therer,f. 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 cover:+ge," :+nd such i,thet h:+zards as I xnder may require and in such amounts and for such periods as Lender may require: provided, that lxnder shall not reyuire that the amount of such coverage exceed that amount of coverage ; required to pay the sums secured by this Mortgage. The insuranm carver providing the insur.+n+•c• shall Ix• chosen br Burrower subjcrt G, approval bt• Ixnder; provided, that such approval shall not.be unreasonably withheld. All premiwns on insur:uu•e IHdici+•s shall tx• paid in the manner pn,vid+•d under par:graph `l hereofor, if not paid in such manner, by Burrower making payment, when due• dir+•c•th• U, the insurance carrier. All insurance policies and renewals thereof shall be in firm acceptable U,1 xnder and shall include a standard mortgate clause in favor of { and in form acceptable to Ixnder. Ixnder shall ham a the right to hold the policies and renewals thereof, and Borrower shall promptly furn_ ish to j i.ender all renewal notices and all receipts of paid premiums- In the rveut of loss, Born,wer shall give prompt notice to the insuranm 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 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 c,r if the security of this Mortgage would be impaired, the 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, orif Borrower tails to N respond to Lender within a0 days from the date notice is mailed by Ixnder G, Borrower that the insurance carrier offers to sehtle a claim for insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Ixnder'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 thedue date of the monthly installments referred b, in paragraphs I and 'L hereof 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 tc, any insurance policies and in and to the proceeds ~ thereof resulting from damage to Property prior to the sale or acquisition shall pa_cs U, lxnder to the extent of the sums secured by this ;Morgage 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 condominium or a planned unit development, Forrower shall petfonn all of Borrower's obligations under the declaration or covenants c•re:+lingor 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 and shall amend :,red supplement thecovenants and agreements of this Mortgage as ifthe rider were a part hereof. , 7. ProteMion of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any aMion or proceeding is commenced which materially affects Lender's interest in the Property, including, but not limited to, eminent domain, a 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 euch sums and take such action as is necessary to protect Lender's inteFeat, 9 including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required ! mortgage insurance ss a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain a such insurance in effect until euch time as the requirement for euch insurance terninates in accordance vrith 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 z 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 Ixnder 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 on outstanding principal under the Note unless payment of interest at euch 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 T, shall require Lender to incur any expense or take any action hereunder. i • Bo~K 336 ~~~E 2