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HomeMy WebLinkAbout0006 Bonrower and Lender covenant and agree as follows: 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 charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. ` 2. T'ltrtds for Taxes and Insurance. Subject to applicable law or to a written waiver by Ixnder, 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- twelRh ofthe 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 one-twelfth of yearly premium installments for morigageinaurance, i[any, all as reasonably estimated initially and from time to tune by !.ender on the basis of assessments and bills and reasonable ealimates 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 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, qr verifying and compiling said assessments and bills, unless 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 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 Fonda. 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 Fonda are pledged as additional security for the auma secured by this Mortgage. If the amount of the Fonda held by Lender, together with the future monthly instal (menu of Funds payable prior to the due dates of taxes. assessments, insurance premiums and ground rents, shall excxd 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. It the amount of the Fonda held by !.ender 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 oral! sums secured by this Marigage, !.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 [.ender, 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 tinge 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 !.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. Borrower shall pay all taxes, as.4essmenty and olher+•harges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and le:+sehold payments or ground rents, if:+ny, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making p:+yment, when due, directly to the payee thermf. Born,wershall promptly furnishtoLender 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 Borrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Ixnder, or shall in good faith contest such lien hy, ordefend enfonement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or fi,rteiture of the Property or any part thereof. ' 5. Hazard Insurance. Borrower shall keep the impmvemenls now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended n,verage•"and such c?ther hazards as Lender may require and in such amounts and forsuch periods as (.ender may require; provided, that Ixnder xhall nut 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 IH• chosen by Burrower subject to appro~•al by Lender; pnn•ided, that such approval shall not be unreasonably withh+•Id. All premiums un incur:+nce policies shall t?c paid in the manner pn,vidc•+1 under paragraph L hereof or, if ~ not paid in such manner, by Burrower making p:»•ment, when due, dir+ytly 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 Gender. lender shall have the right t<, hold the policies and renewals thereof, and Burrower shall promptly furnish to • ~ Ixnder all renewal notices and all receipts of paid premiums. In the event of loss. Burn,wer shall give prompt•nutice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borr~wer- Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property j 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 feasihle ur if the security of this Mortgage would be impaired, the insurance proceeds shall be applied to the auma secured by this Mortgage, with theexcess, if any, paid to Borrower. If the Property is abandoned by Borrower, or if Borrower fails to 1 respond to Lender within 30 days from the date notice is mailed by Lender t+, 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- 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 to in par:+graphs 1 and 2 I+ereuf ur change the amount of such installments. if under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest c,f Borrower in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the sate or acquisition shall pass to (.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenenceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall riot 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, Borrower shall perform all of Borrower's obligations under the declaration or covenants creatint; or governing the condominium or planned ~ unit development, the by-laws and regulations of the condominium or pl:+nned unit development, and constituent documents. If a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the rnvenantg and agreements of such rider shall he incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform thecovenants and agreements contained in this Mortgage, or if any aMion or proceeding is commenced which materially affects Ixnder's interest in the Property, including, but not limited to, eminent domain, 3 insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or deceaent, then Lender at Lender's option,upon notice to Borrower may make such appearances, disburse such auma 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 Lender's ~ written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph Z 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 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 disbursemc~rit at the rate payable from time to time on outstanding principal under the Note unless payment o[ intereat,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 require Ixnder to incur any expense or take any action hereunder. D ~ BCOK JJU PdGE 6 f. .