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HomeMy WebLinkAbout0175 E Borrower and Lender covenant and agree as folbws: 1. Payment of Principal wnd lateresL Borrower shall 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 princi pal of and interest on any Future Advances secured by thin Mortgage. 2. Funds for Ta=ea and lnaurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly installmcnts o[ 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 taxes 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 onetwelfth of yearly premium installments for mortgage insurance, itany, all as reasonably estimated initially and from time to tune by Lender on the basis of assessments and bills and reasonable estimates thereof. The Etinds 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 F unda 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, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to makeauch a charge. Boaower 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 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 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 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, together with the future monthly installments of F unda payable prior to the due dates o[taxes, esaessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, asaeasmenta, 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 Funds. If the amount of the Funds held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents ae they fall due, Borrower shall pay to Lender any amount necessary to make irp ffie deficiency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all some 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 irinmediately prior to the sak o[ the 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 the Note and paragraphs 1 and 2 hereof shall be applied by Lender 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. Borrower shall pay all taxes, assessments and otherrharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rent_ti, if any, in the manner provided under paragraph 2 hereofor, it not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shall mak+• p:+yment directly, Born,wer 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 berequired to discharge any such lien so lung :+s Itorn,wershall agree in writing to the pay ment of theobligation secured by such lien in a manner acceptable to [xnder, or shall in good faith cti,ntest sorb lien by, or defend enforcement of such lien in, legal proreedinga which operate to prevent the enforcement of the lien ur forfeiture of the Property ur any part there+?f. S. Hasard Insurance. Borrower shall keep the imprr?vementa now existing or hereafter ereMed on the Property insured against loss by fire, hazards included within /he teen "extended coverage," and such other hazards as Lender may require and in such amounts and forsuch } periods as (xnder may require; provided, that (xnder shall nut require that the amount of such coverage dacceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurance shall tx• chosen by Bnrn?N•er subj+•c•t to approval by I xnder; prodded, that such approval shall not be unre.-+sunably withheld. All premiums on insurance policies xhall Ix• paid in the manner pnwid+d under paragraph 'L hereof or, if not paid in such manner, by Borrower making payment, when due, din•+•tl}• to the insuranm carrier. All insurance policies and renewals thereof shall be in form acceptable to (xnder and shall include a standard mortgage clause in favor of i and in form acceptable to Lender. (xnder shall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to ?,ender all renewal notices and all receipts of paid premiums. In the event of loss, Born,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if nut made promptly by Borrower. ' Unless Lender and Borrower otherv+•ise 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 or 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 Borrbwer, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by (xnder 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 Mort~a~e- Unles~ Lender and Borrower otherwise agree in writing, any such application of proceeds Lo principal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 'l l+ereof or change the amount of such installments. It under paragraph 18 hereof the Property 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 the sale or acqu,sition shat'. pass to (xnder 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 3 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 nn 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 rnvenanta and agreements otsuch rider shall be incorporated into and shall amend and supplement thecovenants and agreementsof this Mortgage as if the rider were a part hereof. T. Protection of Lender's Security. If Borrower fails to perform the rnvenants 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 as is necessary to protect Lender's interest, f 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 effeM until such time as the requirement for such insurance terminates in accordance with Borrowei 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. 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 (xnder agree to other tenna 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 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 Lender to incur any expense or take any aMion hereunder. S~ C 5 BOOK JJU P4GE 174 ~ - -