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HomeMy WebLinkAbout0221 Norrower and Lender covenant and agree as follows: 1. Payment of Prlnclpal 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:es and Insurance. Subject to applicable law or to a written waiver by Lender, Narrower shall pay to Lender on the day monthly inetailmente of principal and interest are payable under the Note, until the Note is paid in full, u sum (herein "Funds") equal to one twelRh of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the 1'roperiy, if Any, plus one twelfth of yearly premium installments for hazard insurance, plus one•twelfth of yet+rly premium inxt:+llments fur mortgage insurt+nce, if any, all as reasonably estimated initially and from time to time by Lender on the basin of usaesaments and bills and reasonable eatimales thereof. The Fonda shall be held in an institution the deposits or accnunta of which are insured or guaranteed by a Federal or State agency !including bender it Lender is such an institution). Lender shall apply the Fonda to pay said taxes, aasesamenta, insurance premiums and ground rents. Ixndec may not charge [or so holding and applying the Fonda, analyzing said account, or verifying and compiling said aseeeamenta and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Ilorrower and (.ender may agree in writing at the time of execution of this Mortgage that interest on the Fonda shall be paid to Norrower, and unless such agreement ie made or applicable law requires such interest to be paid, Lender shall not be required to pay Narrower any interest or earnings on the Funds. !.ender 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 w:?s made. The Funds are pledger! as additional security for the sums secured by this ~torigage. If the amount of the Funds held by Lender, together with the future monthly installments otFunds payable prior to the duedatee of taxes, assessments, insurance premiums and ground rents, shall exc •ed the amount required to pt+y said fazes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Ho?mwer's option, either promptly repaid to Narrower nrcrtdited to Horroweron monthly installments of Fonda. If the amount of the Fonda held by Ixnder shall not br sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Not•rower shall pay to lender any amount necessary to make up the deficiency within :t0 days from the dale notice is mailed by Lender to Norn,wer requesting payment thereof. Upon payment in full oral! sums secured by this Morigt?ge, !.ender shall promptly refund to Norrower any funds held by !.ender. If under paragraph 18 hereof the Property is sold ur the Property is otherwise acquired by Lender, !,ender shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by !.ender 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 Ixnder under the Note and paragraphs 1 and 2 hereof shall be applied by !.ender first in payment of amounts pay:+ble to Lender by Norrower under paragraph 2 hereof, then to interest payable on the Note, then to the principal of the Note, :?nd then to interest and principal on any Future Advances. 4. Charges; Liens. Ilunn,wershall pay all taxes, assessments and utht•rcharges, fines and impositions attributableto the Property which may attain a priority over this MortKaKe, and leasehold payments or gn+und rents, if any, in the manner provided under paragraph 2 herer~f or, if nut paid in such manner, by Norn,wer making payment, when dut•, din•t•th• to the payte the•rtr+f. Itorrc+wer shall promptly furnish to Lender all notices of amounts due under this paragr;+ph, and in the event Narrower shall make, payment dint•tly, Burn,wer shall promptly furnish to Lender receipts evidencing such paym?•nts_ Ilt+rruw•tr shall promptly discharge any hen which has priority over this Mortgage; provided, that Burrower shall not be required to discharge any such lien su long us Ilum~wer shall atCrt•t• in writinK to the payment of the obligation secured by such lien in a manner acceptable to !.e•nder, or shall in Ke,cKl faith contest such lien b}•. ordefend enfunrrnent of such lien in, legal proceedings which operate to prevent the enfon•ment of the lien or forfeitun• of the Property ar any part thertr,f. Hazard Insurance. Burrower sh:dl keep the improvements now existing ur hereafter erected un the Property insured against loss by fire, hazards included within the teen "extendtd c•uverage•" and such other hazards as Lt•nder may require and in such amounts and for such periods as Ixnder may rtyuire; pn+vidtd, that I.e•ndt•r shall nut reyuin• that the amount of such rnver:?ge excetd that amount of coverage rt•yuired to pay the sums sccurtrl by this MortK:+Ke. The insuranrn carrier pnn•idinK the insurance shall l,e• chosen by Burrow•t•r whjer•t to approval by Lender, provided, that such approval shwa not be once:+se:nabh• withheld. Alt pn•miums un insurance IHdicies shall ?w• paid in the manner providwl under paraKr.?ph'~ herer+for, if not aid in such manner, M• Fic~rruw•er makin • t~ merit, ashen due, dinrth• to the insurancecee carrier. P P:. j All insuranrn policies and renewals thereu£shall Ix• in farm acceptable to tender and shall include a standard mortgageclause in favorof and in form acceptable to Lender. lender shall have the right to hold the Iwlicics and renewals therer+f, and Borrower stall promptly furnish to +.ender all renewal notices and all receipts of paid premiums. In the event of loss. Narn+wer shall Kive prompt notice to the insurance carrier r and Ixnder. Ixnder may make pnH,f of loss if not made prompth~ h>• Borrower. Unless Ixnder and Norrower uthervrise aKrer in writinK. insurance prcK•etds shall l,t• applied to restoration or repair of the I'ruperiy ! damaged, provided such restoration or repair is er•onomically feasible and the security of this Mortgage is nut thereby impaired. If such restoration or repair is not economically feasible or if the security of this MortKaKe would he impaired, the insurance proceeds shall be applied to the sums secured by this Nlorigage, w•?th the, excess, if any, paid to liarn,wer. if the Property is abandoned by Harrower, or if Burrower fails to ! respond to Ixnder within a!1 days from the date notice is mailed by I ender to lium+w•er that the insurance carrier offers to settle a claim for i insurance benefits, Ixnder is authorized to collet•t :?nd apph• the incur:+nce pnK•t•c•ds at lender's option either to restoration or repair of the t Property or the sums secured by this MortKaKe. Unless Ixnder and Horrower otherwise aKrtr in w•ntinK, any such application of prcx•eecls to principal shall not extend or postpone thedue date of the monthly installmentsR refernd to in paraKr.?phs 1 and `l hertrrf or change the amount of such installments4. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Hurmw•er in and to any insurance policies and in and to the proceeds thereof resulting from damage to Property prior to the safe or at•yltt}sitiun shall pass to 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; ('ondominums; Planned !Jolt Developments. Horrowershall keep the Property in good repair and shall not commit waste or perrfiit impairment or deterioration of the Property and shall comply with the pn,cisions of any lease if this MortKaKe is an a leasehold. If this MortKaKe is on a unit in a condominium or a planned unit development, Burrower shall perform all of Hom,wer's obligations under the dtclar,rtion ar cucen:?nts crratinKor governing the condominium or planned r unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a m i undominium or planned unit development rider is executed by &irniwer and n•curdecl together with this 1ltorigage, the covenants and agreements of such rider shall I,e inc•urpar.?ted into and shall amend and supplen?e•nt thecoa•enants and agi•t•ements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails b, perform the rnvenanta and agreements contained in this Mortgage, or if any action or proceeding is commenced which materially affects Fender's interest in the Property, including, brit not limited to, eminent domain, insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Ixnder'e option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Ixnder's interest, including, but not limited to, disbursement of reasonable attorney's fees and entry upon the Property to make repairs. If Lender required r mortgage insurance as a condition of making the loan secured by this Mortgage. Harrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Norrower's and Lender's written agreement or applicable Law. Burrower shall pay the amount of all mortgage insurance premiums in the manner provided under paragraph 2 hereof. - Any amounts disbursed by Ixnder persuant to this paragraph with interest thereon, shall become additional indebtedness of lionower secured by this Mortgage. Unless Nonower and Fender agree to other terns of payment, such amounts shall be payable upon nvtice from bender to Borrower requesting payment thereat, 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 r-ontrary 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. i • BOOK JJU PAGE - _ _ '