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HomeMy WebLinkAbout0471 Harrower and lender covenant and agree as folbws: 1. Paytaeat of Principal and interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note, prepayment and latecharges as provided in the Note, and the principal of and interest on any F aloes Advances secured by this Mortgage. 2. Fltnds forTa:esand 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, n sum (herein "F ands'")equal to one tveclM of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one tv:elRh of yearly premium installments for hazard insurance, plus one•twelfth of year! y premium installments for mortgage inxurttnce, if any, all as reasonably estimated initially and from time to time by Ixnder on the basis of ussessmentx t?nd bills and re:csonttble estimates thereof. The FLnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency t?ncluding Lender if Lender is such an institution). Lender shall apply the Fonda to pny said taxes, asaeaxmenta, insurance premiums and gn,und rents. Lender may not charge for eo holding and applying the Funds, analyzing said account, or verifying trod compiling said asae~aaonents and bills, unless Lender pays Borrower interest on the Fonda and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at tht time of execution o[ this Mortgage that interest on the Funds shall be paid to Borrower, and unless +uch 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. I[the amount ottee Fonda held by Fender, together with the future monthly installments of Funds payable prior to the due dates of taxes, ;t_sseaaments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at 13orrawer's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funda_ If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground yenta as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within :10 days from the date notice is mailed by lender to Born,wer requesting payment thereof. Upon payment in full of all sums second by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. If under paragraph 18 hereof the Property is sold of the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior te. the ask of the Property oritsacquisition by bender, any Funds held by bender at the time of application as a credit against the sums secured h. 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 amc,unts 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. a. Charges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which m;cy attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the mannerprovided under paragraph 2 hereof or, tf not paid in such manner, by Borrower making payment, when due, directly to the payer thereof. Borrower shall promptly furnish to Lender all ro~tices of amounts due under this paragraph, and in the event Borrower shall make payment dircdly, Born:w•er shall promptly furnish to Lender receipts evidencing such payments. Horn~wer shall promptly discharge any lien which has priority overthis Mortgage; provided, that It. grower shall not be squired to discht+rge any such I ic•n so tonK as l;<,rrower xhap :?gtcr in writin}; to !hr payment of the, obligation secured by <urh lien in a manner ae~ceptable to Ixnder, ur shall in guc,d faith c•onte•st such lien by, ur de•fend e•nforce•mrnt of sue•h lien in, legal proceedings N hick operate to prevent the enforcement of the lien or forfeiture of the 1'ropc•rty or any part there~~f. S. Hazard Insurance. Born,wer shall keep the improvements now existing or hereaftererected on the Ymperty insured against loss by tire. hazards included within the term "extended coverage," and such other hazards as lender may require and in such amount^S and for such periods as Lender may require; provided, that Lender shall nut require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this MortKaKe• The insurance carrier pn,vidinK the insurance shall IH• chose•n br Kurruwer subjc•e•t to approval by 1 xnder; pnwide•tl. that such approval shall not be unreasunabh withheld. All premiums nn inwrance p~dicies shall !K• paid in the manner pruvidal antler par;tgrrph 2 hererdor, if nut paid in such manner. M Iturruwer makinK payment. ~chen due. din•e•th• 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 .tad in form acceptable to Lender. Lender shall have the riKht to hold the policies and sne•wals thereof. and Borrowershall 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 not made promptly by Btrrower. Unless bender and Borrower otherwise agree in venting, insurance proceeds shall he 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 :u the sums secured by this bortgage, with the excess, if any, paid to Borrower. lfthe Property is abandoned by Borrower, or if Borrower fails to respond to Lender within a0 days from the date notice is maihd by !.ender U? Borrower that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect and apph• the insurance proceeds at Lender's option either to restoration or repair of the Prvpert3 or the sums secured by this Mortgage. C?nless Lender and Borrower otherwise agree in writing. any such application of prcK•eedstoprincipalshall not extend or postponethedue date of the monthly installments referred to in paragraphs 1 and' hereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by !.ender, 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 acymsition shall pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or acgaisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall rnmpiy with the provisions of any lease if this !tortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, E~+~rrower shall perform all of Borrower's obligations under the declaration or covenants cn•atingor governing the condominium or planned .nit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a ::,ndominium or planned unit development rider is executed by Korrower and recorded together with this Mortgage, the covenants and ~K~ments of such rider shall be incorporated into and .haN amend and supplement the c•uvenants and aKreemenls of this Mortgage as if the r:3er were a part hereof_ 7. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or if any action or proceeding ie commenced which materially affects !.antler's interest in the Property, including, but not limited to, eminent domain, tnsolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then !.ender at Lender's option,upon notice to Borrower may make such appearances, disburse such soma and take such action as is necessary to protect Lender's interest, tncluding, 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 •uch insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's and Lender s v`-ntten agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ;aragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall became additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender agree W 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 ttme 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 rntereat at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, shall require Lender to incur any expense or take any action hereunder. 8o~i 336 ~NGF 470 _ _ yr f _