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HomeMy WebLinkAbout1286 f~ ? Borrower and Lender covenant and agree ae follows: I. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Nutt. prepayment and late charges as provided in the Note, and the principal of and interest on any Future Advances secured • by this Mortgage. ` 2. Ftutds for Ta:es and Insurance. Subject to applicable law or to a written waiver by Lender, BoROwer shall pay to Lender on the day i 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 s twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one- twelfth ofyearly premium installments for hazard insurance, plus one•twelfth ofyearly premium installments for mortgage insurance. if any, ; all as reasonably estimated initially and from time to tune by Lender on the basis of assessmenla and bills and reasonable estimates thereof. 1 The Ftitnda 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 !.ender is such an institution). !.ender shall apply the Funds 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 !.ender to make such a charge. Borrower and Lender may agree in writing at the time of a:ecution of this Mortgage that interest on the F unda shall be paid to Borrower, and unless such agreement ie made or applicable law requires such interest to be paid, !.ender 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. TheFunda 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 otFunds payable prior to the duedatea oftaxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents a8 they fall due. such excess shall be, at Borrower s option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ftitnda. if the amount of the Funds 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 30daya from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by !.ender. if under paragraph I8 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 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 othercharges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or gmuncl rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by BoROwer making payment, when due, directly to the payer thercr,f. Borrowershall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Born?wer shall make payment directly; Rormwer shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not berequired todischarge any such lien so long as BoROwer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to !.ender, or shall in good f;+ith cti?ntest such lien hy, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or am part thereof. h. 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 coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall not require that the amount of such coverage exceed that amount of coverage required to pay the sums secured by this Mortgage. •I'}?e insurance carrier providing the insurance shall t?e chosen by Bnrn~wer subjcrt to approval by Lender: provided, that such approval shall not be unreasonably withheld. All premiums on insurance p~~licies shall t,c• paid in the manner pnn•id+til under paragraph 2 hereof or, if ~ not paid in such manner, by li?rrrower making p:+yment. ~~•hen due, die+•+•tly to the insurance r.+Rier. All insurance policies and renewals thereof shall be in form accept:+t,le to Lender and shall include a standard mortgageclause in favor of j and in form acceptable to Lender. (.ender shall have the right U, hold the policies and renewals thercr,f, and BoROwer shall promptly furnish to ' i.ender all renewal notices and all receipts of paid premiums. In the event of loss, Korn,wer shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by BoROwer. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall t,e applied to restoration or repair of the Property F damaged, provided such restoration or repair is economically feasible and the security of this Mortgage is not thereby impaired. If such f 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 Fl?,ROwer. I f the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender t<, BoRUwer that the insurance carrier offers to settle a claim for insurance benefits, Lender is authorized to collect :+nd 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 otproceeds to principal shall not extend or postpone thedue date of the monthly installments refeRed 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 acquisition 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; Ixaseholds; Condominuma; 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, 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 BoROwer and recorded together with this Mortgage, the covenants and agreements of such rider shall be incorporated into and shall amend and supplement thecovenantsand agreements of this Mortgageas 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 ~ action or proceeding is commenced which materially a[fecta 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 Lendei s interest, s 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 i such insurance in effeM until such time ae the requirement for such insurance terminates in accordance with Borrower's and Lender a written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under a s paragraph 2 hereof. Any amounts disbursed by Lender persuant to this paragraph 7, with interest thereon, shall become additional indebtedness of j y rtgage. Unless Borrower and Lender agree to other terms of payment, such amounts shall be payable upon s Borrower secured b this Mo x 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 pennisaible under applicable law. Nothing contained in this paragraph 7, shall } require [.ender to incur any expense or take any action hereunder. 6r;~X PaCf ~4 - . _ =