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HomeMy WebLinkAbout1247 ' Borrower and bender covenant sad agree as folbws: i 1. Payment of Priaclpal sad laterest. Borrower shall promptly pay when due the principal of and interest on the indebtedness i evidenced by the Note. prepayment and latecharges as provided in the Note, and the principal of and interest on any I~ture Advances secured by this Mortgage. 2 Ftitnda for Taxes tad lasuraaoe. Subject b applicable law or to a written waiver by Lender, Borrower shall pay to !.ender on the day ~+onthly installments of principal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds")equal to one• twelM of the yearly taxes and aeaesements 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 one~twelfth ofyearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from time to time by !.ender on the basis of assessments and bills and reasonable estimates 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 i[ Lender is ouch an institution). !.ender shall apply the Funds to pay Said taxes, asse~ments, insurance premiums and 1 ground ants. Lender may not charge for eo 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 l:.eader 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 appGcabte law requires such interest to be paid, !.ender shall not be required b 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 b the Funds was made. The Funds are pledged as additional security [or the sums secured by this Mortgage. If the amount of the Pltnds held by !.ender, together with the future monthly installments of Funds payable prior to the duedates of taxes. assessments, insurance premiums and ground rents, shall excxd the amount required to pay said taxes, assessments, insurance premiums. aril ground rents as they fall due, such excess shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds 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 of all soma second by this Mortgage, !.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 Lender, Lender shall apply, no later than immediately prior to the eak of the Property orits acquisition by Lender, any Funds held by I.enderat the time of application as a credit against thesuma secured by this Mortgage: } 3. Application of Payments: Unteas applicable law provides otherwise, all payments received by Lender under the Note and i paragraphs 1 and 2 hereof shall be applied by Lender first in payment of amounts payable to !.ender by Borrower unifier 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 other charges, fines and impositions attributable to the Property which may attain a priority over this Mortgage, and leasehold payments or ground rents, if any, in the manner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrowershall promptly furnish to Lender ! all notices of amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shall promptly famish to Lender 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 Burrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to !.ender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to. prevent the enforcement of the lien or forfeiture of the Property or any part thereof. ~ 5. Hazard Insurance. Borrower shall keep the improvements rove existing or hereafter erected on the Property insured against loss by - fi re,hazards included within the teen "extended coverage; 'and such other hazards as Ixnder may require and in such amounts and for such periods as Lender may require; provided, that Ixnder shall m,t require that the amount of such coverage exceed that amount otcover•age required to pay the sums secured by this Mortgage_ The insurance carrier providing the insurance shall tx• ch~~cen by l;.,rrow•er subject to approval by Lender; pnwided, that such approval ~ shall not be unreasonably withheld. All premiums on insuranm p~dic•i+w .hall t,c• paid in the manner provided under paragraph `L hereof or, if not paid in such manner, by Borrower making p:+yment, when due, directly tc. the• incuranm carries ! All insurance policies and renewals thereof shall be in form acceptable to Ixnder and shall include a standard mortgageclause in favorof and in form acceptable to Lender. I.endershall have the right W hold the policies and renewals thereof, and Borrowershall promptly furnish to iender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by &,rrower. . Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, provided such restoration or r@pair economically feasible and the security of this Mortgage is not thereby impaired. If such i 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 soma secured by this Mortgage, with the excess, if any, paid to Borrower. If the Property is abandoned by Borrower, or it Borrower fails to ` respond to Lender within 3b days from the date notice is mailed by Lender 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 tender's option either to restoration or repair of the Property or the sums secured by this Mortgage. y Unless Lender and Borrower otherwise agree in writing, any such application otprocceds to principal shall not extend or postpone the due date of the monthly inatallmen_ts referred to in paragraphs 1 and 2 l+ereof or change the amount of such installments. If 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 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 otProperty; Leaseholds; Condominums; Planned Unit Developments. Borrowershall keep the Property :n 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 per[onn all of Borrower's obligations under the declaration or covenants c•re:+tingor governing the condominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. If a r condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and ~ :+Kreements otsuch rider shall tee incorporated into and shall amend and xupplement thecovenants and agrcwmentsofthis Mortgageasifthe ' rider were a part hereof. ~ 7. ProteMion of Leader'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 affects Lender's interest in the Property, including, but not limited to; eminent domain, ~ insolvency, code enforo~ent. 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 some and take such aMion as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's [ees and entry upon the Property to make repairs. If Lender required mortgage insurance as a rnndition 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 a 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 Lender agree to other terms of payment, each amounts shall be payable upon notice from Lender to Borrower requesting payment thereof and shall bear interest tram the date of disbursement at the rate payable from lime to time on outstanding principal under the Note unless payment of interest at such rate would be rnntrary 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 action hereunder. _ ~ ~ ~ P~i245 .