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HomeMy WebLinkAbout0473 Borrower and Lender covenant and agree as folbws: E 1. Payment of Principal and laterest» Borrower shall promptly pay when due the principal of and interest on the indebtednew j evidenced by the Note, prepayment and late charges as provided in the Note, and the principal of and intereston any Pltture Advances secured by this Mortgage. 2. Fonds for Tases and 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, a sum Therein "Funds") equal to ons ~ twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• i twelRh otyearly premium installments for hasard insurance, plusonetweltth ofyearly premium installments for mortgageinsurance, if any, all as reasonably estimated initially and from time to time by Lender on the basis of asaeasmenta and bills and reasonable estimates thereof. The Pltnds shall be held in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency lincluding Lends if Lender is such an institution). Lender 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 Leader pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. Borrower and Lender may agree in writing at the time otexecution 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 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 to the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. Ii the amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments. insurance premiums and ground rents. shall excxd the amount required to pay said taxes, assessments, insurance premiums andground 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 Lender shall not be sufficient to pay taxes, ssaesaments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30days from the date notice is mailed by Lender to Borrower requesting payment thereon Upon payment in full of all sums 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 immediateiy prior _ to the sak of the Property or its acquisition by Lender, any Fonda held by Lender at the time of application as a credit against the soma 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 an 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 le.-csehold payments or ground rents, i[any, in the mariner provided under paragraph 2 hereofor, if not paid in such manner, by Borrower making payment, when due, direMly 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 furnish to Lender receipts evidencing such payments. Borrower shall Promptly discharge any lien which has priority aver this Mortgage; provided, that ' Borrower shall not be required to discharge any such lien so long as Ibrrower shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to Tinder, or shall in good faith n,nteat such lien by, ordefend enforcement ofsuch 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 now existing or hereafter erected on the Property insured against lose by fire; hazards included within the term "extended coverage," and such other hazards as (.ender may require and in such amounts and forsuch periods ae Lender may require; provided, that Lender shall not require that the amount ofsuch rnverage exceed that amount o[ coverage reyuired to pay the sums secured by this Mortgage. The insurance carrier providing the insurann• shill hc• chosen by l;,?m,wer subject to approval M 1 xnder, provided, that such approval shall not be unreasonably withheld. All premiums on insurance policies shall t?e paid in the manner pmcided under paragraph `l hercvf or, if j not paid in such manner, by iorrower making payment, when due, directly to the insurrnm carrier. All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage clause in favorof and in form acceptableto Lender. Lendershall have the right to hold the policies and renewals thereof, and Borrower shall promptly furnish to _ i.ender all renewal notices and all receipts of paid premiums. In the event of kss. &,rruwer 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, insuranrn 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 to the sums secured by this Mortgage, with the excess, if any, paid to Br?rmwer. if the Property is abandoned by Borrower, or it Borrower fails to respond to Lender within :i0 days from the date notice is mailed by Lender tq 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 Mortgage. Unless Lender and Borrower otherwise agree in.writing, any such application of proceeds to principal shall not extend or postpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. Itunder 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 1 Mortgage immediately prior to such sale or acquisition. 6. Preservation and MaintenanceotProperly; Leaseholds;Condominuma;elanned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with th4 _ provisions of any lease it this Mortgage is on a leasehold. If this Mortgage is on a unit in a rnndominium or a planned unit development, _ Borrower shall perform all of Borrower's obligations under the declaration or covenants c•reatinKor 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 Borrawer and recorded together with this Mortgage, the covenants and :?Kreements of such rider shall tee incorporated into and shall amend and supplement thecovenants and agreements of this Mortgage as if the rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the rnvenanta 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, node enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,npon ~ notice to Borrower may make such appearances, disburse each soma and take each action as is necessary to protect Lender's interest, including, but not limited to, disbursement of reasonable attorney's tees and entry upon the Property to make repairs. If Lender required j mortgage insurance as a rnndition of making the loan secured by thin Mortgage, Borrower shall pay the premiums required to maintain j ; such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower s and Lenders r 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 persuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and [.ender agree to 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 time to time on outstanding principal underthe 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 action hereunder. f t j • ~ i c~~ «~c~ ~ 8001 ~ PAGE ~ 1 J ~"1 - ~