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HomeMy WebLinkAbout0638 ~ R ~ +f 1 ~ + • Borrower and Lender rnvenant and agree as follows: 1. Payment of Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and latechargea as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by l.ender,~Born,wer shall pay to Lender on the day monthly installments otprincipal and interest are payable under the Note, until the Note is paid in full, a sum (herein "Funds") equal to one, twelfth of the yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one, twelfth of yearly premium installments for hazard insurance, plus one-twelfth ofyearly premium installments fur 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 (.ender if !.ender is such an inetitut~on). Lender shall apply the Fonda to pay said lazes, assessments, insurance premiums and ground rents. !.ender may not charge for so holding and applying the Mtirnda, analyzing said account, or verifying and rnmpiling said assessments and bills, unless !.ender pays Borrower interest on the Fonda and applicable law permits Fender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the I•lrnda shall be paid to Borrower, and unless ouch agreement is made or applicable law requires such interest to be paid, (.ender shall not be required to pay Borrower any interest or earnings on the ~rnds. !.ender shall give to Borrower, without charge, an annual accounting of the Fonda showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Fonda are pledged as additional security for the sums secured by this Mortgage. If the amount of the Fonda held by !.ender, together with the future monthly installments of Funds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents ae they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Ftirnda. If the amount of the Funds held by (render shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fell due, Borrower shall pay to !.ender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by (.ender to Borrower requesting payment thereof. Upon payment in full of all sums secured by this Mortgage, (.ender shall promptly refund to Borrower any funds held by !.ender. if under paragraph 18 hereof the Property is sold or the Property is otherwise acquired by (.ender, (.ender shall apply, no later than immediately prior to the sale of the Property ~ its acquisition by !.ender, any Funds held by (.ender at the time of application a8 a credit against the sums secured by this Mortgage. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by (.ender under the Note and paragraphs 1 and 2 her+eot shall be applied by (.ender first in payment of amounts payable to bender by Borrower under paragraph 2 hereof, then b 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, assessmentx and other charges, finch: and imlx?aitions attributable to the Properly which may attain a priority over this Mortgage, and leasehold pay menu or ground rcnt.R, 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 payer therc.?f. Born?wer shall 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 W I .ender receipts evidencing such paymc•nfs. lir?m?wer shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required to disch:+rge any such lien so long as Itr,m?wer shall agree in writing to the p:+yment of theobligation secured by zuch lien in a manner acceptable to !.ender, or shall in grxd faith cr?ntc•st such lien hy, urdefend enforn•nu•nt of such lien in, legal pn,eeedings which operate to prevent the enfi,rcement of the lien or forfeitun• of the 1'ropert}• or ar» part there+,f. 5. Nazard Insurance. Borrower shall keep the impir?vcments now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended +•cn•erage•" and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; prr?vid+d, that 1.+•nder xhull nut n•rtuire that the amount of such cr,ver.+ge exceed that amount of coverage required to pay the sums secured by-this Mor~gag~~ The insuramr carrier providing thc• insuranm sh:dl t?+• chosen by Itorn?wer subjcr-! to appn,val by 1..•ndPr, pn?vided• that such approval shall not be unreasonably withheld- All premiums un in~ur:uu•e tMdir•ir•s shall 1?P paid in the ?manner prm•idrd under p:+ragr-.+ph'L hereof or, if not paid in such manner, by Burn?wer making payment, when due, din•r•tly- b. the insuranr•a• carrier. All insurance policies and renewals thereof shall be in form acceptable to 1,a•nder and shall include a standard mortgagedause in favorof and in form acceptable to Lender. render shall have the right G? hold the t?r,licies and renewals thereof, and Borrower shall promptly furnish to :.ender all renewal notices and all receipts of paid premiums. In the event of bps, Bormwc•r shall give prompt notice to the insurance carrier ~ and !.ender. Lender may make prr?r?f of loss if not made pn,mptly by Burn,wer. ~ Unless Lender and &,rrower otherwise agree in writing, insurance pn?a•ceals shall Ix• applied to restoration or repair of the Property damaged, provided such restoration ur 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 tx• impaired, the insurance proceeds shall be applied to the aumssecured by this Mortgage. with theexn•ss, if any, paid to lorrower_ If the i'ropPrty is abandoned by Borrower, or if Borrower fails to respond to Lender within :311 days from the date notice is mailed by (render tc? lir?m?w•er that the insurance carrier offers to settle a claim for - insurance benefits, Lender is authorized to a•ollc•ct and apply the insurance pn?cr•a•ds at Fender'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 thedue date of the monthly installments referred to in paragraphs 1 and'L herer,f or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by {render, all right, title and interest of linrruwe•r in and to any insuranrn policies and in and to the proceeds thereof resulting from damage'to Property prior to the s:+le or acquisition shall pass tc? !.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance of 1'ropprty; Ixaseholds; ('ondominums; Planned Unil Uevelopmenta. Borrowerahal) keep ~ the Property in good repair and shall not commit waste br permit impairment or deterioration of the Property and shall comply with the provisions of any le.•+se if this Mortgage is on a leasehold. If this Mortgage is on a unit in a condominium or a planned unit development, Burrower shall perform all of Borrower's r?bligations under the declaration or covenants creatintior governing thecondominium 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 &,rn,wer and recorded together with this Mortgage, the oovenanta and { ,agree•ments of such rider shall 1?e incorpr?r.+tcd intl? and shall amend and supplement thecovenants and agrawmenlsof this Mortgagees ifthe { rider were a part hereof. ~ ~ - T. Protection of Lender's Security. If Borrower fails to perform the covenants and agreements contained in this Mortgage, or it any ~ i action or proceeding ie commenced which materially affects 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 soma and take such action ae is necessary to protect Lender's interest. 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 aecwred by this Mortgage, Burrower shall pay the premiums required to maintain s such insurance in effect until each time as the requirement for such insurances terminates in accordance with Borrower's and Lenders written agreement or applicable I,aw. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under ; paragraph 'L hereoL t i Any amounts disbursed by Lender perauant m this paragraph 7, with interest thereon, shall become additional indebtedness ofs Burrower secured by this Mortgage- llnlesa Borrower and (,ender agree to other terms of payment, such amounts shall be payable upon notice from (.ender to Borrower requesting payment Ilrereof, and shall bear interest from the date of disbursement at the rate payable from i time to time on outstanding principal under the Note~unleas 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 (.ender to incur any expense or take any action hereunder. • BOrOK ~ PAGE ~ . , - _ -