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HomeMy WebLinkAbout1099 Borrower and Lenderr covenant sad agree a. toUows: I. Payaseat of Principal surd Iatereat. Borrower shall promptly pay when due the principal of and entered on the indebtedness evidenced by the Note. prepayment and 4te drarges as provided in the Note, and the principal of and interest on any Pltture Advances secured by this Mortgage. ' 2. Funds for Tues sad Insurauroe. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to !.ender on the day monthly installments o! principal and interest are payable under the Note, until the Note is paid in full, a sum therein "Ftiinds") equal to one- twelith ofthe yearly taxes and assessmetts which may attain priority over this Mortgage, and ground rents on the Property, itany, plus one twdlth of yearly praaium installments for hasard insurance, plus onetwelRh ofyearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time to terns by Lender on the basis o[ assessments and bills and reasonabk 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 it Larder is sudr as institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground rents. Lender may not Burge for so holding and applying the Funds, analysing said account, or verifying and compiling said assessments and bills, unless lender pays Borrower intRresl on the Funds and applicabk law permits Lender to make ouch a charge. Borrower and Lender may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless each agreement is made or applicabk Ir~w requires such interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Fnnds. Leads: shall give tp Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Fonda and the purpose for which cacti debit to the Funds was made. The Fu nds are pledged as additional security for the sums secured by this Mortgage. Itthe amount of the Funds held by Lender, together with the future monthly installments otFunds payable prior to the due dates of taxes, assessments, insurance praaiums and ground rents. shall exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as They WI due, such e:exsa shall be, at Borrower a option, either promptly repaid to Borrower or credited to Borrower on montbly installments of Fonda. It the amount of the Funds heW by !.ender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to !.ender any amount necessary tomake-up the de5ciency within 30 days from the date notice is mailed by Lender to Borrower requesting payment thereof. Upon payment in fnU of all soma secured by this Mortgage, Lender shall promptly refund to Borrower any funds held by Lender. !f under paragraph 18 hereof We Property is sold or the Property is otherwise acquired by Lender, Lender shall apply, no later than immediately prior to the sak of the Property or eta acquisition by Lender, any Fonda held by Lender at the time otapplication as a credit against the soma secured by Chia 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 !.ender by Borrower under paragraph 2 hereof, then to interest payabk 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 ail taxes, assessments and other charges, fines and impositions attributable W the Property which _ may attain a priority over this Mortgage, and IeasehoW payments or ground rents, if any, in the manner provided under paragraph 2 hereo[or, 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 amounta.due under this paragraph, and in the event Borrower shall make payment directly, Korrower shall promptly furnish to [,ender 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 a.R Borrower shall agree in writing to the payment ottheobligation secured by such lien in a manner acceptable to Lender, or shall in good faith ce,ntest such lien by, ordefend enfonrment o[such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereoL 5. 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. The insurance carrier providing the insurance sh:dl he ch~?_,en t?y I;„m~wer subject to approval by Finder: pnn•ided, that such approval shall not be unreasonably withheld. All premiums on insurance p~dicies shall tx• paid in the manner pn?vide.t under paragraph `l hereof or, if not paid in such manner. by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thcreo[shall be in form acceptable to Lender and shall include a standanl mortgage clause in favor of and in form acceptableto bender. I.endershall have the right to hold the policies and renewals thereof, and &,rrowershall promptly furnish to i.ender all renewal notices and all receipts of paid premiums- In the event of In_cs. &.rn,rer shall give prompt notice to the insurance carrier I; and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless I~nder and Borrower otherwise agree in writing, insuranm proceeds shall be applied to restoration ar 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 Borrower. If the Property is abandoned by Borrower, or i[ Borrower fails to respond to Lender within 30 days from the date notice is mailed by Lender u, Borrower that the insurance carrier offers to settle a claim [or insurance benefits, Lender is authorized to collect and apply the insurance proceeds at Lenders option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in write reg. any such application of proeeeds to principal sh all 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. l[ under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest o[ 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 requisition. 6. Preservation and Maintenance of Property; Leaseholds;('ondominums; Planned Unit Developments. Borrowerahall keep the Property in good repair and shall not commit waste or permit impairment or deterioration o[ the Property and shall comply with the provisions of any lease it this Mortgage is on a leasehold. I[ 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 cre:itingor 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 Born,wer and recorded together with this Mortgage, the rnvenants and agreements of such rider shall be incorp,rated into and shall amend and supplement the covenants and agreements otthis Mortgage as i[the rider were a part hereof 7. Protection of Lender's Security. It Borrower fails to perform the rnvenants and agreements contained in this Mortgage, or it any action or proceeding is commenced which materially affects Lenders interest in the Property, including, but not limited to, eminent domain, ~ insolvency, code enforcement, or arrangements or prottiedings involving a bankrupt or decedent, then Lender at Lenders option,upon notice to Borrower may make such appearances, disburse such sums and take such action as is necessary to protect Lender s interest, including, but not limited to, disbursement of reasonable attorney a fees and entry upon the Property to make repairs. If Lender required mortgage insurance as a condition of making the loan severed by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in gifted until such time as the requirement for such insurance terminates in accordance with Borrower a and lenders written agreement or applicable law. Borrower shall pay the amount of all mortgage insurance premiums in the mannez provided under F Paragraph 2 hereof. My 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 fiom time to time on outstanding principal under the Note unless payment of interest at each 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. X339 P~1099 ` r ~ - '