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HomeMy WebLinkAbout1115 c Borrower and Lender covenant and agree as lolbws: 1. Payment o! Principal and Interest. Borrower shall promptly pay when due the principal of and interest on the indebtedness evidenced by the Note. prepayment and late charges as provided in the Note. and the principal of and intereston any Future Advances secured by this Mortgage. 2 Funds for Taxes and Insurance. Subject W applicable law or W 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 (herein "Fundi equal W one- twelfth o[the yearly taxes and assessments which may attain priority over this Mortgage. and ground yenta on the Property, itany, plus one- twelfth of yearly premium installments for hazard insurance, plus one-twelfth otyearly premium installments for mortgage insurance, if any. all as reasonably estimated initially and from time W time by Lender on the basis of assessments and bills and reasonable estimates thereof. The Funds shall be heW in an institution the deposits or accounts of which are insured or guaranteed by a Federal or State agency (including Lender 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 [or so holding and applying the Funds, analyzing said account. or verifying and compiling said assessments and bill. unless I.ertder pays Borrower interest on the Funds and applicable law permits Lender W make such a charge. Borrower and Leader may agree in writing at the time of execution of this Mortgage that interest on the Funds shall be paid W Borrower, and unless such agreement is made or applicable law requires such interest W be paid, I.enda shall not be required to pay Borrower any interest or earnings on the Funds. Lender shall give W Borrower, without charge, an annual accounting of the Funds showing credits and debits W the Funds and the purpose for which each debit b the Funds was made. The Funds are pledged as additional security for the sums secured by this Mortgage. - Ifthe amount of the Funds held by Lender, together with the future monthly installments of Funds payable prior W the due dates oftaxea, assessments, insurance premiums and ground yenta, shall exaaed the amount required W pay said taxes, aeeeasments, insunnce premiums and ground yenta as they fall due, such excess shall be, at Borrower a option, either promptly repaid W Borrower or credited W Borrower on monthly installments of Funds. If the amount of the Funds heW by Lender shall not be sufficient W pay taxes, assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary W make up the deficiency within 30 days from the date notice is mailed by Lender W Borrower requesting payment thereof. Upon payment in full of all soma 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 immediately prior to the Bale of the Property or its acquisition by Lender, any Funds 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 W Lender by Bon~ower under paragraph 2 hereof, then to interest payable on the Note, then W 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 hereof or, ; if not paid in such manner, by Borrower making payment, when due, directly to the payee thereoL Borrower shalt promptly furnish to Lender all rwtices o! amounts due under this paragraph, and in the event Borrower shall make payment directly, Borrower shal l promptly furnish to Lender receipts evidencing such payments. $orrower shall promptly discharge any lien which has priority over this Mortgage; provided, that Borrower shall not be required W discharge any such lien so long as Borrower shall agme in writing to the payment of theobligation secured by such lien in a manner acceptable W Lender, or shall in goad faith rnnteat such lien by, ordefend entorcernentof such lien in, legal proceedings which operate W 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 loss by fire, hazards included within the tens "extended coverage," and such other hazards as Lender may require and in such amounts and for such periods as Lender may require; provided, that Lender shall not require such coverage amount exceeding the minimum, as may be required by state or federal regulations governing activities of Lender, or that amount of coverage required to pay the sums secured by this Mortgage, whichever is the greater. li The insurance carrier providing the insurance shall be chosen by Borrower subject W approval by Lender; provided, that such approval ~ shall not be unreasonably withheld. All premiums on insurance policies shall be paid in the manner provided under paragraphs hereof or, if ' not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable W Lender and shall include a standard mortgage clause in favor of and in form acceptable W Lender. Lender shall have the right to hold the policies and renewals thereof, and Bon: ower shall promptly furnish to I!~ i.ender all renewal notices and all receipts of paid premiums. In the eventof lose, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. E 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 repair is ernnomicaily feasible and the security of this Mortgage is not thereby impaired. If such restoration or repair is not economically feasible or i[the security of this Mortgage would be impaired, the inauranceproceeda shall be applied to the Bums secured by this Mortgage, with the excess, if any, paid W Borrower. If the Property is abandoned by Bon-ower, or if Borrower fails to { respond W Lender within 30 days from the date notice is mailed by Lender W Borrower that the insurance carrier offers W settle a claim for insurance benefits, Lender is authorized W 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 proctirda W prinfiipal shall not extend or postpone thedue date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. If under paragraph 18 ~ hereof the Pro rt is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and to the proceeds f E ~ y thereof resulting from damage W Property prior W the sale or acquisition shall pass W Lender W the extent of the soma secured by this ~ Mortgage immediately prior W such sale or acquisition. 6. Preservation and Maintenance of Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not rnmmit 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 orcovemants 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 Borrower and recorded together with this Mortgage, the aovenanta and agreements of such rider shall be incorporated into and shall amend and supplement thecovenanta and agreementaof this Mortgage as ifthe rider were a part hereof. 7. Protection o! Lender's Security. If Bonaower fails W perform the covenants and agreements contained in this Mortgage, or it any action or proceeding is ewnmemeed which materially affects Lender,'s interest in the Property. including, but not United W, eminent domain, insolvency, code enforognent, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon notice W Borrower may make such appearances, disburse such soma and take such aMion as is necessary W protect Lender's interest, ~ including, but not limited to, disbursement of reasonabk attorney's fees and entry upon the Property W make repair. if Lender required mortgage inaunnce as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required b mountain such insurance in effect until such time as the requirement for such insurance terminates in accordance with Borrower's 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. My amounts diabuned by Lender pennant W this paragraph T, with interest thereon, shall become additional indebtedness of - Borrower secured by thin Mortgage. Unless Borrower and finder agree W other terms of payment, such amounts shall be payable upon notice from Lender W Borrower requesting payment thereof, f rid shall bear inteceat from the date of disbursement at the rate payable from ' time W time on outstanding principal under the Note unless payment of interest at such rate would be contrary W 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 W incur any expense or take any action hereunder. ~ot~7~KJJ7 PI?CE~i~ .f s~