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HomeMy WebLinkAbout1119 Borrower and Lender covenant 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 late charges as provided in the Note, and the principal of and interest on any Future Advances secured by this Mortgage. 2. Ftutds torTa:es and Insurance. Subject to applicable law or to a written waiver by (.ender, Borrowerahall pay to l.enderon the day rt+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• - twelfth o[ 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 for mortgageinaurance, if any, all ae 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 Londe: if (.ender 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 Lender 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 of execution of this Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement ie made or applicable law requires such interest to be paid, (.ender shall not be required to pay Borrower any interest or earnings on the Fltnds. 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 Fonda was made. The Funds are pledged as additional security for the sums secured by this Mortgage. If the amount of the Finds held by [.ender, together with the future monthly installments of F unds payable prior to the due dates of taxes, assessments, insurance premiums and ground rents, shall a:creel the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Borrower's option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Fonda held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they tall due, Borrower shall pay to Lender 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, Lender shall promptly refund to Borrower any funds held by Lender. Itunder paragraph 18 hereof the Property is sold or the Property is otherwise acquired by [.ender, i.ender shall apply, no later than immediately prior to the sale 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 henwf shall be applied by Lender first in payment otamounta 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 on any Future Advances. 4. Charges; Liens. Borrower shall pay a0 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, directlyto the payee thereof. Borrower 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 b 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 :u: I~,m,wer shall agree in writing to the payment of the obligation secured by such lien in a manner acceptable to (xnder, or shall in g+K,d faith contest such lien by, ordefend enfonrment ofsuch lien in,legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. S. Hazard Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against losaby fire, hazards included within the team "extended coverage," and such other hazards as Ixnder may require and in such amounts and forsuch periods as Lender may require; provided, that Lender 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 insur.+n+r shall M• chosen 1?y li+~rruwer subj+rt to appnn•al by Lender; provided. that such approval shall not be unreasonably withheld-All premiums on insurance {Ndici+•s shall Ix• paid in the manner provid+d under par.+gr.+ph'l hereotor, if I!I not paid in such manner, by Itorrower making payment, when due, dir+•+•th• to the insurance carrier. All insurance policies and renewals thereof shall be in form acceptable w bender and shall include a standard mortgage clause in favorof and in form acceptableto Lender. Lendershall have the right t„ hold the policies and renewals thereof, and Borrower shall promptly furnish to tender all renewal notices and all receipts of paid premiums. In the event of loss, Borrower shall give prompt notice to the insurance carrier C and Lender. Lender may make proof of loss if not made promptly by Borrower. 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 economically feasible :+nd the securty of this Mortgage is not thereby impaired. It such restoration or repair is not economically feasible or if the security of this Mortg:ge 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 if Borrower fails to respond to Lender within :IO days from the date notice is mailed by Lender W Borrower that the insurance carrier offers to settle a claim for insurance benefits, [.ender is authorized to collect and apply the insurance proceeds at Fender a option either to restoration or repair of the Property or the sums secured by this Mortgage- Unleas 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 tv in paragraphs 1 and 21+ereof or change the amount of such installments. If under paragraph 18 hereof the Property is acquired by [.ender, all right, title and interest of l;t?rrower 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 (.ender to the extent of the sums secured by this Mortgage immediately prior to such sale or acquisition. . 6. Preservation and MaintenanceotProperty; I.eaarholds; Condominums; Planned Unit Developments. Borrowershall keep the Property in good repair and shall not commit waste or permit impairment or deterioration of the Property and shall comply with the provisidns 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, Forrower shall perform all of Borrower a obligations under the declaration or covenants creatingor governing the rnndominium or planned unit development, the bylaws and regulations of the condominium or planned unit development, and constituent documents. [f a condominium or planned unit development rider is executed by Borrower and recocded together with this Mortgage, the rnvenants and agreements of such rider shall t,e incorporated into and shall amend and supplement theccrvenants_anda~reements ofthis Mortgagees ifthe rider were a part hereof. ~ 7. Protection of Lender'a Security. If Borrower fails to perform the covenants and agreements rnntained in this Mortgage, or if any i action or proceeding is 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 sums and take such action as ie 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 secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effeM until such time as the requirement for such- insurance f~erminates 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 persuant to this paragraph 7, with interest thereon, shall bernme additionay indebtedness of i 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 under the Note unless payment of interest at such rate would be contrary to applicable law, in which t event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing rnntained in this paragraph 7, shall 3 require Lender to incur any expense or take any aMion hereunder. s 9 • ~ 5 i . - 800K ~ PACE ll~~ - ;