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HomeMy WebLinkAbout1619 • Borrower and Lender covenant and agree as folbws: 1. Payment of Principal and ipterest. 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 andutteresf on any Future Advances secured by this Mortgage. 2. I~ltnds for Tuea and Insurance. Subject to applicable law or to a written waiver by [.ender. 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 "Funds")equal to o~s- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus erne- twelfth ofyearly premium installments for hazard insurance, plus one•twelfth of yearly premium installments for mortgage insurance. flans. • xll as reasonably estimated initially and from time to liens 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 Lender if lender is such an institution). Lender shall apply the Funds to pay said taxes, assessments, insurance premiums and ground ants. 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 ~tnds and applicable law pem?ite 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 is made or applicabk law requires such interest to be paid, Lender shall not be required to 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 theaums secured by this Mortgage. If 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 exceed the amount required to pay said taxes, assessments, insurance premiums and ground rents as they fall due, such excess shall be, at Bo+rowera option, either promptly repaid b Borrower or credited to Borrower on monthly installments of Funds. It the amount bf the Funds held by Lender shall not be sufficient to pay taxes. assessments, insurance premiums and ground rents as they fall due, Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed by Lender b 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. 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 sale of the Property or its acquisition by[.ender, any Funds held by Lender at the time of application as a credit against theaums 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 otamounta payable to Lender by Borrower under paragraph thereof. 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; Liana. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to the Property which m ay attain a priority over this Mortgage, and leasehold payments or ground rents, 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 payee thereof. Borrower shall promptly furnish to (.ender :+11 notices of amounts due under this paragraph, and in the event Borrower shat! make payment directly. Borrower shall promptly famish to t xnder receipts evidencing such payments.l3orrower 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 :+s Borrower shall agree in writing to the payment ottee obligation secured by such lien in a manner acceptable to Lender, or shall in good faith n:ntest such lien by, ordefend enfonement of such lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture +~f 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 (xnder may require and in such amounts and forsuch periods as (xnder may require; provided, that [xnder shall not require that the amount of such rnverage exceed that amount of coverage required to pay the sums secured by this Mortgage. The insurance carrier providing the insurnnm shall be chosen by tiorruwer subject to approval by (xnder; provided, that such approval shall not be unreasonably withheld. All premiums ern insurancecee pulicie:c shall Ix• paid in the manner provided under paragraph `l hereof or, if not paid in such manner, by Borrower making p:+yment, when due. directly to the insurance carrier- All insurance policies and renewals thereof shall be in form acceptable to Lender and shalt include a standard mortgagedause in favorof and in form acceptable to [.ender. [xndershall have the right to hold the p~~licies and renewals thereof, and Knrrower shall promptly furnish to i.ender all renewal notices and all receipts of paid premiums. In the event of lass, Ii++rn?wer shall give prompt notice to the insurance carrier and (.ender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shalt be 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 it 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. Itthe Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the date notice is mailed by (,ender to Borrower that the insurance carrier offers to settle a claim for insurance benefits, fender is authorized to collect and apply the insurance proceeds 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 th_e due date of the monthly ins4~llments referred to in paragraphs 1 and 2 hereof or change the amount of such installments. ([under paragraph 18 hereof the Property is acquired by (.ender, 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 (.ender to the extent of the soma secured by this Mortgage immediately prior to such sale or acquisition. - 6. Preservation and Maintenanceof Property; Leaseholds; Condominums; Planned Unit Developments. Borrower shall keep the Property in good repair and shall not commit 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 s planned unit development, Borrower shall perform all of borrower's obligations under the declaration or covenants creatingor governing the rnndominium 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 Ibrrower and recorded together with this Mortgage, the covenants amd agreements o(such rider shall be incorporated into and shall amend slid supplement thecorenants and agreementaof this Mortgageasifthe ' rider were a part hereof. 7. Protection of Lender's Security. If Borrower fails to perform the~covenants and agreements rnntained in this Mortgage, or if any action or proceeding is commenced which materially affects Ixnder'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 aMion 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 mortgage insurance as a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect unfit such time as the requirement for such insurance terminates in accordance with Borrower's and l.eriders 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 diabureed by Lender persuant to this paragraph with interest thereon, shall become additional indebtedness of Borrower secured by this Mortgage. Unless Borrower and Lender 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 otdisbureement at tht rate payable from 'time to time on outstanding principal under the Note unless 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 Lender to incur any expense or take any action hereunder. . ~ P~16i9 . , pY t