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HomeMy WebLinkAbout1626 _i, Borrower and Lender covenant end agree as tolbws: 1. Payment o! Principal and lntereat. Borrower shall promptly pay when due the principal of and interest on the indebtedness Pvidertoed by the Note, prepayment artd late charges as provided in the Note. and the principal of and interest on any Ptitture Advances secured by this Mortgage. 2. Fonds for Tasea and Insurance, Subject to applicable law onto a written waiver by Lender? Borrower shall pay to Lenderon 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 one- twelfth ofthe yearly taxes and assessments which may attain priority over this Mortgage, and ground rents on the Property, if any, plus one• twelfth otyearly premium installments for hazard insurance, plus onetwelM of yearly premium installments for mortgage insurance. if any, all as reasonably eatitnated initially and from time to titre by Lender on the basis of assessments and bills and reasonable estimates thereof The I~rnds 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 rents, Lends: may not charge for so holding and applying the Funds, analyzing said account, or verifying and compiling said asaessmertts 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 tune of execution of this Mortgage that interest on the Funds shall be paid to Borrower. and unlces such agreement is made or applicable law requires such interest b be paid, Lender shall not be required to pay Borrower any interest or • earnings on the Flmds. 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 thesums secured by this Mortgage. If the amount of the I~tnda held by Lender, together with the Iuture monthly installments of Funds payable prior to the duedates of taxes, asseaamenta, 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 Borrower a option, either promptly repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of 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. - Uponpayment in fuU ofall soma secured by this Mortgage, Lender shat! 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 itsaoquisition by Lender, any Funds held by Lender at the time of application as a credit against the sums secured by this Mortgage. - 3. Application of Payments. Unless applicable !aw provides otherwise, all payments received by Lender under the Note and paragraphs 1 and 2 hereof ahaU be applied by Lender first in payment of amounts 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 shalt pay all taxes, assessments and othercharges, 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, direMly to the payee thereof. Borrower shall promptly furnish to Lender all notices of amounts due under this paragraph, and in the event Borrower shalt make payment directly. Borrower shall promptly furnish to [.ender receipts evidencingsuch payments. Borrower shall promptly discharge any lien which has priority over this Mortgage: provided, that Harrower shall not be required to discharge any such lien so long as Bc?rrc?wer shall agree in writing to the payment of the obligation secured by ,uch lien in a manner acceptable to ixnder, or shall in good faith contest such lien by,?ndefend enforcement ofsuch lien in, legal proceedings which operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. 5. Hazard lnaurance. 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 Lender may require and in such amountsand 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 insuranm sh:dl be chosen by lic?rmwer subject to approval M Lender, provided, that such approval shall not be unreasonably withheld. All premiums un insurancx policies shall 1?e paid in the manner provided under paragraphs hereof or, if a not paid in such manner, by Borrower making payment, when due, directly to the insurance carrier. - Allinsurance policies and renewals thereo[ shall be in form acceptable p? (.ender and shall include a standard mortgage clause in favor of and inform acceptable to Lender. [.endershall have the right tc? hold the policies and renewals thereof, and Borrowershall promptly furnish to c,ender all renewal notices and all receipts o! paid premiums. In the event of loss. Born?wer shall give prompt notice to the insurance carrier 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 and the security of this Mortgage is not thereby impaired. If such rests?ration or repair is not economically feasible or if the security of this Mortgage would be impaired, theinsurance proceedsshall 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 30 days from the date notice is mailed by Lender to Borrower that the insurance carrier offers toaettle a claim for insurance benefits, mender is authorized to collect and apply the insurance proceeds at i.ender s option either to restoration or repair of the Property or the soma secured by this Mortgage. Unless Lender and Borrower otherwise agree in writing, any such application of pmceetla to principal shall not extend or postpone thedue date of the monthly installments referred tc? in paragraphs F and 2 hereof or change the amouirt of such installments. If under paragraph 18 hereof the Property is acquired by Lender, all right, title and interest of Borrower in and to any insurance policies and in and b the proceeds thereof resulting from damage to Property prior to the sale or acgwsition shall pass to Fender to the extent of the sums secured by this . Mortgage immediately prior to such sale or acquisition. 6. Preservation and Maintenance otProperty; Leaseholds; Condominuma; Planned Unit gevelopmt; refs. 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. 1f this Mortgage is on a unit in a condominium or a planned unit development, ~ Borrower shall perform all of Borrower a obligations under the declaration or covenants cre:itingor governing the rnndominium or planned unit development, the by-laws and regulations of the condominium or planned unit development, and constituent documents. Ii a condominium or planned unit development rider is executed by Borrower and recorded together with this Mortgage, the covenants and ~ agreements ofsuch rider shall be incorporated into and shall amend and supplement thecovenantsandagreementaofthiaMortgageasifthe rider were a part hereof. _ 7. Protection of Leader's Security. If Borrower fails to perform the covenants and agreements cnntained in this Mortgage, or if any action or proceeding ie rnmmenced which materially affects Lender's intere~at in the Property, including, but not limited to, eminent domain, a insolvency, code enforcement, or arrangements or proceedings involving a bankrupt or decedent, then Lender at Lender's option,upon cep notice to Borrower may make such appearances, disburse such sums and take each action as ie necessary to protect Lender's interest, ~ l including, but not limited to, disbursement of reasonable attorney's fe~ea and entry upon the Property to make repairs. If Lender required ~ mortgage insurance sus a condition of making the loan secured by this Mortgage, Borrower shall pay the premiums required to maintain such insurance in effect until such time as the requirement for such insurance terminates i4 accordance with Borrower's and Lenders written agreement or applicable Law. Borrower shall pay the amount of all mortgage insurance premiums in the manner provided under o paragraph 2 hereof. Any amounts disbursed by Lender perauant to thin paragraph with interest thereon, shall berome additional indebtedness of Forrower 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 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 event such amounts shall bear interest at the highest rate permissible under applicable law. Nothing contained in this paragraph 7, ahaU require Lender to incur any expense or take any action hereunder. ji . ; - e 1 _ _..T_ - -